Banking Awareness Questions for SBI PO/Clerk Exam

Dear Aspirants,

Banking Awareness for SBI PO/Clerk Exam 2018

With the increased competition in the field of banking examinations, it has now become very important to cover up all the sections efficiently. One subject that can help you bagging graceful marks in the minimum time in these examinations is Banking Awareness. Banking Awareness Quiz not only helps you deal with the General Awareness Section of Banking Exams but also, the Personal Interview round of Banking Recruitment.

Q1. In which year NABARD was established?

(a) 1982

(b) 1976

(d) 1956

(e) 1992

S1. Ans.(a)
Sol. NABARD came into existence on 12 July 1982 by transferring the agricultural credit functions of RBI and refinance functions of the then Agricultural Refinance and Development Corporation (ARDC). It was dedicated to the service of the nation by the late Prime Minister Smt. Indira Gandhi on 05 November 1982.

Q2. SIDBI set up on 2nd April _____________ under an Act of Indian Parliament, acts as the Principal Financial Institution for Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector as well as for coordination of functions of institutions engaged in similar activities.

(a) 1956

(b) 1999

(d) 1990

(e) 1980

S2. Ans.(d)
Sol. Small Industries Development Bank of India (SIDBI) set up on 2nd April 1990 under an Act of Indian Parliament, acts as the Principal Financial Institution for Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector as well as for co-ordination of functions of institutions engaged in similar activities.

Q3. Which year National Housing Bank was set up?

(a) 1982

(b) 1988

(d) 1990

(e) 1992

S3. Ans.(b)
Sol. NHB was set up on July 9, 1988 under the National Housing Bank Act, 1987.

Q4. Export–Import Bank of India is the premier export finance institution in India, established in ________________ under Export-Import Bank of India Act 1981.

(a) 1992

(b) 1988

(d) 1990

(e) 1982

S4. Ans.(e)
Sol. Export–Import Bank of India is the premier export finance institution in India, established in 1982 under Export-Import Bank of India Act 1981.

Q5. The Reserve Bank of India is India’s central banking institution, which controls the monetary policy of the Indian rupee. It commenced its operations on-

(a) 01st April 1934

(b) 01st April 1937

(d) 01st April 1936

(e) 01st April 1949

S5. Ans.(c)
Sol. The Reserve Bank of India is India’s central banking institution, which controls the monetary policy of the Indian rupee. It commenced its operations on 1 April 1935 in accordance with the Reserve Bank of India Act, 1934.

Q6. Which Act was framed especially to deal with Non-Performing Assets(NPA)?

(a) Banking Regulation Act 1949

(b) Foreign Exchange Management Act(FEMA) 1999

(d) SARFAESI Act, 2002

(e) None of the given options is true

S6. Ans.(d)
Sol. SARFAESI Act (The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002) was enacted to regulate securitization and reconstruction of financial assets and enforcement of security interest created in respect of Financial Assets to enable realization of such assets. The SARFAESI Act provides for the manner for enforcement of security interests by a secured creditor without the intervention of a court or tribunal. If any borrower fails to discharge his liability in repayment of any secured debt within 60 days of notice from the date of notice by the secured creditor, the secured creditor is conferred with powers under the SARFAESI Act.

Q7. In Notice Money Market, the tenor of the transactions is from ________

(a) 2-7 days

(b) 2-14 days

(d) 2-28 days

(e) 2-90 days

S7. Ans.(b)
Sol. In money market, the amount that is lent for one day is known as “call money” and, if it exceeds one day or two days to 14 days is referred to as “notice money.”

Q8. An Asset Reconstruction Company (ARC) in India is associated with-

(a) UCPDC

(b) DICGC

(d) Home Loan

(e) None of the given options is true

S8. Ans.(c)
Sol. Asset Reconstruction Company (ARC) also known as Securitization company in India helps to unlock the value of non-performing assets (NPA) in banks through Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002.ARC is regulated by RBI as a Non-Banking Financial Company (NBFC).

Q9. Which of the following is mainly used by the banks in order to meet their temporary requirement of Cash on a daily basis?

(a) Commercial Paper

(b) Certificate of Deposit

(d) Call Money

(e) None of the given options is true

S9. Ans.(d)
Sol. Call money market is a market for uncollateralized lending and borrowing of funds. This market is predominantly overnight and is open for participation only to scheduled commercial banks and the primary dealers.

Q10. ___________ is a voluntary market body for the bond, money and derivatives markets.

(a) RBI

(b) SEBI

(d) FIMMDA

(e) UIDAI

S10. Ans.(d)
Sol. The Fixed Income Money Market and Derivatives Association of India (FIMMDA), an association of Scheduled Commercial Banks, Public Financial Institutions, Primary Dealers and Insurance Companies was incorporated as a Company under section 25 of the Companies Act,1956 on June 3rd, 1998. FIMMDA is a voluntary market body for the bond, money and derivatives markets. FIMMDA has members representing all major institutional segments of the market. The membership includes Nationalized Banks such as State Bank of India, its associate banks and other nationalized banks; Private sector banks such as ICICI Bank, HDFC Bank, IDBI Bank; Foreign Banks such as Bank of America, ABN Amro, Citibank, Financial institutions such as IDFC, EXIM Bank, NABARD, Insurance Companies like Life Insurance Corporation of India (LIC), ICICI Prudential Life Insurance Company, Birla Sun Life Insurance Company and all Primary Dealers.

Q11. National Bank for Agriculture and Rural Development (NABARD) is an apex development financial institution in India. Where is the Head Office of NABARD?

(a) Lucknow

(b) Chennai

(d) Mumbai

(e) Kolkata

S11. Ans.(d)
Sol. National Bank for Agriculture and Rural Development (NABARD) is an apex development financial institution in India, headquartered in Mumbai with branches all over India.

Q12. Small Industries Development Bank of India is the principal development financial institution in India headquartered in-

(a) Lucknow

(b) Chennai

(d) Mumbai

(e) Kolkata

S12. Ans.(a)
Sol. Small Industries Development Bank of India is the principal development financial institution in India headquartered in Lucknow, Uttar Pradesh.

Q13. National Housing Bank (NHB), a wholly owned subsidiary of Reserve Bank of India (RBI), was set up on 9 July 1988 under the National Housing Bank Act, 1987. Where is the Head Office of NHB?

(a) Lucknow

(b) Chennai

(d) Mumbai

(e) Kolkata

S13. Ans.(c)
Sol. National Housing Bank (NHB), a wholly owned subsidiary of Reserve Bank of India (RBI), was set up on 9 July 1988 under the National Housing Bank Act, 1987. NHB is an apex financial institution for housing. The Head Office of NHB is in New Delhi.

Q14. Export-Import Bank of India is the premier export finance institution in India, established in 1982 under Export-Import Bank of India Act 1981. The Headquarters of EXIM Bank in-

(a) Hyderabad

(b) Kolkata

(d) New Delhi

(e) Mumbai

S14. Ans.(e)
Sol. Export-Import Bank of India is the premier export finance institution in India, established in 1982 under Export-Import Bank of India Act 1981. The Headquarters of EXIM Bank in Mumbai.

Q15. The Reserve Bank of India is India’s central banking institution, which controls the monetary policy of the Indian rupee. Where is the Head office of RBI?

(a) Pune

(b) Mumbai

(d) New Delhi

(e) Kolkata

S15. Ans.(b)
Sol. The Reserve Bank of India is India’s central banking institution, which controls the monetary policy of the Indian rupee. It commenced its operations on 1 April 1935 in accordance with the Reserve Bank of India Act, 1934. The Head office of RBI is in Mumbai.