Banking and Financial Awareness for IBPS Exams

Q1. Which of the following is/are the function(s) of Finance Commission? 

(a) Distribution of net proceeds of taxes between Center and the States 

(b) Determine factors governing Grants-in Aid to the States and the magnitude of the same 

(c) To make recommendations to president as to the measures needed to augment the Consolidated Fund of a State to supplement the resources of the Panchayats and  Municipalities in the state 

(d) All of the above 

(e) None of the above

Q2. Salary of bank employees is settled by – 

(a) Pay Commission 

(b) Finance Commission 

(c) Bipartite Settlement 

(d) independent banks

(e) None of the above

Q3. Which of the following is not a method for calculation of National Income? 

(a) Production Method 

(b) Income Method 

(c) Expenditure Method 

(d) Profit Method

(e) None of the above

Q4. An extra tax that may be added to the existing tax calculation is – 

(a) Service Tax 

(b) Surcharge 

(c) Sales Tax 

(d) All of the above 

(e) None of the above

Q5. Which of the following is the apex authority for Direct Taxes? 

(a) CBDT

(b) CBEC 

(c) RBI 

(d) SEBI 

(e) None of the above

Q6. All domestic products, including international companies operating within territory of a  country, and excluding domestic workers/companies operating in foreign countries, accounts for – 

(a) Gross Domestic Product (GDP) 

(b) Gross National Product (GNP) 

(c) Net National Product (NNP) 

(d) National Income (NI) 

(e) None of the above

Q7. Which of the following body has determined the new base year for calculating GDP of India? 

(a) Reserve Bank of India (RBI) 

(b) Securities and Exchange Board of India (SEBI) 

(c) Central Statistical Office (CSO)

(d) Competition Commission India (CCI) 

(e) None of the above

Q8. Exchange rate or Conversion rate is – 

(a) the rate at which a currency is converted to another currency 

(b) the rate at which a bank pays interest to its savings deposits 

(c) the rate charged at foreign transactions 

(d) All of the above

(e) None of the above

Q9. If conversion rate of INR to USD increases, then the valuation of Indian Rupees – 

(a) increases 

(b) decreases 

(c) has no change 

(d) Inflation

(e) None of the above

Q10. If the valuation of a currency is increased with respect to another currency, then it is known as……….? 

(a) appreciation

(b) depreciation 

(c) devaluation 

(d) revaluation 

(e) None of the above

Q11. Which is not e-banking software?

(a) ECS

(b) MICR

(c) RTGS

(d) PIPS

(e) None of the above

Q12. Which is the feature of IBS (Integrated Banking System)?

(a) Multi Currency 

(b) Multi Entity 

(c) Multi Branch 

(d) All of the above

(e) None of the above

Q13. What does CBS stands for in Banking?

(a) Core Banking Solution

(b) Central Banking System 

(c) Currency Bank Software 

(d) Centralized Banking Software

(e) None of the above

Q14. In core banking systems?

(a) Store and forward of transaction is done

(b) Branch server is not required 

(c) Local Database is not required 

(d) Transaction cannot happen form a non-home branch

(e) None of the above

Q15. Which of the following is the example of the brand of SBI? 

(a) SBI Mutual Fund

(b) Saving and Current Deposits 

(c) Car Loan 

(d) Home Loan

(e) None of the above