1. Which of the following is a foreign bank having branches in India?
a) Yes Bank
b) Kotak Mahindra
c) ICICI Bank
d) Standard Chartered Bank
e) Syndicate Bank
2. The price of which of the following is decided by the member countries of OPEC?
a) Crude oil
b) Silver
c) Gold
d) Wheat
e) All of these
3. Which of the following statement is true?
a) Banks cannot accept demand and time deposits from public.
b) Banks can accept only demand deposits from public.
c) Banks can accept only time deposits from public.
d) Banks can accept both demand and time deposits from public.
e) Banks can accept demand and time deposits only from government.
4. Interest payable on savings bank accounts is …………
a) not regulated by RBI
b) regulated by State Governments
c) regulated by Central Government
d) regulated by RBI
e) regulated by Finance minister
5. Which of the following is the correct statement?
a) State bank of India is the sole authority to issue and manage currency in India.
b) A nationalized bank is the sole authority to issue and manage currency in India.
c) A cooperative bank is the sole authority bank is the sole authority to issue and manage currency in India.
d) RBI is the sole authority to issue and manage currency in India.
e) None of these.
6. Accounts are allowed to be operated by cheque in respect of …………..
a) Both Savings bank accounts and fixed deposit accounts
b) Savings bank accounts and currency accounts
c) Both Savings bank accounts and loan accounts
d) Both Savings bank accounts and cash accounts only
e) Both Currency accounts and fixed deposit accounts
7. Which of the following is correct statement?
a) Normally no interest is paid on current deposit accounts
b) Interest is paid on current accounts at the same rate as term deposit accounts
c) The rate of interest on current account and savings account are the same
d) No interest is paid on any deposit by the bank
e) Savings deposits are the same as current deposits
8. The usual deposit accounts of banks are …………
a) Current accounts, electricity accounts and insurance premium accounts
b) Current accounts, Post office savings bank accounts and term deposit
c) Loan accounts, savings bank accounts and term deposit accounts
d) Current accounts, savings bank accounts and term deposit accounts
e) Current bill accounts and term deposit accounts
9. Fixed deposits and recurring deposits are:
a) repayable after an agreed period
b) repayable on demand
c) not repayable
d) repayable after death of depositors
e) repayable on demand or after an agreed period as per bank’s choice
10. Financial inclusion means provision of:
a) financial services namely, payments, remittances, savings, loans and insurance at affordable cost to persons not yet given the same.
b) ration at affordable cost to persons not yet given the same.
c) house at affordable cost to persons not yet given the same.
d) food at affordable cost to persons not yet given the same
e) education at affordable cost to persons not yet given the same
11. Which of the following is known as cross selling by Banks?
1. Sale of a debit card to a credit card holder
2. Sale of Insurance policy to a depositor
3. Issuance of cash against cheque presented by a third party
a) Only (1) b) Only (2) c) Only (3) d) Both (1) and (3) e) All (1), (2) and (3)
12. Which of the following states became the first state in the country to launch RBI’s e-payment system for commercial tax payers?
a) Andhra Pradesh b) Kerala c) Gujarat d) Maharashtra e) Karnataka
13. When a bank returns a cheque unpaid, it is called:
a) payment of the cheque
b) drawing of the cheque
c) cancelling of the cheque
d) dishonor of the cheque
e) taking of the cheque
14. Mortgage is a:
a) security on movable property for a loan given by a bank.
b) security on immovable property for a loan given by a bank.
c) concession on immovable property for a loan given by a bank.
d) facility on immovable property for a loan given by a bank.
e) security on immovable property for a deposit received by a bank.
15. Which of the following schemes is launched by the Govt, of India to provide an identity to its all resident citizens and also in identifying people who are poorest, often the last to stand up to ask for their share in govt, schemes or lack identity?
a) Public Provident Fund scheme
b) Indira Gandhi Old Age Pension scheme
c) Social Security Scheme for Gramin Dak Sevaks
d) M. G National Rural Employment Guarantee Act
e) Aadhaar Card scheme.
16. Which of the following types of accounts are known as ‘Demat Accounts’?
a) Accounts which are Zero Balance Accounts
b) Accounts which are opened to facilitate repayment of a loan taken from the bank. No other business can be conducted from there.
c) Accounts in which shares of various companies are traded in electronic form
d) Accounts which are operated through internet banking facility
e) None of these
17. Upper limit prescribed for RTGS transaction is:
a) 1 lakh b) 2 lakh c) 5 lakh d) 50 lakh e) No upper limit is prescribed
18. Distribution of insurance products and insurance policies by banks as corporate agents is known as:
a) General Insurance
b) Non-life insurance
c) Bancassurance
d) Insurance banking
e) Deposit insurance
19. In order to attract more foreign exchange the Govt. of India decided to allow foreign investment in LLP firms. What is full form of ‘LLP’ as used in this reference?
