Banking Awareness

Q1. Refinance facility is provided by NABARD. Which institutions can avail this facility?

(a) State cooperative banks

(b) Regional rural banks

(c) Commercial bank

(d) All of the above

(e) None of the above

Q2. Kisan Credit Cards are an effective way of reaching out to the farmers by the banks. What assistance does the farmer receive in this way?

(a) Credit facility for crops etc against an approved limit

(b) Short-term credit facility against value of his crops

(c) Long-term credit is provided against his land holdings

(d) Loan is permissible against crops sold, but payment yet to be received by the farmer

(e) None of the above

Q3. Which of the following is true?

(a) NBFCs can accept deposits from the public

(b) NBFCs cannot offer deposit schemes to the public

(c) Deposits of NBFCs are insured with DICGC

(d) NBFCs can accept deposits from public if they are registered and permitted by RBI

(e) None of the above

Q4. Base rate is the rate below which no bank can allow their lending to anyone. Who sets-up this ‘Base rate’ for banks?

(a) Individual Banks’ Board

(b) Ministry of Commerce

(c) Ministry of Finance

(d) RBI

(e) Interest Rate Commission of India

Q5. The financial assistance of loans of Rs.10000 by bank to a small borrower will be called..........?

(a) business finance

(b) government finance

(c) micro finance

(d) small finance

(e) KYC finance

Q6. The Aadhar-Enabled Payment System (AEPS) is a bank-led model that facilitates banking facilities through banking correspondents across banks. However, Aadhaar-enabled basic types of banking transactions do ‘not’ include?

(a) Aadhaar to Aadhaar funds transfer

(b) small overdraft facility

(c) cash withdrawal

(d) balance enquiry

(e) cash deposit

Q7. A type of fraud where in criminals use an innocent person’s details to open or use an account to carry out financial transactions, is known as?

(a) identity theft

(b) hacking

(c) money laundering

(d) espionage

(e) phishing

Q8. The part of a company’s earnings or profits which are paid out to shareholders, is known as- 

(a) capital gains

(b) taxes

(c) interest on borrowings

(d) dividends

(e) penal interest

Q9. NABARD is responsible for regulating and supervising the functions of 

(a) Investment and Industrial Finance Banks

(b) Cooperative Banks and Regional Rural Banks

(c) Corporate Finance and Overseas Banking Units

(d) Private Sector and Multinational Banks

(e) Reserve Bank of India

Q10. The government of India has announced a ‘Funding for Lending’ scheme. Who are the beneficiaries for this scheme?

(a) Commercial Banks

(b) Regional Rural Banks

(c) Micro-finance Institutions

(d) Finance Departments of the State Governments

(e) None of the above

Q11. As per the reports, the collection of direct taxes has gone up by about 19% in last few months. Which of the following agencies releases the figures about tax collection?

(a) Central Statistical organisation

(b) Reserve Bank of India

(c) Department of Income Tax

(d) Central Board of Direct Taxes

(e) None of the above

Q12. As we know commercial banks accept deposits from the public. What do banks do with this money?

(a) This is a type of credit creation. Bank gives this on loan

(b) This is an income for the bank

(c) Banks give this money directly to the govt for developmental projects

(d) This money is deposited with the RBI who in turn gives some interest on it banks

(e) None of the above

Q13. Which of the following in NOT a type of cheque issued by an individual?

(a) Bearer cheque

(b) Order cheque

(c) Crossed cheque

(d) Savings cheque

(e) None of the above

Q14. Which of the following terms is used in banking?

(a) Vacuum

(b) Power

(c) Density

(d) Credit Card

(e) None of the above

Q15. “Sensitive Index” of Bombay Stock Exchange is called ……………?

(a) Forex

(b) MAX

(c) LIBOR

(d) Sensex

(e) None of the above

Solutions

S1. Ans.(d)
Sol. 

S2. Ans.(a)
Sol. 

S3. Ans.(d)
Sol. 

S4. Ans.(a)
Sol. 

S5. Ans.(c)
Sol. 

S6. Ans.(b)
Sol. 

S7. Ans.(e)
Sol. 

S8. Ans.(d)
Sol. 

S9. Ans.(b)
Sol. 

S10. Ans.(a)
Sol. 

