Banking Awareness : Clerk & PO-02

Banking Awareness useful Questions asked in various Bank PO Exams–
1. The Banking Ombudsman–  
(A) is in charge of bank loans for buses (B) fixes the rates of interest for loans (C) resolves complaints of customers 
(D) issues licences for new bank branches (E) is the head of all nationalised banks 

2. Which of the following is NOT classified as a commercial bank?  
(A) Public sector bank (B) Foreign bank (C) Private sector bank 
(D) Regional rural bank (E) Urban cooperative bank 

3. Which of the following is not the name of a Banking Organisation?  

4. Monetary Policy as an arm of the economic policy is administered by–  
(A) Government of India (B) Reserve Bank of India (C) State Bank of India 
(D) Governments of the respective states (E) None of these 

5. Which of the following is not a primary function of a Bank?  
(A) Granting Loans (B) Collecting Cheques/Drafts customers (C) Facilitating import of goods 
(D) Issuing Bank Drafts (E) Selling Gold/Silver Coins 

6. Reserves which can act as a liquidity buffer for commercial banks during crisis times are– 
(A) CAR (B) CRR (C) CAR and CRR
(D) CRR and SLR (E) SLR

7. For repayment of loan availed from Banks NBFC we come across a term known as EMI What does it stand for? 
(A) Equated Money Index (B) Easy Money Installment (C) Equated Monthly Installment
(D) Equal Monthly Installment (E) Equal Minimum Installment

8. Many a times we read in the news paper about CASA deposits of banks. CASA deposits are. 
(A) Demand deposits (B) Term deposits (C) Hybrid deposits
(D) Recurring deposits (E) Special schemes of banks

9. While investing in mutual funds we come across a term called NAV. What is the meaning of NAV? 
(A) Net Annual Value (B) Non Asset Value (C) Net Actual Value
(D) Net Asset Value (E) Net Average Value

10. Assume that Reserve Bank of India reduces the Bank Rate by 1%, what will be its impact? 
(A) Less liquidity in the market (B) More liquidity in the market
(C) No change in the liquidity in the market (D) Mobilization of more deposits by commercial-banks
(E) None of these

11. Whose signature is found on a 50 rupee currency note in India?
(A) President of India (B) Governor, RBI (C) Finance Minister
(D) Prime Minister of India (E) Secretary, Ministry of Finance

12. Which of the following institutions is involved mainly in granting Housing Loans? 

13. Which of the following terms is not related to banking? 
(A) Repayment (B) Loan (C) NPA
(D) Fasting (E) Deposit

14. Almost all banks in our country have introduced facility for granting crop loans to farmers. 
(A) Term Loans (B) Kisan Credit Cards (C) Bank Guarantee
(D) Foreign Exchange (E) Reverse Mortgage

15. Many times we read the term ‘ECB’ in newspapers. What is the full form of ‘ECB’ ? 
(A) Essential Commercial Banking (B) European Credit Borrowing (C) External Credit For Business
(D) External Commercial Borrowing (E) None of these

16. Which of the following is a Private Sector Bank in India? 
(A) Corporation Bank (B) Kotak Mahindra Bank (C) IDBI Bank
(D) Syndicate Bank (E) Oriental Bank of Commerce

17. A bank branch receives a counterfeit note of Rs. 100 from the customer, which customer wants it back. Which of the following action should be taken by the Bank? 
(A) Will return to customer (B) Will impound and not return
(C) Will ask for exchange of note (D) Will replace with genuine note
(E) Will check all the notes in possession with the customer which are not being deposited also

18. Which of the following is not a mode of foreign capital inflow in India? 
(A) FDI (B) NRI deposits (C) FII
(D) No frills accounts (E) None of these

19. In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities? 
(A) Commercial Banks (B) Cooperative Banks (C) Private sector Banks
(D) Microfinance Institutions (E) Regional Rural Banks

20. Which of the following banks was not nationalized in 1969 ? 
(A) Punjab National Bank (B) Bank of India (C) State Bank of India
(D) Bank of Baroda (E) Bank of Maharashtra

21. Which of the following is NOT a bank or finance company? 
(A) ABN Amro (B) HSBC (C) Lufthansa
(D) BNP Paribas (E) Barclays

22. What is the maximum permissible limit for investment in PDF account in a financial year? 
(A) Rs. 1 lakh (B) Rs. 70,000 (C) Rs. 50,000
(D) Rs. 60,000 (E) There is no limit

23. In our country, a cheque remains valid for payment for from the date of issue. 
(A) 3 months (B) 6 months (C) 9 months
(D) 12 months (E) 18 months

24. The Govt. of India has acquired RBI’s stake in one of the major banks of India. Which of the following is the bank? 
(A) AXIS Bank (B) IDBI Bank (C) ICICI Bank
(D) State Bank of India (E) None of these

25. Credit Cards are known as. 
(A) Hard money (B) Easy money (C) Soft money
(D) Plastic money (E) Real money

26. On domestic term deposits, banks in our country generally offer additional rate of interest on term deposits from. 
(A) Minors (B) Married women (C) Govt. employees
(D) Rural residents (E) Senior citizens

27. Which of the following instruments cannot be transferred from one person to another by endorsement?
(A) Fixed Deposit Receipt (B) Cheque (C) Bill of Exchange
(D) Promissory Note (E) None of these

28. ‘Crossing’ applies to which of the following instruments? 
(A) Cheques (B) Bills (C) Promissory Notes
(D) Hundies (E) Fixed Deposit receipts

29. Which of the following assets can be mortgaged? 
(A) Stock (B) Book Debts (C) National Savings Certificates
(D) Shares (E) Land and Building

30. Among the banks in our country, which of the following is not a foreign bank? 
(A) HSBC (B) Standard Chartered Bank (C) BNP Paribas
(D) Citi Bank Na (E) Ing Vysya Bank

ANSWER : 1. (C) 2. (E) 3. (D) 4. (B) 5. (C) 6. (E) 7. (C) 8. (A) 9. (D) 10. (B)
11. (B) 12. (E) 13. (D) 14. (B) 15. (D) 16. (B) 17. (B) 18. (D) 19. (D) 20. (C)
21. (C) 22. (B) 23. (A) 24. (D) 25. (D) 26. (E) 27. (A) 28. (A) 29. (E) 30. (E)

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