Banking and Financial Awareness for IBPS/BOM Exams

Q1. As per the newspaper reports, some economically developed states only hold about 60% of the total 'Demat Accounts' in India. A demat 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 accounts.
(e) None of the above

Q2. 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

Q3. 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 shares of the issuing company
(d) An instrument in the form of deposit receipt issued by Indian depositories
(e) None of the above

Q4. 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

Q5. 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

Q6. The major shareholders in Asset Reconstruction Company of India Limited (ARCIL) other than SBI are? 
(a) IDBI &Canara Bank
(e) None of the above

Q7. The minimum and maximum court fee that is required to be paid for filing a suit in a Debt Recovery Tribunal is?
(a) Rs. 5,000; Rs. 1,00,000
(b) Rs. 10,000; Rs. 1,00,000
(c) Rs. 12,000; Rs. 1,50,000
(d) All of the above
(e) None of the above

Q8. The practice of reducing NPAs through cross-lending to square off loans from bank is known as? 
(a) “Ever-Greening” of advances 
(b) “Take Over” of advances 
(c) Compromise Settlement 
(d) All of the above
(e) None of the above

Q9. The risks involved in paying a post-dated cheque are? 
(a) the drawer may issue other cheques which bear a date prior to the date of such a cheque and if the balance is insufficient, the bank may be held liable
(b) an Attachment Order may be received attaching the balance in the account
(c) the drawer may stop payment  
(d) All of the above
(e) None of the above

Q10. The single largest component of external debt is? 
(a) Commercial borrowings
(b) Multilateral debt 
(c) Short term debt
(d) NRI deposits 
(e) None of the above

Q11. Which of the following is NOT the part of the structure of the financial System in India?
(a) Industrial Finance 
(b) Agricultural Finance 
(c) Government Finance 
(d) Personal Finance
(e) None of the above

Q12. Grameen Bank and Micro Credit are associated with which person?
(a) Manmohan Singh 
(b) Bill Gates 
(c) Md. Yunus
(d) Aung San Su Ki 
(e) None of the above

Q13. As we all know Govt. of India collects tax revenue on various activities in the country. Which of the following is a part of the tax revenue of the Govt.?
I. Tax on Income 
II. Tax on Expenditure 
III. Tax on property of Capital Asset 
IV. Tax on Goods and Services 
(a) Both I and III only 
(b) Both II and IV only 
(c) All of the above
(d) Either I or II
(e) None of the above 

Q14. We very frequently read about Special Economic Zones (SEZs) in newspapers. These SEZs were established with which of the following objectives?
I. To attract foreign investment directly 
II. To protect domestic market from direct competition from multinationals 
III. To provide more capital to agriculture and allied activities 
(a) Only I
(b) Only II
(c) Only III
(d) All of the above 
(e) None of the above

Q15. Many times we read about Future Trading in newspapers. What is Future Trading?
I. It is nothing but a trade between any two stock exchanges where in it is decided to purchase the stocks of each other on a fixed price throughout the year 
II. It is an agreement between two parties to buy and sell an underlying asset in the future at a predetermined price 
III. It is agreement between Stock Exchanges that they will not trade the stocks of each other under any circumstances in future or for a given period of time 
(a) Only I
(b) Only II
(c) Only III
(d) All of the above
(e) None of the above

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