Set 3 - Banking General Awareness Quiz for SBI IBPS Bank PO/Clerk




  1. Which of the following best defines mortgage ?
    (1) It is a movable or liquid asset that a borrower offers a lender to secure a loan
    (2) It is a security of immovable property for a de'posit received by a bank
    (3) It is a debt ingrument that is secured by the collateral of specified movable' property
    (4) It is a debt instrument that is secured by the collateral of specified immovable property
    (5) None of these

    Show Answer

    Solution : 4
    Mortgage means a debt instrument that is secured by the collateral of specified immovable property. A debt instrument, secured by the collateral of specified real estate property, that the borrower is obliged to pay back with a predetermined set of payments. Mortgages are used by individuals and businesses to make large real estate purchases without paying the entire value of the purchase up front.
  2. Which of the following best defines repo rate ?
    (1) It is the rate at which banks lend to customer
    (2) It is the rate at which RBI payi interest to banks
    (3) It is the rate at which banks borrow from RBI
    (4) It is the rate at which banks lend to their most valued customers
    (5) None of these

    Show Answer

    Solution : 3
    Repo Rate is the rate, at which banks borrow money from RBI. The discount rate at which a central bank repurchases government securities from the commercial banks, depending on the level of money supply it decides to maintain in the country's monetary system.
  3. Which of the following bank was established in the year 1990 ?
    (1) NABARD
    (2) Small Industries Development Bank of India
    (3) EXIM Bank
    (4) Both (1) and (2)
    (5) None of these

    Show Answer

    Solution : 2
    SIDBI was established in 1990.
  4. At which one of the following rates banks lend their surplus fund to RBI ?
    (1) Reverse Repo Rate
    (2) Repo Rate
    (3) Bank Rate
    (4) CRR
    (5) None of these

    Show Answer

    Solution : 1
    The rate, at which commercial banks gives their surplus fund to RBI is known as Reverse Repo Rate. The amount Of an asset or resource that exceeds the portion that is utilized. A surplus is used to describe many excess assets including income, profits, capital and goods. A surplus often occurs in a budget, when expenses are less than the income taken in, or in inventory when fewer supplies are used than were retained.
  5. Bank in their daily business face various kinds of risks, which of the following is one of the major risks ?
    (1) Customer Risk
    (2) Goodwill Risk
    (3) Reputation Risk
    (4) Protection Risk
    (5) Operational Risk

    Show Answer

    Solution : 5
    Operational risk is the risk that is not inherent in financial, systematic or market-wide risk. It is the risk remaining after determining financing and systematic risk, and includes risks resulting from breakdowns in internal procedures, people and systems.
  6. Lack of access to financial services is technically known as :
    (1) financial instability
    (2) financial inclusion
    (3) financial stability
    (4) financial exclusion
    (5) None of these

    Show Answer

    Solution : 2
    Financial inclusion is the lack of access to financial services. Financial inclusion or inclusive financing is the delivery of financial services at affordable costs to sections of disadvantaged and low-income segments of
    society, in contrast to financial exclusion where those services are not available or affordable.
  7. Which of the following types of companies / organizations issue `ULIP' ?
    (1) Banks
    (2) Insurance companies
    (3) NHB
    (4) RBI
    (5) None of these

    Show Answer

    Solution : 2
    A Unit Linked Insurance Plan (ULIP) is a product offered by insurance companies that unlike a pure insurance policy gives investors the benefits of both insurance and investment under a single integrated plan.
  8. Telecom business in India is regulated by which of the following authorities ?
    (1) IRAI
    (2) IRDA
    (3) ASSOCHAM
    (4) DOT
    (5) None of these

    Show Answer

    Solution : 1
    Telecom business in India are regulated by Telecom Regulatory Authority of India (TRAI).
  9. What is correct regarding NCTC ?
    (1) Its full form is National Counter Terrorism Center
    (2) It is specialized anti-terror body under Union Home Ministry
    (3) Its full form is National Credit Transaction Center
    (4) Both (1) and (2) are correct
    (5) None of these

    Show Answer

    Solution : 4
    The National Counter Terrorism Center (NCTC) is a proposed federal anti-terror agency to be created
    in India, modelled on the National
    Counterterrorism Center of the USA.
  10. Total Receipts — Total Expenditure is equal to :
    (1) Capital Deficit
    (2) Budget Deficit
    (3) Revenue Deficit
    (4) Fiscal Deficit
    (5) None of these

    Show Answer

    Solution : 2
    Budget deficit—A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer to government spending rather than business or individual spending. When referring to accrued federal government deficits, the term "national debt" is used.
  11. Which among the following is the second largest producer of rice ?
    (1) West Bengal
    (2) Punjab
    (3) Uttar Pradesh
    (4) Bihar
    (5) None of these

    Show Answer

    Solution : 1
    Punjab is the second largest producer of rice, whereas West Bangal is the first largest producer.
  12. A fall in the external value of a currency with respect to other currency is called :
    (1) Deflation
    (2) Devaluation
    (3) Depreciation
    (4) Recession
    (5) None of these

    Show Answer

    Solution : 3
    The monetary value of an asset decreases over time due to use, wear and tear or obsolescence. This decrease is measured as depreciation.
  13. Which one of the following is not an objective of monetary policy ?
    (1) Exchange rate stability
    (2) Price stability
    (3) Promoting economic growth
    (4) Promoting foreign trade
    (5) None of these

    Show Answer

    Solution : 3
    Promoting economic growth is not an objective 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.
  14. Which among the following formulates fiscal policy ?
    (1) Planning Commission
    (2) Railway Board
    (3) RBI
    (4) Finance Ministry
    (5) None of these

    Show Answer

    Solution : 4
    Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply.
  15. Which among the following does not form part of the capital receipts of the Budget of the Union Government ?(1) Market borrowing
    (2) Interest payment
    (3) Loan recoveries
    (4) Loan payment
    (5) None of these

    Show Answer

    Solution : 2
    Market borrowing, loan recoveries and loan payment, all of them form part of capital receipts.
  16. The ratio of net demand and time liabilities of banks that they are required to keep with RBI is called :
    (1) Statutory liquidity ratio
    (2) Credit Ratio
    (3) Cash reserve ratio
    (4) Repo rate
    (5) None of these

    Show Answer

    Solution : 3
    CRR — It is that ratio of net demand and time liabilities that banks are required to keep with RBI. It is not refundable.
  17. What do you mean by Bridge loan ?
    (1) A loan given by bank for longer period
    (2) A loan given by bank for a short period to make up for a temporary shortage
    (3) A loan given by bank for medium term
    (4) A loan for one day
    (5) None of these

    Show Answer

    Solution : 2
    As the term implies, these loans "bridge the gap" between times when financing is needed. They are used by both corporations and individuals and can be customized for many different situations.
  18. Money market is a market for :
    (1) Short term
    (2) Long term
    (3) Medium term
    (4) All of these
    (5) None of these

    Show Answer

    Solution : 1
  19. The customer may deposit any amount in the savings bank account subject to a minimum of :
    (1)  Rs.15
    (2)  Rs.10
    (3)  Rs.5
    (4)  Rs.50
    (5) None of these

    Show Answer

    Solution : 3
    The minimum amount we can deposit in savings account is Rs.5 only
  20. Which among the following is / are the main style of credit of or systems of financing prevalent in our country ?
    (1) Cash credit system
    (2) Loan system
    (3) Purchase and discounting of bills
    (4) Both (1) and (3)
    (5) All (1), (2) and (3)

    Show Answer

    Solution : 5
    Cash credit system, loan system and purchase and discounting of bills are prevalent in our country.


1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Ask Doubt/Comment