Banking Awareness 2012 PDF For IBPS CWE II 2013

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Banking awareness 2012 pdf for IBPS CWE II 2013

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BANKING AWARNESS
QUESTIONS AND QUESTIONS
computer test
questions and answers
for bank exams in india
LIC AAO Previous Year
Question Papers
pratiyogita darpan
january 2013
General english tests
with answers for bank
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competitive exams
1. Which of the following statements is true?

(1) Banks cannot accept demand and time deposits from public
(2) Banks can accept only demand deposits from public
(3) Banks can accept both demand and time deposits from public
(5) Banks can accept demand and time deposits only from government
2. Which of the following is the correct statement?

(1) State Bank of India is the sole authority to issue and manage currency in India
(2) A nationalized bank is the sole authority to issue and manage currency in India
Banking awareness
(3) A cooperative bank is the sole authority to issue and manage currency in India
2012 pdf quesitons and
(4) RBl is the sole authority to issue and manage currency in India
answers for SBI and
(5) None of the above
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(4) RBl is the sole authority to issue and manage currency in India
3. Interest payable on savings bank accounts is

(1) not regulated by RBI
(2) regulated by Sate Governments
(3) regulated by Central Government
(4) regulated by RBI (5) regulated by Finance Minister
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Latest current affairs
2012 pdf for IBPS CWE

(4) regulated by RBI
4. The usual deposit accounts of banks are

(1) current accounts, electricity accounts and insurance premium accounts
(2) current accounts post office savings bank accounts and term deposit accounts
current affairs 2012 pdf (3) loan accounts, savings bank accounts and term deposit accounts
| current affairs 2012
(4) current accounts, savings bank accounts and term deposit accounts
download | Bank exams (5) current bill accounts and term deposit accounts
II 2013
| current affairs quiz

(4) current accounts, savings bank accounts and term deposit accounts
5. Fixed deposits and recurring deposits are

(1) repayable after an agreed period
(2) repayable on demand
(3) not repayable
(4) repayable after death of depositors
(5) repayable on demand or after an agreed period as per banks choice
(1) repayable after an agreed period
6. Accounts are allowed to be operated by cheques in respect of

(1) both savings bank accounts and fixed deposit accounts
(2) savings bank accounts and current accounts
(3) both savings bank accounts and loan accounts
(4) both savings bank accounts and cash accounts only
(5) both Current accounts and fixed deposit accounts
(2) savings bank accounts and current accounts
7. Which of the following is correct statement?

(1) Normally no interest is paid on current deposit accounts
(2) Interest is paid on current accounts at the same rate as term deposit accounts
(3) The rate of interest on current account and savings account are the same
(4) No interest is paid on any deposit by the bank
(5) Savings deposits are the same as current deposits
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(1) Normally no interest is paid on current deposit accounts
8. Mortgage is a
(1) security on movable property for a loan given by a bank
(2) security on immovable property for a loan given by a bank
(3) concession on immovable property for a loan given by a bank
(4) facility on immovable property for a loan given by a bank
(5) security on immovable property for a deposit received by a bank
(2) security on immovable property for a loan given by a bank
9. Which of the following is known as cross selling by banks?

(A) Sale of a debit card to a credit card holder.
(B) Sale of Insurance policy to a depositor.
(C) Insurance of cash against cheque presented by a third party.
(1) Only (A) (2) Only (B) (3) Only (C)
(4) Both (A) and (C) (5) All (A), (B) and (C)
(5) All (A), (B) and (C)
10. Financial inclusion means provision of

(1) financial services namely, payments, remittances, savings, loans and insurance
at affordable
cost to persons not yet given the same
(2) ration at affordable cost to persons not yet given the same
(3) house at affordable cost to persons not yet given the same
(4) food at affordable cost to persons not yet given the same
(5) education at affordable cost to persons not yet given the same
(1) financial services namely, payments, remittances,
11. When a bank returns a cheque
unpaid, it is called
(1) payment of the cheque
(2) drawing of the cheque
(3) canceling of the cheque
(4) dishonour of the cheque
(5) taking of the cheque
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(4) dishonour of the cheque
12. NEFT means

(1) National Electronic Funds Transfer system
(2) Negotiated Efficient Fund Transfer system
(3) National Efficient Fund Transfer solution
(4) Non Effective Fund Transfer system
(5) Negotiated Electronic Foreign Transfer system
(1) National Electronic Funds Transfer system
13.
(1)
(3)
(5)
Upper limit prescribed for RTGS transaction is

Rs. 1 lac (2) Rs. 2 lacs
Rs. 5 lacs (4) Rs. 50 lacs
No upper limit is prescribed
(5) No upper limit is prescribed
14. Distribution of insurance products and insurance policies by banks as corporate

agents is known as
(1) General Insurance (2) Non-life Insurance
(3) Bancassurance (4) Insurance Banking
(5) Deposit Insurance
(3) Bancassurance
15. In order to attract more foreign exchange the Government of India decided to
allow foreign
investment in LLP firms. What is full form of LLP as used in this reference?
(1) Local Labour Promotion
(2) Low Labour Projects
(3) Limited Loan Partnership
(4) Longer Liability Partnership
(5) Limited Liability Partnership
(5) Limited Liability Partnership
16.
(1)
(2)
(3)
(4)
(5)
Interest on Saving bank account is now calculated by

minimum balance during the month
minimum balance from 7th to last day of the month
minimum balance from 10th to last day of the month
maximum balance during the month
daily product basis
banks on
(5) daily product basis
17. Largest shareholder (in percentage shareholding) of a nationalized bank is

(1) RBI (2) NABARD (3) LICI
(4) Government of India
(5) IBA
18.
(1)
(2)
(3)
(4)
(5)
When the rate of inflation increases

purchasing power of money increases
purchasing power of money decreases
value of money increases
purchasing power of money remains unaffected
amount of money in circulation decreases
(2) purchasing power of money decreases
19. A centralized databases with online connectivity to branches, internet as well as

ATM-network which has been adopted by almost all major banks of
our country is own as
(1) Investment Banking (2) core Banking
(3) Mobile Banking (4) National Banking
(5) Specialized Banking
(2) core Banking
20. The Unit Trust of India came into existence in

(1) 1960
(2) 1962 (3) 1964
(4) 1966 (5) 1968
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(3) 1964
21. Which of the following is example of financial assets?
(1) National Saving Certificates

(2) Infrastructure Bonds (3) Indira Vikas Patra
(4) Krishi Vikas Patra (5) All of the above
(5) All of the above
22.
(1)
(3)
(5)
Capital market is a market which deals in

short-term funds (2) long-term funds
gilt-edge securities (4) All of the above
None of the above
(2) long-term funds
23. Regional Rural Banks fall within supervisory purview of

(1) SBI (2) RBI (3) SEBI
(4) IRDA (5) None of these
(2) RBI
24. IRDA with its headquarters at is the regulatory authority for all insurance
companies in
India including the Life Insurance Corporation of India.
(1) Hyderabad (2) Bengaluru (3) Mumbai
(4) Delhi (5) Chandigarh
(1) Hyderabad
25. Mutual Funds fall within 7 supervisory purview of

(1) SBI (2) RBI (3) SEBI
(4) IRDA (5) None of these
(3) SEBI
26. Which of the following does not come under the category of Development
Banks?
(1) Industrial Development Bank of India
(2) Small Industries Development Bank of India
(3) Industrial Investment Bank of India
(4) State Finance Corporation
(5) Export-import Bank
(5) Export-import Bank
27. Main financial instruments of corporate sector are

(1) Shares (ii) Debentures (iii) Public Deposits
(iv) Loan from Institutions
Select the correct answer by using of the following codes
(1) i and ii (2) ii and iii (3) iii and iv
(4)1, ii and iv (5) All I, ii, iii and iv
(5) All I, ii, iii and iv
28. Financial institutions

(1) promote savings (2) mobilise savings (3) allocate savings among different
users
(4) All of the above (5) None of the above
29. Which of the following is not an / example of primary securities?

