Banking and Financial Awareness for IBPS/BOM Exams

Q1. Which of the following is considered an informal method of getting credit/finance?
(a) Internet banking
(b) Branch visits
(c) Going to moneylenders
(d) Telebanking
(e) None of the above

Q2. Which of the following is NOT a Public Sector Unit/Undertaking/Agency? 
(a) ECGC
(b) SEBI
(c) SIDBI
(d) Axis Bank
(e) BHEL

Q3. Which of the following commissions setup by the President of India decides the distribution of tax incomes between the Central and State Governments?
(a) Central Law Commission
(b) Pay Commission for Government Employees
(c) Administrative Reforms Commission
(d) Planning Commission
(e) Finance Commission


Q4. Nationalization of banks aimed at all of the following except __________ .
(a) Provision of adequate credit for agriculture, SME and exports
(b) Removal of control by a few capitalists
(c) Provision of credit to big industries only
(d) Access of banking to masses
(e) Encouragement of a new class of entrepreneurs

Q5. Which of the following is NOT a foreign bank working in India?
(a) HSBC
(b) Barclays
(c) Standard Chartered
(d) Yes Bank
(e) All are foreign banks

Q6. 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) Only (a) and (b)
(e) None of the above

Q7. Which of the following policies of the financial sectors is basically designed to transferring local financial assets into foreign financial asset freely and at market determined exchange rates?
(a) Capital Accounts Convertibility
(b) Financial Deficit Management
(c) Minimum Support Price
(d) All of the above
(e) None of the above

Q8. A customer wishes to purchase some US dollars in India. 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 such business
(d) Only (b) and (c)
(e) None of the above

Q9. 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 nation?
(a) Personal Loan
(b) Corporate Loan
(c) Educational Loan
(d) Mortgage Loan
(e) None of the above

Q10. A Bank/Financial Organisation these days relies heavily on e-commerce for its transaction. As a part of system security, it has introduced organisation’s security awareness manual. This step of the organisation can be classified under which one of the following categories of measures for a business? 
(a) Preventive Vigilance
(b) Compliance
(c) Corrective
(d) Detective
(e) None of the above


Q11. What is meant by a scheduled bank?
(a) The bank functioning under provisions of Banking Reg. Act 1949
(b) A bank included in 2nd schedule of RBI Act, 1934
(c) The bank incorporated under Banking Companies Act 1956
(d) A bank authorised for banking functions
(e) bank issued a license by RBI mentioning therein that it is a scheduled bank

Q12. On the basis of powers drawn mainly in which of the following Acts, RBI regulates and controls the banks in India?
(a) Banking Regulation Act and RBI Act
(b) RBI Act and Companies Act
(c) Banking Regulation Act and Companies Act
(d) Banking Regulation Act, RBI Act and Negotiable Instruments Act
(e) None of the above

Q13. Banking has been defined under ________ of.
(a) Banking Regulation Act Section 5(b)
(b) Banking Regulation Act Section 17
(c) RBI Act Section 2 (2)
(d) Negotiable Instruments Act Section 1
(e) None of the above

Q14. Who among the following is only a holder and not a ‘holder’ in due course?
(a) Holder of a bearer cheque
(b) Holder of a crossed order cheque
(c) Holder of a Non-negotiable crossed cheque
(d) All of the above
(e) None of the above

Q15. Where is the time for payment is not mentioned in a promissory note it is?
(a) invalid instrument
(b) inchoate instrument
(c) no payment can be demanded
(d) payable on demand
(e) None of the above