Practice Banking Awareness Quiz

Dear Readers, Banking Awareness Questions play important role in IBPS Clerk-V Mains Exam. Around 50-60% of questions in IBPS Clerk-V Mains comes from Banking Awareness which includes recent Banking updates also.


Try to Answer Banking Awareness questions given in this post. We will provide you more questions in next post.


1. The rate at which the RBI lends Short-term money to the banks
(1) PLR
(2) CRR
(3) Repo Rate
(4) Reverse Repo Rate
(5) None of these
Ans-3


2. The Reserve Bank of India (RBI) was nationalized on
(1) 1 January, 1949
 (2) 1 July, 1955
(3) 19 July, 1969
(4) 15 April, 1980
 (5) None of the above
Ans-1

3. NEFT means _____
(a) National Electronic Funds Transfer system
(b) Negotiated efficient Fund Transfer System
(c) National Efficient Fund Transfer Solution
(d) Non Effective Fund Transfer system
(e) Negotiated Electronic Foreign Transfer system
Ans: (a)

4. The Reserve Bank of India was set up on the recommendations of the
(1) Narasimham Committee
(2) Hilton-Young Commission
(3) Mahalanobis Committee
(4) Fazal Ali Commission
(5) None of the above
Ans-2

5. Kisan Credit Cards are an effective way of reaching out to the farmers by the banks. What assistance does the farmer receive in this way?
(1) Credit facility for crops etc against an approved limit
(2) Short term credit facility against value of his crops
(3) Long term credit is provided against his land holdings
(4) Loan is permissible against crops sold but payment yet to be received by the farmer
(5) None of the above
Ans-1

6. Why are interest rates charged by Micro Finance Institutions higher than lending rates of banks?
(1) MFIs are not allowed co source deposits from public
(2) Banks have the benefit of cheaper funds
(3) MFIs borrow bulk of their funds from banks
(4) MFIs borrow funds from banks at high cost and also their administrative expenses are more
(5) None of the above
Ans-4

7. An ECS transaction gets bounced and you are unable to recover your money from your customer. Under which Act criminal action can be initiated?
(1) Indian Penal Code
(2) Negotiable Instruments Act
(3) Criminal Procedure Code
(4) Payment and Settlements Act
(5) Indian Contract Act
Ans. 2

8. Mr. Rajendra had filed a complaint with Banking Ombudsman but is not satisfied with the decision. What is the next option before him for getting his matter resolved?
(1) Write to the CMD of the Bank File an appeal before the Finance Minister
(2) File an appeal before the Banking Ombudsman again
(3) File an appeal before the Dy. Governor RBI
(4) Simply close the matter as going to court involves time and money
(5) None of These
Ans. 2

9. The objectives of forming SHG is
(i) to build mutual trust and confidence between the bankers and the rural poor people.
(ii) to encourage banking activities, both on the thrift as well as credit sides, in a segment of the population that the formal financial institutions usually find difficult to cover.
(iii) to meet the needs of the poor by combining the flexibility, sensitivity and responsiveness of the Informal Credit System with the strength of technical and administrative capabilities and financial resources of the formal credit institutions.
Select the correct answer using the following codes
(1) Only (i)
(2) Both (i) and (ii)
(3) (i) and (iii)
(4) (ii) and (iii)
(5) (i), (ii) and (iii)
Ans-5

10. The best alternative banking service to branch banking to be the part of Financial Inclusion?
(1) Establishment of small branches
(2) Setup ATMs
(3) Issuing of ATM cards
(4) Giving Credit Cards
(5) Mobile banking
Ans-5


Dear Readers, Banking Awareness Questions play important role in IBPS Clerk-V Mains Exam. Around 50-60% of questions in IBPS Clerk-V Mains comes from Banking Awareness which includes recent Banking updates also.


Try to Answer Banking Awareness questions given in this post. We will provide you more questions in next post.


1. The rate at which the RBI lends Short-term money to the banks
(1) PLR
(2) CRR
(3) Repo Rate
(4) Reverse Repo Rate
(5) None of these
Ans-3


2. The Reserve Bank of India (RBI) was nationalized on
(1) 1 January, 1949
 (2) 1 July, 1955
(3) 19 July, 1969
(4) 15 April, 1980
 (5) None of the above
Ans-1

3. NEFT means _____
(a) National Electronic Funds Transfer system
(b) Negotiated efficient Fund Transfer System
(c) National Efficient Fund Transfer Solution
(d) Non Effective Fund Transfer system
(e) Negotiated Electronic Foreign Transfer system
Ans: (a)

4. The Reserve Bank of India was set up on the recommendations of the
(1) Narasimham Committee
(2) Hilton-Young Commission
(3) Mahalanobis Committee
(4) Fazal Ali Commission
(5) None of the above
Ans-2

5. Kisan Credit Cards are an effective way of reaching out to the farmers by the banks. What assistance does the farmer receive in this way?
(1) Credit facility for crops etc against an approved limit
(2) Short term credit facility against value of his crops
(3) Long term credit is provided against his land holdings
(4) Loan is permissible against crops sold but payment yet to be received by the farmer
(5) None of the above
Ans-1

6. Why are interest rates charged by Micro Finance Institutions higher than lending rates of banks?
(1) MFIs are not allowed co source deposits from public
(2) Banks have the benefit of cheaper funds
(3) MFIs borrow bulk of their funds from banks
(4) MFIs borrow funds from banks at high cost and also their administrative expenses are more
(5) None of the above
Ans-4

7. An ECS transaction gets bounced and you are unable to recover your money from your customer. Under which Act criminal action can be initiated?
(1) Indian Penal Code
(2) Negotiable Instruments Act
(3) Criminal Procedure Code
(4) Payment and Settlements Act
(5) Indian Contract Act
Ans. 2

8. Mr. Rajendra had filed a complaint with Banking Ombudsman but is not satisfied with the decision. What is the next option before him for getting his matter resolved?
(1) Write to the CMD of the Bank File an appeal before the Finance Minister
(2) File an appeal before the Banking Ombudsman again
(3) File an appeal before the Dy. Governor RBI
(4) Simply close the matter as going to court involves time and money
(5) None of These
Ans. 2

9. The objectives of forming SHG is
(i) to build mutual trust and confidence between the bankers and the rural poor people.
(ii) to encourage banking activities, both on the thrift as well as credit sides, in a segment of the population that the formal financial institutions usually find difficult to cover.
(iii) to meet the needs of the poor by combining the flexibility, sensitivity and responsiveness of the Informal Credit System with the strength of technical and administrative capabilities and financial resources of the formal credit institutions.
Select the correct answer using the following codes
(1) Only (i)
(2) Both (i) and (ii)
(3) (i) and (iii)
(4) (ii) and (iii)
(5) (i), (ii) and (iii)
Ans-5

10. The best alternative banking service to branch banking to be the part of Financial Inclusion?
(1) Establishment of small branches
(2) Setup ATMs
(3) Issuing of ATM cards
(4) Giving Credit Cards
(5) Mobile banking
Ans-5


2 comments: