Banking Awareness Quiz

Which is the first bank in India?

a)Bank of Hindustan

b)Imperial Bank of India

c)Bank of Bengal

d)Bank of Bombay

ans)Bank of Hindustan (1770)

When was state bank of India established?

a)1959 July 1

b)1947 April 9

c)1955 July 1

d)1956 July 1

ans)1955 July 1

Who is the first Indian to be the governer of Reserve Bank?

a)Sir Osborne Smith

b)Dr. Manmohan Singh

c)C D Deshmukh

d)Sir sarayya

ans) C D Deshmukh

Paper used for the printing of the notes is known as ________?

a)Rag

b)Hilton Paper

c)Polymer

d)Fibre Paper

ans)Rag

What is the new name of UTI bank?

a)Federal Bank

b)Axis Bank

c)ICICI Bank

d)CSB

ans)Axis Bank

Who is known as the father of Indian Rupee?

a)Uday Kumar

b)C D Deshmukh

c)Sher Shah Suri

d)Shajahan

ans)Sher Shah Suri

Name the website launched by RBI to raise awareness of counterfeit currency among users of the Indian rupee?

a)Paisa-Bolta-Hai

b)Know Your Bank Notes

c)Tanka

d)spmcil

ans)Paisa-Bolta-Hai

Name the committe which recommended the formation of RBI?

a)Urjit Patel committee

b)Y. H. Malegam Committee

c)Lakkadawala Committee

d)Hilton–Young committee

ans)Hilton–Young committee

Which is the oldest nationalised bank in India?

a)Bank of Baroda

b)Allahabad Bank

c)Bank of Maharashtra

d)Indian Bank

ans)Allahabad bank

When was the nationalisation of banks first held in India?

a)1948

b)1956

c)1969

d)1972

ans)1969

Which place in the following does not have a mint which makes coin?

a)Bangalore

b)Noida

c)Mumbai

d)Hydrabad

ans)Bangalore

Which financial institution has its headquarters on Shahid Bhagat Singh Marg Mumbai?

a)SEBI

b)NABARD

c)SBI

d)RBI

ans)RBI

From which year did RBI started issuing Mahathma Gandhi series notes?

a)1996

b)1984

c)1959

d)1990

ans)1996

Of which denomination note have the picture of Indian parliment in it?

a)100

b)500

c)50

d)10

ans)50

Name the first bank in India which got ISO certification?

a)Bank of India

b)SBI

c)Canara Bank

d)Corporation Bank

ans)Canara Bank

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Banking Awareness Quiz

Selected Questions From IBPS CWE 2011 (PO)

Which one of the following is the objective of Corporate Social Responsibility (CSR) issued by the Government?

(a) To ensure that Companies take steps for rehabilitation of project affected people

(b) To ensure that Companies use some of their profits for educating the project affected people

(c) To ensure that Companies provide health care to project affected people

(d) To ensure that Companies take preventive measures to avoid environmental damage

(e) None of these

Answer) a

 In NPA, "A" Stands for ……………

(a) Association

(b) Assets

(c) Advance

(d) Annual

(e) Not

 Answer) B

"Wanchoo Committee" is related to ……………?

(a) Indirect Taxes

(b) Direct Taxes

(c) Both A & B

(d) Neither A nor B

(e) None of these

Answer)  b

 In economic terms, the total market value of all final goods and services produced in a country is a given year is known as ______

(a) GNI

(b) GDP

(c) Inflation 

(d) PPP

(e) WPI

Answer) b

 Lack of access to financial service is technically known as-

(a) Financial Stability

(b) Financial inclusion 

(c) Financial Instability

(d) Financial exclusion 

(e) None of These

Answer) d

Which of the following organisation has been established mainly to promote micro, small & medium industrial sector in India?

(a) NABARD

(b) SIDBI

(c) IDBI Bank

(d) RBI

(e) Not

Answer) b

"Closed Economy" is that economy in which ___

(a) Only Export takes place

(b) Money supply is fully controlled 

(c) Deficit financing takes place

(d) Neither export nor import takes place

(e) None of These

Answer) d

"Open Market operation" is a part of _____

(a) Income policy 

(b) Physical policy

(c) Credit policy

(d) Labour policy

(e) None of These

Answer) c

Which Bank is limited to the needs of agriculture and rural finance?

(a) SBI

(b) IFC

(c) NABARD

(d) RBI

(e) None of These

Answer) c

What is "Zero Base Budgeting"?

