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List of 50 Important Banking Awareness Questions for Bank PO and Clerk Exams- Paper-III:

1).A bank which accepts deposits makes business loans, and offers related services is called
as_________.
a) Development Bank
b) Commercial Bank
c) Central Bank
d) Investment Bank
Answer is: b
2).What is the name of the banks which acts as a banker of all other banks?
a) Development Bank
b) Saving Bank
c) Central Bank
d) World Bank
Answer is: c
3).In which of the following type of bank account, a depositor can deposit his funds any
number of times he likes and can also withdraw the same any number of times he wishes?
a) Demat Account
b) Recurring Account
c) Saving Account
d) Current Account
Answer is: d
4).In which type of account a specified amount is deposited every month for a specific period,
say, 12, 24, 36 or 60 months?
a) Recurring Account
b) Demat Account
c) Current Account
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d) Fixed Deposit Account
Answer is: a
5).An inter-bank funds transfer system, where funds are transferred as and when the
transactions are triggered, is called_________.
a) Mobile Banking
b) Bill Payment Service
c) Internet Banking
d) Real Time Gross Settlement (RTGS)
Answer is: d
6).Among the following which is the primary functions of the banks?
a) Acting as trustees and executors of the property of their customers on their
advice.
b) Accepting deposits
c) Collecting and payment of cheques, rent, interest, etc on behalf of their
customers.
d) Buying, selling and keeping in safe custody, the securities on behalf of their
customers.
Answer is: b
7).What is the name of the terminal that used to swipe the credit or debit cards during payment
of a service at a merchants store?
a) Shopping Terminal
b) Real Time Terminal
c) Point of Sale Terminal
d) None of these
Answer is: c
8).What is tagline of Bank of Baroda?
a) Indias Multinational Bank
b) Worlds Local Bank
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c) International Bank of India
d) Indias International Bank
Answer is: d
9).Among the following which is not the part of the Scheduled Banking Structure in India?
a) Public Sector Banks
b) Money Lenders
c) Regional Rural Banks
d) Private Sector Banks
Answer is: b
10).BCSBI stands for________.
a) Banking Codes and Standards Board of India
b) Banking Credit and Standards Board of India
c) Banking Credit and Service Board of India
d) Banking Codes and Service Board of India
Answer is: a
11).The Commercial Banking System in India consists of ___________.
a) Regional Rural Banks and Cooperative Banks
b) Scheduled and Non- Scheduled Banks
c) Nationalized Banks and Private Sector Banks
d) None of these
Answer is: b
12).EBT stands for_________.
a) Electronic Behind Treatment
b) Electronic Belated Transfer
c) Electronic Benefit Transfer
d) Electronic Begin Transaction
Answer is: c
13).Telebanking service is based on_________.
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a) Virtual Banking
b) Online Banking
c) Core Banking
d) Voice Banking
Answer is: d
14).Among the following which is NOT a public sector Bank?
a) HDFC
b) Bank of Baroda
c) Indian Overseas Bank
d) State Bank of Mysore
Answer is: a
15).Systematic Investment Plans are a customer centric facility provided by which of the
following?
a) Private Banks
b) Commercial Banks
c) Stock Brokers
d) Mutual Funds
Answer is: d
16).Among the following terms, which is NOT related to banking and financial transaction?
a) Credit default swap
b) Securitization
c) Consolidation
d) Provision coverage ratio
Answer is: c
17).Which one of the following does not quality as priority sector lending by Commercial
Banks?
a) Small Industrial Loan
b) Software Exports
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c) Small Business Loans
d) Education Loans
Answer is: b
18).A bank normally does not have a deal with as issue related to__________.
a) Intellectual property rights
b) Payment and settlement system
c) Contractual rights of creditors
d) Cases of insolvency
Answer is: a
19).Non-performing assets are cause for serious concerns for banks. Why are these loans
known as non-performing?
a) Banks have to make provision for these loans in their balance sheet
b) Interest on these accounts are not charged
c) Recovery of banks funds are difficult
d) All of the above
Answer is: d
20).Banks has different interest rates for different loans products. To which rate are these
interest rates linked?
a) RBI Administered rate
b) Prime lending rate
c) Base rate
d) Bank rate
Answer is: c
21).The rate at which the RBI lends short-term money to the banks is known as?
a) Repo Rate
b) PLR
c) CRR
d) Reverse Repo Rate
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Answer is: a
22).In which year does the Reserve Bank of India was nationalized?
a) 1949
b) 1950
c) 1952
d) 1955
Answer is: a
23).Which of the following acts governs the RBI Functions?
a) Foreign Exchange regulation act 1973
b) Companies Act 1956
c) Banking Regulation Act 1949
d) RBI Act 1934
Answer is: d
24).Among the following which is NOT a function of RBI?
a) Accepting deposits from commercial banks
b) Issuer of currency
c) Accepting deposits from general public
d) The banker of the government
Answer is: c
25).Where was the headquarters of RBI is located?
a) Delhi
b) Mumbai
c) Kolkata
d) Chennai
Answer is: b
26).Who is the first government of the RBI?
