Banking Awareness Quiz

Banking Awareness Quiz for IBPS PO Mains.

1. 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.
(1) i only
(2) i and ii
(3) i and iii
(4) ii and iii
(5) i, ii and iii

2. Capital market is a market which deals in 
(1) short-term funds
(2) Long-term funds
(3) gilt-edge securities
(4) All of the above
(5) None of the above

3. Bank rate policy, open market operations, variable reserve requirements and statutory liquidity requirements employed by Reserve Bank as measures by Reserve of credit control are classified as
(1) quantitative methods
(2) qualitative methods
(3) Both of the above
(4) All of the above
(5) None of the above

4. “Micro Credits” are loans:
(1) granted to distressed person (other than farmers) to pre-pay  their debt to non- institutional  lenders against appropriate collateral or group security,
(2) not exceeding 50.000 per borrower provided by banks
(3) both (1) and (2)
(4) either (1) and (2)
(5) none of the above

5. Which of the following statement is/are true about fiat money?
1) Fiat money includes physical token like certificates
2) Fiat money's value is not derived from any intrinsic value are relative value is based only on government order
3) Fiat money can be converted in to valuable commodity (like gold)
4) Both 1 and 2
5) None of these

6. RBI is lender of last resort which reveals:
1) RBI advances money to public whenever there is any emergency
2) Commercial banks give fund to the RBI
3) RBI advances necessary credit against eligible securities to financial institutions
4) All of the above
5) None of the above

7. The ability of commercial banks to increase their deposits by expanding their loans and advances is known as
1) Capital expansion 
2) Credit expansion
3) Credit control 
4) Credit creation
5) None of these

8. Banks usually collect penal rate of interest on ....... for the pre mature withdrawal of fixed deposits?
1) Principal
2) Rate of interest
3) Minimum deposit amount
4) Maturity amount                       
5) All of above

9. Fixed deposits can have........
1) Nomination facility.
2) Nomination facility with the permission of Bank Chairman.
3) Nomination facility by taking special permission from bank.
4) Nomination facility on the day of closing.
5) Nomination facility with the permission of person who introduced him to open account.

10. DICGC is the wholly owned subsidiary of?
1) SBI
3) Union Government
4) RBI

5- 2
6 - 3
7 - 4
8- 2
9- 1