Practice Banking Awareness Questions

Dear Readers, Banking Awareness Questions play important role in Bank Exams. Around 50-60% of questions in  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 of interest payable on a bank deposit is determined by
(1) Indian Banks' Association
(2) The bank concerned
(3) RBI
(4) Finance ministry
(5) None of the above

2. The maximum period for which a fixed deposit can be accepted by a Commercial Bank is
(1) 10 years
(2) 15 years
(3) No limit
(4) 8 years
(5) None of the above

3. Which of the following instruments cannot be presented for payment in a clearing house?
(1) Demand draft
(2) Dividends
(3) Fixed deposit receipt
(4) All of the above
(5) None of the above

4. An average citizen cannot open a savings account in which of the following?
1) Commercial Bank
(2) Post office
(3) Cooperative Bank
(4) RBI
(5) None of the above

5. Which of the following cannot open a bank account?
(1) Person of unsound mind
(2) A minor
(3) An illiterate person
(4) A blind individual
(5) None of the above

6. Which of the following schemes is not meant for investment purposes?
(1) National savings certificates
(2) Infrastructure bonds
(3) Mutual funds
(4) Letter of credit
(5) None of the above

7. Savings account with zero balance can be opened for
(1) persons of high net worth
(2) employees of IT companies
(3) weaker sections of society
(4) women customers
(5) None of the above

8. Systematic Investment Plans are a facility by which of the following?
(1) Commercial Bank
(2) Post office
(3) Cooperative Bank
(4) RBI
(5) None of the above

9. RBI stipulates a healthy mix of CASA in the business figures of banks. What does it denote?
(1) Customer Analysis and Savings Pattern
(2) Cost Appreciation and Selling Analysis
(3) Current Account and Savings Account
(4) Credit and Savings Aggregate
(5) None of the above

10. Banks are authorized to sell third party products. Which are these products?
(1) Mutual funds
(2) Term deposits
(3) Debit cards
(4) Gift cheques
(5) None of the above

11. What is the share of sponsor bank in the capital of RRB?
1. 35%
2. 49%
3. 51%
4. 71%
Ans- 1

12. Open market operation is a part of........?
1. Income policy
2. Fiscal Policy
3. Credit Policy
4. Labour Policy
Ans- 3

13. Body which regulates micro-finance is ......?
1. RBI
2. IBA
Ans- 3

14. The first deposit in the newly opened account can be.........?
1. Cash only
2. Bank draft
3. Cheque
4. Banker's cheque

15. Permanent account number is must for..........?
1. Nostro accounts
2. numbered bank accounts
3. Joint accounts
4. Demat accounts
Ans- 4

16. If a credit card is lost, the card member should call up the customer helpline number and he says his request for deactivating the card. This is card.....?
1. Hotlisting
2. Crosslisting
3. Shortlisting
4. Blocklisting
Ans- 1

17. Payee of the cheque refers to....?
1. The bank who pays the cheque
2. The customer who ussues the cheque
3. In whose favor the cheque is issued
4. Who cancels the cheque

18. The RBI's methods of credit control maybe broadly divided into....?
1. Qualitative and Quantitative
2. Open and close
3. Monetary and fiscal
4. Rural and urban
Ans- 1

19. The first public sector bank in India which obtained license for Internet Banking from RBI is....?
1. Punjab National bank
2. Oriental bank of Commerce
3. Corporation Bank
4. State Bank of India
Ans- 1

20.The Export- Import Bank of India was set up in........?
1. April 1982
2. January 1982
3. April 1970
4. July 1969

Ans-  2