Banking and Financial Awareness for IBPS/BOM Exams

Q1. Refinance facility is provided by NABARD. Which institutions can avail this facility?
(a) State cooperative banks
(b) Regional rural banks
(c) Commercial bank
(d) All of the above
(e) None of the above

Q2. Kisan Credit Cards are an effective way of reaching out to the farmers by the banks. What assistance does the farmer receive in this way?
(a) Credit facility for crops etc against an approved limit
(b) Short-term credit facility against value of his crops
(c) Long-term credit is provided against his land holdings
(d) Loan is permissible against crops sold, but payment yet to be received by the farmer
(e) None of the above

Q3. Which of the following is true?
(a) NBFCs can accept deposits from the public
(b) NBFCs cannot offer deposit schemes to the public
(c) Deposits of NBFCs are insured with DICGC
(d) NBFCs can accept deposits from public if they are registered and permitted by RBI
(e) None of the above

Q4. Base rate is the rate below which no bank can allow their lending to anyone. Who sets-up this ‘Base rate’ for banks?
(a) Individual Banks’ Board
(b) Ministry of Commerce
(c) Ministry of Finance
(d) RBI
(e) Interest Rate Commission of India

Q5. The financial assistance of loans of Rs.10000 by bank to a small borrower will be called..........?
(a) business finance
(b) government finance
(c) micro finance
(d) small finance
(e) KYC finance

Q6. The Securitisation And Reconstruc-tion of Financial Assets and Enforce-ment of Security Interests Act (SARFAESI Act) at present is not applicable to?
(a) public sector banks
(b) financial institutes of the government
(c) private banks
(d) non-banking financial companies
(e) small and co-operative banks

Q7. Which of the following is introduced by banks to increase financial inclusion?
(a) Stimulus package
(b) Internet banking
(c) Business correspondent
(d) Corporate banking
(e) None of the above

Q8. The lead bank scheme for public sector banks does not cover........?
(a) metropolitan cities
(b) all states and union territories
(c) backward distance
(d) rural areas only
(e) None of the above

Q9. RBI has sold its entire stake except 1% in which of the following organisations?
(d) National Housing Bank
(e) None of the above

Q10. Which programme was instituted to help the farmers across timely and adequently credit?
(a) Kissan Credit Card Yojna
(c) RSBY
(d) Aam Admi Bima Yojna
(e) All of the above

Q11. As per the newspaper reports, some economically developed states only hold about 60% of the total 'Demat Accounts' in India. A demant Account is .................?
(a) an account which is opened by the people of the lower income groups of society
(b) an account in which trading of the shares is done
(c) an account which can be opened only by minors
(d) an account which can be operated by big corporate houses and are mainly business accounts like current acounts.
(e) None of the above

Q12. Many a time we read a term 'SEPA' in financial newspapers. What is the full form of SEPA? 
(a) Single Exchange Processing Agency
(b) Single Euro Payments Area
(c) Single Electronic Processing Agency
(d) Super Electronic Purchase Agency
(e) None of the above

Q13. What is an Indian Depository Receipt?
(a) A deposit account with a public Sector Bank
(b) A depository account with any of the Depositories India
(c) An instrument in the form of depository receipt created by an Indian depository against underlying equity share of the issuing company
(d) An instrument in the form of deposit receipt issued by Indian depositories
(e) None of the above

Q14. Which of the following is an investment advisory discipline?
(a) Corporate Industrial Finance
(b) Offshare Banking
(c) Wholesale Banking
(d) Wealth Management
(e) Trade Finance

Q15. Drawing, accepting, making or issuing of any promissory note, hundi or bill of exchange expressed to be payable to bearer on demand by a person other than the Reserve Bank of India or the Central Government is prohibited under........?
(a) Banking Regulation Act, 1949
(b) Section 31 (1) of the Reserve Bank of India Act, 1934
(c) Negotiable Instruments Act, 1881
(d) Indian Contract Act, 1872
(e) None of the above


S1. Ans.(c)
S2. Ans.(c)
S3. Ans.(b)
S4. Ans.(c)
S5. Ans.(e)
S6. Ans.(e)
S7. Ans.(c)
S8. Ans.(c)
S9. Ans.(e)
S10. Ans.(a)
S11. Ans.(d)
S12. Ans.(e)
S13. Ans.(d)
S14. Ans.(e)
S15. Ans.(a)