Set 2 – Banking General Awareness Quiz for SBI IBPS Bank PO/Clerk

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  1. Liquidity of a more enduring nature arising from large capital flows is absorbed through sale of
    (1) Short-dated governmenti securities
    (2) Sale of government bonds
    (3) Treasury bills
    (4) Both 1 and 3
    (5) None of these

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    Solution : 4
    Liquidity of a more enduring nature arising from large capital flow is absorbed through sale of short dated government securities and treasury, bills.
  2.  What is the currency of Argentina ?
    (1) EURO
    (2) Peso
    (3) Dram
    (4) Lek
    (5) None, of these

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    Solution : 2
    The currency of Argentina is Peso.
  3. Luanda is the capital of which country ?
    (1) Austria
    (2) Armenia
    (3) Angola
    (4) Belarus
    (5) None of these

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    Solution : 3
    For others :
    Country        Capital
    Austria          Vienna
    Armenia        Yerevan
  4. When is the ‘World Health Day’ celebrated ?
    (1) 8th March
    (2) 29th February
    (3) 28th February
    (4) 7th April
    (5) None of these

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    Solution : 4
    7th April – World Health Day
    8th March – International Women’s Day
    28th February – UNESCO
  5. In which year, the priority sector lending targets were introduced ?
    (1) 1969
    (2) 1985
    (3) 1974
    (4) 1975
    (5) None of these

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    Solution : 3
  6. Which among the following is not the indirect instrument in the formulation and implementation of monetary policy ?
    (1) Liquidity adjustment facility
    (2) Repo/Reserve Repo Rate
    (3) Open Market Operation (OMO)
    (4) Statutory Liquidity Ratio (SLR)
    (5) None of these

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    Solution : 4
    Statutory liquidity ratio is the direct instrument in the formulation of monetary policy. Monetary policy is one of the ways that the U.S. government attempts to control. the economy. If the money supply grows too fast, the rate of inflation will increase; if the growth of the money supply is slowed too much, then economic growth may also slow.
  7. What is the rate called at which the Reserve Bank is ready to buy or rediscount bills of exchange or other commercial papers ?
    (1) Bank rate
    (2) Base rate
    (3) BPLR
    (4) Repo rate
    (5) None of these

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    Solution : 1
    Bank rate, also referred to as the discount rate, is the rate of interest which a central bank charges on loans and advances to a commercial bank.
  8. Review of macroeconomic and monetary development is the detailed background report, released by :
    (1) World Bank
    (2) RBI
    (3) Asian Development Bank
    (4) International Monetary Fund
    (5) None of these

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    Solution : 2
    The Reserve Bank of India is India’s Central Banking Institution, which controls the Monetary Policy of the Indian Rupee. It commenced its operations on 1 April, 1935 during the British Rule in accordance with the provisions of the Reserve Bank of India Act, 1934.
  9. What is the period of maturity of the financial assets in which money market deals ?
    (1) 60 days
    (2) 1 year
    (3) 90 days
    (4) One and half year
    (5) None of these

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    Solution : 2
    The money market for a short term fund, which deals in financial assets whose period of maturity is up to one year.
  10. What is trade bill ?
    (1) Trade bill is an instrument, which enables the drawee of the bill to get funds for short period to meet the working capital needs
    (2) Trade bill is an instrument, which enables the drawer of the bill to get funds for short period to meet the working capital needs
    (3) Trade bill is an instrument of exchange which RBI issues for selling its securities
    (4) Trade bill is a bill which the government sells in the open market to increase its reserves
    (5) None of these

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    Solution : 2
    When trade bills are accepted by commercial banks, they are known as commercial bank.A non-interest-bearing written order used primarily in international trade that binds one party to pay a fixed sum of money to another party at a predetermined future date
  11. Khandelwal committee is associated with :
    (1) Banking
    (2) Insurance
    (3) Budget
    (4) Hospitality
    (5) None of these

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    Solution : 1
    Khandelwal Committee is associated with banking.
  12. What is the allowed limit of FDI in private banking sector of India through automatic route ?
    (1) 50%
    (2) 49%
    (3) 51%
    (4) 55%
    (5) None of these

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    Solution : 2
    FDI in private sector Bank of India is allowed up to 74% where FDI up to 49% is allowed through automatic and FDI beyond 49% but up to 74% is allowed through approval route. A foreign direct investment (FDI) is a controlling ownership in a business enterprise in one country by an entity based in another country.
  13. The strategic forces commend successfully test—fixed the — Prithvi-II missile from Chandipur in Odisha’s Balasore District.
    (1) Surface-to-air
    (2) Air-to-air
    (3) Air-to-surface
    (4) Surface-to-surface
    (5) None of these

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    Solution : 4
  14. Which of the following statement(s) is / are true about willful default ?
    (1) The willful default party diverts the finance away. from the purpose it was availed for
    (2) The party defaults in meeting its payment obligations even if it has capacity to repay
    (3) It means that a party does not make a payment out of its will
    (4) All of the above
    (5) None of the above

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    Solution : 3
    Willful default party does not make payment out of its will.
  15. Which of the following is not categorized as a NPA ?
    (1) Risk assets
    (2) Substandard assets
    (3) Doubtful assets
    (4) Loss assets
    (5) None of these

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    Solution : 1
    The three categories of NPAs are :
    (1) Substandard assets
    (2) Doubtful assets
    (3) Loss assets
    A Non-performing asset (NPA) is defined as a credit facility in respect of which the interest and/or installment of principal has remained ‘past due’ for a specified period of time.
  16. What is the Central Bank of Britain called ?
    (1) Bank of Britain
    (2) Bank of London
    (3) Bank of England
    (4) Bank of United Kingdom
    (5) None of these

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    Solution : 3
    The Bank of England is the central bank of the United Kingdom and was established in 1694.
  17. Which is not the function of RBI ?
    (1) Maintain foreign exchange reserves
    (2) Control of money supply and credit
    (3) Control of capital market
    (4) It maintains and operates government deposits
    (5) None of these

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    Solution : 3
    Controlling capital market is not a function of RBI but of SEBI.
  18. The clearing of cheque on the basis of electronic cheque is also called :
    (1) Cheque clearing
    (2) Electronic cheque
    (3) Cheque truncation
    (4) Cheque tranche
    (5) None of these

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    Solution : 3
    The clearing of cheques on the basis of electronic cheques is also called cheque truncation. An electronic cheque is an electronic copy (scanned image) of a real cheque. which is then transferred by email. In addition to the cheque’s ‘real’ signature, the transfer must be digitally signed using the sender’s private key to authenticate the transfer.
  19. On the recommendations of which committee NABARD prepared the modal scheme of Kisan Credit Card ?
    (1) R.V. Gupta Committee
    (2) Srinivasan Committee
    (3) B. Sevaraman Committee
    (4) Kamath Committee
    (5) None of these

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    Solution : 1
    A Kisan Credit Card is a credit card to provide affordable credit for farmers in India. It was started by the Government of India, Reserve Bank of India (RBI), and National Bank for Agriculture and Rural Development (NABARD) in 1998-99 to help farmers access timely and adequate credit.
  20. Why the instrument of money market are liquid and can be converted to cash easily ?
    (1) These are regulated by RBI
    (2) Due to short maturity
    (3) Due to longmaturity
    (4) Both 1 and 3
    (5) None of these

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    Solution : 2
    Due to short maturity instrument of money market are liquid and can be converted to cash .

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