Banking & Financial Awareness Questions for IBPS Exams

Q1. Which of the following is the limitation of the ATMs owing to which people are required to visit branches of the bank?

I.It does not accept deposits 

II.It has a limited cash disbursement capacity

III. Lack of human interface.

(a) Only I

(b) Only II

(c) Only III

(d) All of the above

(e) None of the above

Q2. An industry which is fighting hard to increase its market share in existing market (with new popular products) is known as?

(a) market vendor 

(b) market operator 

(c) market leader 

(d) market challenger 

(e) None of the above

Q3. Many times we see in newspapers that some projects are launched by the government authorities on ‘PPP’ basis. What is the full form of ‘PPP’?

(a) Preferential Payment Plan 

(b) Public-Private Partnership

(c) Partial Payment Project 

(d) Popular Private Project 

(e) None of the above

Q4. The government of India recently decided to allow Currency Futures in India. In addition to Ministry of Finance which is/are the other organisation(s) who permission/approval is needed for such operations in India?

I. International Monetary Fund (IMF)

II. Reserve Bank of India (RBI)

III. Securities and Exchange Board of India (SEBI)

(a) Only I

(b) Only II

(c) Only III

(d) Only II and III

(e) None of the above

Q5. The Reserve Bank of India has decided to help banks, as a temporary measure, by providing additional liquidity support under LAF. What is the full form LAF?

(a) Loan Adjustment Fund 

(b) Liquidity Adjustment Facility

(c) Long Awaited Funds 

(d) Loan Against Funds

(e) None of the above

Q6. Which Bank is the Banker to the Central Government?

(a) Central Bank of India 

(b) Reserve Bank of India

(c) Punjab National Bank

(d) All of the above 

(e) None of the above

Q7. The term ‘Ways and Means’ advances refers to?

(a) The temporary advance made to the government by its Bankers to bridge the interval between expenditure and the flow of receipt of revenues

(b) the advance given by the Banks to the poorest of the society 

(c) lending made under PMRY scheme 

(d) All of the above

(e) None of the above 

Q8. The Reserve Bank of India is also called the lender of the last resort of Scheduled Commercial Banks because?

(a) RBI meets directly or indirectly all the reasonable demands for financial accommodation subject to terms and conditions of the discount rate policy of RBI

(b) they are not able to get facilities from other Banks 

(c) Both of the above 

(d) Either (a) or (b)

(e) None of the above  

Q9. Pledge means? 

(a) advance against goods 

(b) open working capital limits 

(c) bailment of goods as security for payment of a debt or performance of a promise

(d) All of the above 

(e) None of the above

Q10. What are the RBI guidelines for the development of Interest Rate Swaps (IRS)? 

(a) Banks can use IRS for hedging and Trading both 

(b) MIFOR is a benchmark for IRS

(c) Under ISDA agreement Banks can opt for dual jurisdiction i.e., Indian as well as common law 

(d) All of the above

(e) None of the above 

Q11. Which of the following products launched by most of the banks help farmers in getting instant credit for various agricultural purposes?

(a) Kisan Credit Card 

(b) Personal Loan 

(c) Business Loan 

(d) Only (a) and (b)

(e) None of the above

Q12. Which of the following policies of the financial sectors is basically designed to transferring local financial assets into foreign financial asset freely and at market determined exchange rates?

(a) Capital Accounts Convertibility

(b) Financial Deficit Management 

(c) Minimum Support Price 

(d) All of the above 

(e) None of the above

Q13. A customer wishes to purchase some US dollars in India. He/she should go to?

(a) Public Debt Division of the RBI only 

(b) American Express Bank only 

(c) RBI or any branch of a bank which is authorized for such business

(d) Only (b) and (c) 

(e) None of the above

Q14. Which of the following products of a bank is specifically designed to provide financial help to children in their higher studies in India or in a foreign nation?

(a) Personal Loan 

(b) Corporate Loan 

(c) Educational Loan

(d) Mortgage Loan

(e) None of the above

Q15. A Bank/Financial Organisation these days relies heavily on e-commerce for its transaction. As a part of system security, it has introduced organisation’s security awareness manual. This step of the organisation can be classified under which one of the following categories of measures for a business? 

(a) Preventive Vigilance

(b) Compliance 

(c) Corrective 

(d) Detective 

(e) None of the above