Banking Awareness Questions for IBPS RRB PO and Clerk

Dear Aspirants,

Banking Awareness for IBPS RRB PO and 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. Savings account with zero balance can be opened for?

Persons of high net worth

Employees of IT companies

financial Weaker sections of society

Companies

None of the given options is true

Solution:

Savings account with zero balance can be opened for financial Weaker sections of society.

Q2. RBI stipulates a healthy mix of CASA in the business figures of banks. What does it denote?

Customer Analysis and Savings Pattern

Cost Appreciation and Selling Analysis

Current Account and Savings Account

Credit and Savings Aggregate

None of the given options is true

Solution:

CASA Stands for Current Account and Savings Account.

Q3. Banks are authorized to sell third party products. Which are these products?

Mutual funds

Term deposits

Credit cards

Demand Draft

None of the given options is true

Solution:

A mutual fund is an investment vehicle made up of a pool of moneys collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and other assets.

Q4. How does a bank establish the identity of a customer?

By getting introduction of an existing customer

By following KYC norms

By taking AADHAR card copy

All of the above

None of the given options is true

Solution:

Bank establish the identity of a customer by getting introduction of an existing customer, following KYC norms, taking AADHAR card copy.

Q5. How are minors encouraged to save money by banks?

By opening account in the name of minor

By allowing savings account to minors under guardianship

By allowing them to come to the bank for depositing money

By going to schools

None of the given options is true

Solution:

Minors encouraged to save money by banks, allowing savings account to minors under guardianship.

Q6. Which one of the following does not qualify as priority sector lending by commercial banks?

Software exports

Small business loans

Education loans

Small industries loan

Agriculture

Solution:

Software exports does not qualify as priority sector lending by commercial banks.

Q7. Bank loan against property requires the asset to be free from encumbrances. What does it mean?

The asset to be free from any liability

The asset to be properly registered

The property to be fully constructed

The asset should not have multiple owners

None of the given options is true

Solution:

Bank loan against property requires the asset to be free from encumbrances that means, The asset to be free from any liability.

Q8. Which of the following lending qualifies as a priority sector loan?

Loan for purchase of gold for marriage of daughter

Loan for consumer durables

Housing loan

Loan for purchase of tractor

None of the given options is true

Solution:

Agricultural term loans are sanctioned for purchase of new tractors. Loan for purchase of tractor qualifies as a priority sector loan.

Q9. Which of the following rates is decided by the market conditions and not by RBI?

Bank rate

SLR

CRR

Inflation rate

Repo Rate

Solution:

Inflation rate is decided by the market conditions and not by RBI.

Q10. Credit information companies are preparing credit reports on borrowers for sharing with banks to enable them to take proper credit decisions. What is the most important feature of this report about individual borrowers?

Personal credit score

List of banks from whom loans have been taken

The total amount of loans availed

The amount of outstanding loan

None of the given options is true

Solution:

It is generally advisable to have a credit/CIBIL score of 750 or above to qualify for a personal loan Your credit score is a three-digit number between 300 and 900 that gives potential lenders a quick idea of your credit health.

Q11. What do you understand from the statement ‘Cast credit account against hypothecation of stocks’?

Borrowing account for purchase of raw materials

Borrowing account for working capital against security of stocks

Working capital loan account against security of stocks in possession of the borrower

Borrowing account for working capital where the stocks of the borrower are in custody of the bank/lender

None of the given options is true

Solution:

Cast credit account against hypothecation of stocks is Working capital loan account against security of stocks in possession of the borrower.

Q12. Base rate of lending was introduced by RBI to substitute the prime lending rate mechanism for fixing of interest rate on bank loans and advances. What is the reason for this decision of RBI?

To exercise greater control of RBI over banks

In accordance with Damodaran Committee recommendations

To improve banks’ profitability

For effective transmission of monetary policy changes and greater transparency

None of the given options is true

Solution:

For effective transmission of monetary policy changes and greater transparency.

Q13. Reverse mortgage loans are meant to provide liquidity for the senior citizens. Which of the following is a proper description of this facility?

Banks make either monthly payments or a lump sum payment to the senior citizen

The senior citizen has to surrender the property after 15 years

The legal heirs cannot repay the loan amount in case of death of the senior citizen

All of the above

None of the given options is true

Solution:

Banks make either monthly payments or a lump sum payment to the senior citizen.

Q14. Debt restructuring is often mentioned when discussing about banks’ credit portfolio. What does it suggest?

The loan portfolio of banks is classified according to the amount of each loan

Irregular loan accounts are assisted to regularize with modification in terms and conditions of the loan sanction

Asset classification into performing and non performing accounts

Substandard loan accounts are given further loans

None of the given options is true

Solution:

Irregular loan accounts are assisted to regularize with modification in terms and conditions of the loan sanction.

Q15. Banks are not comfortable in lending to the infrastructure sector. What are the reasons for this?

Banks find it difficult to fund infrastructure projects of 15 years and more

Infrastructure projects require large scale funding

Infrastructure financing becomes a asset liability problem for banks

All of the above

None of the given options is true

Solution:

All of the above.

Banking Awareness Questions for IBPS RRB PO and Clerk | 24th August 2018 |_3.1

Banking Awareness Questions for IBPS RRB PO and Clerk | 24th August 2018 |_4.1

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Banking Awareness Questions for IBPS RRB PO and Clerk | 24th August 2018

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