Banking and Financial Awareness for IBPS/BOM Exams

Q1. “BCSBI” stand for:
(a) Banking Codes and Standards Boards of India
(b) Board Code for Standards in Branches
(c) Board Code for Standards in Banking
(d) Banking Code for Standards in India
(e) None of the above

Q2. A draft issued by the bank has been lost by the payee. He sends a letter to the issuing bank to stop payment. Bank will:
(a) note caution and will advise the payee to contact purchaser of the draft
(b) not act on the request
(c) payment
(d) Forward to RBI
(e) None of the above

Q3. Across the face of a cheque bears the words “Peoples Bank”. What is its significance:
(a) it is an extraneous matter appearing on the cheque. Hence should be returned
(b) the cheque is specially crossed in favour of Peoples Bank
(c) it is not a crossing as it does not contain two parallel lines
(d) All of the above
(e) None of the above

Q4. As per KYC Policy, the list of terrorist organizations is supplied to the Banks by the?
(a) Government of India
(b) CIBIL
(c) IBA
(d) RBI
(e) None of the above


Q5. As per RBI directives which of the following areas/functions cannot be outsourced by the Banks?
(a) opening and closing of accounts
(b) cash collection from the parties
(c) recovery of bad loans
(d) credit and debit cards
(e) None of the above

Q6. As per RBI guidelines, when a counterfeit note is detected at the branch, it should be:
(a) Branded with a stamp “COUNTERFEIT BANKNOTE”
(b) Recorded in a separate register under authentication
(c) acknowledged in the prescribed format of RBI and issued to the tendered
(d) All of the above
(e) None of the above


Q7. Asset Reconstruction Company is associated with……….?
(a) DICGC
(b) ECGC
(c) NPA
(d) SEBI
(e) None of the above

Q8. Association of National Exchange Members of India (ANMI) is a body consisting of?
(a) Bankers and SEBI
(b) SEBI and IBA
(c) Brokers Operating in the National Exchanges
(d) Bankers, SEBI, IBA and RBI
(e) None of the above

Q9. At what stage of opening of bank account is the checking of Politically Exposed Persons (PEP) carried out:
(a) at the first point of customer interaction
(b) at the Account Services Level
(c) at the Central Account Services Level
(d) one month after the account is opened
(e) None of the above

Q10. Authorized Dealers for foreign exchange transactions are appointed by:
(a) Reserve Bank of India
(b) Government of India
(c) Individual Banks
(d) FEDAI
(e) None of the above

Q11. Balance of Trade of a country is equivalent to-
(a) difference between the Inward and Outward remittances made in foreign exchange
(b) surplus generated shown in a Trading Account
(c) difference between exports and imports
(d) All of the above
(e) None of the above

Q12. Banker’s right of set off can be exercised on receipt of……?
(a) Income Tax Attachment Order
(b) Garnishee Order
(c) Both (a) and (b)
(d) SEBI
(e) None of the above

Q13. Banking services offered to units set up in Special Economic Zones (SEZs) have been exempted from paying ________ tax.
(a) Capital Gains Tax
(b) Income Tax
(c) Service Tax
(d) All of the above
(e) None of the above


Q14. Banks generally prefer to extend finances to registered firms only, because……?
(a) banks will have priority over creditors in case of liquidation of the firm
(b) the firm can sue the debtors in case of default on their part
(c) banks can sue the firm in case of default
(d) the creditors can sue the firm
(e) None of the above

Q15. Banks should not grant new loans for purpose of minor irrigation in:
(a) White Block
(b) Grey Block
(c) Dark Block
(d) All of the above
(e) None of the above