S11. Ans.(d)
Sol. 

S12. Ans.(a)
Sol. 

S13. Ans.(d)
Sol. 

S14. Ans.(d)
Sol. 

S15. Ans.(d)
Sol.

Banking Awareness

Q1. Interest on the savings bank accounts is compounded ____?

(a) Daily

(b) Yearly 

(c) Quarterly 

(d) Half-yearly

(e) All of the above

Q2. The Head of Reserve Bank of India is?

(a) Chief Executive Officer 

(b) Managing Director 

(c) Chief Banking Officer 

(d) Governor

(e) Other than the given options

Q3. Who supplies interest-charts for different maturities and for different rates of interest?

(a) IBA

(b) RBI

(c) Government of India

(d) IBRD

(e) Other than the given options

Q4. Rates of Interest on deposits are determined by ____?

(a) IBA 

(b) Ministry of Finance 

(c) The Bank Itself

(d) Government of India

(e) Other than the given options

Q5. Current account becomes dormant when there are no withdrawals for the last _____?

(a) 3 months

(b) 6 months

(c) 24 months

(d) 12 months 

(e) Other than the given options

Q6. One rupee notes bear the signature of..........?

(a) Governor of Reserve Bank of India

(b) Prime Minister of India

(c) President of India

(d) Secretary, Ministry of Finance (Government of India)

(e) Other than the given options

Q7. 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

Q8. In terms of Section 5(1) (5) of the Banking Regulation Act, 1949, a ‘banking company’ means any company which-

(a) accepts deposits from the public

(b) undertakes lending of money

(c) transacts the business of banking in

(d) All of the above

(e) Other than the given options

Q9. Which of the following is not a negotiable instrument? 

(a) Cheque

(b) Pay order

(c) Bill of Exchange

(d) All of the above are negotiable instruments

(e) Other than the given options

Q10. Under the Corporate Debt Restructuring (CDR) mechanism, loan assets of banks have been categorized. Which one of the following statements is not correct? 

(a) Assets belonging to Standard and Sub-Standard category come under category I

(b) Assets belonging to Doubtful category come under category II

(c) Assets belonging to Doubtful and Loss categories come under Category II

(d) Out of total Loan Assets, 90 per cent is Standard and Sub-standard and Doubtful is 10 per cent this lot comes under   Category I

(e) Other than the given options

Q11. These days Banks are offering Loans against Property? Under which business segment, this activity may be categorized? 

(a) Corporate Banking  

(b) Personal Banking

(c) Merchant Banking 

(d) Portfolio Management-Services 

(e) Other than the given options

Q12. What do we mean by “ECB” in financial terms?

(a) Essential Commercial Borrowings     

(b) Essential Credit & Borrowings  

(c) External Credit & Business 

(d) External Commercial Borrowings

(e) Other than the given options

Q13. “Currency Swap” is an instrument to manage ____?

(a) Currency Risk 

(b) Interest Rate Risk     

(c) Currency and Interest Rate Risk 

(d) Cash Flows in different currencies

(e) All of the above 

Q14. “Plastic Money” denotes ________?

(a) Bearer cheque

(b) Credit card

(c) Demand Draft   

(d) Traveller’s cheque

(e) Gift cheque

Q15. RBI has recently introduced Cheque Truncation System, which means that ______?

(a) Physical movement of a cheque is stopped between banks and instead an electronic image be exchanged for clearance of funds   

(b) The physical movement of a cheque for clearance of funds be made more secure 

(c) Issue of cheques to customers be made more secure by introducing more enhanced security features 

(d) A new technology to process payments between Banks exclusively  

(e) Other than the given options

Solutions

S1. Ans.(a)
S2. Ans.(d)
S3. Ans.(a)
S4. Ans.(c)
S5. Ans.(c)
S6. Ans.(d)
S7. Ans.(b)
S8. Ans.(d)
S9. Ans.(d)
S10. Ans.(c) 
S11. Ans.(b)
S12. Ans.(d)
S13. Ans.(d)
S14. Ans.(b)

S15. Ans.(a)

Banking Awareness

Q1. NABARD was dedicated to the service of the nation by the late Prime Minister Smt. Indira Gandhi on-

(a) 12th July 1982

(b) 01st January 1949

(c) 19th July 1980

(d) 15th April 1969

(e) 05th November 1982

S1. Ans.(e)

Sol. NABARD came into existence on 12 July 1982 by transferring the agricultural credit functions of RBI and refinance functions of the then Agricultural Refinance and Development Corporation (ARDC). It was dedicated to the service of the nation by the late Prime Minister Smt. Indira Gandhi on 05 November 1982.

