Set 9 – Banking General Awareness Quiz for SBI IBPS Bank PO/Clerk

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  1. In which account one can enjoy “overdraft facility” ?
    (1) Savings AcCount
    (2) Current Account
    (3) Fixed Deposit Account
    (4) Recurring Deposit Account
    (5) None of these

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    Solution :   (2)
    The person who has current account in bank can enjoy the facility of overdraft.The individuals have to pay interest on the amount depending on the period. For the beginners, overdraft facility is a credit line given to an individual against his assets. For example, you can mortgage your house with a bank and get a borrowing limit sanctioned against it.
  2. NBFC stands for :
    (1) Non Banking Finance Company
    (2) New Bank Finance Corporation
    (3) Non Banking Fine Company
    (4) New Bank Finance Company
    (5) None of these

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    Solution :   (1)
    NBFC— Non Banking Finance Company. A Non—Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 engaged in the business of loans and advances, acquisition of shares/ stocks/ bonds/ debentures/ securities issued by Government or local authority or other marketable securities.
  3. Foreign Exchange Reserve in India is the sum of foreign currency deposits and bonds, the FER is held by :
    (1) Finance Ministry
    (2) Reserve Bank of India
    (3) Foreign Ministry
    (4) Cultural Ministry
    (5) None of these

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    Solution :  (2)
    Reserve Bank of India regulates foreign exchange market.
  4. Forward Markets Commission regulates which of the following ?
    (1) Currency
    (2) Debentures
    (3) Bullion market
    (4) Commodities future market
    (5) None of these

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    Solution :  (4)
    The Forward Markets Commission (FMC) is the chief regulator of commodity futures markets in India. As of July 2014, it regulated Z 17 trillion worth of commodity trades in India. It is headquartered in Mumbai and this financial regulatory agency is overseen by the Ministry of Finance.
  5. The capital market is a market for :
    (1) Medium-term
    (2) Short-term
    (3) Long-term
    (4) Both (1) and (3)
    (5) None of these

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    Solution :  (4)
    The capital market is a market for medium term as well as long term.Capital market is a market where buyers and sellers engage in trade of financial securities like bonds, stocks, etc. The buying/selling is undertaken by participants such as individuals and institutions.
  6. Fiscal policy is regulate by :
    (1) Government
    (2) RBI
    (3) NABARD
    (4) Railway
    (5) None of these

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    Solution :  (1)
    Government regulates fiscal policy. 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.
  7. At present, banks are using a machine other than ATM, what is the name of this machine ?
    (1) CDM
    (2) CRD
    (3) PCR
    (4) POS
    (5) None of these

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    Solution :  (1)
     CDM—Cash Deposit Machine
  8. MICR stands for :
    (1) Magnetic Ink Character Reader
    (2) Market Ink Character Reader
    (3) Machine Input Character Reader
    (4) Magnetic Ink Character Recognition
    (5) None of these

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    Solution :   (4)
    MICR—Magnetic Ink Character Recognition. It is a nine digit number. Magnetic Ink Character Recognition is a character recognition system that uses special ink and characters. When a document that contains this ink needs to be read, it passes through a machine, which magnetizes the ink and then translates the magnetic information into characters. MICR technology is used by banks.
  9. Who among the following has. given the concept of PURA ?
    (1) Raghuram Rajan
    (2) C. Rangrajan
    (3) A.P.J. Abdul Kalam
    (4) Manmohan Singh
    (5) None of these

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    Solution :  (3)
    PURA—Providing Urban Amenities to Rural Areas. The concept of PURA was given by A.P.J Abdul Kalam. It is a concept whose focus is to provide urban
    infrastructure and services be provided in rural hubs.
  10. In which year, the National Housing Bank was established ?
    (1) 1988
    (2) 1990
    (3) 1995
    (4) 2000
    (5) None of these