(1) Bills (2) Bonds (3) Shares
(4) Book debts (5) New currency
(5) New currency
30. Indian Financial System / comprises of

(1) Scheduled Commercial Banks
(2) Non-banking Financial Institutions
(3) Urban Cooperative Banks
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31. The Bombay Stock Exchange was 7 made functional as

(1) 1870 (2) 1901 (3) 1935
(4) 1951 (5) 1949
early as
(1) 1870
32. The Unit Trust of India come into existence in

(1) 1964 (2) 1970 (3) 1975
(4) 1980 (5) 1982
(1) 1964
33. 19 July 1969, how commercial Banks were nationalised?

(1) 13 (2) 14
(3) 15 (4) 16 (5) 20
(2) 14
34. New Private Banks are being given licenses since

(1) 1991 (2) 1992 (3) 1993
(4) 1995 (5) 2001
((3) 1993
35. The gilt-edged market refers to the market for

(i) Government securities
(ii) Semi-government securities
(iii) Corporate securities
Select the correct answer
(1) only i (2) i and ii (3) ii and iii
(4) i, ii and iii (5) only iii
(2) i and ii
36. First share market in India established in

(1) Delhi (2) Mumbai (3) Kolkata
(4) Chennai (5) None of these
(2) Mumbai
37. Consider the following statements:

(i) Securities that have an original maturity that is greater
traded in capital markets.
(ii) The best known capital market securities are stocks
(1) (i) is true and (ii) is false (2) (i) is false and (ii) is true
(3) Both are true
(4) Both are false
than one year are

and bonds.
(3) Both are true
38. Consider the following statements:

(i) Securities that have an original maturity that is greater
traded in money markets.
(ii) The best known money market securities are stocks
(1) (i) is true and (ii) is false (2) (i) is false and (ii) is true
(3) Both are true
(4) Both are false
than one year are

and bonds.
(4) Both are false
39.
(1)
(3)
(4)
(5)
The primary issuers of capital market securities include

the Central Government (2) the local Government
corporations
the Central and Local Governments and corporations
Local Government and corporations
(4) the Central and Local Governments and corporations
40. Which of the following is a / characteristic of a capital market instrument?

(a) Liquidity (b) Marketability
(3) Long maturity (4) Liquidity premium
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41.
(1)
(2)
(3)
(4)
Which one of the following is a capital market instrument?

A Treasury bill
A negotiable certificate of deposit was
Commercial paper
All of the above (5) None of the above
42.
(1)
(3)
(4)
(5)
T-bills are financial instruments initially sold by

Commercial Banks (2) the government
corporations
agencies of the State Government
None of the above
________ to raise funds.
(2) the government
43.
(1)
(2)
(3)
(4)
(5)
Commercial paper is a short-term security issued by

the Reserve Bank of India
Commercial Banks
large and well-known companies
National Stock Exchange
State and Local Governments
________ to raise funds.
(3) large and well-known companies
44. Which of the following statements is true regarding a corporate bond?

(1) A corporate callable bond gives the holder the right to exchange it for a
specified number of the companys common shares
(2) A corporate debenture is a secured / bond
(3) A corporate indenture is a secured bond
(4) A corporate convertible bond gives the holder the right to exchange the bond
for a specified number of the companys common shares
(5) Holders of corporate bonds have voting rights in the company
(4) A corporate convertible bond
45. Which one of the following is not a money market instrument?

(1) A Treasury bill (2) A negotiable certificate of deposit
(3) Commercial paper (4) Treasury bond (5) Repo
(4) Treasury bond
46. Money lend for 15 days or more in Inter-bank market

(1) call money (2) notice money
(3) term money (4) All of these
(5) None of these
is called
(3) term money
47. Money lent for one day is called

(1) call money (2) notice money
(3) term money (4) All of these
(5) None of these
(1) call money
48. Specified interest rate on a fixed maturity security

called
(1) market rate of interest (2) call rate
(3) repo rate (4) coupon rate
(5) discount rate
fixed at the time of issue is
(4) coupon rate
49. Lending of scheduled Commercial Banks, on a

should not
exceed of their capital fund.
(1) 25 per cent (2) 35 per cent
(3) 15 per cent (4) 50 per cent
(5) None of these
fortnightly average basis,
(1) 25 per cent
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50. A short-term credit investment created by a nonguaranteed by a bank to make payment is called
(1) bankers acceptance market
(2) collateral loan market (3) treasury bill market
(4) call money market (5) repo market
financial firm and
(1) bankers acceptance market
51.
(1)
(3)
(5)
Money market securities are

short-term (2) low risk
very liquid (4) All of the above
1 and 2
52. Money market instruments

(1) are usually sold in large denominations
(2) have low default risk
(3) mature in one year or less
(4) are characterized by all of the above
(5) are characterized by 1 and 2
(4) are characterized by all of the above
53. Which of the following statements about the money market are true?
(1) Not all Commercial Banks deal for their customers in the secondary market
(2) Money markets are used extensively by businesses both to warehouse surplus
funds and
to raise short-term funds
(3) The single most influential participant in the US money market is the US
Treasury Department
(4) All of the above are true
(5) 1 and 2 of the above are true
(5) 1 and 2 of the above are true
54. In the term repo, the term of the loan is greater than
(1) 30 days (2) 20 days (3) 60 days
(4) 90 days (5) None of these
(1) 30 days
55. The money market in India consists of two sectors

namely, the organised and the unorganised sector. Which of the following do not
fall under unorganised sector?
(1) RBI, Commercial Banks and SBI
(2) LIC and GIC (3) Unit Trust of India
(4) Indigenous Banks (5) None of the above
(4) Indigenous Banks
56.
(1)
(3)
(5)
Money lent for one day in the money market is known

Notice Money (2) Call Money
Term Money (4) All of the above
None of the above
as
(2) Call Money
57. Money lent for more than one day but less than 15
is known as
(1) Notice Money (2) Call Money
(3) Term Money (4) All of the above
days in the money market
(1) Notice Money
58.
(1)
(3)
(5)
Money lent for 15 days or more in inter-bank market is

Notice Money (2) Call Money
Term Money (4) All of the above
None of the above
called
(3) Term Money
59. Government security that is a claim on the government
and is a secure
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financial instrument which guarantees of both capital and interest is called
(1) Coupon security (2) Gilt-edged security
(3) Corporate security (4) All of the above
(2) Gilt-edged security
60. Which of the following types of institutions are operate

market only as lender?
(1) Commercial Banks (2) Primary Dealers
(3) Insurance companies (4) SBI
in the call money
(3) Insurance companies
61. As per prudential norms of RBI, lending of Scheduled Commercial Banks, on a

fortnight average basis, should not exceed.. per of their capital fund.
(1) 25
(2) 30
(3) 35 (4) 15 (5) 20
(1) 25
62. The market for bankers acceptance which or out of

domestic and foreign, is called
(1) Mohey market (2) Capital market
(3) Bankers acceptance market (4) Repo market
(5) Government security market
trade transactions, both
(3) Bankers acceptance market
63. An unsecured loan extended by one corporate to

(1) Commercial papers (2) Treasury bill
(3) Inter-corporate deposits (4) Certificates of deposits
(3) Inter-corporate deposits
another is called
64. Interest is calculated on actual/365 days basis
respect of the following products, except one

(1) Call money (2) Notice money
(3) Term money (4) GOI dated securities
(4) GOI dated securities
65. An institution which accepts deposits, makes

related services is called
(1) Saving Bank (2) Commercial Bank
(3) Investment Bank (4) Development Bank
(5) Central Bank
business loans, and offers
(2) Commercial Bank
66.
(1)
(3)
(5)
A bank which acts as a banker of other banks is called

Saving Bank (2) Commercial Bank
Investment Bank (4) Development Bank
Central Bank
(5) Central Bank
67. Which of the following is/are the function(s) of Exchange Banks?

