91 Objective Questions (Banking Awareness)

1) A Bank’s fixed deposit is also referred to as a –

Ans :- Demand Deposit,

2) Which schemes is launched by the Govt. of India to provide banking

services in 73,000 villages in India?

Ans :- Swabhiman,

3) Foreign Exchange Reserves in India are maintained and managed by –

Ans :- RBI,

4) If a person had income from salary, pension and interest income, then
which Income Tax Form will be filled by him?

Ans :- ITR-1,

5) With which FMC is related in financial parlance?

Ans :- Commodity futures markets,

6) Infrastructure bonds are issued by government or non-government

institutions to fund projects related to –

Ans :- Transportation, Electricity generation, Public facilities,

7) Balance of payment transactions are made by –

Ans :- Government bodies,

8) When a bank is financing an International Business it in fact, is involved in

which of the following?

Ans :- Trade Finance,

9) Which schemes/products launched by the banks to provide instant loan

facility to the farmers?

Ans :- Kisan Credit Card,

10) International Standards on Combating Money Laundering and the
Financing of Terrorism and Proliferation are framed by –

Ans :- FATF,

11) Which first Bank was established in India?

Ans :- Bank of Hindustan,

12) Insurance service provided by various banks is commonly known as –

Ans :- Bancassurance,

13) Which organisations is involved in providing the insurance against various

rirks to the exportes?

Ans :- EXIM Bank,

14) Which first bank in India to fully own an insurance business?

Ans :- Kotak Mahindra Bank,

15) Singapore’s Central Bank and Financial Regulatory Authority is known as

–

Ans :- Monetary Authority of Singapore,

16) The minimum lock in period under the recently re-launched Kisan Vikas
Patra Scheme is –

Ans :- Two years and three months,

17) With the government notifying changes in the Public Provident Scheme
(PPF), Investors can now deposit upto –

Ans :- Rs. 1.50 lac annually,

18) An account can be opened under the recently launched Sukanya Samridhi
Yojana at any time from the birth of a girl child till she attains the age of –

Ans :- Ten years,

19) The fourteen major banks in India were nationalised in the year –
Ans :- 1969,

20) One rupee notes are issued by the –

Ans :- Government of India,

21) The number of Nationalised Banks in India are –

Ans :- 20,

22) Providing bank finance to Self Help Groups (SHGs) is considered a part of
–

Ans :- Micro Credit,

23) Which is the highest finance body for small scale industries?

Ans :- SIDBI,

24) Reserve Bank of India was established on –

Ans :- April 1, 1935,

25) Which organization is called Bankers Bank?

Ans :- Reserve Bank of India,

26) Know Your Customer terms is used in the field of -

Ans :- banking and finance,

27) Reserve Bank of India was Nationalised in?

Ans :- 1949,

28) Which bank on 29 May 2015 launched an online customer acquisition

solution through which one can apply for home, car, education and personal
loans online?

Ans :- SBI,

29) The Banks are required to maintain a certain ratio between their cash in
hand and total assets. What is this called?
Ans :- CRR,

30) The banks are required to maintain a certain ratio between their cash-in-
hand and total assets. This is called –

Ans :- Statutory Liquid Ratio (SLR),

31) The SBI has signed an agreement with which agencies to obtain a
guarantee cover to its loans to Micro and Small Enterprises ?

Ans :- Credit Guarantee Trust,

32) What is the role of Banking Ombudsman?

Ans :- To look into and resolve customers complains related to banking

services,

33) Which banks has launched a new product Defence Salary Package –
Army for the jawans of the defence services in India?

Ans :- State Bank of India,

34) Which is the total number of languages on currency notes issued by the
Reserve Bank of India?

Ans :- 17,

35) To which does the lowering of Bank Rate by the Reserve Bank of India
leads?

Ans :- More liquidity in the market,

36) Which bank was earlier called the Imperial Bank of India?

Ans :- SBI,

37) Convertibility of the rupee implies –

Ans :- Freely permitting the con-version of rupee to other major currencies

and vice-versa,
38) What is the term for banks lending to farmers for agriculture, micro and
small enteprises, and other weaker sections wherein banks are required to
lend up to 40 percent of the loans?

Ans :- Retail lending,

39) Which services relate to execution of trarsactions directly with consumers,

rather than corporations or other banks?

Ans :- Corporate Banking Services,

40) The Aadhaar-enabled payment system is banking-led model that

facilitates banking facilities through banking correspondents across banks.
However, Aadhaar enabled basic types of banking transactions do not include
–

Ans :- Small Overdraft Facility,

41) In India, in which banking is the Public Sector is most dominant?

Ans :- Commercial banking,

42) Basel II relates to which?

