Banking and Financial Awareness for IBPS/BOM Exams

Q1. External Commercial Borrowings (ECBs) form part of?
(a) Current Account
(b) Capital Account
(c) Either (a) or (b)
(d) Balance of Payments
(e) None of the above

Q2. FEMA provides that a person becomes a resident if he stays in India for ________ or more in the previous year.
(a) 180 days
(b) 181 days
(c) 182 days
(d) 183 days
(e) None of the above

Q3. Generally, the lead bank in a district is the bank which is?
(a) having government business
(b) having the largest deposits in the district
(c) identified to coordinate implementation of the District Credit Plan
(d) All of the above
(e) None of the above

Q4. Government policy to raise income by additional taxes and allocation of expenditure is called?
(a) Expenditure policy 
(b) Monetary policy
(c) Income policy
(d) Fiscal policy
(e) None of the above

Q5. Head Office of the Asian Development Bank located in?
(a) Jakarta, Indonesia
(b) Manila, Philippines
(c) Nairobi, Kenya
(d) Tokyo, Japan
(e) None of the above

Q6. If a bank is unable to refund the short term deposits as funds are locked in long term loans, it involves?
(a) Interest Rate Risk
(b) Operational Risk
(c) Liquidity Risk
(d) Market Risk
(e) None of the above 

Q7. If a cheque presented through the Clearing House is returned unpaid for any reason, the banker has to enclose the cheque to a Returning Memo while returning the instrument to the customer. This provision has been prescribed under...?
(a) Negotiable Instruments Act, 1881
(b) Reserve Bank of India Act, 1934
(c) Banking Regulation Act, 1949
(d) RBI Clearing House Rules
(e) None of the above 

Q8. If a currency note is demonetized, it takes away the ________ of that currency.
(a) legal tender character
(b) exchange rate
(c) value
(d) All of the above
(e) None of the above 

Q9. If credit facility applied for is rejected, the reasons therefore should be briefly mentioned in the-
(a) Loan Applications Received and Disposal Register
(b) Opinion Reports
(c) Loan Rejection Register
(d) All of the above
(e) None of the above

Q10. In case of Term Loans, the period of limitation is calculated as three years from?
(a) Date of documents
(b) Date of sanction
(c) Date of default
(d) Due date of each installment
(e) None of the above

Q11. Mutual Funds are required to be registered with-
(a) AMFI
(b) SEBI
(c) IBA
(d) RBI
(e) None of the above

Q12. In respect of “Door Step Banking”, RBI has issued directives under the provisions of?
(a) Reserve Bank of India Act, 1934
(b) Negotiable Instruments Act, 1881
(c) Banking Regulation Act, 1949
(d) Shops and Establishments Act
(e) None of the above

Q13. ISO 14000 deals with quality standard for?
(a) Environmental Management
(b) Technology Management
(c) Knowledge Management
(d) Information Management
(e) None of the above 

Q14. Legal heirs of a deceased customer approaches the bank with a copy of the Will left by the decreased and request for payment of the deposit standing in the name of the decreased depositor. Bank should-
(a) obtain a probated Will and pay the amount to the legal heir
(b) obtain the Will and pay the amount to the legal heir
(c) both (a) and (b)
(d) Either (a) or (b)
(e) None of the above 

Q15. Loans against Shares/Debentures can be sanctioned against the security of?
(a) Preference Share and Covertible debentures
(b) fully paid Equity Shares and debentures in demat form
(c) all shares and debentures in physical form
(d) only Preference Share and partly paid debentures
(e) None of the above

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