Banking Awareness for IBPS PO 2016


Q1. Which of the following acts helps a bank in its day-to-day activities?
(a) Competition Act
(b) Negotiable Instruments Act
(c) Hindu Marriage Act
(d) Hindu Succession Act
(e) NRI Act

Q2. Which of the following is a primary function of banks?
(a) Collection and payment of cheques, rent, interest etc on behalf of their customers
(b) Buying, selling and keeping in safe custody, the securities on behalf of their customers
(c) Acting as trustee and executors of the property of their customers on their advice
(d) Remitting money from one place to the other through bank drafts or mail or telegraphic transfers
(e) Accepting deposits

Q3. The banker is under an obligation to take utmost care in keeping secrecy of the details of the customer. However, the obligation of secrecy is not considered essential when
(a) a banker is required to give evidence in the court
(b) there is national emergency and disclosure is essential in the public interest
(c) there are clear proofs of reason to the state and when consent is given by the customer to provide information for the     preparation of balance sheet
(d) All of the above
(e) None of the above

Q4. Transfer of any instrument to another person by signing on its back or face or on a slip of paper attached to it is known as........?
(a) promissory note
(b) bill of lading
(c) bill of exchange
(d) endorsement
(e) None of the above

Q5. Which of the following statements is correct about promissory note?
(a) It need not be in writing
(b) An implied promise is enough to constitute a valid promissory note
(c) The promise to pay must be definite and unconditional
(d) The name of the payee need not be mentioned
(e) The payment can be in kind

Q6. What is meant by a scheduled bank?
(a) The bank functioning under provisions of Banking Reg. Act 1949
(b) A bank included in 2nd schedule of RBI Act, 1934 
(c) The bank incorporated under Banking Companies Act 1956
(d) A bank authorised for banking functions 
(e) bank issued a license by RBI mentioning therein that it is a scheduled bank 

Q7. On the basis of powers drawn mainly in which of the following Acts, RBI regulates and controls the banks in India?
(a) Banking Regulation Act and RBI Act
(b) RBI Act and Companies Act 
(c) Banking Regulation Act and Companies Act 
(d) Banking Regulation Act, RBI Act and Negotiable Instruments Act 
(e) None of the above

Q8. Banking has been defined under ________ of.
(a) Banking Regulation Act Section 5(b) 
(b) Banking Regulation Act Section 17
(c) RBI Act Section 2 (2)
(d) Negotiable Instruments Act Section 1 
(e) None of the above

Q9. Who among the following is only a holder and not a ‘holder’ in due course?
(a) Holder of a bearer cheque
(b) Holder of a crossed order cheque
(c) Holder of a Non-negotiable crossed cheque
(d) All of the above 
(e) None of the above

Q10. Where is the time for payment is not mentioned in a promissory note it is?
(a) invalid instrument 
(b) inchoate instrument 
(c) no payment can be demanded 
(d) payable on demand 
(e) None of the above

Q11. Which of the following apex body and regulators has asked banks to swap customer related information so that the frauds and defaults may be prevented in future?
(a) Bombay Stock Exchange (BSE)
(b) Indian Bank’s Association (IBA)
(c) Securities & Exchange Board of India (SEBI)
(d) Reserve Bank of India (RBI)
(e) None of the above 

Q12. Who amongst the following is the author of the book (released recently) “India and Global Financial Crisis : Managing Money and finance”? 
(a) Dr. Bimal Jalan
(b) Dr. C. Rangarajan
(c) Dr. Manmohan Singh 
(d) Dr. Y. V. Reddy
(e) None of the above 

Q13. The Reserve Bank of India does not print currency notes of the denomination of Rs. …………….
(a) 20/-
(b) 50/-
(c) 3,000/-
(d) 1,000/-
(e) None of the above 

Q14. Which of the following is considered as the financial capital of India?
(a) New Delhi
(b) Kolkata 
(c) Ahmedabad 
(d) Mumbai
(e) None of the above 

Q15. “Micro Credit” means?
I. Loan of very small amount 
II. Loans to Corporate Sector
III.Loans amounting Rs 50 lakhs to Rs 5 crores to Medium and small Industries Units 
(a) Only (I)
(b) Only (II)
(c) Only (I) and (II)
(d) All of the above 
(e) None of the above