Banking and Financial Awareness for RBI/IBPS Exams

Q1. The DICGC operates the Credit Guarantee Scheme for small scale industries on behalf of the?
(a) LIC
(b) IBA
(c) Union Government 
(d) None of the above
 Q2. Working capital means?
(a) Cash-in hand and at bank
(b) Current assets 
(c) Current liabilities and provisions 
(d) Current assets minus current liabilities

Q3. “Window dressing” means?
(a) The modern way of decorating a branch office 
(b) A decorative way of presenting the Balance Sheet and Profit and Loss Account of a bank at its annual general meeting
(c) Manipulation of accounts with a view not to give the share holders a true and fair view 
(d) Is a strategy used by mutual fund and portfolio managers near the year or quarter end to improve the appearance of the portfolio/fund performance before presenting it to clients or shareholders

Q4. The term-“co-obligant” means?
(a) A person who has guaranteed the account of another person(s)
(b) A person who has executed an indemnity bond in a bank’s favour
(c) A person who has assumed obligations of contract jointly with other person(s)
(d) A person/business undertaking opening a documentary letter of credit

Q5. The term “dormant accounts” means?
(a) Accounts showing an average balance of less than Rs. 100 during a half year 
(b) Accounts which remains inoperative for an extended period of time
(c) Accounts which have been blocked under the exchange control regulations 
(d) Loan/cash credit/overdraft accounts which are considered irrecoverable

Q6. When was the currency system in India converted  into decimal system?
(a) From 1st April, 1957 
(b) From 1st April, 1959 
(c) From 1st April, 1961 
(d) From 1st April, 1963 

Q7. Statutory cash reserve ratio for scheduled banks is regulated by Reserve Bank of India under powers conferred upon it by?
(a) Reserve Bank of India Act, 1934 
(b) Banking Regulation Act, 1949
(c) Companies Act, 1956 
(d) Union Ministry of Finance 

Q8. Net Interest Income means? 
a) Interest generated from bank's assets less interest paid on liabilities 
b) Interest earned on advances 
c) Miscellaneous Income 
d) None of the above

Q9. Kisan Credit Card can be used for financing?
(a) Production needs 
(b) Consumption needs 
(c) Both (a) and (b)
(d) None of the above

Q10. __________ is offered to individuals who wish to purchase or construct a house. 
(a) Project Finance 
(b) Business Loan
(c) Credit Loan
(d) Home loan