Banking Awareness : Clerk & PO-01

Banking Awareness Questions asked in various Bank PO Exams–

1. Which of the following is foreign bank having offices/branches in India?  
(A) Yes Bank (B) HDFC Bank (C) IDBI Bank 
(D) Karnataka Bank (E) Standard Chartered Bank 

2. Basel-II norms are associated with which of the following aspects of the banking industry?  
(A) Risk management (B) Manpower planning (C) Retirement benefits for the employees 
(D) Corporate Governance (E) None of the above 

3. Which of the following is NOT a banking/finance related term?  
(A) Credit wrap (B) EMI (C) Held to Maturity 
(D) Exposure limit (E) Diffusion 

4. The approach of ‘Micro-Credit’ or ‘Banking with the poor’ is comparatively a new concept in the field of rural credit. This approach has been tried very successfully in which of the following countries?  
(A) Bangladesh (B) India (C) China 
(D) Japan (E) None of these 

5. The lowering of Bank Rate by the Reserve Bank of India leads to–  
(A) More liquidity in the market (B) Less liquidity in the market 
(C) No change in the liquidity in the market (D) Mobilization of more deposits by commercial banks 

6. What is the full form of ‘ULIP’, the term which was in the news recently?
(A) Universal Life and Investment Plan (B) Unit loan and Insurance Plan
(C) Universal Loan and Investment Plan (D) Uniformly Loaded Investment Plan
(E) Unit Linked Insurance Plan

7. Which of the following is not a part of the scheduled banking structure in India?
(A) Moneylenders (B) Public Sector Banks (C) Private Sector Banks
(D) Regional Rural Banks (E) State Co-operative Banks

8. The rate of interest on Savings Bank Account is stipulated by–
(A) The concerned bank (B) RBI (C) Indian Banks Association
(D) Government of India (E) Banking Codes and Standards Board of India

9. Many times we read a term, CBS used in banking operation. What is the full form of the letter ‘C in the term ‘CBS’ ?
(A) Core (B) Credit (C) Continuous
(D) Complete (E) None of these

10. Many a time we read a term ‘PPP’ in financial dailies/magazines. What is the full form of the same as used in financial world?
(A) Public Per Capita Power (B) Per Capita Potential Purchases (C) Purchasing Power Parity
(D) Present Purchasing Power (E) None of these

11. In India, the interest rate on savings accounts in all the nationalized commercial banks is fixed by– 
(A) Union Ministry of Finance (B) Union Finance Commission
(C) Indian Banks’ Association (D) None of the above

12. Fiscal policy in India is formulated by– 
(A) the Reserve Bank of India (B) the Planning Commission
(C) the Finance Ministry (D) the Securities and Exchange Board of India

13. Many times we read about SHGs in financial newspapers. What is the full form of the term? 
(A) Small Help Groups (B) Self Help Groups (C) Small Hope in Crowns
(D) Self Hope Groups (E) None of these

14. Which of the following agencies/organizations in India maintains the Micro. Finance Development and Equity Fund ? 
(A) Confederation of Industries in India (CII) (B) Indian Bank’s Association (IBA),
(C) Small Industries Development Bank of India (SIDBI) (D) Reserve Bank of India (RBI)
(E) National Bank for Agriculture and Rural Development (NABARD)

15. Many times we read about ‘Hawala’ transactions in newspapers. Hawala in India is prohibited under the provision of which of the following Acts? 
(A) Fiscal Responsibility and Budget Management Act (B) Banking Regulation Act
(C) Financial Action Task Force Act (D) Foreign Exchange Management Act
(E) None of these

16. Which of the following terms is NOT used in Economics?
(A) Balance of Payment (B) Call Money (C) National Debt
(D) Elasticity of Demand (E) Boyle’s Law

17. What is the full form of ‘NBFC’ as used in the Financial Sector? 
(A) New Banking Finance Company (B) National Banking and Finance Corporation
(C) New Business Finance and Credit (D) Non Business Fund Company
(E) None of the above

18. A major Public Sector Bank raised interest rates on loans by 25 basis points - was news in some major financial newspapers recently. This means bank has raised interest by 25 basis points of. 
(A) Savings Bank Interest Rate (B) Base Lending Rate (C) Repo Rates
(D) Present Rates on Deposits (E) Discounted Rates of Interest

19. What does the letter ‘L’ denote in term ‘LAF’ as referred every now and then in relation to monetary policy of the RBI? 
(A) Liquidity (B) Liability (C) Leveraged
(D) Longitudinal (E) Linear

20. Banks and other financial institutions in India are required to maintain a certain amount of liquid assets like cash, precious metals and other short term securities as a reserve all the time. In Banking World this is knows as. 
(A) CRR (B) Fixed Asset (C) SLR
(D) PLR (E) None of these

21. If PAN details are not provided, the TDS is deducted at which of the following rates?
(A) 10% (B) 20% (C) 10% for senior citizens and 20% for others
(D) 10% plus 10% surcharge (E) None of these

22. Lending to Micro Finance Institutions by Bank considered as finance to– 
(A) Non Priority Sector (B) Priority Sector (C) Commercial Sector
(D) Agriculture Sector (E) None of these

23. Maximum FDI in Private Banks in India is allowed up to the limit of– 
(A) 25% (B) 51% (C) 49%
(D) 70% (E) None of these

24. Which one of the following will setup sore banking infrastructure for rural banks? 
(D) IBA (E) None of these

25. The letter ‘F’ denotes which of the following in the term IFRS. 
(A) Formative (B) Formal (C) Functional
(D) Fiscal (E) Financial

26. Which of the following terms is used in the field of banking ? 
(A) Accounts (B) Entropy (C) Plank’s Law
(D) Plasma (E) Viscosity

27. Which one among the following is not an institution of Indian Money Market? 
(A) Reserve Bank of India (B) Bill Brokers
(C) Merchant Bankers (D) Non-Banking Financial Intermediaries

28. Which one of the following is not a function of the central bank in an economy? 
(A) Dealing with foreign exchange (B) Controlling monetary policy
(C) Controlling government spending (D) Acting as a banker’s bank

1. (E) 2. (A) 3. (E) 4. (A) 5. (A) 6. (E) 7. (A) 8. (B) 9. (A) 10. (C)
11. (D) 12. (C) 13. (B) 14. (E) 15. (D) 16. (E) 17. (E) 18. (B) 19. (A) 20. (C)
21. (B) 22. (B) 23. (E) 24. (B) 25. (E) 26. (A) 27. (B) 28. (C)

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