Banking & Financial Awareness Quiz for IBPS Exams

Q1. Which of the following is not true regarding Demand Draft? 
(a) DD is issued by banks
(b) Bank account is necessary for being issued a Demand Draft
(c) DD cannot be dishonored
(d) All of the above are true
(e) None of the above

Q2. What is the full form of forex? 
(a) Foreign Exemption
(b) Foreign Exchange
(c) Foreign Expert
(d) Foreign Expansion
(e) None of the above


Q3. Which of the following body is the regulator of Capital Market………? 
(a) Reserve Bank of India (RBI)
(b) Securities and Exchange Board of India (SEBI)
(c) Telecom Regulatory Authority of India (TRAI)
(d) NABARD
(e) None of the above

Q4. What is the full form of IPO? 
(a) Initial Private Offering
(b) Initial Partnership Offering
(c) Initial Public Offering
(d) Interest Private offering
(e) None of the above

Q5. Stock Exchanges generally work in – 
(a) Primary Market
(b) Secondary Market
(c) Money Market
(d) Financial Market
(e) None of the above

Q6. As we all know, banks publish their quarterly performance to bring transparency in the system and also to give a clear picture of their performance to the public. How were results of Quarter 2 different from the results of Quarter 1 of the listed banks including giants like SBI & ICICI banks?
(1) Performance was subdued in Quarter 2.
(2) Yields on advances of almost all listed banks have come down.
(3) Advances grew at a slower pace when compared to deposits.
(a) Only (1) is true
(b) Only (2) is true
(c) Only (3) is true
(d) All (1), (2) & (3) are true
(e) None of the above

Q7. One of the major challenges banking industry is facing these days is deliberate efforts of some people to bring money earned through illegal activities in circulation. Which of the following acts has been passed to prevent this activity?
(a) Payment & Settlements Act
(b) Banking Regulation Act
(c) Negotiable Instruments Act
(d) Narcotics and Psychotropic Substance Act
(e) Prevention of Money Laundering Act


Q8. When a bank returns a cheque unpaid, it is called?
(a) payment of the cheque
(b) drawing of the cheque
(c) cancelling of the cheque
(d) dishonor of the cheque
(e) taking of the cheque

Q9. A bank’s ‘fixed deposit’ is also referred to as a…………? 
(a) term deposit
(b) savings bank deposit
(c) current deposit
(d) demand deposit
(e) home savings deposit


Q10. Banking Ombudsman Scheme is applicable to the business of __________ . 
(a) All scheduled commercial banks excluding RRBs
(b) All scheduled commercial banks including RRBs
(c) Only Public Sector Banks
(d) All Banking Companies
(e) All scheduled banks except private banks

Q11. As per the reports, the collection of direct taxes has gone up by about 19% in last few months. Which of the following agencies releases the figures about tax collection?
(a) Central Statistical organisation
(b) Reserve Bank of India
(c) Department of Income Tax
(d) Central Board of Direct Taxes
(e) None of the above

Q12. As we know commercial banks accept deposits from the public. What do banks do with this money?
(a) This is a type of credit creation, Bank gives this on loan
(b) This is an income for the bank
(c) Banks give this money directly to the govt. for developmental projects
(d) This money is deposited with the RBI who in turn gives some interest on it banks
(e) None of the above

Q13. Which of the following in NOT a type of cheque issued by an individual?
(a) Bearer cheque
(b) Order cheque
(c) Crossed cheque
(d) Savings cheque
(e) None of the above


Q14. Which of the following terms is used in banking?
(a) Vacuum
(b) Power
(c) Density
(d) Credit Card
(e) None of the above

Q15. “Sensitive Index” of Bombay Stock Exchange is called ……………?
(a) Forex
(b) MAX
(c) LIBOR
(d) Sensex
(e) None of the above