Banking and Financial Awareness for IBPS/BOM Exams

Q1. The HR’s function in Bank primarily is? 

(a) limited to the training and development of the personnel 

(b) the function of Personnel Management and it takes care of the comprehensive responsibilities of the employees development

(c) limited to transfers and postings of the employees 

(d) All of the above

(e) None of the above

Q2. Which of the following is a benefit of E-Commerce? 

(a) Insufficient telecommunications band width 

(b) Individuals can tele-communicate more easily

(c) customers may be unsure of EC security 

(d) EC theory and practice is constantly evolving 

(e) None of the above

Q3. Why is B2C generally less attractive than B2B? 

(a) Easier to implement 

(b) Less expensive to implement 

(c) Larger number of organizations 

(d) Channel conflict

(e) None of the above

Q4. Which of the following is not an example of an e-payment? 

(a) Smart cards 

(b) Cash

(c) Digital checks 

(d) Electronic billing

(e) None of the above 

Q5. Treasury bills are sold in India by? 

(a) Reserve Bank of India

(b) State Governments 

(c) Commercial Banks 

(d) SEBI 

(e) None of the above

Q6. In the Money market operations, the item widely accepted is?

(a) Inter Bank Participation Certificates 

(b) Certificate of Deposits 

(c) Treasury Bills

(d) All of the above 

(e) None of the above

Q7. To meet a significant increase in demand for bank credit, a bank may?

(a) make use of excess reserves 

(b) borrow from other banks 

(c) borrow from the Reserve Bank of India 

(d) All of the above

(e) None of the above

Q8. The “bank rate” is?

(a) free to fluctuate according to the forces of demand and supply 

(b) set by the Reserve Bank of India 

(c) set by the Reserve Bank of India as directed by the Union Ministry of Finance 

(d) set by the Reserve Bank of India as directed by the Indian Banks’ Association

(e) None of the above

Q9. The term “exchange arbitrage” is the?

(a) Arbitration of exchange disputes 

(b) simultaneous buying selling of foreign exchange to make a profit because interest rates vary in different countries 

(c) simultaneous purchase of a currency in one market and it’s sale in another market with a view to realise a profit

(d) buying of foreign currency to realise a future profit when it appreciates 

(e) None of the above

Q10. The law regarding negotiable instruments is contained in? 

(a) The Bill of Exchange Act, 1881 

(b) The Banking Regulation Act, 1949 

(c) The Cheques Act, 1881 

(d) The Negotiable Instruments Act, 1881

(e) None of the above

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