(i) Remitting money from one country to another country.
(ii) Discounting of foreign bills.
(iii) Buying and selling gold and silver
(iv) Helping Import and Export Trade.
(1) i and ii (2) ii and iii (3) iii and iv
(4) i, ii and iii (5) All i, ii, iii and iv (5) All i, ii, iii and iv
68.
(1)
(3)
(5)
Consumer banks are usually found in

India and Pakistan (2) India and UK
USA and Germany (4) China and Russia
India and China
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(3) USA and Germany
69 A bank account in which a depositor can deposit his funds any number of times
he likes and can also withdraw the same any number of times he wishes is called
(1) Fixed Deposit Account (2) Saving Account
(3) Current Account (4) Recurring Account
(5) Demat Account
70. Under which type of account a specified amount is
(3) Current Account
deposited every month for a specific period, say, 12,

(1) Fixed Deposit Account (2) Saving Account
(3) Current Account (4) Recurring Account
(5) Demat Account
24, 36 or 60 months?
(4) Recurring Account
71. An inter-bank funds transfer system, where funds are

when the transactions are triggered, is called
(1) Internet Banking (2) Mobile Banking
(3) Bill Payment Service
(4) Real time Gross Settlement (5) None of the above
(4) Real time Gross Settlement
transferred as and
72. Which of the following is a primary function of
banks?
(1) Collection and payment of cheques, rent, interest, etc
on behalf of their
customers
(2) Buying, selling and keeping in safe custody, the
securities on behalf of
their customers
(3) Acting as trustees and executors of the property of
their customers on
their advice
(4) Remitting money from one place to the other through
bank drafts or mail or
telegraphic transfers
(5) Accepting deposits
(5) Accepting deposits
73. The operative guidelines for banks on Mobile

were issued in
(1) 2008 (2) 2009 (3) 2010
(4) 2011 (5) 2007
Banking Transactions in India
(1) 2008
74. To use smart cards/debit cards/credit cards for the purchase of an item or for
payment of a service at a merchants store, the card has to be swiped in a
terminal known as
(1) Point of Sale terminal (2) Real time terminal
(3) Shopping terminal (4) All of the above
(1) Point of Sale terminal
75.
(1)
(3)
(5)
The Branding Line of Bank of Baroda is

International Bank of India (2) Indias International bank
Indias Multinational Bank (4) Worlds Local Bank
None of the above
(2) Indias International bank
76.
(1)
(3)
(5)
The logo of Bank of Baroda is known as

Sun of Bank of Baroda (2) Baroda Sun
Bank of Barodas Rays (4) Sunlight of Bank of Baroda
None of the above
(2) Baroda Sun
77. Lot of Banks

customers. What
(1) Money (2)
(4) Mutual Fund
in India these days are offering M- Banking Facility to their

is the full form of M in M-Banking?
Marginal (3) Message
(5) Mobile
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(5) Mobile
78. Which of the following is not the part of the Scheduled Banking structure in
India?
(1) Money Lenders (2) Public Sector Banks
(3) Private Sector Banks (4) Regional Rural Banks
(5) State Cooperative Banks
(1) Money Lenders
79. Section 14 of Banking Regulation Act, 1949

(1) prohibits a banking company from creating a charge upon any unpaid capital of
the company
(2) contains a system of licensing of banks by the RBI
(3) provides that the subscribed capital of a banking company should not be less
than one-half of its
authorised capital
(1) prohibits a banking company from creating a charge upon any unpaid capital of the company
80.
A Bank is under a statutory obligations to honour its customers cheques
vide
(1) Section 10 of the Banking Regulation Act, 1949
(2) Section 3 of the RBI Act, 1934
(3) Section 31 of the Negotiable Instruments Act, 1881
(3) Section 31 of the Negotiable
81. Nationalised Banks have been permitted to offer their equity shares to the
public to the extent of 49% of their capital as per amendments made in 1994 in
(1) Banking Regulation Act, 1949
(2) Banking Companies (Acquisition & Transfer of Undertakings) Acts 1970/1980
(3) RBI Act, 1935
(4) Nationalisation of Banks Act, 1980
(2) Banking Companies (Acquisition Transfer of Undertakings) Acts 1970/1980
82. How many banks are presently associates of State

(1) Eight (2) Seven (3) Six
(4) Five (5) Four
Bank of India?
(4) Five
83. How many nationalized

(1) 14 (2) 15 (3) 19
(4) 20
(5) 6
(3) 19
84. The number of Foreign Banks operating in India is

(1) 20 (2) 25 (3) 28
(4) 32 (5) 35
Show Answer
85. BCSBI stands for

(1) Banking Codes and Standards Board of India
(2) Banking Credit and Standards Board of India
(3) Banking Codes and Service Board d India.
(4) Banking Credit and Service Board India
(1) Banking Codes and Standards Board of India
86. The main Commercial segregated into

(i) Payment System (ii) Financial Intermediation
(iii) Financial Services
(1) (i), (ii), (III) (2) (i) and (iii)
(3) (i) and (ii) (4) (ii) and (iii)
(1) (i), (ii), (III)
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87. The RBI has prescribed that all SCBs should maintain
(1) Dated securities notified by RBI
(2) T-Bills of Government of India
(3) State Development Loans
their SLRs in
88. In case a depositor wishes to withdraw his deposits prematurely, banks

(1) do not allow the same till maturity of the deposits
(2) charge a penalty for the same do not charge any penalty and allow the same
(4) do not allow premature withdrawal
(2) charge a penalty for the same do not charge any penalty
89. What percentage of Indias population lives in rural areas?

(1) 50% to less than 55% (2) 65% to less than 70% (3) 70% to less than 75%
(4) 60% to less than 65% (5) None of the above
(2) 65% to less than 70%
90. For filing and resolving complaints, the Ombudsman

(1) charges a fee of Rs. 500/- (2) does not charge any fee (3) charges a fee of
Rs. 1500/- (4) charges a fee of Rs. 1000/
(2) does not charge any fee
91. In case a depositor is a sole proprietor and holds deposits in the name of the
proprietory concern as well as in the individual capacity the maximum insurance
cover is available up to
(1) Rs.100000 (2) Rs. 200000 (3) Rs. 500000
(1) Rs.100000
92. Banks give contracts to third parties in order to manage

(1) help desk support (2) credit card processing
(3) call support service (4) All of the above
support services like
93. In case of FCNR(2) Scheme, the period for fixed deposits is

(1) as applicable to resident accounts
(2) for terms not less than 1 year and not more than 5 years
(3) for terms not less than 2 years and not more than 6 years
(4) at the discretion of the Bank (5) None of the above
(2) for terms not less than 1 year and not more than 5 years
94. The past due debt collection policy of banks generally emphasizes
on ______ at the time of recovery
(1) respect to customers
(2) appropriate letter authorising agents to collect recovery
(3) due notice to customers
95. According to the risk diversification principle of bank

should
be in terms of
(1) customer base (2) geographic location
(3) nature of business (4) All of the above
lending, diversification
96. Which of the following aspects are outlined by the

(1) rating standards (2) lending procedures
(3) financial covenants (4) All of the above
loan policy of a bank?
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97. The paid-up capital of Non-Scheduled Bank is less

(1) Rs. 5 lakh (2) Rs.10 Iakh (3) Rs. 12 lakh
(4) Rs. 15 lakh (5) None of the above
than
(1) Rs. 5 lakh
98. Scheduled bank means a bank

(1) incorporated under the Companies Act, 1956
(2) authorized to transact Government business
(3) governed by the Banking Regulation Act, l949
(4) included in the Second Schedule to the Reserve Bank
of India Act, 1934
(4) included in the Second Schedule to the Reserve Bank
99. Which of the following conditions must be fulfilled before a bank is included in
the
Second Schedule to the Reserve Bank of India Act?
(1) It must have a paid-up capital and reserves of an aggregate value of not less
than Rs. 5 lakh
(2) It must satisfy the Reserve Bank of India that its affairs are not being
conducted in a
manner detrimental to the interests of the depositors
(3) It must be a State co-operative bank or a company as defined in the Companies
Act, 1956 or an institution notified by the Central Government in this behalf or
a
corporation or a company incorporated by or under any law in force in any place
outside India.
(4) Only (3) (5) All of the above
100. Which of the following are the scheduled banks ?

(1) State Bank of Mauritius Ltd ,
(2) HDFC Bank Ltd (3) ICICI Bank
(4) None of the above (5) All of the above
101. A foreign bank is one

(1) whose most of the branches are situated outside India
(2) in which at least 40% equity shares are held by non-resident Indians
(3) which is incorporated outside India
(3) which is incorporated outside India
102. Branch Banking system is one under which

(1) a large bank carries on banking business through a large network
of branches spread all over the country
(2) the banks huge financial resources enable it to carry on its activities
on a large scale throughout the country
(3) Only (2) and (3) (4) Both of the above
(4) Both of the above
103. Unit Banking System is that system where an individual bank

undertakes the banking business
(1) through a single office
(2) through a few branches operating within a limited area
(3) Only (2) and (3) (4) Both of the above
(4) Both of the above
104. The Unit Banking System is prevalent in

(1) Canada (2) Great Britain
(3) United States of America (4) India
(5) Pakistan
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(3) United States of America
105. In terms of section 5 (1)(e) of the Banking Regulation Act, 1949,

banking company means an company which
(1) accepts deposits from the public
(2) undertakes lending of money
(3) transacts the business of banking India
(4) accepts deposits from public a invests the same in trade
and India.
(3) transacts the business of banking India
106. Which of the following are Scheduled Banks?