Q2. The mission of NABARD is Promote sustainable and equitable agriculture and rural prosperity through effective credit support, related services, institution development and other innovative initiatives. What is meaning of "R" IN NABARD?

(a) Regional

(b) Rural

(c) Reconstruction

(d) Revised

(e) Remittance

S2. Ans.(b)
Sol. The mission of NABARD is Promote sustainable and equitable agriculture and rural prosperity through effective credit support, related services, institution development and other innovative initiatives. NABARD stands for National Bank for Agriculture and Rural Development.

Q3. SAT is a statutory body established under the provisions of Section 15K of the Securities and Exchange Board of India (SEBI) Act, 1992. SAT stands for-

(a) Securities Appellate Tribunal

(b) Securities Appellate Treaty

(c) Securities Association Tribunal

(d) Saving  Appellate Tribunal

(e) None of the given options is true

S3. Ans.(a)
Sol. Securities Appellate Tribunal (SAT) is a statutory body established under the provisions of Section 15K of the Securities and Exchange Board of India Act, 1992 to hear and dispose of appeals against orders passed by the Securities and Exchange Board of India or by an adjudicating officer under the Act and to exercise jurisdiction, powers and authority conferred on the Tribunal by or under this Act or any other law for the time being in force.

Q4. The Securities and Exchange Board of India (SEBI) was established on- 

(a) 12th April 1999

(b) 12th April 1992

(c) 12th April 1949

(d) 12th April 1990

(e) 12th April 1995

S4. Ans.(b)
Sol. The Securities and Exchange Board of India (SEBI) was established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992.

Q5. NABARD was set up with an initial capital of-

(a) Rs 200 crore 

(b) Rs 1500 crore

(c) Rs 500 crore  

(d) Rs 100 crore

(e) Rs 1000 crore 

S5. Ans.(d)
Sol. NABARD was set up with an initial capital of Rs.100 crore, its’ paid up capital stood at Rs. 5,000 crore as on 31st March 2016.

Q6. Who is the first Governor of RBI? 

(a) C.D.Deshmukh

(b) James Braid Taylor 

(c) Osborne Smith 

(d) Raghuram Rajan

(e) None of the given options is true

S6. Ans.(c)
Sol. Sir Osborne Smith was the first Governor of the Reserve Bank. A professional banker, he served for over 20 years with the Bank of New South Wales and 10 years with the Commonwealth Bank of Australia before coming to India in 1926 as a Managing Governor of the Imperial Bank of India. He held from 01st April 1935 to 30th June 1937.

Q7. Scheduled Banks of India are those banks, which are? 

(a) Included in First Schedule of RBI Act, 1934 

(b) Not included in First Schedule of RBI Act, 1934 

(c) Included in Second Schedule of RBI Act, 1934 

(d) Not included in Second Schedule of RBI Act, 1934 

(e) None of the given options is true

S7. Ans.(c)
Sol. The scheduled commercial banks are those banks which are included in the second schedule of RBI Ac  1934. Scheduled Commercial Banks are grouped under following categories:
1. State Bank of India
2. Nationalised Banks
3. Foreign Banks
4. Regional Rural Banks
5. Other Scheduled Commercial Banks

Q8. Which of the following banks is not merged with SBI in April 2017? 

(a) State Bank of Bikaner & Jaipur 

(b) State Bank of Travancore 

(c) State Bank of Mysore 

(d) Axis Bank

(e) None of the given options is true

S8. Ans.(d)
Sol. Axis Bank Ltd is the third largest of the private-sector banks in India and it is not merged with SBI in April 2017.

Q9. Which of the following bank is not a private sector bank in India? 

(a) Federal Bank 

(b) Yes Bank 

(c) IndusInd Bank 

(d) UCO Bank

(e) None of the given options is true

S9. Ans.(d)
Sol. Founded in 1943, UCO Bank is a commercial bank and a Government of India Undertaking.