a) Sir Benegal Rama Rao
b) Sir James Taylor
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c) Sir Osborne Smith
d) C D Deshmukh
Answer is: c
27).Among the following which is NOT decided by RBI?
a) Bank Rate
b) Reverse Repo Rate
c) Base Rate
d) Repo Rate
Answer is: c
28).RBI was set upon the recommendation of ____________.
a) Mahalanobis Committee
b) Fazal Ali Commission
c) Narasimham Committee
d) Hilton- Young Commission
Answer is: d
29).In India, RBI prescribes the minimum SLR level for scheduled commercial banks in India in
specified assets as a percentage of banks_________.
a) Time Liabilities
b) Net Demand and Time Liabilities
c) Demand Liabilities
d) None of these
Answer is: b
30).CRR refers to the share of ______ that banks have to maintain with RBI of their net
demand and time liabilities.
a) Liquid Cash
b) Solid Cash
c) Forex reserves
d) Gold
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Answer is: a
31).Among the following which service is NOT offered by RBI to Government departments?
a) Distributing RBI Bonds to Government departments
b) Payment of salaries and pensions
c) Remittance facilities
d) Direct and indirect tax collections
Answer is: a
32).Which is the quantitative instrument of RBI?
a) Statutory Liquidity Ratio
b) Cash Reverse Ratio
c) Bank Rate Policy
d) All of the above
Answer is: d
33).When RBI is lender of last resort, what does it mean?
a) RBI stops providing funds to all banks
b) RBI Advances necessary credit against eligible securities
c) Commercial Banks gives fund to the RBI
d) RBI advances necessary credit against eligible securities
Answer is: d
34).CASA stands for_______.
a) Customer Analysis and Saving Pattern
b) Current Account and Savings Account
c) Credit Account and Savings Account
d) Cost Appreciations and Selling analysis
Answer is: b
35).Banks are allowed to sell which of the following third party products?
a) Mutual Funds
b) Credit Cards
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c) Term Deposits
d) Gift Cheques
Answer is: a
36).When RBI raises the Cash Reserve Ratio, which of the following action will banks take?
a) Bank have to decrease the deposit rates
b) Banks are required to increase their lending to the priority sector
c) Banks have to increase their lending and deposit and rate
d) They have to deposit additional money with RBI as reserve money
Answer is: d
37).Among the following statement which is correct?
a) The fiscal policy of India is approved by RBI
b) RBI has the Deputy chairman Planning commission on its board
c) RBI is responsible for the overall monetary policy
d) RBI is just like all other commercial banks
Answer is: c
38).What is meant by Bank rate
a) Rate of interest charged by banks from borrows
b) Rate of interest charged by RBI on its loans to banks
c) Rate of interest on Interbank loans
d) Rate of Interest on bank deposits
Answer is: b
39).Increase in remittance from non-resident Indians suggests______.
a) Reduces the balance of payments deficit in India
b) Has no effect on the balance of payments position
c) Increases the balance of payments deficit in India
d) All of the above
Answer is: a
40).Among the following which is NOT a method of Credit Control?
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a) Open Market Operations
b) Bank Rate Policy
c) Cash Reverse Ratio
d) Credit Deposit Ratio
Answer is: d
41).Who among the following is the responsible person to decide the quantity of the coins to
be minted?
a) The Government of India
b) SEBI
c) RBI
d) None of these
Answer is: a
42).Which of the following methods is currently used in India to issue note?
a) Percentage Reserve System
b) Fixed Fiduciary System
c) Minimum Reserve System
d) Roportional Reserve System
Answer is: c
43).Under Bretton Woods System, as a member of IMF, India declared its par value of rupee in
terms of______.
a) Australian Dollar
b) American Dollar
c) British Pound
d) Gold
Answer is: d
44).From 25th September 1975, Rupee was de-linked from pound sterling and was linked
to________.
a) US Dollar
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b) Basket of Currencies
c) Gold
d) Dinar
Answer is: b
45).On 1st March, 1992, Reserve Bank of India announced a new system of exchange rates
known as_______.
a) Partial Convertibility
b) Liberalized Exchange rate system
c) Both a) and b)
d) None of these
Answer is: c
46).In India, Fixed Fiduciary System of note issue was in force from________.
a) 1947 to 1954
b) 1890 to 1950
c) 1920 to 1947
d) 1816 to 1920
Answer is: d
47).Which among the following statements is correct about soiled/mutilated note?
a) Banks are expected to offer this service even to non-customers
b) The RBI has also authorized all commercial bank branches to treat certain notes
in two pieces as soiled notes and pay exchange value
c) All banks are authorized to accept soiled notes across their countries and pay
exchange value
d) All of these
Answer is: d
48).Among the following which were the first rulers in India to issue coins which can be
definitely attributed to the kings?
a) Indo-Greeks
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b) Kushans
c) Shakas
d) Parthians
Answer is: a
49).The decimal system of note and coin issue was started in India in______-.
a) 1950
b) 1947
c) 1957
d) 1960
Answer is: c
50).Under which section of the Reserve Bank of India Act, the RBI has the sole right of note
issue?
a) 32
b) 28
c) 26
d) 22
Answer is: d

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