(1) The fuji Bank Ltd.
(2) IDBI Bank Ltd.
(3) Centurion Bank of Punjab Ltd. (4) All of the above
107. Which of the following bank has been included in the second Schedule to
the RBI Act, 1934 with effect from 21st August, 2004 and thus is the latest
entrant in Indian Banking as a new generation private sector bank?
(1) ICICI Bank Ltd (2) HDFC Bank Ltd
(3) Kotak Mahindra Bank Ltd (4) Yes Bank Ltd
(4) Yes Bank Ltd
108. Which of the following statements are correct in regard to foreign banks
operating in India ?
(1) Foreign banks would be allowed to open more than the existing WTO
commitment of 12 branches in a year
(2) Foreign banks would be permitted to acquire a controlling stake in a phased
manner,
but only in those private sector banks which are identified by the Reserve Bank
for restructuring
(3) The parent foreign bank of a wholly owned subsidiary would continue to hold
100 percent
equity in the Indian subsidiary for a minimum prescribed period of operation
(4) Only (1) and (2) (5) All of the above
109. Universal Bank is one which

(1) is present universally ie, in all the countries of the world
(2) undertakes the work of note-issuing authority, monetary and regulatory
authority, banker of the Government and equipment leasing
(3) undertakes the functions of a Development Financial Institution as well as a
commercial bank
(3) undertakes the functions of a Development Financial Institution as well as a commercial bank
110. A universal bank may undertake multifarious financial services under one roof,
eg,
(1) receiving money on current or deposit accounts, and, lending of money for
trade,
industries, exports, agriculture, etc
(2) mortgage financing, project financing, infrastructure lending, asset
securitization,
leasing, factoring, etc
(3) remittance of funds, custodial services, credit/debit cards, collection of
cheques/bills, etc
111. The commercial banking system in India consists of

(1) nationalized banks and private sector banks
(2) scheduled and non-scheduled banks
(3) regional rural banks, co-operative banks and land development banks
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(2) scheduled and non-scheduled banks
112. Which of the following are the scheduled banks?

(1) The Fuji Bank Ltd (2) lDBl Bank Ltd
(3) Centurion Bank of Purijab Ltd (4) None of the above
113. Lord Krishna Bank Ltd. is a

(1) New Private Sector Bank (2) Old Private Sector Bank
(3) Public Sector Bank (4) Regional Rural Bank
(2) Old Private Sector Bank
114. What does EBT stands for?

(1) Electronic Belated Transfer
(2) Electronic Beginners Transaction
(3) Electronic Benefit Transfer
(4) Electronic Beginning Transaction (5) None of the above
115. Consider the following statements

(i) If the beneficiary of a cheque has lost the cheque, he can instruct the paying
bank
to stop payment of the cheque without waiting for the account holders
instructions.
(ii) While outsourcing, the only consideration should be cost savings. which among
the
statements given above is/are correct?
(1) Only (i) (2) Only (ii) (3) (i) and (ii)
(4) Neither (i) nor (ii) (5) None of the above
(4) Neither (i) nor (ii)
116. Telebanking service is based on

(1) Virtual banking (2) Online banking
(3) Voice banking (4) Core banking
(3) Voice banking
117. Which of the following is not a Public Sector Bank?

(1) State of Hyderabad (2) Central Bank of India
(3) Regional Rural Bank (4) HDFC Bank
(4) HDFC Bank
118. RBI generally reviews the Monetary policy for every

(1) three months (2) six months
(3) nine months (4) ten months
(1) three months
119.The rate at which the RBI lends shot-term money to

(1) PLR (2) CRR (3) Repo Rate
(4) Reverse Repo Rate (5) None of the above
the banks
(3) Repo Rate
120.The Reserve Bank of India (RBI) was nationalized on

(1) 1 January, 1949 (2) 1 July, 1955
(3) 19 July, 1969 (4) 15 April, 1980
(1) 1 January, 1949
121.Which of the following acts govern the RBI functions?

(1) RBI Act,1934
(3) Companies Act, 1956
(4) Foreign Exchange Regulation Act, 1973
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(5) Foreign Exchange Management Act,
(1) RBI Act,1934
122. The RBI is not expected to perform the function of

(1) the banker to the government
(2) accepting deposit from Commercial Banks
(3) accepting deposits from general public
(4) issuer of currency
(3) accepting deposits from general public
123. Headquarters of Reserve Bank of India is in

(1) New Delhi (2) Mumbai (3) Kolkata
(4) Chennai (5) Hyderabad
(2) Mumbai
124. The first Governor of the Reserve Bank of India

from 1 April1935 to 30 June, 1937 was
(1) Sir Osborne Smth (2) Sir James Taylor
(3) C.D. Deshmukh
(4) Sir Benegal Rama Rao (5) KG. Ambegaonkar
(1) Sir Osborne Smth
125.22nd and Current Governor of Reserve Bank of

India is
(1) Manmohan Singh (2) C. Rangarajan
(3) Bimal Jalan (4) Y.V. Reddy
(5) D. Subbarao
(5) D. Subbarao
126.Which of the following rates is not decided by RBI?

(1) Bank Rate (2) Repo Rate (3) Reverse Repo Rate
(4) Prime Lending Rate (5) Cash Reserve Ratio
(4) Prime Lending Rate
127 .The Reserve Bank of India was set up on the

(1) Narasimham Committee
(2) Hilton-Young Commission
(3) Mahalanobis Committee
(4) Fazal Ali Commission (5) None of the above
recommendations of the
(2) Hilton-Young Commission
128. Which of the following formulates. implements

and monitors the monetary policy?
(1) Ministry of Finance (2) RBI
(3) SBI (4) ICICI Bank (5) None of the above
(2) RBI
129.Which of the following is th central banking

(1) State Bank of India (2) Ministry of Finance
(3) Reserve Bank of India
(4) Finance Commission of India
institution India?
130. The Reserve Bank of India had divested its stake

in State Bank of India to
(1) IDBI Bank (2) LIC (3) ICICI Bank
(4) Government of India (5) None of the above
131. At Present the RBI holds one per cent of shareholding in?
(1) State Bank of India
(2) National Housing Bank
(3) State Bank of Hyderabad
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(4) National Bank for Agriculture and Rural Development (NABARD)
(4) National Bank for Agriculture and Rural Development
132. The number of regional offices of RBI is

(1) 20 (2) 21 (3) 22 (4) 23 (5) None of these
(3) 22
133. In India, the RBI prescribes the minimum SLR level for Scheduled
Commercial Banks in India in specified assets as a percentage of Banks
(1) Net Demand and Time Liabilities
(2) Demand Liabilities (3) Time Liability
(1) Net Demand and Time Liabilities
134 . CRR refers to the share of that banks Rural have

to maintain with RBI of their net demand and time liabilities.
1) Liquid cash (2) forex reserves
(3) gold (4) liquid cash (5) None of the above
(4) liquid cash
135.The RBI has adopted _____ Model in which mobile banking and is
promoted through business correspondents of banks.
1) Bank Led (2) Band Mobile (3) Mobile
(4) All of these S) None of these
(4) All of these
136. Services offered to government departments include

(1) payments of salaries and pensions
(2) distributing RBI bonds to government departments
(3) direct and indirect tax collections
(4) remittance facilities (5) None of the above
all the above except
(2) distributing RBI bonds to government departments
137. Which of the following is/are known as Bankers Bank?

(1) SBI (2) NABARD (3) RBI
(4) All of these (5) None of these
(3) RBI
138. Which of the following is the central bank of the country?

(1) RBI (2) SBI (3) RRB
(4) NABARD (5) None of these
(1) RBI
139 . RBI was established on

(1) April 1, 1935 (2) March 1, 1935
(3) April 1, 1934 (4) March 1, 1934
(5) None of these
(1) April 1, 1935
140. Which of the following is/are functions of the RBI?