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    Solution :  (1)
    National Housing Bank was established in 1988.
  11. Which of the following is not a private sector bank ?
    (1) Axis Bank
    (2) Central Bank of India
    (3) Induslnd Bank
    (4) ING Vysya Bank
    (5) None of these

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    Solution :  (2)
    Central Bank of India is a public sector bank.
  12. In which of the fully owned subsidiaries of RBI, it has the major stake ?
    (1) Deposit Insurance and Credit Guarantee Corporation
    (2) National Housing Bank (NHB)
    (3) National Bank for Agriculture and Rural Development (NABARD)
    (4) Bhartiya Reserve Bank Note Mudran Private Limited
    (5) None of these

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    Solution :  (3)
    RBI has major stake in NABARD. RBI sold almost all its stake in NABARD to government.
  13. What is the full form of FEMA ?
    (1) Foreign Exchange Materials Ac t
    (2) Finance Exchange Management Act
    (3) Foreign Export Management Act
    (4) Foreign Exchange Management Act
    (5) None of these

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    Solution :  (4)
    FEMA stands for Foreign Exchange Management Act. FEMA was enacted on 29th December, 1999. Its objective is to facilitating external trade and promote orderly development of foreign exchange.
  14. In India central cooperative banks are established at :
    (1) State level
    (2) Central level
    (3) District level
    (4) Inter-state level
    (5) None of these

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    Solution : (3)
    In India, central cooperative banks work at district level.
  15. Which is the oldest joint stock bank in India ?
    (1) PNB
    (2) Allahabad bank
    (3) Central Bank of India
    (4) RBI
    (5) None of these

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    Solution :  (2)  Allahabad bank is the oldest joint stock bank in India.
  16. Which among the following is a pillar of Basel III ?
    (1) Minimum Capital Requirement
    (2) Supervisory Review Process
    (3) Market Discipline
    (4) All of these
    (5) None of these

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    Solution :  (4)
  17. Which scheme caters to the health care requirements of adolescent girls ?
    (1) ASHA
    (2) SABLA
    (3) TCGS
    (4) Swabhiman Scheme
    (5) None of these

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    Solution :  (2)
    The Rajiv Gandhi Scheme for Empowerment of Adolescent Girl (RGSEAG) ; SABLA.
    It a centrally sponsored programme of India, initiated on 1st April, 2011 under Ministry of Women and Child Development.
  18. Which of the following is/are correct about commercial papers ?
    (i) It is an unsecured promissory note with a fixed maturity of I. to 364 days
    (ii) Commercial paper is usually sold at a discount and it carries higher interest repayment rates than bonds
    (iii) Commercial paper is a money – market security issued (sold) by large corporations
    (1) Only (i)
    (2) Only (ii)
    (3) All (i), (ii) and (iii)
    (4) Both (ii) and (iii)
    (5) None of these

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    Solution :  (3)
    Commercial paper is a money-market security issued (sold) by large corporations to obtain funds to meet short-term debt obligations (for example, payroll), and is backed only by an issuing bank or corporation’s promise to pay the face amount on the maturity date specified on the note.
  19. What is LIBOR ?
    (1) The rate at which large banks lend to each other
    (2) It is a stock exchange of London
    (3) The rate at which small banks lend to each other
    (4) The rate at which government lend to Reserve Bank
    (5) None of these

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    Solution :   (1)
    LIBOR stands for London Interbank Offered Rate. It is the rate at which large banks lend to each other. LIBOR is a benchmark rate that some of the world’s leading banks charge each other for short-term loans. It stands for IntercontinentalExchange London Interbank Offered Rate and serves as the first step to calculating interest rates on various loans throughout the world.
  20. During which period a person does not need to pay interest charges ?
    (1) Free debit period
    (2) Free credit period
    (3) Interim period
    (4) (1) and (2)
    (5) None of these

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    Solution :  (2)
    Free credit period ranges from 25-50 days, during which the bank that has issued card does not charge the card holder any interest. After this, payment has to be made on purchases made on credit card.

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