Banking Awareness Quiz for SBI PO

Q1. The seed capital of Bhartiya Mahila Bank is-
(a) Rs. 2000 crore
(b) Rs. 1000 crore
(c) Rs. 4000 crore
(d) Rs. 3000 crore
(e) None of the above

Q2. The process by which a life insurance policyholder can transfer all rights, title and interest under a policy contract to a third person, is known as?
(a) Assignment of the policy
(b) Hypothecation of the policy
(c) Reinvestment of the policy
(d) Negotiation of the policy
(e) Nomination of the policy


Q3. Which of the following institutions is regarded as the ‘Lender of the Last Resort’ by Banks in India?
(a) State Bank of India
(b) The State Treasury
(c) Reserve Bank of India
(d) World Bank
(e) Department of Financial Service


Q4. A bank’s ‘fixed deposit’ is also referred to as a…..? 
(a) term deposit
(b) saving bank deposit
(c) current deposit
(d) demand deposit
(e) home savings deposit


Q5. To improve access of the poor to banking, the RBI has advised banks to open branches with minimum infrastructure supporting up to 8 to 10. Business Correspondents (BCs) at a reasonable distance of 3-4 km. Such branches are known as-
(a) nodal branches
(b) micro branches
(c) mini branches
(d) ultra small branches
(e) satellite branches


Q6. The major shareholders in Asset Reconstruction Company of India Limited (ARCIL) other than SBI are? 
(a) IDBI & Canara Bank
(b) ICICI & HDFC
(c) IDBI & HDFC
(d) IDBI & ICICI
(e) None of the above


Q7. The minimum and maximum court fee that is required to be paid for filing a suit in a Debt Recovery Tribunal is?
(a) Rs. 5,000; Rs. 1,00,000
(b) Rs. 10,000; Rs. 1,00,000
(c) Rs. 12,000; Rs. 1,50,000
(d) All of the above
(e) None of the above

Q8. The practice of reducing NPAs through cross-lending to square off loans from bank is known as? 
(a) “Ever-Greening” of advances 
(b) “Take Over” of advances 
(c) Compromise Settlement 
(d) All of the above
(e) None of the above

Q9. The risks involved in paying a post-dated cheque are? 
(a) the drawer may issue other cheques which bear a date prior to the date of such a cheque and if the balance is insufficient, the bank may be held liable
(b) an Attachment Order may be received attaching the balance in the account
(c) the drawer may stop payment  
(d) All of the above
(e) None of the above

Q10. The single largest component of external debt is? 
(a) Commercial borrowings
(b) Multilateral debt 
(c) Short term debt
(d) NRI deposits 
(e) None of the above


Q11. Working capital means?
(a) Cash-in hand and at bank
(b) Current assets 
(c) Current liabilities and provisions 
(d) Current assets minus current liabilities
(e) None of the above


Q12. “Window dressing” means?
(a) The modern way of decorating a branch office 
(b) A decorative way of presenting the Balance Sheet and Profit and Loss Account of a bank at its annual general meeting
(c) Manipulation of accounts with a view not to give the share holders a true and fair view 
(d) Is a strategy used by mutual fund and portfolio managers near the year or quarter end to improve the appearance of the portfolio/fund performance before presenting it to clients or shareholders
(e) None of the above 


Q13. Which of the following cannot be endorsed? 
(a) A fixed deposit receipt
(b) A bank draft 
(c) A Promissory note
(d) A usance bill of exchange 
(e) A cheque


Q14. Restrictive endorsement is one in which? 
(a) Endorser endorses an instrument conditionally 
(b) Endorser restricts the further transfer by the endorsee
(c) Endorser endorses in favour of endorsee for his particular work 
(d) All of the above
(e) None of the above


Q15. Account payee crossing is an direction of the drawer to?
(a) To collecting banker
(b) To drawee banker 
(c) To payee 
(d) To all endorsees
(e) None of the above