Banking and Financial Awareness for SBI / IBPS Exams

1. Liquid assets means?
Cash only
Cash and Debtors
Cash and Debtors (except bad debts)
Cash and Debtors (except bad debts) and Marketable Securities

2. Many a time we read about Rural Indebtedness in various newspapers/magazines. What are the main causes of the rural indebtedness? 
II.Inability to repay the loans 
III.Zamindari System which prevents farmers to own the land
Only I
Only II
Both I and II
All of the above

3. The process of the total valuation of the financial capital assets of a country is technically known as?
Market Capitalization
Gross Domestic Product
Net wealth of the country
Gross Domestic Resources

4. Which of the following is NOT the part of the organized sector in Indian Money Market?
Mutual Funds
Non-Banking Financial Companies
Unit Trust of India
Chit funds

5. The term “dormant accounts” means?
Accounts showing an average balance of less than Rs. 100 during a half year
Accounts which remains inoperative for an extended period of time
Accounts which have been blocked under the exchange control regulations
Loan/cash credit/overdraft accounts which are considered irrecoverable

6. The formal institutional credit delivery system in rural India comprises of which of the following? 
I. Co-operative Banks 
II. Commercial Banks 
III. Regional Rural Banks 
IV. Self Help Groups
Only I and II
Only III and IV
Only I, II and IV
All of the above

7. The Reserve Bank of India has recently issued guidelines to banks on Pillar 2 of Basel II framework. Pillar 2 deals with which of the following?
I. New Capital Adequacy Framework 
II. HR Management 
III. Better profitability with minimum number of employees
Only I
Only II
Only III
None of the above

8. Which of the following is NOT a department of the Ministry of Finance, government of India?
Department of Economic Affairs
Department of Expenditure
Department of Revenue
Department of External Affairs

9. Which of the following is the example of product diversification of Bank?
Credit Card
International Credit Card
Debit Card
All of the above

10. Which of the following is/are different categories of inflation? 
I. Wage Push 
II. Cost push 
III. Demand pull
Only I
Both I and II
Both II and III
All of the above