- 01. Which of the following cannot be called as a debt instrument as referred in the financial transactions?
a) Certificate of deposit; b) Bonds; c) Stocks; d) Commercial papers; e) Debentures
- 02. Whenever RBI does some open market operation transactions, actually it wishes to regulate which of the following?
a) Inflation; b)Liquidity in economy; c) Borrowing powers of the banks; d)Flow of foreign direct investments;
e) None of the above
- 03. In economics, it is generally believed that the main objective of a public sector financial company like bank is to:
e) Employ more and more people; b) Maximize the total profits; c) Maximize total production; d) Provide financial services to the people of the nation of its origin across the country; e) Sell the goods at subsidized rates
- 04. In a company by the use of price sensitive corporate information about the company, people closer to the company try to adopt the technology to make gains or cover losses in share market dealings and such process is known as:
a) Insider trading; b) Future trading; c) Foreign trading; d) Stock trading; e) None of these
- 05. What is meant by Repo rate?
a) When a bank is in need of cash it can it can discount bills of exchange and avail loan facilities from Reserve Bank of India.
b) When a bank has excess cash, they buy securities from RBI against cash on the condition that they resell the securities to RBI on a pre fixed day and price
c) It is rate at which RBI allows temporary loan facilities to commercial banks against government securities on the condition that the bank will repurchase the securities within a short period.
d) It is a rate which is offered by banks to their most valued customers or prime customers; e) None of these
- 06. Bharat Nirman does not cover which of the following areas?
a) Rural employment; b) Rural housing c) Rural water supply; d) Irrigation facilities; e) It covers all the above areas
- 07. Which of the following committee has given its recommendations on “Financial inclusions”?
a) Rakesh Mohan committee; b) Rangarajan committee; c) Sinha committee; d) Gadgil committee; d) None of these
- 08. The actual return of an investor is reduced sometimes when the prices of the commodities go up all of a sudden and in financial sector this type of phenomenon is known as
a) Probability risk; b) Market risk; c) Inflation risk; d) Credit risk; e) None of these
- 09. An industry which is fighting hard to increase its market share in existing market(with new popular products) is known as:
a) Market vendor; b) Market operator; c) Market leader; d) Market follower; e) Market challenger
- 10. Which of the following products launched by most of the banks help farmers in getting instant credit for various agricultural purposes?
a) Kisan credit card; b) Personal loan; c) Business loan; d) ATM card; e) None of these
- 11. Which of the following products of a bank is specifically designed to provide financial help to children in their higher studies in India or in a foreign country?
a) Personal loan; b) Corporate loan; c) Housing loan; d) Educational loan; e) Mortgage loan
- 12. Which of the following policies of the financial sectors is basically designed to transferring local financial assets into foreign assets freely and at market determined exchange rates?
a) Capital account convertibility; b) Financial deficit management; c) Minimum support price; d) Restrictive trade practices
e) None of these
- 13. A customer is willing to purchase some US dollars in the country. He/she should go to:
a) Public Debt Division of the RBI only; b) American Express Bank only; c) RBI or any branch of a bank which is authorized for conducting such business; d) Ministry of Foreign affairs; e) None of these
- 14. Which of the following is not a social assistance program launched by the Government of India?
e) National old age pension scheme; b) Annapurna scheme; c) National family benefit scheme; d) Indira Gandhi National Disability Pension Scheme; e) All are social assistance programs
- 15. Many times we see in newspapers that some projects are launched by the Government authorities on PPP basis. What is the full form of PPP?
a) Preferential Payment Plan; b) Public Private partnership; c) Partial payment project; d) Popular private project
e) Public private plan
- The ratio of the cash reserves that the banks are required to keep with RBI is known as:
a) Liquidity ratio; b) Statutory liquidity ratio; c) Cash Reserve Ratio; d) Net demand and time liabilities; e) None of these
- 17. The availability of cash and other cash like marketable instruments that are useful in purchases and investments are commonly known as:
a) Cash crunch; b)Liquidity; c) Credit; d) Marketability; e) None of these
- 18. Which of the following schemes launched by the Government of India provides a guaranteed 100 days employment to rural employment seekers in India?
a) Bharat Nirman; b) Swarnajayanthi Grameen Rozgar Yojana; c) Mahatma Gandhi National Rural Employment Guarantee act; d) National Food for Work Programme; e) None of these
- 19. The Reserve Bank of India keeps on modifiying various rates/ratios to keep the flow of liquidity in the market in a balanced manner and which of the following rates/ratios/indexes is not directly controlled by the RBI?
