Wednesday, 27 July 2016

Banking and Financial Awareness for SBI / IBPS Exams

Q1. As per the reports published in various journals and newspapers the ‘small borrowers’ in rural areas still prefer to take informal route for their credit needs. Which of the following is the ‘informal route’ of credit in financial sector?
(a) Credit cards 
(b) Loan against gold from financial institute 
(c) Debit cards 
(d) Money lender

Q2. What is meant by ‘Underwriting’ the term frequently used in financial sector?
(a) Under valuation of the assets 
(b) The Act of taking on a risk
(c) Giving a Guarantee that a loan will not become a bad loan 
(d) None of the above 

Q3. As we have noticed many banks of Indian origin are opening offices/branches in foreign countries. Why is this trend emerging at a very fast pace?
I. These Banks wish to provide banking facilities to foreigners as banking facilities are not plenty in many foreign countries. India wants to take an advantage of the situation.
II.These banks wish to help Indian firms to acquire funds at internationally competitive rates. 
III. These banks wish to promote trade and investment between India and other countries.
(a) Only I
(b) Only II
(c) Only III
(d) Only II and III

Q4. Many economists, bankers and researchers in India often advocate that banks should equip themselves for new challenges. These challenges are in which of the following shapes/forms?
I. As India economy is getting increasingly integrated with the rest of the world the demand of the Corporate banking is likely to change in terms of size, composition of services and also the quality.
II. The growing foreign trade in India will have to be financed by the local banks.
III. Foreigners are habitual of the comforts provided by the technology. India has to do a lot in this reference.
(a) Only I is correct
(b) Only II is correct 
(c) Only III is correct 
(d) All of the above 

Q5. Which of the following is not a banking/finance related term?
(a) Credit warp 
(b) EMI
(c) Held to Maturity 
(d) Diffusion

Q6. 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

Q7. 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 

Q8. Which of the following is NOT a measure of the Risk Management in Banks?
(a) CRR
(b) RTGS
(c) SLR
(d) Deposit Insurance

Q9. 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 

Q10. ‘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 

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