BANKING QUESTION AND ANSWERS FOR SBI CLERK

GENERAL AWARENESS QUESTIONS FOR SBI PO 2014

1. Who has sworn-in as the first woman Chief Minister of Gujarat on 22 May 2014?
   Answer : Anandiben Patel
   2. When was International Day for Biological Diversity observed across the world?
   Answer : 22 May 2014
   3. Who has been appointed as new Director General of Police of Jammu and Kashmir?
   Answer : K Rajendra Kumar
   4. Name the Snooker champion who has been nominated for Arjuna awards announced by the Billiards and Snooker Association of India (BSFI)?
   Answer : Chitra Magimairaj
   5. Who has been selected as Managing Director of ONGC Videsh Ltd (OVL) by Public Enterprises Selection Board (PESB)?
   Answer : Narendra Kumar Verma
   6. When is International Museum Day celebrated?
   Answer :18th May
   7. Who won the Cricket Club of India (CCI) Classic Billiards and Snooker tournament?
   Answer : Pankaj Advani
   8. Who took over as the new Chief Information Commissioner in the Central Information Commission?
   Answer : Former IB chief Rajiv Mathur
   9. Which economies of the world have been declared world’s most expensive economies in a ranking released by the World Bank recently?
   Answer : Switzerland, Norway
   10. What is the name of the India’s own card payment system that has been dedicated to the nation recently by President Pranab Mukherjee?
   Answer : RupayCard

BANKING QUESTION AND ANSWERS FOR SBI CLERK

1. Which of the statements mentioned below is/are correct?
1. T-bills are issued by the Government of India on behalf of the RBI
2. T-bills are short-term money market instruments
3. T-bills cannot be purchased by a resident of India
(a) All are correct     
(b) 2 & 3 are correct
(c) Only 2 is correct   
(d) Only 3 is correct
Ans:1. (c) Only 2 is correct
2. Which of the following is an incorrect statement?
(a) Reverse Repurchase operation by RBI is aimed at increasing the liquidity in the banking system
(b) Special Drawing Rights (SDR) are issued by IMF
(c) Rupee appreciation results in decrease in imports
(d) Increase in the inflation rate leads to decline in real interest rate
Ans:2. (c)  

3. What purpose does the MICR number, which is present on a cheque, serve?
(a) It is used to identify the genuineness of the cheque
(b) It is used to identify the bank branch
(c) It is nothing but a type of cheque number
(d) Both (a) and (b)
Ans:3. (a) MICR number is used to identify the genuineness of cheque.

4. In TRIPS, what does ‘I’ stand for?
(a) Intellectual   
(b) Information   
(c) Indian     
(d) Infra
Ans:4. (a) TRIPS: Trade Related Intellectual Property Rights.

5. Insurance companies use the bank sales channels to sell their products. Which of the following terms describes this selling process?
(a) Scheduled banking     
(b) Scheduled Insurance
(c) Bankinsuring             
(d) Bancassurance
Ans:5. (d) Bancassurance.

6. Which of the following acts is useful in controlling HAWALA transactions?
(a) FEMA Act     
(b) RBI Act   
(c) DICGC Act   
(d) Banking Regulation Act
Ans:6. (a) FEMA Act. (Foreign Exchange Management Act)

7. What does the term SME stand for?
(a) Small and Micro Enterprises     
(b) Small and Medium Enterprises
(c) State and Medium Economy   
(d) Small and Medium Economy
Ans:7. (b) Small and Medium Enterprises.


8. ‘CAMELS’ is a type of Bank Rating System. In CAMELS, what does ‘C’ stand for?
(a) Currency             
(b) Compensation
(c) Capital Adequacy   
(d) Capitalisation
Ans:8. (c) CAMELS is a type of Bank Rating System. (C) stands for Capital Adequacy, (A) for Asset Quality, (M) for Management, (E) for Earnings, (L) for Liquidity and (S) for Sensitivity to Market Risk.


9. A Eurobond is
(a) A bond released in a currency of the European countries
(b) A bond released in an Indian currency in European nations
(c) A bond released in Euro in our country
(d) A bond released in a currency other than the currency of the country in which it is issued
Ans:9. (d) A bond released in a currency other than the currency of the country in which it is issued.


10. In banking parlance, ‘NPA’ stands for
(a) Non Performing Asset   
(b) Net Producing Asset
(c) Net Performing Asset   
(d) Not Promoting Asset
Ans:10. (a) Non Performing Asset.

11. LAF is an indirect instrument of monetary policy, which is used by \RBI to regulate the liquidity inbanking system. ‘LAF’ stands for:
(a) Liquidity Adjustment Facility   
(b) Liquidity Account Facility
(c) Liquidity Allotment Facility     
(d) Long Adjustment Facility
Ans:11. (a) Liquidity Adjustment Facility.

12. On the basis of which commission was RBI established?
(a) Hilton Young Commission   
(b) British Commission
(c) Federal Commission           
(d) Federation Commission
Ans:12. (a) Hilton Young Commission

13. Life insurance and general insurance companies like LIC, ICICI Prudential, ICICI Lombard, National Insurance etc. are regulated by which organisation?
(a) RBI   
(b) PFRDA   
(c) IRDA   
(d) IBA
Ans:13. (c) Insurance companies in India are regulated by IRDA (Insurance Regulatory and Development Authority.)

14. Bank rate is defined as the
(a) Rate of interest charged by commercial banks from borrowers
(b) Rate of interest at which RBI lends money to banks against government securities
(c) Rate of interest allowed by commercial banks on their deposits
(d) Rate at which RBI purchases or rediscounts bills of exchange of commercial banks
Ans:14. (d) Rate at which RBI purchases or rediscounts bills of exchange of commercial banks

15. An IDR (Indian Depository Receipt) is
(a) An instrument of monetary policy used by RBI
(b) A deposit account with a depository in India
(c) An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company
(d) An instrument in the form of deposit receipt issued by an Indian depository
Ans:15. (c) An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company

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