a) Local Labour Promotion
b) Low Labour Projects
c) Limited Loan Partnership
d) Longer Liability Partnership
e) Limited Liability Partnership
20. NEFT means:
a) National Electronic Funds Transfer system
b) Negotiated Efficient Fund Transfer System
c) National Efficient Fund Transfer Solution
d) Non Effective Fund Transfer System
e) Negotiated Electronic Foreign Transfer system
21. Every year March 20 is celebrated as what day?
a) World Sparrow Day
b) International Women’s Day
c) World Cuckoo Day
d) International Child Day
e) international
22. When the rate of inflation increases:
a) purchasing power of money increases
b) purchasing power of money decreases
c) value of money increases
d) purchasing power of money remains unaffected
e) amount of money in circulation decreases
23. Interest on savings bank account is now calculated by banks on:
a) minimum balance during the month
b) minimum balance from 7th to last day of the month
c) minimum balance from 10th to last day of the month
d) maximum balance during the month
e) daily product basis
24. A centralized database with online connectivity to branches, internet as well as ATM-network which has been adopted by almost all major banks of our country is known as:
a) investment banking
b) core banking
c) mobile banking
d) national banking
e) specialized banking
25. Which of the following is not considered a money market instrument?
a) Treasury bills
b) Repurchase Agreement
c) Commercial Paper
d) Certificate of Deposit
e) Shares and bonds
26. With a view to facilitate payment of balance in the deposit account to the person named by the depositor without any hassles in the event of death of the account holder, the following facility was introduced for bank accounts in our country:
a) Will b) Registration c) Nomination d) Indemnity e) Guarantee
27. Banks in our country normally publicise that additional interest rate is allowed on retail domestic term deposits of:
a) Minors b) Married women c) Senior citizens
d) Govt. employees e) Rural residents
28. Largest shareholder (in percentage shareholding) of a nationalized bank is ………….
a) RBI b) NABARD c) LIC d) Govt. of India e) IBA
29. Which of the following is the main advantage of “ASBA” with the applicants for share allotment?
a) ASBA applicant has got secured allotment of shares
b) ASBA applicant has got certain preference in allotment of shares as compared to general applicants.
c) ASBA applicant need not remit the fund for allotment of shares, he/she will do so after shares are allotted to him/her
d) ASBA Applicants deposit/OD account is not debited, only the funds are blocked for the same and he/she continues to avail interest till the shares are allotted to him/her
e) None of these.
30. Like telephone/Mobile number portability, the Ministry of Finance/RBI is now also considering to provide bank account number portability to bank customers. Which of the following would it mean?
a) Any customer/account holder can withdraw cash from any other Bank through his/her own cheques drawn on other bank even without ATM.
b) Any borrower can draw funds from his/her loan account from any other bank also
c) The account number of any account holder will remain the same even if he/she is getting his/her account transferred to another bank also.
d) Bank customers would have the facility of mobile Banks to withdraw cash nearby his/her place.
e) None of these
31. NRE deposit is ………….
a) Non Resident External deposit
b) Non Resident Extra deposit
c) Non Resident Exchange deposit
d) Non Refundable External deposit
e) Non Resident Extended deposit
32. What is offshore banking?
a) It is a bank located in the sea (i.e., island)
b) It is a bank located in SEZ
c) It is a bank located in a neighbouring country.
d) It is a bank located outside the country of residence of the depositor
e) Offshore banking is basically dealing in foreign exchange
33. Which of the following is correct?
a) Illiterates cannot open any account in a bank
b) Illiterate women cannot open any account in a bank
c) Illiterates can open savings bank accounts in a bank
d) Advance can be granted to a minor.
e) Advance can be granted to a minor if he is of sound mind
34. Non convertible debentures are:
a) Debt instruments which acquire equity status at the issues’ option
b) Debt instruments which acquire equity status at the investors’ option
c) Debt instruments which acquire equity status with the permission of Registrar of Companies
d) Debt instruments which acquire equity status on maturity
e) Debt instruments which retain their debt character and cannot acquire equity status
35. “IRDA norms will boost online distribution” – was the news in some major newspapers. This means online distribution of which of the following will boost up?
a) Bank products
b) Insurance policies/products
c) License to open new banks/branches of existing banks
d) Licenses to operate 2G/3G spectrums
e) Permits for export of iron ore
36. To prevent frauds of iron ore mortgage cases, under SARFAESI Act, 2002 one special thing has been created and made operative from 01-04-2011. Which one is that from the following?
a) Special Registrar Office at Lucknow
b) Special Central Arbitration Bureau at Lucknow
c) Central SARFAESI Tribunals at 6 Centres
d) Central Electronic Registry
e) States Electronic Registries
37. SBI has merged which of the following two associate banks with itself?
a) State Bank of Hyderabad and State Bank of Patiala
b) State Bank of Hyderabad and State Bank of Travancore
c) State Bank of Mysore and State Bank of Travancore
d) State Bank of Indore and State Bank of Hyderabad
e) State Bank of Indore and State Bank of Saurashtra
38. Which one of the following is not a salient feature of Debit Card?
a) No bad debts to banks and no suits for recovery
b) No interest earning for banks
c) Works like a normal withdrawal
d) Can be used at ATM and POS
e) 45 days credit is given to the card holder
39. Banks issue a letter to beneficiary on behalf of its constituents like guarantee for making payment on their behalf on fulfillment of its arrangement known in banking context?
a) Line of Credit
b) Loan to Client
c) Loan on Credit
d) Loan against Credit
e) Letter of Credit
40. When a Bank provides a loan for purchase of white goods, it is categorized as ……………
a) Consumption loan
b) White Goods loan
c) Consumer Durable loan
d) Working Capital
e) Bridge Loan
ANSWER KEY
1. d 2. a 3. c 4. d 5. e 6. b 7. a 8. d 9. a 10. a
11. d 12. e 13. d 14. b 15. e 16. c 17. e 18. c 19. e 20. a
21. a 22. b 23. e 24. b 25. e 26. c 27. c 28. d 29. d 30. c
31. a 32. d 33. c 34. e 35. b 36. d 37. e 38. e 39. e 40. c