(I) Acts as the currency authority
(ii) Controls money supply and credit
(iii) Manages foreign exchange
(iv) Serves as a banker to the government
(1) (i) and (Ill) (2) (ii) and (iii)
(3) (i), (ii) and (iii) (4) (i), (ii), (iii) and (iv)
(5) None of these
(4) (i), (ii), (iii) and (iv)
141. Central Bank

(1) creates (2) controls (3) restricts
(4) all of these (5) None of these
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(2) controls
142 credit investment.

(1) Dear (2) Cheap (3) Restricted
(4) Green (5) None of these
(2) Cheap
143. Quantitative instrument of RBI can be

(1) bank rate policy (2) cash reserve ratio
(3) statutory liquidity ratio (4) All of the above
144. Objective of monetary policy of RBI is to

(1) control inflation
(2) discourage loarding of commodities
(3) encourage flow of credit into neglected sector
145. When RBI is lender of last resort, what does it mean?

(1) RBI advances necessary credit against eligible
securities
(2) Commercial Banks give fund to the RBI
(3) RBI advances money to public whenever there is any
emergency
(1) RBI advances necessary credit against eligible
146. When RBI acts as a banker to the government, what does it do?
(1) RBl keeps bank accounts of the government
(2) RBI carries out government transactions
(3) RBI advises the government on all financial and
monetary matters
147. The merit of issuing notes with RBI can be seen is

(1) uniformity (2) stability in currency
(3) control of credit (4) All of the above
148. Which of the following is not an objective of financial sector reform in India?
(1) Creating an efficient, productive and profitable financial sector industry
(2) Preparing the financial system for increasing international competition
(3) Opening the external sector in a calibrated fashion
(4) Reducing the fiscal deficit
(5) Promote the maintenance of financial stability even in the face of domestic and
external environment
(4) Reducing the fiscal deficit
149. The Narsimham Committee-I was set up in

(1) 1990 (2) 1991 (3) 1992
(4) 1998 (5) 2000
(2) 1991
150. The Narsimham Committee-I was set up to suggest

for
improvement in the
(1) efficiency and productivity of the financial institution
(2) banking reform process (3) export of IT sector
(4) fiscal reform process (5) None of the above
some recommendations
151. The Narsimham Committee-Il was set up to suggest

for
improvement in the
some recommendations
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(2) banking reform process (3) export of IT sector
(4) fiscal reform process (5) None of the above
(2) banking reform process
152. The Narsimham Committee, 1991 has given which

of the following major recommendations
(i) Reduction in the SLR and CRR.
(ii) Phasing out Directed Credit Programme.
(iii) The determination of the interest rate should be on the grounds of market
forces
such as the demand for and the supply of fund.
(iv) The actual numbers of public sector banks need to be reduced.
(v) Narrow Banking Concept where weak banks will be allowed to place their funds
only in short-term and risk free assets.
Select the correct answer using the following codes
(1) i,ii and v (2) i, iii, iv and v (3) i,ii,iii and v
(4) ii, iii, iv and v (5) i, ii, iii and iv
(5) i, ii, iii and iv
153. Which of the following is not correct about the recommendations of

Narsimham Committee Report, 1998?
(1) Reduced CRR and SLR
(2) Deregulation of Interest Rate
(3) Establishment of the ARE Tribunal
(4) Fixing Prudential Norms (5) Capital Adequacy Norms
(3) Establishment of the ARE Tribunal
154. Basel I, which was issued in 1988, focuses on the

(1) capital adequacy of financial institutions
(2) improvement of the banking sectors ability to deal with financial and economic
stress
(3) technology up gradation
(4) training of banking staff
(5) professionalism in banking
(1) capital adequacy of financial institutions
155. In 1991, SLR was as high as

(1) 25% (2) 30% (3) 38.5%
(4) 39.5% (5) 40%
(3) 38.5%
156. Narsimham Committee recommended to reduce

SLR and CRR to
(1) 25% and 3.5% respectively
(2) 24% and 3.5% respectively
(3) 25% and 3% respectively
(1) 25% and 3.5%
157. Which of the following is not a recommendation of

1991?
(1) Reduction of CRR and SLR
(2) Phasing out directed credit programme
(3) Reduction of Capital Adequacy Ratio
(4) Establishment of ARE Fund
(5) Autonomy to Public Sector Bank
the Narsimham Committee,
(3) Reduction of Capital Adequacy Ratio
158. Which of the following guidelines were issued by Reserve Bank of India in
January 1993 for the entry of Private Sector Banks in the wake of Narasimham
Committee recommendation
(1) The new bank, upon being granted license under the Banking Regulation Act by
RBI,
Shall be registered as a public limited company under the Companies Act, 1956
(2) Its inclusion in the Second Schedule to the Reserve Bank of India Act, 1934
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shall be
sunject to Reserve Banks decision
(3) Preference would be given to those banks the headquarters of which are
proposed to be located in the
centre which does not have the headquarters of
any other
bank
(4) (1) and (3) (5) All of these
(5) All of these
159. The RBI has prescribed that a new Private Sector Bank
(1) shall be subject to prudential norms in regard to income recognition, asset
classification and provisioning, capital adequacy, etc.
(2) shall have to observe priority sector lending targets as applicable to other
domestic banks
(3) will be required to open rural and semi-urban branches
down by RBI
(4) None of the above (5) All of above
also as may be laid
(5) All of above
160. A new Private Sector Bank

(1) would be governed by existing branch licensing policy where by banks could
open branches including at urban/ metro centres without prior approval of RBI
once capital adequacy and prudential accounting norms were satisfied
(2) will be governed by the provisions of the RBI Act, 1934 the Banking
Regulation Act, 1949 and other relevant
statutes
(3) would be subject to the directives, guidelines and advices given by the
Reserve Bank of India
161. To create a strong and competitive banking system, reform measures were
initiated in early 1990s. The thrust of these reforms was on
(1) increasing operation efficiency
(2) strengthening supervision over banks
(3) developing technological and institutional infrastructure
162. What does EBT stands for?

(1) Electronic Belated Transfer
(2) Electric Beginners Transaction
(4) Electronic Beginning Transaction
163. On the recommendations of which of the following committee Regional Rural

Banks were established?
(1) Tarpore Committee
(3) Karmakar Committee
(4) Kelker Committee
(5) Jha Committee
164. RRBs were set up on

(1) 1975 (2) 1985 (2) 1991
(4) 2001 (5) 1965
(1) 1975
165. The total authorized capital of RRBs was originally

since been raised to
(1) Rs. 2crore (2) Rs. 3 crore (3) Rs. 5 crore
(4) Rs. 7 crore (5) Rs. 10 crore
fixed at 1 crore which has
(3) Rs. 5 crore
166. At present, the formula for subscription to RRBs

capital has been fixed at
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(1) Central Government
20%
30%
25%
50%, State Government 35% and

Sponsor Bank 15%

Sponsor Bank

Sponsor Bank 40%

Sponsor Bank:
Sponsor Bank:
(2) Central Government 60%, State Government 20% and
167. Central Governments contribution towards the

capital of RRBs is made through
(1) NABARD (2) RBI (3) SBI
(4) Central Cooperative Bank (5) State Cooperative Bank
(1) NABARD
168. The Sponsor Bank helps and aids the RRB sponsored
(i) Subscribing to its share capital.
(ii) Training its personnel.
(iii) Providing managerial and financial assistance during the
extended period.
Select the correct answer by using the following codes
(1 ) i and ii (2) ii and iii (3) i and ii
(4) i, ii, and iii (5) None of these
by it by
first five years or
(4) i, ii, and iii
169. The Sponsor Banks are empowered

(1) to monitor the progress of RRBs
(2) to conduct inspection and internal audit
(3) to suggest corrective measures
170. Each of the RRBs covers districts ranging from

(1) 1 to 15 (2) 2 to25 (3) 3 to 25
(4) 2 to 15 (5) 1 to 5
(2) 2 to25
171. The main resources of RRBs are

(1) share capital
(2) deposits from the public
(3) borrowing from Sponsor Banks
(4) refinance from NABARD (5) All of the above
172. RRBS are refinanced at