Ans :- International standards for measuring the adequacy of a bank’s capital,

43) Which Mahatma Gandhi series of currency notes issued by the RBI has
ecology depicted on it?

Ans :- Rs. 100,

44) Under the Sukayana Samridhi Yojana (SSN), the interest is payable by the
Bank at the rate of –

Ans :- 9.1%,

45) Of which purpose was Nationalisation of banks done?

Ans :- Consolidating the economy,

46) In 1921, the Presidency Banks of Bengal, Madras and Bombay were
nationalised to give birth to which bank?
Ans :- State Bank of India,

47) Who sings on One-rupee currency notes?

Ans :- Finance Secretary of India,

48) In India, which first bank of limited liability managed by Indians and
founded in 1881?

Ans :- Oudh Commercial Bank,

49) Bouncing of cheques has become an offence. What is the punishment for
the same?

Ans :- 6 months imprisonment,

50) Which Public Sector bank emblem figures a dog and the words faithful,
friendly in it?

Ans :- Syndicate Bank,

51) Who is responsible for the collection and publication of monetary and
financial information?

Ans :- Reserve Bank of India,

52) Which is at the apex of Industrial Finance in India?

Ans :- Industrial Development Bank of India,

53) Which bank gives long term loan to farmers?

Ans :- Land Development Bank,

54) The central banking functions in India are performed by the -

Ans :- Reserve Bank of India

55) Financial year in banks is a period from –

Ans :- April to March,

56) Foreign Exchange Reserves in India are maintained and managed by –

Ans :- RBI,

57) On July 12, 1982, the ARDC was merged into -

Ans :- NABARD,

58) Deficit financing means that the government borrows money from the -

Ans :- RBI,

59) If the RBI adopts an expansionist open market operations policy, this
means that it will -

Ans :- offer commercial banks more credit in the open market,

60) What is Broad money in India?

Ans :- M3,

61) By which bank are the central banking functions in India performed?

Ans :- Reserve Bank of India,

62) Of which bills Open market operations of a Central Bank are sale and
purchase?

Ans :- Trade bills,

63) Which was the first bank with limited liability managed by Indians?

Ans :- Oudh Commercial Bank,

64) When was Punjab National Bank established?

Ans :- 1894,

65) Which is the largest commercial bank of India?

Ans :- State Bank of India,

66) Which is the apex institution of housing finance in India?

Ans :- National Housing Bank,

67) Who owns the entire share capital of RBI?

Ans :- The government of India,

68) Scheduled banks submit ___returns of their business to the RBI -

Ans :- weekly,

69) When did State Bank of India Act come into existence?

Ans :- 1955,

70) When was Banking Regulation Act Passed?

Ans :- 1949,

71) When was SBI nationalised?

Ans :- 1955,

72) Open market operations of a Central Bank are sale and purchase of -

Ans :- trade bills,

73) What is a Scheduled Bank?

Ans :- A bank included in the Second Schedule of RBI Act,

74) Nationalistion of banks was done with the purpose of -

Ans :- consolidating the economy,

75) The scheme of Different Rate of Interest aims at providing bank credit to -

Ans :- Weaker sections of the society,

76) Name the Indian Bank which is having the largest number of branches
abroad -

Ans :- State Bank of India,

77) The Largest Public Sector in India is -

Ans :- State Bank of India,

78) In which of the following banks one cannot open a personal account?

Ans :- Reserve Bank of India,

79) Ten rupee notes bear the singature of -

Ans :- Governor, Reserve Bank of India,

80) The National Housing Bank is a Subsidiary of -

Ans :- Reserve Bank of India,

81) If the cash reserve ratio lowered by the Central bank, what will be its effect
on credit creation?

Ans :- Increase,

82) The first Indian Bank was -

Ans :- Presidency Bank of Bombay,

83) Interest Rate Policy is a component of -

Ans :- Monetary Policy,

84) What is a Bank which has capital and reserves of over Rs. 5 lakhs called?

Ans :- Scheduled Bank,

85) The Export-Import (EXIM) Bank was set up in -

Ans :- 1982,

86) In India,coins and subsidiary coins are issued by -

Ans :- Reserve Bank of India,

87) SWIFT codes are mainly user by -

Ans :- Banks,
88) Kash is the payment system based on -

Ans :- Direct Debit,

89) The Electronic Funds Transfer at Point of Sale (ESTPOS) is an electronic

payment system based on -

Ans :-Debit and Credit Cards,

90) A bank without any branch network that offers its services remotely
through online banking, telephone/mobile banking and interbank ATM network
alliances is known as -

Ans :- Direct Bank,

91) Banks mandatory lending to farmers for agriculture, micro and small
enterprises, and other weaker sections wherein banks are required to lend up
to 40 percent of the loans is generally described as -

Ans :- Priority sector lending,