a) Cash reserve ratio; b) Bank rate; c) Repo rate; d) Reverse repo rate; e) Wholesale price index
- 20. Many banks have adopted/launched “Core Banking Solutions” and what do you mean by “core banking solutions”?
a) A marketing strategy adopted by the banks; b) A new type of automated teller machines useful for rural population; c) A delivery channel for quick and fast delivery; d) A new product launched to help senior citizens only as they are not able to visit the branches/ATMs frequently; e) None of these
- 21. Which of the following terms are not used in banking sector?
a) Statutory liquidity ratio; b) Non performing asset; c) Credit rating; d) Fixed; e) REPO
- 22. Banking sector comes under which of the following sectors?
a) Agriculture sector; b) Service sector; c) Manufacturing sector; d) Industrial sector; e) None of these
- 23. An account in which trading of shares in their electronic form is done is known as:
a) Demat account; b) NRE account; c) NRO account; d) FCNR account; e) RFC account
- 24. Which of the following programmes/schemes of the Government of India is not directly related with agriculture activities?
a) Drought Prone areas programme; b) Promotion of integrated pest management; c) Integrated wastelands development programme; d) Annapurna scheme; e) Desert Development programme
- 25. Find the odd man out from the following groups?
a) ICICI Bank, Canara Bank, Central Bank of India, Punjab National Bank, Indian Bank
b) Canara Bank, State Bank of India, Lakshmi Vilas Bank, Karur Vysya Bank, United Bank of India
c) Bank of India, Corporation Bank, Indian Bank, IDBI Bank, Axis bank
d) Bank of Maharashtra, Barclays bank, Oriental Bank of Commerce, Indian Bank, IDBI bank
e) Union Bank of India, Bank of India, Andhra Bank, Dena Bank, Indian Bank
- 26. Which among the following is the recently opened private sector bank in the country?
a) ICICI bank; b) HDFC bank; c) AXIS Bank; d) Kotak Mahindra Bank; e) Yes bank
- 27. Mortgage relates to which type of loan among the following?
a) Housing loan; b) Educational loan; c) Car loan; d) Gold loan; e) Personal loan
- 28. Fourteen banks were nationalized in the country during the first stage on:
a) 19.07.1970; b) 19.07.1969; c) 19.07.1971; d) 18.07.1969; e) 15.07.1969
- 29. The sponsorship between State government, central government and sponsor bank is in the ratio of--------- in respect of Regional Rural Banks in the country:
a) 15-50-35; b) 50-35-15; c) 35-15-50; d) 35-50-15; e) 15-35-50
- 30. When it comes to providing locker facility to the customer of any bank, the relationship between the customer and banker is that of:
a) Debtor and creditor; b) Bailor and bailee; c) Lessee and lessor; d) Lessor and lessee; e) Agent and principal
IBPS BANK EXAMINATIONS – BANKING AWARENESS – PRACTICE TEST
- 01. When does Reserve Bank of India issues annual policy statement?
b) January; b) April; c) July; d) October; e) None of the above
- 02. Which of the following has been renamed as “Annual Policy Statement” by the Reserve Bank of India?
a) Busy season banking policy; b) Slack season banking policy; c) Monetary and credit policy; d) Annual statistical report; e) None of the above
- 03. When does RBI review its annual policy statement?
a) July; b) October; c) January; d) All the above; e) None of the above
- 04. Which is the monitoring and reviewing authority regarding fair practices code as per recent annual policy statement of Reserve Bank of India?
b) Banking codes and standards Board of India; b) Banking Ombudsman; c) Institute for development in banking technology; d) debt recovery tribunal; e) none of the above
- 05. Which committee has recommended introduction of smart card?
a) Rangarajan committee; b) Saraf committee; c) Nayak committee; d) Pannirselvan committee; e) None of the above
- 06. Which committee had formulated consultative profile in connection with electronic funds transfer?
a) A.K. Purwar committee; b) Y V Reddy committee; c) K S Shere committee; d) S. A. Dave committee; e) none of the above
- 07. The process of transformation of physical shares, commercial paper or certificate of deposit into electronic form is called as:
a) Electronic clearing service; b) Electronic securitization; c) Share truncation; d) Dematerialisation; e) None of the above
- 08. Providing banking services to a customer without his entrance inside the bank’s branch is called as:
a) Virtual banking; b) relationship banking; c) universal banking; d) mobile banking; e) none of the above
- 09. Where is the headquarters of “Society for worldwide Interbank Financial Telecommunication – SWIFT” situated?