(1) 2% below the bank rate (2) 1% below the bank rate (3) 2% below the repo
rate (4) 1% below the repo rate
(5) repo rate
(1) 2% below the bank rate
173. RRBs are owned by

(3) Sponsor Bank
(2) State Government

(4) jointly by all of the above
(4) jointly by all of the above
174. The main resources of RRBs are

(i) share capital.
(ii) deposits from the public.
(iii) borrowing from Sponsor Banks.
(iv) refinance from NABARD.
(1) i and ii (2) i, ii and iii (3) iii and iv
(4) ii, iii and iv (5) i, ii, iii and iv
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175. The number of directors on the boards of RRBs has

(1) 14 (2) 15
(3) 16
(4) 17 (5) 18
been raised to
(2) 15
176. The issued/paid-up capital of a Regional Rural Bank

(1) Rs. 60 lac
(2) minimum Rs. 25 lac and maximum Rs. 100 lac
(3) Rs. 80 lac (4) Rs. 90 lac (5) None of the above
should be
177. Under which category will Ofl classify Regional

Rural Banks?
(2) Co-operative banks
(3) Private sector banks
(4) Development banks
178. Paid-up share capital of Region Rural Bank is contributed by

(1) Central Government only
(2) State Government only
(3) Central Government, State Government and the sponsor
commercial bank
in the ratio of 50: 15: 35 respectively
(4) NABARD, the concerned Government and the sponsor
commercial bank in
the ratio of 60:20 :20 respectively
(2) State Government only
179. Regional Rural Banks are empowered to transact

the business of banking as defined under
(2) Negotiable Instruments Act, 1881
(3) Regional Rural Banks Act, 1976
(4) The Banking Companies (Acquisition and Transfer of
1970
Undertakings) Act,
180. RRBs are permitted to undertake corporate agency business, without risk
participation, for distribution of all types of insurance products, including health
and animal insurance subject to the condition that
(1) The bank should comply with the Insurance Regulatory
and Development
Authority (IRDA) regulations for acting
as composite corporate agent
(2) The bank should not adopt any restrictive practice of
forcing its customers
to go in only for a particular
insurance company in respect of assets financed
by
the bank
(3) The risks, if any, involved in insurance agency should
not get transferred to
the business of the bank
181. Regional Rural Banks are managed by

(2) a board of directors
(3) the sponsor bank
(4) the State Government
(2) a board of directors
182. Deposits with Regional Rural Banks are insured by

(1) Life Insurance Corporation of India
(2) General Insurance Corporation
(3) Deposit Insurance and Credit Guarantee Corporation
(3) Deposit Insurance and Credit Guarantee Corporation
183. For opening a new branch, a Regional Rural Bank
requires
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(1)
(2)
(3)
(5)
permission of NABARD
permission of Director, Institutional Finance
RBI license (4) All of the above
approval of DRDA
(3) RBI license
184. Regional Rural Banks are classified as

(1) scheduled commercial banks
(2) subsidiaries of the sponsor banks
(3) subsidiaries of NABARD (4) All of the above
185. For the purpose of Income Tax Act, 1961, the
regional rural banks are treated as

(2) non-scheduled banks (3) nationalised banks
(4) co-operative banks (5) None of the above
(4) co-operative banks
186. On the current account balances maintained by the Regional Rural Banks with
them, the commercial banks may
(1) pay interest up to 9 per cent
(2) waive incidental charges
(3) pay interest as applicable to savings accounts
(4) pay interest at such rates as may be mutually agreed to
(4) pay interest at such rates as may be mutually agreed to
187. All regional rural banks (RRBs) are required to

maintain their entire statutory liquidity ratio (SLR) in
(1) government and other approved securities
(2) current accounts with sponsor banks
(3) time deposits with sponsor banks
(4) gold holdings only (5) All of the above
(1) government and other approved securities
188. Which of the following statements about Regional Rural Banks are correct?
(1) Sponsor banks travellers cheques can be issued by RRBs
(2) RRBs can enter into arrangements with the sponsor banks
for providing
remittance facilities to its customers
(3) Where RRBs can afford the investment, they can install
lockers also
189.Reserve Bank has permitted RRBs for opening/

maintaining Non-Residents (Ordinary /External)
accounts in rupees and for acceptance of FCNR (B)
deposits subject to the condition that
(1) The bank should have a positive net-worth and earned
net profit during the
preceding year
(2) The bank should not have defaulted in maintenance of
CRR/SLR
requirements on more than three occasions
during the preceding two years
(3) Net NPA level of the bank should not exceed five per
cent of the outstanding
advances as on March 31 of the
preceding year
190. The Regulatory Authority Regional Rural Banks is

(1) Sponsor bank (2) Central Government
(3) State Government (4) RB land NABARD
(4) RB land NABARD
191. Which of the following are the recommendations of the Internal Group
(Chairman : Shri A V Sardesai) set up by RBI in regard to strengthening and
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viability of RRBs?
(1) merger/amalgamation of RRBs to improve operational
(2) change of sponsor banks to enhance competitiveness.
(3) governance and management and scope for improving
viability
profitability
192. Which of the-following measure have been taken to

available to RRI3s?
(1) Lines of credit at a reasonable rate of interest from
(2) Access to inter-RRB term money/ borrowings
(3) Access to repo / CBLO markets
enlarge resources
sponsor banks
193. With a view to increase their resource base, RRBs

have been permitted to
(1) issue of credit/debit cards and setting-up of ATMs
(2) open Currency Chests
(3) handle pension and other government business as subagents of those
banks which are authorised to conduct
government business
194. Which of the following conditions are required to be fulfilled by a Regional

Rural Bank to be eligible for opening of new branches?
(1) It should not have defaulted in maintenance of SLR and
CRR during the last
two years
(2) It should be making operational profits
(3) Its net worth should show improvement and its net NPA
ratio should not
exceed 8 per cent
195. Co-operative Banks in India are registered under

(i) Banking Laws (Cooperative Societies) Act, 1965.
(ii) Banking Regulations Act, 1949.
(iii) Companies Act, 1956.
Select the correct answer using the following codes
(1) only i (2) i and ii (3) ii and iii
(4) i, ii and iii (5) i, and iii
(1) only i
196. Co-operative Development Bank was set up by

(1) NABARD (2) RB! (3) SB!
(4) Central Government (5) None of the above
(1) NABARD
197. Co-operative banks in India do not finance rural

areas under
(1) Farming (2) Cattle (3) Milk
(4)Small scale units (5) Personal finance
(4)Small scale units
198. Which of the following is not a negotiable

instrument? (2) semi-negotiable instrument?
(1) Promissory note (2) Bill of exchange
(3) Cheque (4) Bank Draft (5) Share certificate
(4) Bank Draft
199. Those instruments which can be transferred by endorsement and delivery,

but the transferee does not get a better title than that of the transferor is called
(1) negotiable instruments
(2) semi-negotiable instruments
(3) non-negotiable instruments
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(2) semi-negotiable instruments
200. Transfer of any instrument to another person by

or on a slip of paper attached to it is known as :
(1) promissory note (2) bill of lading
(3) bill of exchange (4) endorsement
signing on its back or face
(4) endorsement
201. Which of the following is not a prerequisite for a promissory note?

