Set 22 – Banking General Awareness Quiz for SBI IBPS Bank PO/Clerk

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  1. When the RBI is the “Lender of Last Resort”, what does it mean ?
    (1) RBI advances money to public whenever there is an emergency
    (2) Commercial banks give fund to the RBI
    (3) RBI advances necessary credit against eligible securities
    (4) All of the above
    (5) None of the above

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    Solution :   3
    RBI advances necessary credit against eligible securities. `Lender of Last Resort’ An institution, usually a country’s central bank, that offers loans to banks or other eligible
    institutions that are 30. experiencing financial difficulty or are considered highly risky or near collapse.
  2. Which public sector bank of India is the first fully Indian bank, established by Indian nationals ?
    (1) Punjab National Bank
    (2) Allahabad Bank
    (3) State Bank of India
    (4) Bank of India
    (5) None of above

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    Solution :   1
  3. Which one of the following is not a money market instrument ?
    (1) Repurchase Agreement
    (2) Certificate of deposit
    (3) Commercial bills
    (4) Treasury bonds
    (5) None of above

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    Solution :   4
    Money market instruments provide the tools by which one can operate in the money market.Money market instrument meet short term requirements of the borrowers and provides liquidity to the lenders. The most common money market instruments are Treasury Bills, Certificate of Deposits, Commercial Papers/ Bills, Repurchase Agreements
    (Repo) and Banker’s
    Acceptance.
  4. The paid – up capital of non – scheduled bank is less than :
    (1) 5 lakh
    (2) 10 lakh
    (3) 15 lakh
    (4) 12 lakh
    (5) None of these

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    Solution :   1
    As per the Reserve Bank of India Act, 1934, banks in India are classified into scheduled and non-scheduled banks. Scheduled banks are those which are entered into the second schedule of the RBI Act, 1934.
  5. To create more credit, what RBI does ?
    (1) Permit the banks to decide themselves
    (2) Raises the bank rate
    (3) Reduces the bank rate
    (4) All of the above
    (5) None of the above

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    Solution :   3
  6. Which of the following bank became the first in India to be fully computerized ?
    (1) State Bank of India
    (2) Bank of India
    (3) Bank of Baroda
    (4) Central Bank of India
    (5) None of above

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    Solution :   2
    BOI was the first bank to be fully computerized
  7. Demand of which among the following will be called as direct demand ?
    (1) Weaving machine
    (2) Wool for factory
    (3) Sweater
    (4) Wool;for making gloves
    (5) None of these

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    Solution :   3
    Direct demand refers to demand for goods meant for final consumption; it is the demand for consumers goods like food items, readymade garments and houses. By contrast, derived demand refers to demand for goods which are needed for further production; it is the demand for producers’ goods like industrial raw materials, machine tools and equipments.
  8. The “No frill Account” facility provided by the banks is aimed at which of the following categories of people ?
    (1) Corporate world
    (2) Senior citizens
    (3) Current account holders
    (4) Poor people
    (5) None of these

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    Solution :   4
    The Reserve Bank of India, on Friday, asked banks to drop the ‘no-frills’ tag from the basic saving accounts as the nomenclature has become a stigma. It has asked banks to provide the zero balance facility in the basic banking accounts along with ATM- cum-debit cards without any extra charge
  9. Under the “Swabhimaan” how much population the government has decided to provide banking facilities to unbanked areas ?
    (1) 2000
    (2) 3000
    (3) 4000
    (4) 5000
    (5) None of these

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    Solution :   1
    “Swabhimaan” is a path-breaking initiative by the Union Government and the Indian Banks’ Association to bridge economic gap between rural and urban India. This campaign is a big step towards socio-economic equality by bringing the underprivileged segments of Indian population into the formal banking fold for the first time. The vision for this programme is social application of modern technology.
  10. The Rural Infrastructure Development Fund (RIDF) is maintained by which of the following ?
    (1) Reserve Bank of India
    (2) State Bank of India
    (3) NABARD
    (4) Central Bank of India
    (5) None of these

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    Solution :   3
    RIDF is maintained by NABARD.The RIDF was set up by the Government in 1995-96 for financing ongoing Rural Infrastructure projects. The Fund is maintained by the National Bank for Agriculture and Rural Development (NABARD). Domestic commercial banks contribute to the Fund to the extent of their shortfall in stipulated priority sector lending to agriculture.
  11. The Banking Ombudsman is a senior official tasked with redressing customer complaints against deficiency in certain banking services and is appointed by the :
    (1) RBI
    (2) Ministry of Finance
    (3) IBA
    (4) High Court of each state
    (5) None of these

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    Solution :   1
    Banking Ombudsman was introduced by RBI. Banking Ombudsman is a quasi judicial authority functioning under India’s Banking Ombudsman Scheme, and the authority was created pursuant to the decision by the Government of India to enable resolution of complaints of customers of banks relating to certain services rendered by the banks.
  12. India post has joined hands with which of the following exchanges to offer international electronic money transfer ?
    (1) UAE Exchange
    (2) Xpress Money Services Limited
    (3) Wall Street Exchange
    (4) Economic Exchange Centre
    (5) None of these

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    Solution :   3
  13. The RBI is planning to introduce one billion pieces of currency notes in polymer or plastic on trial basis in the denomination of :
    (1) Rs.5
    (2) Rs.2
    (3) Rs.20
    (4) Rs.10
    (5) None of these

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    Solution :   4
  14. Which of the following financial organizations has announced to close its retail broking and depository business in India recently ?
    (1) HSBC
    (2) Standard Chartered
    (3) J.P. Morgan
    (4) Barclays
    (5) None of these

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    Solution :   1
  15. MSF stands for :
    (1) Minimum Support Facility
    (2) Maximum Saving Facility
    (3) Marginal Standing Facility
    (4) Money Secure Fiscal Plan
    (5) None of these

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    Solution :   3
    MSF rate is the rate at which banks borrow funds overnight from the Reserve Bank of India (RBI) against approved government securities. This came into effect in May 2011.
  16. What is the term used for the practice of replacing the high cost debt with that of lower cost borrowing to take advantage of falling interest rates ?
    (1) Derivative
    (2) Debt swap
    (3) Credit enhancement
    (4) Credit risk management
    (5) None of these

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    Solution :   2
  17. The government has decided to infuse fresh capital into public sector banks. What amount has been allocated to the country’s largest lender, State Bank of India (SBI) ?
    (1) 2000 crore
    (2) 1500 crore
    (3) 2500 crore
    (4) 1985 crore
    (5) None of these

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    Solution :   1
  18. Which of the following countries is the largest producer of gold in the world at present ?
    (1) South Africa
    (2) Russia
    (3) China
    (4) India
    (5) None of these

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    Solution :   3
  19. The Reserve Bank of India (RBI) has introduced from April 1, 2016. It is a new methodology of setting lending rate by commercial banks, and will replace the existing method.
    (1) None of those given as options
    (2) PLR
    (3) MCLR
    (4) Base Rate System
    (5) BPLR

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    Solution :   3
  20. The RBI has suggested dilution of government shareholding in public sector banks in the context of requiring additional capital to implement the Basel – III norms. According to the statute, the government shareholding in the public sector banks cannot fall below :
    (1) 49 %
    (2) 51 %
    (3) 74 %
    (4) 50 %
    (5) None of these

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    Solution :   2
    To ensure that banks don’t take on excessive debt, and that they don’t rely too much on short term funds, Basel III norms were proposed in 2010. The guidelines aim to promote a more resilient banking system by focusing on four vital banking ‘parameters viz. capital, leverage, funding and liquidity.

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