a) New York; b) Los Angels; c) Brussels; d) Hague; e) None of the above
- 10. Where has National Financial Switch of IDRBT established?
a) Mumbai; b) New Delhi; c) Hyderabad; d) Bangalore; e) None of the above
- 11. Cheque truncation means:
a) Tearing a cheque into two or more pieces; b) Sending the photostat copy of a cheque in collection; c) Using the electronic image of a cheque; d) Keeping the Photostat copy of a cheque with collecting bank before sending the original cheque to the drawee branch; e) None of the above
- 12. What do you mean by universal banking?
a) Provision of all financial services in one country; b) Provision of all financial services in one bank; c) Provision of all financial services at a branch; d) Provision of all financial services at any of the counters of a branch of a bank; e) None of the above
- 13. Corporate governance is a system
a) By which a company is directed and controlled; b)In which Board of directors are responsible for managing the business affairs of a company; c) Both the above; d) Governing corporate companies by the government; e) None of the above
- 14. Whose interest is kept in mind in a good corporate governance system?
a) Shareholders of the company; b) Stakeholders of the company; c) Employees of the company; d) All the above; e) None of the above
- 15. What do you mean by risk?
a) Loss; b) Depreciation of capital; c) Decrease in profitability; d) Possible loss that depends upon occurrence and non occurrence of an incident; e) None of the above
- 16. The employees of the bank went on strike and when it comes to risk what do you mean by this?
a) Operational risk; b) Employee risk; c) Credit risk; d) Market risk; e) Systemic risk
- 17. Basel II accord is mostly concerned with:
a) Central vigilance commission; b) Non performing assets; c) Capital adequacy ratio; d) Foreign direct investment; e) None of the above
- 18. A bank is unable to pay its short term deposits because the bank’s funds are blocked in long term investments. The risk derived in this case is known is:
a) Market risk; b) Operational risk; c) Liquidity risk; d) Interest rate risk; e) None of the above
- 19. A bank recently introduced a new deposit scheme which was not popular amongst the public and what do you mean by the risk associated with this?
a) Operations risk; b)Credit risk; c) Liquidity risk; d) Market risk; e) None of the above
- 20. The Assets Liabilities committee in a bank makes the assessment of:
a) Liquidity risk; b) Credit risk; c) Operations risk; d) All the above; e) None of the above
- 21. A debtor makes default in repayment of a bank loan and which type of risk is this for a lending bank?
a) Liquidity risk; b) Operational risk; c)Interest rate risk; d) Credit risk; e) None of the above
- 22. Which type of risk arises before a bank that trades in government securities?
a) Liquidity risk; b) Market risk; c) Credit risk; d) Trade risk; e) None of the above
- 23. Which of the following options best defines the risk?
a) Loss occurred due to happening of an event
b) Loss occurred due to non happening of an event
c) Risk experienced due to uncertainty
d) Probability of loss due to uncertainty
e) None of the above
- 24. Which of the following is not included in three pillars of BASEL capital accord?
a) Minimum capital requirement; b) Supervisory review; c) Market discipline; d) Core banking solution; e) None of the above
- 25. When ICICI Limited merged with ICICI bank?
a) 1st August, 2000; b) 1st August 2001; c) 1st August, 2002; d) 1st August, 2003; e) none of the above
- 26. Bank of Madura Limited merged with:
a) ICICI bank limited; b) UTI bank limited; c) HDFC bank limited; d) IDBI bank e) None of the above
- 27. Which bank has changed its name to AXIS bank limited?
a) Centurion bank; b) Times bank; c) Bank of Punjab Limited; d) Bank of Karad; e) UTI bank limited
- 28. Bank of Cochin merged with:
a) Punjab National Bank; b) Bank of Baroda; c) State Bank of India; d) Canara Bank; e) United Commercial bank
- 29. Times Bank Limited merged with:
a) HDFC Bank; b) Bank of India; c) Punjab National Bank; d) Central Bank of India; e) none of the above
- 30. What do you mean by horizontal merger?
a) Merger of two or more companies that manufacture homogenous products;
b) Merger of two or more companies that manufacture heterogonous products;
c) Merger of a principal company with its subsidiary company
d) All the above
e) None of the above