Banking Awareness for IBPS RRBs PO 2016


Q1. A rise in the reserve ratio of banks ______?
(a) Will lead to an increase in the money supply
(b) Will lead to a proportionate increase in the money supply
(c) Will lead to a decrease in the money supply
(d) Will have no impact on money supply 
(e) None of the above

Q2. In the case of FCNR accounts the payment of interest is effected in ______?
(a) Indian Rupee
(b) Only in Pound (£) 
(c) Same currency in which deposit stands 
(d) Yen
(e) None of the above

Q3. Banks are required to maintain SLR under ____?
(a) Section 24 of the Banking Regulation Act
(b) Section 49 of the Banking Regulation Act
(c) Section 24 of RBI Act
(d) All of the above
(e) None of the above

Q4. CRR is required to maintain in the form of _____?
(a) Approved Government Securities
(b) Cash with RBI
(c) Cash with bank
(d) All of the the above
(e) None of the above

Q5. In which of the Acts, specimen of the cheque, bill, promissory note is given?
(a) Negotiable Instruments Act
(b) Banking Regulation Act
(c) Mercantile Law
(d) All of the above
(e) None of the above 

Q6. Which of the following negotiable instruments can be crossed to the banks?
(a) Cheques
(b) Drafts 
(c) Bills of Exchange
(d) All of the above 
(e) None of the above

Q7. Which of the following can be issued payable to bearer?
(a) Cheque
(b) Draft 
(c) Bill of Exchange
(d) Demand Promissory Notes
(e) None of the above

Q8. Crossing denotes _____?
(a) Cheque cannot be transferred by the payee.
(b) A direction to the paying bank to pay the Cheque through a bank.
(c) Cheque will be paid through clearing only.
(d) Not payable across the counter but will be credited to the account of the holder
(e) None of the above

Q9. FCNR accounts can be opened and maintained as _____?
(a) Current Accounts
(b) Saving Banks Accounts 
(c) Term Deposit Accounts
(d) Recurring Deposits 
(e) None of the above

Q10. Various banks in the country have installed machines which disburse money to general public. These machines are called ____?
(a) Coin Dispensing machine 
(b) ATM 
(c) Debit card machine 
(d) Ledger machines 
(e) None of the above

Q11. Which of the following is the Statutory Liquidity ratio (SLR), at present?
(a) 10%
(b) 21.5%
(c) 20.75%
(d) 24%
(e) 33%

Q12. RBI’s open market operation transactions are carried out with a view to regulate _____?
(a) Liquidity in the economy 
(b) Prices of essential commodities 
(c) Inflation 
(d) Borrowing powers of the Bank
(e) All of the above

Q13. Under Open market operations, one of the measures taken by the RBI in order to control credit expansion in the economy, does ____?
(a) Sale and purchase of Govt. securities
(b) Issuance of different type of Bond
(c) Auction of Bond 
(d) To make available direct finance to Borrowers 
(e) None of the above

Q14. Bank rate means _____?
(a) Rate of interest charged by commercial Banks from borrowers 
(b) Rate of interest at which commercial banks discounted bills of their borrowers
(c) Rate of interest allowed by commercial Banks from on their depositors
(d) Rate at which RBI purchases or re-discounts Bills of Exchange of commercial Banks
(e) None of the above

Q15. What is an Indian Depository Receipt (IDR)?
(a) A deposit account with a Public sector Bank
(b) A deposit account with any of the Depositories in 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 an Indian Depository
(e) None of the Above

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