Set 16 – Banking General Awareness Quiz for SBI IBPS Bank PO/Clerk

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  1. The first private bank in India to receive an in-principle approval from the RBI ?
    (1) ICICI
    (2) HDFC
    (3) Axis Bank
    (4) IDBI
    (5) None of these

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    Solution :   (2)
  2. The Narasimham Committee for financial sector reforms suggested reduction in :
    (i) SLR and CLR
    (ii) SLR, CRR and priority sector lending
    (iii) SLR and financing to capital goods
    Which of the following options is correct ?
    (1) (ii) and (iii)
    (2) (i) and (iii)
    (3) Only (iii)
    (4) Only (i)
    (5) None of these

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    Solution :   (4)
    Only in SLR and CRR. SLR-Statutory liquidity ratio is the Indian government term for reserve requirement that the commercial banks in India require to maintain in the form of gold, cash or government approved securities before providing credit to the customers.
    CRR-Cash Reserve Ratio is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as  reserves with the central bank.
  3. Which of the following is a stale cheque ?
    (1) A cheque issued without drawer’s signature
    (2) A cheque issued with drawer’s signature
    (3) A cheque which has completed three months from its date of issue
    (4) A six months post dated cheque
    (5) Any one of the above

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    Solution : (3)
    A cheque which a bank will not accept and exchange for money or payment because it was written more than a certain number of months ago.
  4. The “No Frill Accounts” facility provided by banks is aimed at which of the following categories of people ?
    (1) Corporate world
    (2) Senior citizens
    (3) Current account holder
    (4) Poor people
    (5) Government people

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    Solution :   (4)
    No frill accounts are for poor people. Banks were advised in November 2005 to make available a basic banking ‘No-frills’ account either with ‘nil’ or very low minimum balance as well as charges that would make such accounts accessible to vast sections of population.
  5. Which of the following is treated as artificial currency ?
    (1) ADR
    (2) GDR
    (3) SDR ,
    (4) Equity shares
    (5) Both ADR and SDR

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    Solution :  (3)
    Special Drawing Rights is treated as artificial currency.A currency that does not circulate and is used for accounting purposes only.
  6. EFT stands for :
    (1) Effective Fund Transfer
    (2) Efficient Funds Transfer
    (3) Easy Fund Transfer
    (4) Electronic Fund Transfer
    (5) None of these

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    Solution :  (4)
    Electronic Fund Transfer (EFT) is the electronic exchange, transfer of money from one account to another, either within a single financial institution or across multiple
    institutions, through
    computer-based systems.
  7. What are White Label Automated Teller Machines ?
    (1) ATMs to be set-up in unbanked sectors
    (2) ATM for credit accounts
    (3) ATM owned and operated by non banking entities
    (4) Biometric ATMs for uneducated people
    (5) None of these

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    Solution :   (3)
    White Label Automated Teller Machines-When ATMs are owned and operated by non-bank entities but they are not doing outsourcing-contract’ from a particular bank.
  8. The headquarters of World Bank is in :
    (1) Washington DC
    (2) London
    (3) Paris
    (4) Geneva
    (5) None of these

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    Solution : (1)
  9. As we all know that banks in India are required to maintain a portion of their demand and time liabilities with the Reserve Bank of India. This portion is called :
    (1) SLR
    (2) Bank Deposit
    (3) Reverse Repo
    (4) CRR
    (5) None of these

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    Solution :   (4)
    CRR—Cash Reserve Ratio It is only in form of cash. It is not refundable. Cash Reserve Ratio is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves with the central bank.
  10. In India, the National Income is measured on the basis of :
    (1) Flow of goods only
    (2) Number of employed youth only
    (3) Earning of people working in PSUs and government jobs
    (4) Volume of tax collected per annum
    (5) None of these

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    Solution :   (3)
    National income is the total value a country’s final output of all new goods and services 36. (3) ; produced in one year. Understanding how national income is created is the starting point for macroeconomics.
  11. Which of the following economic concept is categorized on the basis of current account or capital account or both ?
    (1) Balance of Payment
    (2) Value of the Food grain Stock of a country
    (3) Gross National Product
    (4) Gross National Income
    (5) None of these

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    Solution : (1)
    Current Account—An account with a bank or building society from which money may be withdrawn without notice, typically an active account catering for frequent deposits and withdrawals by cheque.   Capital account—The capital account is the net result of  public and private international investments flowing in and out of a country. May also refer to an account showing the net worth of a  business at a specific point in time.
  12. Which of the following act is/was introduced for the purpose of sustainable growth ?
    (1) Narcotics and Psychotropic Substance Act
    (2) Foreign Exchange Management Act
    (3) Banking Regulation Act
    (4) Prevention of Money Laundering Act
    (5) None of these

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    Solution :   (2)
    FEMA—An Act to consolidate and amend the law relating to foreign exchange with the objective of facilitating
    external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.
  13. Sometimes we see a reference of “Least Developed Country” in the economic journals / papers etc. Which among the following is one of the parameters on the basis of which a country in economic parlance is labelled “Least Developed” ?
    (1) Those countries having instability in agriculture / industrial production.
    (2) Huge losses due to natural disasters resulting in displacement of people in majority
    (3) No change in government in last ten years as general elections did not take place
    (4) Low per capita income
    (5) None of these

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    Solution :   (3)
  14. IAEA is an organization which functions in the area of :
    (1) Prevention of money laundering
    (2) Control of foreign direct investment
    (3) Nuclear energy
    (4) Terrorist control
    (5) None of these

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    Solution :   (3)
    IAEA—International Atomic Energy Agency. Its headquarters is in Vienna, Austria.The International
    Atomic Energy Agency (IAEA) is an international organization that seeks to promote the peaceful use of nuclear energy, and to inhibit its use for any military purpose, including nuclear weapons. The IAEA was established as an autonomous organization on 29th July, 1957.
  15. Which of the following organizations is established mainly to promote micro, small and medium industrial sector in India ?
    (1) NABARD
    (2) SIDBI
    (3) IDBI
    (4) EXIM BANK
    (5) None of these

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    Solution :   (2)
  16. What does the term “AAY” denote which is the short form of social scheme launched by the Government of India ?
    (1) Antodaya Awas Yojana
    (2) Asian Awas Yojana
    (3) Antodaya Anna Yojana
    (4) Area Antodaya Yojana
    (5) None of these

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    Solution :  (3)
    AAY—Antodaya Anna Yojana. Antyodaya Anna Yojana (AAY) is an Indian government sponsored scheme for ten million of the poorest families. It was launched by NDA government in December 2000. It is on the look out for the ‘poorest of the poor’ by providing them 35 kilograms of  rice and wheat at 3 & 2 per kg. respectively.
  17. Which of the following acts help a bank in its day to day activities ?
    (1) Competition Act
    (2) Negotiable Instrument Act
    (3) Hindus Marriage Act
    (4) Hindus Succession Act
    (5) None of these

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    Solution :   (2)
  18. Which of the following is not asset of a bank ?
    (1) Notes and Small Coins
    (2) Short-term Loans
    (3) Staff Advances
    (4) Overdue Recurring Deposits
    (5) None of these

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    Solution :   (4)
  19. The base rate is set by which of the following organizations/ institutions ?
    (1) Individual Bank
    (2) Government of India
    (3) Reserve Bank of India
    (4) State Bank of India
    (5) None of these

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    Solution :   (1)
  20. The banking company has restriction to sanction loan to :
    (1) Staff working in the bank
    (2) RBI staff
    (3) Director of the bank
    (4) All of the above
    (5) None of the above

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    Solution :   (3)

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