Banking and Financial Awareness for IBPS/BOM Exams

Q1. Which of the following efforts fall under Financial Inclusion Plan (FIP) of RBI /government? 

(a) Nationalization of banks 

(b) Priority Sector Lending (PSL) targets 

(c) Zero balance accounts, like BSBDA, Jan-Dhan Account, Small Account, etc. 

(d) All of the above

(e) None of the above

Q2. Which of the following is not true regarding Financial Inclusion Plan? 

(a) Relaxed and simplified KYC norms for account opening 

(b) Mandatory branches in unbanked villages 

(c) BSBDA Accounts with minimum balance criteria

(d) Micro branches to be opened in rural area, that can be operated by Business Correspondents 

(e) None of the above

Q3. According to the new proposal on PSL, what sub-target is to be created for Micro Enterprises in India by March 2017? 

(a) 7 % 

(b) 7.5 %

(c) 8 % 

(d) 8.5 % 

(e) None of the above

Q4. Financial Inclusion means provision of – 

(a) Financial services namely, payments, remittances, savings, loans and insurance at  affordable cost to persons not yet    given the same

(b) ration at affordable cost to persons not yet given the same 

(c) house at affordable cost to persons not yet given the same 

(d) education at affordable costs to persons not yet given the same 

(e) None of the above

Q5. What is the full form of ‘FINO’ – a term we see frequently in financial newspapers? 

(a) Financial Investment Network and Operations 

(b) Financial Inclusion Network and Operations 

(c) Farmers’ Investment in National Organization 

(d) Farmers’ Inclusion News and Operations

(e) None of the above 

Q6. Which of the following is not a function of the RBI? 

(a) Maintaining Forex

(b) Deciding Bank Rate, CRR and SLR from time to time

(c) Opening Savings Accounts for general public

(d) Prescribing the Capital Adequacy Ratio

(e) Currency Management

Q7. The names of which of the following rates/ratios cannot be seen in financial newspapers? 

(a) Bank Rate

(b) Repo Rate

(c) Statutory Liquidity Ratio

(d) Cash Reserve Ratio

(e) Pulse Rate

Q8. Ten-rupee notes contain the signature of…………….?

(a) Finance Secretary, GOI

(b) Chairman, State Bank of India

(c) Governor, Reserve Bank of India

(d) Finance Minister, GOI

(e) Prime Minister

Q9. Banking and financial services all over the world are regulated usually by the Monetary Authority of the land. Who controls this function in India?

(a) Ministry of Finance

(b) SEBI

(c) RBI

(d) IRDA

(e) FEDAI

Q10. For which of the following reasons RBI has decided to undertake mid-quarter policy reviews? 

(1) To re-align its policies

(2) To take steps and ensure smooth flow of credit

(3) To provide guidance to the economy

(a) Only (1) 

(b) Only (2)

(c) Only (3) 

(d) All (1), (2) & (3)

(e) None of the above

Q11. Banking Sector will fall under which of the following? 

(a) Agricultural Sector 

(b) Service Sector

(c) Manufacturing Sector 

(d) Industrial Sector

(e) None of the above

Q12. Which of the following Acts was framed specially to deal more effectively with the problem of Non- Performing Assets in Banking system?

(a) SARFAESI Act

(b) Banking Regulation Act 

(c) Foreign Exchange Management Act 

(d) Industrial Disputes Act 

(e) None of the above 

Q13. Many Banks these days are entering into business of offering loans against property. This business of the banks can be categorized under which of the following heads of banking?

(a) Corporate Banking 

(b) Personal Banking

(c) Merchant Banking 

(d) Portfolio Management Services 

(e) None of the above 

Q14. “e-stamping” denotes? 

(a) replacement of the traditional system of affixing postal stamps in postal services 

(b) doing away with the need of banks to brand stamps on negotiable instruments manually 

(c) sending message through e-mail, where no stamping is necessary 

(d) replacing stamp duty required for payment of registration of properties and documents 

(e) None of the above 

Q15. In which of the following situations can a bank issuing a Bank Guarantee may withhold payment of the Guarantee invoked by the beneficiary? 

(a) when it is not satisfied that there was default on the part of the party because of which the beneficiary suffered 

(b) bank can withhold payment of the guarantee upon being served an injunction by the Court restraining payment under the guarantee

(c) there is no provision for withholding payment of a Bank Guarantee when invoked 

(d) All of the above 

(e) None of the above 

S1. Ans.(d) 
S2. Ans.(c) 
S3. Ans.(b) 
S4. Ans.(a) 
S5. Ans.(b)
S6. Ans.(c)
S7. Ans.(e)
S8. Ans.(c)
S9. Ans.(c)
S10. Ans.(d) 
S11. Ans.(b)
S12. Ans.(a)
S13. Ans.(b)
S14. Ans.(d)
S15. Ans.(b)