Q10. Which private sector bank is recently merged with Kotak Mahindra Bank (KMB)? 

(a) ING Vysya Bank 

(b) Karur Vysya Bank 

(c) Lakshmi Vilas Bank 

(d) Jammu and Kashmir Bank

(e) None of the given options is true

S10. Ans.(a)
Sol. ING Vysya Bank has successfully merged with Kotak Bank with effect from April 1, 2015, and will bear the name Kotak Mahindra Bank.

Q11. FICCI history is closely interwoven with India's struggle for independence, its industrialization, and its emergence as one of the most rapidly growing global economies. What is meaning of "F" in FICCI?

(a) Follower

(b) Federal

(c) Financial

(d) Federation

(e) None of the given options is true

S11. Ans.(d)
Sol. Established in 1927,  Federation of Indian Chambers of Commerce and Industry (FICCI) is the largest and oldest apex business organisation in India. Its history is closely interwoven with India's struggle for independence, its industrialization, and its emergence as one of the most rapidly growing global economies.

Q12. Who were the first Chairman and Managing Director (CMD) of Exim Bank?

(a) Ravneet Kaur

(b) TCA Ranganathan

(c) RC Shah

(d) Kalyan Banerji

(e) Yaduvendra Mathur

S12. Ans.(c)
Sol. Established by the Government of India, we commenced operations in 1982 under the Export-Import Bank of India Act, 1981 as a purveyor of export credit, mirroring global Export Credit Agencies. R.C. Shah was the first Chairman and Managing Director (CMD) from 1982 - 1985 of Exim Bank.

Q13. ECGC Ltd. wholly owned by Government of India, was set up in ______________ with the objective of promoting exports from the country by providing Credit Risk Insurance and related services for exports.

(a) 1935

(b) 1982

(c) 1964

(d) 1949

(e) 1957

S13. Ans.(e)
Sol. ECGC Ltd. (Formerly Export Credit Guarantee Corporation of India Ltd.), wholly owned by Government of India, was set up in 1957 with the objective of promoting exports from the country by providing Credit Risk Insurance and related services for exports.

Q14. ECGC is essentially an export promotion organization, seeking to improve the competitiveness of the Indian exporters by providing them with credit insurance covers. What is meaning of "G" in ECGC?

(a) Guarantee 

(b) General 

(c) Government

(d) Grameen

(e) None of the given options is true

S14. Ans.(a)
Sol. ECGC Ltd (Formerly Export Credit Guarantee Corporation of India Ltd.).

Q15. AIIB is a new multilateral financial institution founded to bring countries together to address the daunting infrastructure needs across Asia. AIIB stands for-

(a) Asian Infrastructure Investment Bureau

(b) Asian Infrastructure Investment Bank 

(c) Association Infrastructure Investment Bank 

(d) Asian International Investment Bank 

(e) None of the given options is true

S15. Ans.(b)
Sol. The Asian Infrastructure Investment Bank (AIIB) is a new multilateral financial institution founded to bring countries together to address the daunting infrastructure needs across Asia.

Banking Awareness

Q1. Senior Citizen Saving Scheme (SCSS) is exclusively meant for people over the age of 60 years. They shall come into force on-

(a) August 2004

(b) August 2002

(c) August 2010

(d) August 2008

(e) August 2006

S1. Ans.(a)

Sol. Senior Citizen Saving Scheme (SCSS) is exclusively meant for people over the age of 60 years. They shall come into force on 02nd day of August in 2004.

Q2. What is the maturity period of Senior Citizen Saving Scheme (SCSS)?

(a) 5 years

(b) 50 years

(c) 1 years

(d) 10 years

(e) 15 years

S2. Ans.(a)
Sol. The maturity period of Senior Citizen Saving Scheme (SCSS) is 5 years.

Q3. There are only four eligible categories of PSLCs i.e. PSLC General, PSLC Small and Marginal Farmer, PSLC Agriculture & PSLC Micro Enterprises. PSLC stands for-?