(a) Infinite deficit financing 

(b) No curtailment in unproductive expenditure

(c) No appraisal of new programmes

(d) Preparation of new budget every time 

(e) None of These

Answer) d

Which of the rate is not determined by RBI?

(a) Bank Rate 

(b) PLR

(c) CRR

(d) SLR

(e) None of These

Answer) b

Which of the following nations is considered the originator of the concept of Micro finance?

(a) INDIA 

(b) PAKISTAN 

(c) JAPAN

(d) BANGLADESH

(e) AFGANISTAN

Answer) d

Many a times we come across a term "DDT" in the financial or Economic transaction. What is the full form of it?

(a) Direct distribution treaty

(b) Direct distribution terminals

(c) Dividend distribution tax

(d) Delhi Denmark treaty 

(e) None of These

Answer) c

“Trusted family Bank” is punch lines of which bank.

(a) Allahabad Bank

(b) Canara Bank 

(c) Dena Bank

(d) UCO Bank

(e) None of These

Answer) c

Which of the following agencies in India is responsible for computation of National Income?

(a) NSS

(b) SIDBI

(c) RBI

(d) NCAER

(e) CSO

Answer) c

Which type of Bank A/C can be opened by a NRI. (Non Resident Indian) in India?

(a) Current A/C

(b) Saving A/C

(c) Fixed deposit A/C

(d) Locker A/C

(e) None of These

Answer) c

Prof Muhammad Yunus, the recipient of the Nobel prize 2006 is the exponent of which of the following concepts in the field of banking?

a) Core Banking

b) Micro Credit

c) Retail Banking

d) RTGS

d) Internet Banking

Answer) b

Banks in India are required to maintain a portion of their demand and time liabilities with RBI. This portion is known as ______

a)SLR

b) CRR

c) Bank Deposit

d) Reverse Repo

e) Government Securities

Answer) a

Pre Shipment finance is provided by banks only to ________

a) Credit Card Holders

b) Students aspiring for further studies

c) Brokers in Equity Markets

d) Village Artisans

e) Exporters

Answer) e

"Passion To Perform" is the tagline of _______?

(a) Canara Bank

(b) Deaushe Bank

(c) Yes Bank

(d) Union Bank

(e) Federal Bank

Answer) b

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Banking Awareness Quiz

(From Previous Question Papers)

What is the amount of compensation to be paid per day, as per RBI directives in case of failed ATM transactions ?

(a) Rs. 50

(b) Rs. 100

(c) Rs. 200

(d) Rs. 500

(e) It is at the discretion of each Bank

Answer: (b)

Securitisation and Reconstruction of Financial Assets and Enforcement of security Interest Act relates to—

(a) Sanction of loans

(b) Enhancement of loan limits

(c) Recovery of loans

(d) All the above

(e) None of above

Answer:  (c)

Bridge loans refer to—

(a) Loans granted to contruction companies for construction of bridges

(b) Loan granted to PWD for construction of bridges over Rivers

(c) Interim finance allowed by banks to their customers pending disbursement of term loans by financial institutions

(d) All of the above

(e) None of the above

Answer: (c)

Constitutionally, which one of the following can levy Service Tax ?

(a) Union Govt. only

(b) State Govt. only

(c) Union Territory Govt. only

(d) All of these

(e) None of these

Answer: (d)

The Foreign Exchange Reserve of India are kept in the custody of ____

(a) World Bank

(b) International Monetary Fund

(c) Prime Minister Rahat Kosh

(d) Reserve Bank of India

(e) None of these

Answer: (d)

7. Which of the following is known as Plastic money ?

1. Demand Draft

2. Credit Card

3. Debit Card

(a) Only 1

(b) Only 2

(c) Only 3

(d) Both 2 and 3

(e) All 1, 2 and 3

Answer: (d)

Expand IPO?

(a) Indian Public Offer

(b) Institutional Purchase

(c) Industrial Purchase Order

(d) Indian Purchase Offer

(e) Initial Public Offering

Answer: (e)

Payment of Demand Draft can be stopped by ________

(a) Payee

(b) Holder

(c) Purchaser

(d) All of these

(e) None of these

Answer: (a)

Can any one file an appeal against the order passed by the Banking Ombudsman ? If so who is the Appellate Authority ?

(a) The Chairman of concerned Bank

(b) The Deputy Governor RBI

(c) Governor of RBI

(d) Finance Minister

(e) None of the above

Answer: (b)

What is monetary policy transmission ?

