Banking and Financial Awareness for SBI / IBPS Exams

1. Which of the following norms/practices adopted by the banks is/are launched to ensure that the money from illegal activities/sources does/do not come to banks and therefore, the economic health of the nation does not get affected?
I. Know your Customer 
II. Financial Inclusion 
III. Branch less Banking  
(a) Only I
(b) Only II
(c) Only III
(d) All of the above

2. In the capital market, the term arbitrage is used with reference to?
(a) Purchase of securities to cover the sale 
(b) Sale of securities to reduce the loss on purchase 
(c) Simultaneous purchase and sale of securities to make profits from price
(d) All of the above 

3. Federal Reserves is the Central Bank of?
(a) Britain 
(b) USA
(c) Japan 
(d) Canada 

4. The Reserve Bank of India (RBI) keeps on modifying various rates/ratios to keep the flow of liquidity in the market in balanced situation. Which of the following rates/ratios/indexes is NOT directly controlled by the RBI?
(a) Cash Reserve Ratio (CRR)
(b) Repo Rate (RR)
(c) Reserve Repo Rate (RRR)
(d) Wholesale Price Index (WPI)

5. Many Banks have adopted/launched “Core Banking Solution (CBS)”. Core Banking Solution is..........?
(a) A marketing strategy adopted by the Banks 
(b) A new type of ATM useful for rural population 
(c) A delivery channel for quick and fast delivery
(d) A new product launched to help senior citizens only as they are not able to visit branches/ATMs frequently

6. Which of the following cannot be called as a value Added service offered by a Bank?
(a) Special accounts for poor sections of the society 
(b) Accident insurance cover 
(c) Instant Credits of Outstation Cheques
(d) Free cheques book

7. Opening the Savings Bank Account of a minor girl/boy will be called as which of the following in Banking terminology?
(a) Retail Banking
(b) Merchant Banking 
(c) Institutional Banking 
(d) Social Banking 

8. Which of the following is NOT a measure of the Risk Management in Banks?
(a) CRR
(b) RTGS
(c) SLR
(d) Deposit Insurance

9. As per the newspaper reports the RBI is planning to introduce “Plastic Currency Notes’. What is/are the benefits of ‘Plastic Notes’?
I. Their Shelf life will be longer.
II. It will replace plastic money or credit, debit cards which are giving birth to many fraudulent practices.
III. Printing will be cheaper.
(a) Only III
(b) Only II
(c) Only I
(d) All of the above 

10. ‘Sub Prime Lending’ is a term applied to the loans made to?
(a) Those borrowers who do not have a good credit history
(b) Those who wish to take loan against the mortgage of tangible assets 
(c) Those who have a good credit history and are known to bank since 10 years 
(d) None of the above