Banking and Financial Awareness for NABARD/SBI/IBPS

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. Which of the following is the most important contributing factor affecting the profitability of banks?
Deteriorating productivity
Heavy establishment expenses
Huge "dead credit" in sick industries and the mounting losses on rural branches
Heavy losses on investment port-folio

3. For the developing countries of Asia, the international agency which provides soft loans is?
International Monetary Fund
Asian Development Bank
International Development Association
World Bank

4. No licence from RBI is required for?
opening a new bank branch in India
opening a new bank branch outside India
shifting an existing branch outside the city, village or town
shifting an existing branch within the same city, village or town

5. In NRE account, rate of interest is linked to?

6. In the Money market operations, the item widely accepted is?
Inter Bank Participation Certificates
Certificate of Deposits
Treasury Bills
None of the above

7. To meet a significant increase in demand for bank credit, a bank may?
make use of excess reserves
borrow from other banks
borrow from the Reserve Bank of India
All of the above

8. The "bank rate" is?
free to fluctuate according to the forces of demand and supply
set by the Reserve Bank of India
set by the Reserve Bank of India as directed by the Union Ministry of Finance
set by the Reserve Bank of India as directed by the Indian Banks' Association

9. Pledge means?
advance against goods
open working capital limits
bailment of goods as security for payment of a debt or performance of a promise
none of the above

10. What are the RBI guidelines for the development of Interest Rate Swaps (IRS)?
Banks can use IRS for hedging and Trading both
MIFOR is a benchmark for IRS
Under ISDA agreement Banks can opt for dual jurisdiction i.e., Indian as well as common law
All of the above


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