(a) It refers to monetary policy of Central Bank

(b) It refers to fiscal policy of Government

(c) It refers to various channels through which the monetary policy of a Central Bank alters prices or output in the real economy

(d) It refers to various channels through which the fiscal policy of the Government alters prices or output in the real economy

(e) None of these

Answer: (c)

Bancassurance is _______

(a) an insurance scheme to insure bank deposits

(b) an insurance scheme exclusively for the employees of banks

(c) a composite financial service offering both bank and insurance product

(d) a bank deposits scheme exclusively for employees of insurance companies

(e) None of the above

Answer: (c)

Which one of the following Organisations maintains CRR ?

(a) RBI

(b) SEBI

(c) NABARD

(d) IBA

(e) None of these

Answer: (a)

Structure of Basel II is based on how many pillars ?

(a) Two

(b) Three

(c) Four

(d) Eight

(e) Six

Answer: (b)

Financial year in Banks is period between?

(a) January to December

(b) May to June

(c) April to March

(d) January to April

(e) None of these

Answer: (c)

Which of the following is considered as the financial capital of India?

(a) New Delhi

(b) Kolkata

(c) Bangalore

(d) Ahmedabad

(e) Mumbai

Answer: (e)

Which of the following statement(s) correctly describes what a derivative is and how it affects money/finance markets ?

(1) Derivatives enable individuals and companies to insure themselves against financial risk.

(2) Derivatives are like fixed deposits in a bank and are the safest way to invest one’s idle money lying in a bank.

(3) Derivatives are the financial instruments which were used in India even during the British Raj.

(a) Only 3

(b) Only 2

(c) Only 1

(d) All 1, 2 and 3

(e) None of these

Answer: (b)

MSMED Act is applicable to _____

(a) Smalls enterprises only

(b) Medium enterprises only

(c) Micro enterprises only

(d) Micro, Small and Medium enterprises

(e) All enterprises irrespective of their size engaged in manufacturing activity

Answer: (d)

Money Laundering refers to ______

(a) Conversion of assets into cash

(b) Conversion of Money which is illegally obtained

(c) Conversion of cash into gold

(d) Conversion of gold into cash

(e) None of the above

Answer: (b)

The Monetary and Credit Policy is reviewed by the RBI after a gap of ______

(a) one year

(b) one month

(c) two years

(d) five years

(e) None of these

Answer: (e)

PPF account is opened for a period of _______

(a) 5 years

(b) 10 years

(c) 15 years

(d) 20 years

(e) None of these

Answer: (c)

Code of banks commitment to Micro and Small enterprises is prepared by _____

(a) RBI

(b) SEBI

(c) FEDAI

(d) BCSBI

(e) Ministry of Small and Medium Enterprises

Answer: (e)

There are certain financial instruments whose prices are derived from the price of the underlying currency of interest rate or stocks etc. These are known as ______

(a) Derivatives

(b) Securitisation

(c) Leasing

(d) Factoring

(e) Venture Capital Funding

Answer: (a)

What is the full form of ASBA ?

(a) Allotment supported by Blocked Amount

(b) Application supported by Blocked Amount

(c) Application supported by Bank Amount

(d) Allotment supported by Bank Account

(e) None of the above

Answer: (b)

Reverse Repo is used by RBI to ______

(a) Inject liquidity

(b) Absorb liquidity

(c) Increase the liquidity with banking system

(d) Keep the liquidity at one level

(e) None of the above

Answer: (d)

The market in which long term securities such as stocks and bonds are bought and sold is commonly known a ______

(a) Commodities Exchange

(b) Capital Market

(c) Bull Market

(d) Bullion Market

(e) None of these

Answer: (b)

Bitcoin - The New Generation Currency

Think about a currency which can be used anywhere in the world without any barriers of banks or government. A single currency for the whole world which is transacted online. No inflation, deflation appreciation or depreciation due to the comparison done with Dollar. Pay your university fees, EMI, do shopping etc… anywhere in the world without the hassle of currency exchange.

Sounds good? Try bitcoin. Switch to it.

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What is a Bitcoin?

Bitcoin is an open source peer-to-peer payment network and digital currency introduced in 2009. It was developed by Satoshi Nakamoto.  It uses cryptography to secure funds and hence it is called Cryptocurrency. Transactions transfer bitcoins, the unit of currency, between Bitcoin addresses derived from cryptographic public keys. There are totally 2.10 crore bitcoins created. Currently only 1.10 coins are available for transactions. Bitcoin lets you exchange money in a different way than with usual banks.

