Banking and Financial Awareness for SBI / IBPS Exams

1. Many times we read a term CBS used in banking operation. What is the full form of the letter ‘C’ in the term ‘CBS’?

2. At which one of the following rate, the Central Bank lends of banks against government securities?
Repo Rate
Reverse Repo Rate
Bank Rate

3. One of the sources of income of banks is to charge fee for certain services. What are some of the services provided by the banks for which they charge fee? 
I. Issuing Demand Drafts/Pay Orders 
II.Issue of ATM/Credit/Debit Cards 
III.Electronic Transfer of Money
Only I
Only II
Only III
All of the above

4. Which of the following is the full form of the term SLR as used in the banking sector?
Social Lending Ratio
Statutory Liquidity Ratio
Scheduled Liquidity Rate
None of the above

5. As we all know, the major source of income of the banks is lending money (Providing credit) and earning interest on it. In normal circumstances, the demand of the credit comes mainly from which of the following sectors? 
I. Personal Loans
II.Priority Sector Lending & Bailout Packages 
III. Project Finance
Only I
Only II
Only III
All of the above

6. The set of directive principles issued by the Central Bank of country or the process adopted by it to control the supply of money, availability of money, cost of money and rate of interest, etc. in order to bring stability and growth of the economy” are commonly known as?
Monetary policy of the Central Bank of the country
Budget of the Govt.
Profit & Loss Account
Business Policy of the Bank

7. Many banks have launched/fllated their subsidiaries which are fully owned by them. Banks launch subsidiaries normally for which of the following business? 
I.Home Loan Business
II.To sell Insurance Policies 
III.To control Online Operations or Internet Banking business
Only I
Only II
Only III
All of the above

8. The term “hyper-inflation” is used to denote?
a situation with moderate rise in price level
an inflationary situation where the external forces are the primary contributing factors
a “runway” or “galloping” inflationary situation where the monetary unit becomes almost worthless
a situation where the cost of living index is rising alarmingly

9. The term “hyper-employment” means?
a situation where machines are used to intensify utilisation of labour
a situation where plant is used without any rest
a situation where the demand for labour far exceeds its supply
a situation where machines are substituted for labour

10. Many a time we read in the newspapers that RBI has changed or revised a particular ratio/rate by a few basis points. What is one basis point?
Ten per cent of one hundredth point
1/100th of 1%
One hundredth of 10%
Ten per cent of 1000