(a) Public Sector Lending Certificates 

(b) Priority Sector Lending Certificates 

(c) Priority System Lending Certificates 

(d) Priority Service Lending Certificates 

(e) Priority Sector Lending Cash

S3. Ans.(b)
Sol. There are only four eligible categories of PSLCs i.e. PSLC General, PSLC Small and Marginal Farmer, PSLC Agriculture & PSLC Micro Enterprises. PSLC stands for Priority Sector Lending Certificates.

Q4. All PSLCs will expire on-

(a) 01st October

(b) 01st April

(c) 01st March

(d) 01st January

(e) 01st June

S4. Ans.(b)
Sol. All PSLCs will be valid till March 31st and will expire on April 1st.

Q5. The guidelines specify that MCLR calculated using methodology prescribed shall correspond to the tenor of funds in the single largest maturity bucket provided it is more than 30% of the entire funds reckoned for determining the MCLR. What is the meaning of "M" in MCLR?

(a) Minimum

(b) Maturity

(c) Marginal

(d) Management

(e) None of the given options is true

S5. Ans.(c)
Sol. The guidelines specify that MCLR calculated using methodology prescribed shall correspond to the tenor of funds in the single largest maturity bucket provided it is more than 30% of the entire funds reckoned for determining the MCLR. MCLR stands for Marginal Cost of Funds based Lending Rate.

Q6. What is the minimum tenure of gold deposits under Gold Monetization Scheme, 2015?

(a) Five year

(b) Two year

(c) One year

(d) Three year

(e) Four year

S6. Ans.(c)
Sol. The deposit will be made under Gold Monetization Scheme, 2015 with the designated banks for a short term period of 1-3 years (with a roll over in multiples of one year) and will be treated as their on-balance sheet liability.

Q7. All Scheduled Commercial Banks excluding ________ are eligible to implement under Gold Monetization Scheme, 2015?

(a) Private Sector Banks

(b) IDBI Bank Limited

(c) State Bank of India

(d) Regional Rural Banks

(e) Public Sector Banks

S7. Ans.(d)
Sol. All Scheduled Commercial Banks excluding Regional Rural Banks (RRBs) are eligible to implement the Scheme.

Q8. BSBDA is a simple, basic account for routine banking transactions without the need of minimum balance requirement. BSBDA stands for-?

(a) Basic Savings Branch Deposit Account

(b) Balance Savings Bank Deposit Account

(c) Basic Savings Bank Demand Account

(d) Basic Savings Bank Deposit Account

(e) None of the given options is true

S8. Ans.(d)
Sol. Basic Savings Bank Deposit Account (BSBDA) a simple, basic account for routine banking transactions without the need of minimum balance requirement.

Q9. Which rate has replaced the erstwhile Benchmark Prime Lending Rate system with effect from July 1, 2010? 

(a) Marginal Rate system

(b) Bank Rate system

(c) Repo Rate system

(d) Open Rate system

(e) Base Rate system

S9. Ans.(e)
Sol. The Base Rate system has replaced the erstwhile Benchmark Prime Lending Rate system with effect from July 1, 2010. Base Rate shall include all those elements of the lending rates that are common across all categories of borrowers.

Q10. Banks cannot accept interest-free deposits other than in-

(a) Saving Account

(b) Recurring Deposit Account

(c) Fixed Deposit Account

(d) Nostro Account

(e) Current Account

S10. Ans.(e)
Sol. Banks cannot accept interest free deposits other than in current account.

Banking Awareness

Q1. NPCI is an umbrella organization for all retail payments system in India. It was set up with the guidance and support of the Reserve Bank of India (RBI) and Indian Banks’ Association (IBA). What does NPCI stands for-

(a) National Payments Corporation of Industry

(b) National Payments Council of India

(c) Nominal Payments Corporation of India

(d) National Payments Corporation of India

(e) National Product Corporation of India

S1. Ans.(d)

Sol. National Payments Corporation of India (NPCI) is an umbrella organization for all retail payments system in India. It was set up with the guidance and support of the Reserve Bank of India (RBI) and Indian Banks’ Association (IBA).

Q2. In which among the following years NPCI was incorporated-

(a) December 2008

(b) January 2006

(c) April 2010

(d) July 2012

(e) None of the given options is true

S2. Ans.(a)
Sol. NPCI was incorporated in December 2008 and the Certificate of Commencement of Business was issued in April 2009. It was incorporated as a Section 25 company under Companies Act 1956 (now Section 8 of Companies Act 2013) and is aimed to operate for the benefit of all the member banks and their customers.