(1) drawn on a specified banker
(2) It should be unconditional
(3) It should be in writing
(4) It should be made and signed by the debtor
(5) It should be payable in the currency of the country
(1) drawn on a specified banker
202. A bill of exchange in which a bank orders its branch or another bank, as the
case may be, to pay a specified amount to a specified person or to the order of
the specified person is called
(1) cheque (2) bank draft (3) promissory note
(4) bill of exchange (5) None of the above
(2) bank draft
203. Which of the following is not a party of bill of

(1) The Drawer (2) The Drawee (3) The Payee
(4) The Endorser (5) None of the above
exchange?
(4) The Endorser
204. Which of the following is/are the right(s) of customer towards his banker?
(1) To receive a statement of his account from a banker
(2) To sue the bank for any loss and damages
(3) To sue the banker for not maintaining the secrecy of his
account
205. When an endorser waives presentment and notice of dishonour he increases

his liability. His
endorsement is:
(1) facultative endorsement
(2) qualified endorsement
(3) alternative endorsement
(4) restrictive endorsement
(1) facultative endorsement
206. All of the following are examples of Quasi Negotiable

Negotiable Instrument Act, 1881, except
(1) Dividend Warrants (2) Share Warrants
(3) Bearer Debentures (4) Promissory Note
Instruments, under the
(4) Promissory Note
207. Section 131 of Negotiable Instrument Act, 1881

extends protection to the
(1) Paying Banker (2) Collecting Banker
(3) Advising Banker (4) Issuing Banker
(2) Collecting Banker
208. Which of the following is not considered as

negotiable instrument under the Negotiable
Instruments Act, 1881?
(1) Bill of exchange (2) Promissory note
(3) Share certificate
(4) Cheque payable to bearer
(5) Cheque with not negotiable crossing
24/32
7/26/13

(3) Share certificate
209. Which of the following is not considered as an

custom or usage?
(1) Delivery orders for goods
(2) Railway receipts for goods
(3) Hundi
(4) Government promissory notes (5) Cheques
instrument negotiable by
(5) Cheques
210. Under the Negotiable Instrument Act, 1881, an instrument which is

incomplete in some respects, is called a/an
(1) Foreign instrument
(2) Inland instrument
(3) Inchoate instrument
(4) Ambiguous instrument
(5) Fictitious instrument
211. Which of the following is an example of restrictive crossing?

(1) Not Negotiable (2) State Bank of India
(3) A/c Payee (4) Company
(5) Two transverse parallel lines simply drawn across the
face of the cheque
(3) A/c Payee
212. Which of the following is not a payment in due

course?
(1) Payment made in accordance with the apparent tenor of
the instrument
(2) A payment is made on an instrument before the date of
maturity
(3) Payment is made to a person who is in possession of
the instrument either
as a holder or a person authorised
to receive payment on behalf of holder
(4) Payment made in good faith and without negligence
(5) Payment made to a person in possession of an instrument
payable to bearer
or one that is, endorsed in blank
(2) A payment is made on an instrument before the date of maturity
213. When a bill is drawn, accepted or indorsed for consideration, it is called a/an
(1) Accommodation bill
(2) Genuine trade bill
(3) Escrow
(4) Ambiguous instrument
(2) Genuine trade bill
214. Which of the following is a prerequisites for transfer

instrument?
(1) Crossing (2) Acceptance
(3) Noting with a Notary (4) Blank indorsement
(5) Mere delivery or indorsement and delivery
of a negotiable
(5) Mere delivery or indorsement and delivery
215. Which of the following statements is correct about promissory note?

(1) It need not be in writing
(2) An implied promise is enough to constitute a valid
promissory note
(3) The promise to pay must be definite and unconditional
(4) The name of the pyee need not be mentioned
(5) The payment can be in kind
(3) The promise to pay must be definite and unconditional
216. The legal relationship between a bank and its

customer is a kind of
(i) Debtor and Creditor
(ii) Principal and Agent
(iii) Pledgor and Pledgee
(iv) Mortgagor and Mortgagee
Select the correct answer by using the following codes
(1) i and ii (2) i, iii and iv (3) i, ii, iii and iv
(4) i and ii (5) i, ii and iii
217. Since, acceptance of deposits and granting of loans are the two general
functions of a bank, the
relationship arising out of these two main activities is
25/32
7/26/13

known as
(1) principal and agent relationship
(2) financer and finance relationship
(3) bailor and bailee relationship
(4) general relationship
(5) specific relationship
(4) general relationship
218. Which of the following is not an obligation of bank towards its customer?
(1) Pay bills as per the instructions of the customer
(2) Act as per the directions given by the customer
(3) Submit periodical statements, i.e., informing customers
of the state of the
account
(4) Not to set off a debt owed to him by a creditor from the
credit balances held
in other accounts of the borrower
(5) Maintain secrecy of accounts
(4) Not to set off a debt owed to him by a creditor from the
219. Which of the following statement is not correct regarding a minor?

(1) A minor is a person who has not attained the age of 18
(2) Minor does not have legal capacity to enter into a contract
(3) A current account in the name of minor can be opened
when guardian of the
minor operates this account
(4) A minors account should never be allowed to
be overdrawn
(5) In the event of death of a minor, the money will be payable
to the guardian
(3) A current account in the name of minor can be opened
220. Money deposited with the bank becomes a debt due

(1) from the banker (2) from the customer
(3) to the customer (4) Either 1 or 2
(2) from the customer
221. KYC means

(1) Know your customer very well
(2) Know your existing customer very well
(3) Know your prospective customer very well
(4) Satisfy yourselves about the customers identity and
activities
(4) Satisfy yourselves about the customers identity and
222. Mahesh and Suresh are friends aged 14 and 15 respectively. They want to
open a joint account in your bank. You will
(1) allow them to open a joint account to be operated jointly
(2) allow them to open a joint account with operating
instructions either or
survivor
instructions former or
survivor
instructions any one or
survivor
(1) allow them to open a joint account to be operated jointly
223. NABARD was set up as an apex Development Bank with a mandate for
facilitating credit flow for promotion and development of
(1) agriculture
(2) small-scale industries
(3) cottage and village industries
(4) handicrafts and other rural crafts
224. On the recommendation of which committee

NABARD was established?
(1) The Committee to Review Arrangements for Institutional
Agriculture and Rural Development
Credit for
26/32
7/26/13

(2) Narshimham Committee (3) Chelliaha Committee
(4) Kelkar Committee
(2) Narshimham Committee
225. NABARD was set up with an initial capital of Rs.

100 crore, which was enhanced to
(1) Rs. 1,000 crore (2) Rs. 2000 crore
(3) Rs. 3000 crore (4) Rs. 4000 crore (5) Rs. 5000 crore
(1) Rs. 1,000 crore
226. On the recommendations of which committee, the

(1) Shivaraman Committee (2) Basel Norms
(3) Narasimham Committee (4) All of the above
NABARD was established?
(1) Shivaraman Committee
227. Which of the following statements is not correct

about NBFCs?
(1) An NBFC cannot accept demand deposits
(2) These institutions trade in the capital market in a variety
of assets and
liabilities
(3) An NBFC can issue cheques drawn on itself
(4) Deposit insurance facility of Deposit Insurance and Credit
Guarantee
Corporation is not available for NBFC
depositors
(5) NBFIs act as brokers of loanable funds and in this
capacity they
intermediate between the ultimate saver
and the ultimate investor.
(3) An NBFC can issue cheques drawn on itself
228. The working and operations of NBFCs are regulated

(1) SEBI (2) RBI
(3) Finance Ministry, Gol
(4) IRDA (5) None of the above
by
(2) RBI
229. Which of the following is a kind of non-banking

(1) Equipment leasing company
(2) Hire purchase company (3) Loan company
(4) Investment company (5) All of the above
financial institutions?
230. Which of the following is not correct about the acceptance of deposits by
the NBFCs?
(1) They are allowed to accept/renew public deposits for a
minimum period of 12
months and maximum period of
60 months
(2) They cannot accept deposits repayable on demand
(3) They should have minimum investment grade credit rating
(4) Their deposits are not insured
(5) The repayment of deposits by NBFCs is guaranteed by
RBI
(5) The repayment of deposits by NBFCs is guaranteed by RBI
231. Any financial intermediary whose principal business

selling of securities is called
(1) equipment leasing company
(2) hire purchase company (3) loan company
(4) investment company (5) None of the above
is that of buying and
(4) investment company
232. Life Insurance in its modern form came to India from

(1) 1818 (2) 1896 (3) 1905
(4) 1907 (5) 1919
England in the year
(1) 1818
233. Which of the following statements about insurance

correct?
(1) Oriental Life Insurance Company was the first life
Indian Soil
business in India is not

insurance company on
27/32
7/26/13

(2) Bombay Mutual Life Assurance Society was the first
Indian life insurance
company
(3) The Life Insurance Companies Act and the Provident
Fund Act were passed
1949
(4) The Insurance Regulatory and Development Authority
was established in
the year 1999
(5) From March 21, 2003 GIC ceased to be a holding
company of its
subsidiaries
(3) The Life Insurance Companies Act and the Provident
234. In which year had the Insurance Regulatory and

come into force?
(1) 1999 (2) 2000 (3) 2001
(4) 1991 (5) 1993
Development Authority
(2) 2000
235. By taking out insurance cover an individual

(1) reduces the cost of an accident
(2) reduces the risk of an accident
(3) transfers the risk to someone else
(4) converts the possibility of large loss to certainty of a
(5) reduces the certainty of major loss
small one
(3) transfers the risk to someone else
236. Which of the following is an example of NBFCs?

