Banking awareness Quiz

1.Which of the following is a correct statement ?
(a) Normally no interest is paid on current deposit accounts,
(b) Interest is paid on  current  accounts at the same rate as term deposit accounts
(c) The rate of interest  on current  account  and savings account are the same
(d) No interest is paid on any deposit by the bank,
(e) Savings deposits are the same as current deposits

2. Which of the following is a measure taken by Reserve Bank of India to control inflation in our country?
(a) Increase in CRR, 
(b) Increase in SLR
(c) Contraction of supply of currency,
(d) Raising of Repo/ Reserve Repo Rate
(e) Decrease the SLR

3. What do you understand by the term ‘Mortgage’?
(a) Sale of moveable security in the event of default by the borrower
(b) Registration of charge with the Registrar of Companies
(c) Making the security of immovable property available as a cover for a home loan by the borrower
(d) Registration of charge with the Regional Transport Authority
(e)  Returning of the security to borrower by the bank of receipt of full payment

4.Which of the following is NOT a source of funds of a commercial bank?
(a)  Capital,       
(b) Borrowings from RBI
(c)  Call money,
(d) Deposits
(e) Cash reserves with RBI

5. The Banking Ombudsman
(a) is in charge of bank loan 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 nationalized banks

6. Which of the following is not the name of Banking Organisation?
(a) HDFC,     
(b) IDBI
(c) YES         
(d) SEBI
(e) ICICI

7. 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

8. Lending to Micro Finance Institutions by banks is considered as financé to
(a) Non priority sector , 
(b) priority sector
(c) commercial sector, 
(d) Agriculture sector
(e) none of these

9. Which of the following is/are various components/ channels of the monetary policy of the RBI?
(a) Altering money supply,      
(b) credit availability 
(c) Influencing exchange rates
(1) only (A) & (B)
(2) Only (B) & (C),
(3) Only (A) & (C),
(4) Only (A) ,
(5) All (A), (B) & (C)

10. Which of the following is/are called key Policy rates by the Reserve Bank of India?
A. Bank rate 
B. Repo Rate, Reverse repo rate
C. CRR, SLR
(1) only A, 
(2) Only B, 
(3)  only A & B, 
(4) Only C,
(5) All A, B and C

11. The Reserve Bank of India has divested its stake in State Bank of India to
(a) IDBI Bank,   
(b) LIC
(c) ICICI Bank 
(d) Government of India
(e) None of the above

12. Objective of monetary policy of RBI is to
(a) control inflation, 
(b) discourage hoarding of commodities
(c) encourage flow of credit into neglected sector,
(d) All of the above,
(e) None of the above

13. Real Time Gross Settlement System means a payment system in which
(a) both processing and final settlement of funds transfer instructions can take place continuously , (b) final transaction takes place at the end of the day,
(c) final payment is physically effected within 24 hours,
(d) final settlement of funds take place at 3 PM daily
(e) none of the above

14. Effective from 15th April, 1980, how many banks with demand and time liabilities exceeding 200 crore were nationalized?
(a) five,
(b) four
(c) six,
(d)  ten
(e) None

15. What is financial  inclusion?
(a) To provide a permanent employment to the unemployed
(b) To provide a 100  days job to all those who are in need of a job
(c) To provide banking services to all those living in remote areas
(d) To ensure that all financial transactions amounting Rs. 5,000/- and above are done through banks. (e) none

Answers...

1. (a)
2. (c)
3. (c)
4. (e)
5. (c)
6. (d)
7. (c)
8. (b)
9. (a)
10. (e)
11. (d)
12. (a)
13. (a)
14. (c)
15. (c)