Bitcoin price is volatile

The price of a bitcoin can unpredictably increase or decrease over a short period of time due to its young economy, novel nature, and sometimes illiquid markets. Consequently, keeping your savings with Bitcoin is not recommended at this point. Bitcoin should be seen like a high risk asset, and you should never store money that you cannot afford to lose with Bitcoin. If you receive payments with Bitcoin, many service providers can convert them to your local currency.

Wallet

A collection of addresses and their associated private keys is known as a wallet. These may be stored online on the web, on local hardware (like a personal computer or mobile device), or on paper print-outs. Bitcoins are increasingly used as payment for products and services. An advantage of bitcoin is that transaction fees are lower than the 2 to 3% typically imposed by credit card processors. Notable vendors include OkCupid, Reddit, WordPress, and Chinese Internet giant Baidu.

Blockchain

The block chain is a shared public ledger on which the entire Bitcoin network relies. All confirmed transactions are included in the block chain. This way, Bitcoin wallets can calculate their spendable balance and new transactions can be verified to be spending bitcoins that are actually owned by the spender. By keeping a record of all transactions, the blockchain prevents double-spending (copying one bitcoin and spending it in multiple different places) because the record shows that once a bitcoin has been spent, the previous owner no longer controls it. The blockchain is not maintained by a central body but by a distributed network of computers that run a program to solve cryptographic puzzles relating to information in the blockchain.

How to get bitcoins?

Mining is how new bitcoins are generated. Users who devote computing power to maintain the blockchain are called "miners". They are awarded in bitcoin when they are first to solve cryptographic puzzles relating to information in the blockchain. The mathematical calculations performed by miners' computers serve to verify that each transaction is valid and add the information to the blockchain.  As more bitcoins come into circulation, the puzzles involved in mining them become increasingly difficult, and the rewards are halved at regular intervals, until 21 million bitcoins have been created and production stops. As Bitcoin achieves wider recognition and more people compete to mine the coins, competition for the limited number of bitcoins awarded for solving the cryptographic puzzles becomes more steep and more powerful computers are needed in order to compete – a fact which has spawned a technology boom in sales of Bitcoin mining technology.

Transactions

A transaction is a transfer of value between Bitcoin wallets that gets included in the block chain. Bitcoin wallets keep a secret piece of data called a private key or seed, which is used to sign transactions, providing a mathematical proof that they have come from the owner of the wallet. The signature also prevents the transaction from being altered by anybody once it has been issued. All transactions are broadcast between users and usually begin to be confirmed by the network in the following 10 minutes, through a process called mining.

Security and control

All Bitcoin transactions are stored publicly and permanently on the network, which means anyone can see the balance and transactions of any Bitcoin address. However, the identity of the user behind an address remains unknown until information is revealed during a purchase or in other circumstances. This is one reason why Bitcoin addresses should only be used once. Always remember that it is your responsibility to adopt good practices in order to protect your privacy. Bitcoin transactions are secured by military grade cryptography. Nobody can charge you money or make a payment on your behalf. So long as you take the required steps to protect your wallet, Bitcoin can give you control over your money and a strong level of protection against many types of fraud.

Processing Fees

Bitcoins can be transferred from Africa to Canada in 10 minutes. There is no bank to slow down the process, level outrageous fees, or freeze the transfer. You can pay your neighbors the same way as you can pay a member of your family in another country. Bitcoin allows you to send and receive payments at very low cost. Except for special cases like very small payments, there is no enforced fee. It is however recommended to pay a higher voluntary fee for faster confirmation of your transaction and to remunerate the people who operate the Bitcoin network.

Privacy

With Bitcoin, there is no credit card number that some malicious actor can collect in order to impersonate you. In fact, it is even possible to send a payment without revealing your identity, almost just like with physical money.

History

Bitcoins were introduced in 2009 January 3 by a computer programmer named Satoshi Nakamoto.  In 2011 the value of one bitcoin rapidly rose from about $0.30 to $32, before falling back down to $2. During November 2013, the China-based Bitcoin exchange BTC China overtook Japan-based Mt. Gox and Europe-based Bitstamp to become the largest Bitcoin trading exchange by trade volume. On 19 November 2013, the value of Bitcoin on the Mt. Gox exchange soared to a peak of US$900 following a United States Senate committee hearing, at which the committee was informed that virtual currencies were a legitimate financial service. 

How does Bitcoin work?

First install a Bitcoin wallet on your computer or mobile phone. Once you have installed, it will generate your first Bitcoin address and you can create more whenever you need one. You can disclose your addresses to your friends so that they can pay you or vice versa. In fact, this is pretty similar to how email works, except that Bitcoin addresses should only be used once.

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