(1) Unit Trust of India
(2) Life Insurance Corporation
(3) General Insurance Corporation
237. A company which pools money from investors and

invests in stocks, bonds, shares is called
(1) A bank
(2) An insurance company
(3) Bank assurance
(4) Mutual fund
(4) Mutual fund
238. Bank assurance is

(1) an insurance scheme to insure bank deposits
(2) an insurance scheme to insure bank advances
(3) a composite financial service offering both bank and
(4) a bank deposit scheme exclusively for employees of
insurance products
insurance companies
(3) a composite financial service offering both bank
239. Which was the first mutual fund started in India?

(1) SBI Mutual Fund
(2) Indian Bank Mutual Fund
(3) Kotak Pioneer Mutual Fund
(4) Unit Trust of India (5) None of the above
(4) Unit Trust of India
240. The regulator of mutual fund in India is

(1) FIMMDA (2) AMFI (3) RBI (4) SEBI (5) None of these
(4) SEBI
241. FIMMDAs general principles and procedures are

(1) Fixed income markets (2) Money markets
(3) Derivative markets (4) All of the above
applicable to
242. Which is the principal institution for promotion, financing and development of
small scale industries in the country?
(1) RBI (2) SBI (3) IDBI (4) SIDBI (5) None of these
28/32
7/26/13

(4) SIDBI
243. The UTI was established in

(1) 1956 (2) 1964 (3) 1972
(4) 1976 (5) None of these
(2) 1964
244. Which of the following mobiise/s the savings of the

in the industrial securities?
(1) UTI (2) LIC (3) GIC
public to specifically invest
(4) All of these
245. Whcih of the following is/are Term Deposits?

(1) Fixed deposits
(2) Re-investment deposits
(3) Recurring deposits
(1) Fixed deposits
246. Which of the following is not correct about Non- Banking Financial Companies
(NBFCs)?
(1) NBFC can not accept demand deposits
(2) NBFC is not a part of the payment and settlement
system
(3) NBFC can issue cheques drawn on itself
(4) NBFCs are fast emerging segment of Indian financial
system
(5) None of these
(3) NBFC can issue cheques drawn on itself
247. The working and operations of NBFCs are regulated

(1) SBl (2) RBI (3) Finance Ministry
by
(2) RBI
248. Which of the following is not correct about

Development Banks in India?
(1) The Development Banks do not seek or accept deposits
from the public
(2) They provide short term finance
(3) The Development Banks promote economic
development by promoting
investment and enterprise
(4) Development Banks are those banks engaged in the
promotion and
development of industry, agriculture,
exports and other key sectors.
(2) They provide short term finance
249. Which of the following is the first Development

Bankof India?
(1) Industrial Finance Corporation of India
(2) State Finance Corporation
(3) Industrial Credit and Investment Corporation of India
(4) State Industrial Development Corporations
(5) National Bank for Agriculture and Rural Development
250. The Small Industries Development Bank of India

was established in
(1) 1975 (2) 1980 (3) 1982
(4) 1989 (5) 1990
(4) 1989
251. The erstwhile Industrial Reconstruction Bank of

India (IRBI) is now known as
(2) Industrial Credit and Investment
(3) Corporation of India Industrial Development Bank of
(5) Industrial Investment Bank of India LTD
India
29/32
7/26/13

(5) Industrial Investment Bank of India LTD
252. National Housing Bank was established in

(1) 1975 (2) 1980 (3) 1985
(4) 1988 (5) 1990
(4) 1988
253. Industrial Development Bank of India was

established as a subsidiary
of
(2) State Bank of India
(3) Industrial Credit and Investment Corporation of India
(5) Small Industries Development Corporation Bank of India
(SIDBI) was
established in 1989
254. Which of the following is not an objectives of SIDBI?

(1) To initiate the process of modernisation and technical
upgradation of the
present units
(2) To facilitate the marketing of the products of the small
scale sector in India
and abroad
(3) to give loans both to the private as well as public sector
undertakings in the
field of commodity production,
mining and services such as hotels and transport
(4) to provide special aid to labour intensive industries to
enable them to
provide more employment
(5) To provide refinancing factoring, leasing services to the
small sector
(3) to give loans both to the private as well as public sector
255. Development Banks are

(1) branches of Commercial Banks, whether in private or
public sector, situated
in rural areas for upliftment of
weaker sections of the society
(2) financial institutions which provide long term finance to
industries
(3) land development banks which provide developmental
financing to agriculture
(4) (2) and (3) (5) None of the above
(2) financial institutions which provide long term financ
256. SEBI was established in

(1) 1993 (2) 1992 (3) 1988
(4) 1990 (5) 1994
(2) 1992
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1 1 c ommen ts :
Divya said...
Thanks For providing this much of Banking Awareness stuff... But there are so many mistakes
in the answers that u have given.
12/05/2012 2:40 am
Sohini said...
Q-13 ans is wrong
as per rbi norms there is no upper limit for RTGS. there is only minimum limit that is Rs. 2
lakh.
12/08/2012 8:08 am
Sabaji Malekar said...

ya i will update it soon
12/10/2012 7:04 am

ya i will change it soon
12/10/2012 7:05 am
deepak suneja said...

oh really divya......but can u tell me the question numbers as i may b on the wrong path.
wai8ing......
Deepak.
12/10/2012 10:33 pm
deepak suneja said...

Hi Sabaji...pls tell me about the question numbers which are not apt as of now...
thanks n regards
deepak
12/10/2012 10:34 pm

ya i have modified the answers . dont worry
12/10/2012 10:49 pm
neha said...
thanx its gud
12/13/2012 11:33 am
Asish said...
pls sir upload try to upload in a pdf file nad download option..that wl much hlp us.
1/31/2013 1:22 am
Sanath said...
31/32
7/26/13

pls mention question no ,if which question is wrong k Answers also
5/01/2013 11:44 am
Chandu Yalla said...

sebi established in 1988 it became stutatory body in 1992
7/19/2013 12:53 am
P os t a C ommen t
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1. Which of the following statements is true?

2. Which of the following is the correct statement?

3. Interest payable on savings bank accounts is

Banking awareness 2012 pdf for IBPS CWE II 2013

4. The usual deposit accounts of banks are

| current affairs quiz

5. Fixed deposits and recurring deposits are

6. Accounts are allowed to be operated by cheques in respect of

7. Which of the following is correct statement?

Tamilnad Mercantile Bank

(1) Normally no interest is paid on current deposit accounts

9. Which of the following is known as cross selling by banks?

10. Financial inclusion means provision of

11. When a bank returns a cheque

Banking awareness 2012 pdf for IBPS CWE II 2013

12. NEFT means

Upper limit prescribed for RTGS transaction is

(5) No upper limit is prescribed

14. Distribution of insurance products and insurance policies by banks as corporate

Interest on Saving bank account is now calculated by

(5) daily product basis

17. Largest shareholder (in percentage shareholding) of a nationalized bank is

When the rate of inflation increases

(2) purchasing power of money decreases

19. A centralized databases with online connectivity to branches, internet as well as

20. The Unit Trust of India came into existence in

Banking awareness 2012 pdf for IBPS CWE II 2013

21. Which of the following is example of financial assets?

(1) National Saving Certificates

Capital market is a market which deals in

(2) long-term funds

23. Regional Rural Banks fall within supervisory purview of

25. Mutual Funds fall within 7 supervisory purview of

27. Main financial instruments of corporate sector are

28. Financial institutions

29. Which of the following is not an / example of primary securities?

30. Indian Financial System / comprises of

Banking awareness 2012 pdf for IBPS CWE II 2013

31. The Bombay Stock Exchange was 7 made functional as

32. The Unit Trust of India come into existence in

33. 19 July 1969, how commercial Banks were nationalised?

34. New Private Banks are being given licenses since

35. The gilt-edged market refers to the market for

36. First share market in India established in

37. Consider the following statements:

than one year are

(3) Both are true

38. Consider the following statements:

than one year are

(4) Both are false

The primary issuers of capital market securities include

(4) the Central and Local Governments and corporations