Q3. The Bank for International Settlements (BIS) is the world's oldest international financial organisation. BIS was established on-

(a) 26th May 1961

(b) 01st October 1949

(c) 14th February 1914

(d) 21st August 1945

(e) 17th May 1930

S3. Ans.(e)
Sol. Established on 17 May 1930, the Bank for International Settlements (BIS) is the world's oldest international financial organisation. The BIS has 60 member central banks, representing countries from around the world that together make up about 95% of world GDP.

Q4. Where is the head office of Bank for International Settlements (BIS)?

(a) Zurich, Switzerland

(b) New York, USA

(c) Basel, Switzerland

(d) Berlin, Germany

(e) Geneva, Switzerland

S4. Ans.(c)
Sol. Basel, Switzerland is the head office of Bank for International Settlements (BIS).

Q5. Under which act NPCI was incorporated as a Section 8?

(a) Banking Regulation Act, 1949

(b) Companies Act 2013

(c) Reserve Bank of India Act, 1934

(d) Societies Registration Act, 1860 

(e) None of the given options is true

S5. Ans.(b)
Sol. NPCI was incorporated as a Section 25 company under Companies Act 1956 (now Section 8 of Companies Act 2013) and is aimed to operate for the benefit of all the member banks and their customers.

Q6. PSLCs are tradable certificates issued against priority sector loans of banks. What does meaning of "Cs" in PSLCs?

(a) Cess

(b) Cities

(c) Census

(d) Certificates

(e) ) None of the given options is true

S6. Ans.(d)
Sol. PSLCs stands for Priority Sector Lending Certificates.

Q7. The Banking Ombudsman Scheme is introduced under Section 35 A of the Banking Regulation Act, 1949 by RBI with effect from -

(a) 1995

(b) 1999

(c) 1990

(d) 1982

(e) 1988

S7. Ans.(a)
Sol. The Banking Ombudsman Scheme enables an expeditious and inexpensive forum to bank customers for resolution of complaints relating to certain services rendered by banks. The Banking Ombudsman Scheme is introduced under Section 35 A of the Banking Regulation Act, 1949 by RBI with effect from 1995.

Q8. MTSS is a way of transferring personal remittances from abroad to beneficiaries in India. What does MTSS stand for-?

(a) Mobile Transfer Service Scheme 

(b) Money Transfer System Scheme 

(c) Money Timing Service Scheme 

(d) Market Transfer Service Scheme 

(e) Money Transfer Service Scheme

S8. Ans.(e)
Sol. Money Transfer Service Scheme (MTSS) are the most common arrangements under which the remittances are received into the country.

Q9. How much cash can payment be made to the beneficiary in India under MTSS? 

(a) Rs 2,00,000

(b) Rs 50,000

(c) Rs 1,00,000

(d) Rs 10,000

(e) ) None of the given options is true

S9. Ans.(b)
Sol. Amounts up to INR 50,000/- may be paid in cash to a beneficiary in India under MTSS.

Q10. RDA is a channel to receive cross-border remittances from overseas jurisdictions. What does meaning of "A" in RDA?

(a) Account

(b) Assembly

(c) Arrangement

(d) Association

(e) Amount

S10. Ans.(c)
Sol. RDA stands for Rupee Drawing Arrangement.

Q11. Under OLTAS, only a Single Copy Challan is used with a tear off the portion for the Tax Payer. What does OLTAS stand for-

(a) On-line Tax Accounting Service

(b) On-line Tax Amounting System

(c) On-line Timing Accounting System

(d) On-line Tax Association Service

(e) On-line Tax Accounting System

S11. Ans.(e)
Sol. Under On-line Tax Accounting System (OLTAS), only a Single Copy Challan is used with a tear off portion for the Tax Payer.

Q12. What is the minimum period of maturity prescribed for Commercial Paper (CP)?

(a) 17 Months

(b) 14 Days

(c) 01 Year

(d) 07 days

(e) 05 years

S12. Ans.(d)
Sol. Commercial Paper (CP) can be issued for maturities between a minimum of 7 days and a maximum of up to one year from the date of issue.

