Banking Awareness for IBPS Clerk Mains 2016

Q1. As per the reports published in various journals and newspapers the ‘small borrowers’ in rural areas still prefer to take informal route for their credit needs. Which of the following is the ‘informal route’ of credit in financial sector?
(a) Credit cards 
(b) Loan against gold from financial institute 
(c) Debit cards 
(d) Money lender
(e) None of the above

Q2. What is meant by ‘Underwriting’ the term frequently used in financial sector?
(a) Under valuation of the assets 
(b) The Act of taking on a risk
(c) Giving a Guarantee that a loan will not become a bad loan 
(d) All of the above 
(e) None of the above

Q3. As we have noticed many banks of Indian origin are opening offices/branches in foreign countries. Why is this trend emerging at a very fast pace?
I. These Banks wish to provide banking facilities to foreigners as banking facilities are not plenty in many foreign countries. India wants to take an advantage of the situation.
II.These banks wish to help Indian firms to acquire funds at internationally competitive rates. 
III. These banks wish to promote trade and investment between India and other countries.
(a) Only I
(b) Only II
(c) Only III
(d) Only II and III
(e) None of the above

Q4. Many economists, bankers and researchers in India often advocate that banks should equip themselves for new challenges. These challenges are in which of the following shapes/forms?
I. As India economy is getting increasingly integrated with the rest of the world the demand of the Corporate banking is likely to change in terms of size, composition of services and also the quality.
II. The growing foreign trade in India will have to be financed by the local banks.
III. Foreigners are habitual of the comforts provided by the technology. India has to do a lot in this reference.
(a) Only I is correct
(b) Only II is correct 
(c) Only III is correct 
(d) All of the above 
(e) None of the above

Q5. Which of the following is not a banking/finance related term?
(a) Credit warp 
(b) EMI
(c) Held to Maturity 
(d) Diffusion
(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. RBI recently proposed a new post in the rank of Deputy Governor (along with the 4 Deputy Governors). Which one is that post? 
(a) Chief Executive Officer (CEO) 
(b) Chief Operating Officer (COO)
(c) Chief Finance Officer (CFO) 
(d) CEO and Managing Director (CMD)
(e) None of the above 

Q12. Which one of the following rates is not decided by RBI? 
(a) Repo rate 
(b) Base rate
(c) Bank rate 
(d) Marginal Standing Facility (MSF) rate
(e) None of the above 

Q13. Which of the following bank is generally not considered as Commercial bank? 
(a) Public Sector Bank 
(b) Private Sector Bank 
(c) Development Bank
(d) Foreign Bank 
(e) None of the above

Q14. Which of the followings are Development Banks of India? 
(a) Industrial Finance Corporation of India (IFCI) 
(b) State Finance Corporations (SFCs) 
(c) Small Industries Development Bank of India (SIDBI) 
(d) All of the above
(e) None of the above

Q15. Which bank are Public Sector Banks of India? 
(a) More than 50 % stake held by government 
(b) 50 % stake held by government 
(c) Less than 50 % stake held by government 
(d) All of the above
(e) None of the above

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