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)

Banking Awareness Quiz

_____ was the first public bank to introduce credit card?

a)Central Bank of India

_______ Bank was the first Indian Bank to provide internet banking facility?

a)ICICI

Which was the first Bank to provide Mobile ATM?

a)ICICI Bank

How many characters are there in IFSC code?

a)11 alphanumeric code.

First 4 alpha characters representing the bank, the 5th character is 0 (zero)  is a control number and the last 6 characters representing the bank branch

The maximum amount of revenue earned by government is from _______ tax?

a)Corporate

Expand MICR?

a)Magnetic Ink Character Recognition. MICR code consists of 9 digits.  First 3 digits represent the city. Next 3 digits represent the bank. Last 3 digits represent the branch. The MICR Code allotted to a bank branch is printed on the MICR band of cheque leaves issued by bank branches.

What is the common currency of European Union?

a)Euro

What is the cost involved in filing complaints with Banking Ombudsman?

a)No cost

What is Bancassurance?

a)The sale of insurance and other similar products through a bank.

What is Truncation?

a)Truncation is the process of stopping the flow of the physical cheque issued by a drawer at some point with the presenting bank en-route to the drawee bank branch.

When was service tax in India introduced for the first time?

a)1994-1995

Which is the world's first bank?

a)Bank of Barcelona (1401) in Spain

Where is union budget introduced first always?

a)Lok Sabha

Which is the India's first non-bank owned ATM?

a)Tata Communications Payments Solutions Ltd, a wholly owned subsidiary of Tata Communications Ltd, unveiled the ATM at Chandrapada in Thane district.  Private sector lender Federal Bank announced its tie-up with Tata Communications Payment Solutions Ltd as the sponsor bank to deploy White Label ATMs (WLAs).

Expand PIN?

a)Personal Identification Number

What is the time limit for reconciliation of failed transactions at ATMs

a)7 working days from the date of receipt of customer complaint

Accordingly, failure to recredit the customer’s account within 7 working days of receipt of the complaint shall entail payment of compensation to the customer @ Rs. 100/- per day by the issuing bank.. 

Government securities are available in a wide range of maturities from ___ days to ___ years to suit the duration of a bank's liabilities?

a)9 days to 30 years

Name the bank which is excluded from Liquidity Adjustment Facility (LAF) by Reserve Bank of India?

a)Regional Rural Banks

Name the registry and central depository for keeping the Government securities?

a)Public Debt Office (PDO)

Treasury bills issued by the state government is available for a minimum amount of Rs._______ and multiples of it?

a)25000

For what term is the directors of Reserve Bank appointed by Govt. of India?

a)4 Years

Under Section 22 of _________, the Bank has the RBI sole right to issue bank notes of all denominations?

a)The Reserve Bank of India Act

Name the act which was replaced by the act Foreign Exchange Management Act in the year 2000?

a)FERA

In which year did RTGS (Real Time Gross Settlement System) introduced?

a)2004

Name the dedicated unit setup by RBI in 2009 mainly to, put in place a system of continuous monitoring of the macro financial system?

a)Financial Stability Unit.

Which is the first mutual fund in India, established by RBI in the year 1968?

a)Unit Trust of India

Name the Reserve Bank’s quasi-judicial authority for resolving disputes between commercial banks, primary cooperative banks and regional rural banks and their customers?

a)Banking Ombudsman

Who was the first Governor of the Reserve Bank of India?

a)Sir Osborne Smith

Who was the first Indian Governor of RBI?

a)CD Deshmukh

Which bank in India started Savings account system?

a) Presidency Bank

Which is the oldest existing public sector bank in India?

a)Allahabad Bank

Name the bank which introduced ATM in India in 1987 for the first time?

a)Hongkong and Shanghai Banking Corporation (HSBC) in Mumbai

Name the bank which has the maximum number of overseas branches?

a)Bank of Baroda

________ launches India’s first rural bank ATM card with a regional rural bank in Varanasi?

a)The National Payments Corporation of India (NPCI)

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Banking Awareness Quiz

When was Reserve bank of India formed?

a)1935 April 1

When was RBI nationalised?

a)1st January 1949

RBI is divided into 2 departments. Name it?

a)Banking department and Issue department

What are the main functions of Banks?

a)Receiving money on deposits

Issuing of notes

Transferring money from place to place

Issueing of various forms of credit

Underwriting of capital issues

Acceptance of bills of exchange

Providing locker etc...

What are the four classes of commercial banks?

a)Public sector, Private sector, Foreign Banks, Regional Rural Banks, Co-operative banks

Under which act was constitution of SBI done?

a)State Bank of India Act 1955

What are the functions of Reserve Bank of India?

a)Regulates the issue of currency

Banker to government (both central and state government)

Banker to the commercial banks. It accepts and lends money to the commercial banks

It controls the volume of credit created by the commercial banks

It controls the internal and external value of rupee.

What is currency chest?

a)It is the place in which stokes of issuable and new notes are stored along with rupee coin. It is run by the RBI, SBI, Public Sector banks, Treasuries etc. The bank can draw and deposit funds according to its need. Cash remitted to currency chest are taken to account for maintenance of Cash Reserve Ratio.

Who issues 1 rupee notes and coins?

a)Govt. of India

Who issues notes and coins of other denominations except 1 rupee?

a)Reserve Bank of India

As per the Census 2011, what per cent of rural households had access to banking services?

a)54.4 per cent

Expand MIS?

a)Management Information System

What is bank rate?

a)It is rate at which RBI makes advances against approved securities of purchase of re discount eligible bills to provide financial accommodation to commercial and financial institutions

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