Q13. Which banks are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC)?

(a) Foreign Banks functioning in India

(b) Local Area Banks

(c) Regional Rural Banks

(d) All of the above

(e) ) None of the given options is true

S13. Ans.(d)
Sol. All commercial banks including branches of foreign banks functioning in India, local area banks and regional rural banks are insured by the DICGC.

Q14. What is the maximum period of maturity prescribed for Commercial Paper (CP)?

(a) 10 years

(b) 06 years

(c) 01 Year

(d) 02 years

(e) 05 years

S14. Ans.(c)
Sol. Commercial Paper (CP) can be issued for maturities between a minimum of 7 days and a maximum of up to one year from the date of issue.

Q15. Each depositor in a bank is insured by DICGC up to a maximum of _____________________ for both principal and interest amount held by him in the same capacity and same right as on the date of liquidation/cancellation of bank's licence or the date on which the scheme of amalgamation/merger/reconstruction comes into force.

(a) Rs.1,00,000 

(b) Rs.2,00,000 

(c) Rs.3,00,000 

(d) Rs.4,00,000 

(e) Rs.5,00,000

S15. Ans.(a)
Sol. Each depositor in a bank is insured upto a maximum of Rs.1,00,000 (Rupees One Lakh) for both principal and interest amount held by him in the same capacity and same right as on the date of liquidation/cancellation of bank's licence or the date on which the scheme of amalgamation/merger/reconstruction comes into force.

Banking Awareness

Q1. Which bank has tied up with PFG Forex for remittance facility for the benefit of Indian expatriates from Australia recently?

(a) Punjab National Bank

(b) Bank of Baroda

(c) State Bank of India

(d) Kotak Mahindra Bank

(e) South Indian Bank

S1. Ans.(e)

Sol. South Indian Bank has tied up with PFG Forex for remittance facility for the benefit of Indian expatriates from Australia. The new facility will leverage the bank to reach the Indian diaspora.

Q2. The United Forum of Bank Unions has decided to observe July __________ the 48th anniversary of nationalisation of major banks, as ‘Save public sector banks’ day.

(a) July 18th 

(b) July 19th

(c) July 20th

(d) July 17th

(e) July 21st

S2. Ans.(b)
Sol. The United Forum of Bank Unions has decided to observe July 19, 2017, the 48th anniversary of nationalisation of major banks, as ‘Save public sector banks’ day. Members will wear a commemorative badge on the day, display posters in front of all branches, distribute leaflets and hold rallies/demonstrations at all centres across the country.

Q3. Indus OS has partnered with __________ to launch OS-integrated UPI payment platform in India.

(a) IDFC Bank

(b) Axis Bank

(c) ICICI Bank

(d) YES Bank

(e) HDFC Bank

S3. Ans.(d)
Sol. Indus OS has partnered with YES Bank to launch OS-integrated UPI (Unified Payment Interface) payment platform in India. Users with Indus OS will be able to use this UPI payment platform on SMS, dialer interface, and on third party apps like WhatsApp. This means P2P transactions, as well as utility payments, can be made via SMS or messaging. The platform is expected to launch in this quarter.

Q4. Where is the headquarter of South Indian Bank?

(a) Thrissur

(b) Bengaluru

(c) Kochi

(d) Chennai

(e) Pune

S4. Ans.(a)
Sol. Headquarter of South Indian Bank is in Thrissur, Kerala.

Q5. __________ is a payment system launched by National Payments Corporation of India and regulated by the Reserve Bank of India which facilitates the instant fund transfer between two bank accounts on the mobile platform.

(a) NACH

(b) BHIM

(c) UPI

(d) CPI

(e) BBPS

S5. Ans.(c)
Sol. Unified Payments Interface (UPI) is a payment system launched by National Payments Corporation of India and regulated by the Reserve Bank of India which facilitates the instant fund transfer between two bank accounts on the mobile platform.

Q6. The Doing Business Report” is prepared by which of the following organizations every year?

(a) Asian Development Bank (ADB)

(b) World Bank (WB)

(c) New Development Bank (NDB)

(d) World Trade Organization (WTO)

(e) None of the given options is true

S6. Ans.(b)
Sol. The Doing Business Report (DB) is a study elaborated by the World Bank Group every year that is aimed to measure the costs to firms of business regulations. The study has become one of the flagship knowledge products of the World Bank Group in the field of private sector development and is claimed to have motivated the design of several regulatory reforms in developing countries.

Q7. Which of the following cannot be called as a debt instrument as referred in financial transactions?

(a) Certificate of Deposits

(b) Bonds

(c) Stock

(d) Commercial Paper

(e) None of the given options is true

S7. Ans.(c)
Sol. Debt instruments are assets that require a fixed payment to the holder, usually with interest. Examples of debt instruments include bonds (government or corporate), mortgages, Commercial Paper and Certificate of Deposits.

Q8. Which of the following is not a type of cheque issued by an individual?

(a) Bearer Cheque

(b) Crossed Cheque

(c) Order Cheque

(d) Savings Cheque

(e) None of the given options is true

S8. Ans.(d)
Sol. An order cheque can be a bearer cheque if the words or bearer are not cancelled out. A crossed cheque is a cheque that has been marked to specify an instruction about the way it is to be redeemed.

Q9. “World Investment Report” is annually published by-

(a) IBRD

(b) WTO

(c) IMF

(d) UNCTAD

(e) ADB

S9. Ans.(d)
Sol. The World Investment Report has been published annually since 1991 by The United Nations Conference on Trade and Development (UNCTAD). Each year´s Report covers the latest trends in foreign direct investment around the World and analyses in depth one selected topic related to foreign direct investment and development.

Q10. Treasury bills are issued in India by ______

(a) RBI

(b) State Government

(c) Government of India

(d) SEBI

(e) NABARD

S10. Ans.(c)
Sol. Treasury bills (T-bills) offer short-term investment opportunities, generally up to one year. They are thus useful in managing short-term liquidity. At present, the Government of India issues three types of treasury bills through auctions, namely, 91-day, 182-day and 364-day. There are no treasury bills issued by State Governments.

Q11. Which among the following international organisation has announced its approval to a $329 million loan to build access roads across 4,000 villages in Gujarat recently?

(a) OPEC

(b) IMF

(c) AIIB

(d) ADB

(e) World Bank

S11. Ans.(c)
Sol. China based Asian Infrastructure Investment Bank (AIIB) announced its approval to a $329 million loan to build access roads across 4,000 villages in Gujarat. The funds have been approved to construct road linkages for last-mile connectivity to schools and tribal areas in 33 districts of the state.

Q12. Takehiko Nakao is present president of-

(a) Asian Development Bank

(b) World Bank

(c) New Development Bank

(d) International Monetary Fund

(e) Asian Infrastructure Investment Bank

S12. Ans.(a)
Sol. Takehiko Nakao is present president of the Asian Development Bank.

Q13. Siemens AG opened its first digital factory in India, also the third globally after one each in Germany and China, as the industrial conglomerate pitches smart facilities to small and medium scale enterprises in the country. Siemens AG based in-

(a) Canada

(b) France

(c) China

(d) Germany

(e) Japan

S13. Ans.(d)
Sol. Siemens AG opened its first digital factory in India, also the third globally after one each in Germany and China, as the industrial conglomerate pitches smart facilities to small and medium scale enterprises in the country. Siemens AG is a German conglomerate company headquartered in Berlin and Munich and the largest industrial manufacturing company in Europe with branch offices abroad.

Q14. The Asian Development Bank (ADB) was conceived in the early __________ as a financial institution that would be Asian in character and foster economic growth and cooperation in one of the poorest regions in the world.

(a) 1950s

(b) 1960s

(c) 1940s

(d) 1970s

(e) 1980s

S14. Ans.(b)
Sol. The Asian Development Bank was conceived in the early 1960s as a financial institution that would be Asian in character and foster economic growth and cooperation in one of the poorest regions in the world.

Q15. Who is the present president of the Asian Infrastructure Investment Bank (AIIB)?

(a) Li Keqiang

(b) Wang Yi

(c) Xie Xuren 

(d) Lou Jiwei 

(e) Jin Liqun

S15. Ans.(e)
Sol. Jin Liqun is present president of the Asian Infrastructure Investment Bank (AIIB).