Banking Awareness Questions for IBPS RRB PO and Clerk | 24th August 2018

Dear Aspirants,

Banking Awareness Questions for IBPS RRB PO and Clerk | 20th August 2018
Banking Awareness for IBPS RRB PO and Clerk  Exam 2018

With the increased competition in the field of banking examinations, it has now become very important to cover up all the sections efficiently. One subject that can help you bagging graceful marks in the minimum time in these examinations is Banking Awareness. Banking Awareness Quiz not only helps you deal with the General Awareness Section of Banking Exams but also, the Personal Interview round of Banking Recruitment.


Q1. Savings account with zero balance can be opened for?
Persons of high net worth
Employees of IT companies
financial Weaker sections of society
Companies
None of the given options is true
Solution:
Savings account with zero balance can be opened for financial Weaker sections of society.

Q2. RBI stipulates a healthy mix of CASA in the business figures of banks. What does it denote?
Customer Analysis and Savings Pattern
Cost Appreciation and Selling Analysis
Current Account and Savings Account
Credit and Savings Aggregate
None of the given options is true
Solution:
CASA Stands for Current Account and Savings Account.

Q3. Banks are authorized to sell third party products. Which are these products?
Mutual funds
Term deposits
Credit cards
Demand Draft
None of the given options is true
Solution:
A mutual fund is an investment vehicle made up of a pool of moneys collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and other assets.

Q4. How does a bank establish the identity of a customer?
By getting introduction of an existing customer
By following KYC norms
By taking AADHAR card copy
All of the above
None of the given options is true
Solution:
Bank establish the identity of a customer by getting introduction of an existing customer, following KYC norms, taking AADHAR card copy.

Q5. How are minors encouraged to save money by banks?
By opening account in the name of minor
By allowing savings account to minors under guardianship
By allowing them to come to the bank for depositing money
By going to schools
None of the given options is true
Solution:
Minors encouraged to save money by banks, allowing savings account to minors under guardianship.

Q6. Which one of the following does not qualify as priority sector lending by commercial banks?
Software exports
Small business loans
Education loans
Small industries loan
Agriculture
Solution:
Software exports does not qualify as priority sector lending by commercial banks.

Q7. Bank loan against property requires the asset to be free from encumbrances. What does it mean?
The asset to be free from any liability
The asset to be properly registered
The property to be fully constructed
The asset should not have multiple owners
None of the given options is true
Solution:
Bank loan against property requires the asset to be free from encumbrances that means, The asset to be free from any liability.

Q8. Which of the following lending qualifies as a priority sector loan?
Loan for purchase of gold for marriage of daughter
Loan for consumer durables
Housing loan
Loan for purchase of tractor
None of the given options is true
Solution:
Agricultural term loans are sanctioned for purchase of new tractors. Loan for purchase of tractor qualifies as a priority sector loan.

Q9. Which of the following rates is decided by the market conditions and not by RBI?
Bank rate
SLR
CRR
Inflation rate
Repo Rate
Solution:
Inflation rate is decided by the market conditions and not by RBI.

Q10. Credit information companies are preparing credit reports on borrowers for sharing with banks to enable them to take proper credit decisions. What is the most important feature of this report about individual borrowers?
Personal credit score
List of banks from whom loans have been taken
The total amount of loans availed
The amount of outstanding loan
None of the given options is true
Solution:
It is generally advisable to have a credit/CIBIL score of 750 or above to qualify for a personal loan Your credit score is a three-digit number between 300 and 900 that gives potential lenders a quick idea of your credit health.

Q11. What do you understand from the statement ‘Cast credit account against hypothecation of stocks’?
Borrowing account for purchase of raw materials
Borrowing account for working capital against security of stocks
Working capital loan account against security of stocks in possession of the borrower
Borrowing account for working capital where the stocks of the borrower are in custody of the bank/lender
None of the given options is true
Solution:
Cast credit account against hypothecation of stocks is Working capital loan account against security of stocks in possession of the borrower.

Q12. Base rate of lending was introduced by RBI to substitute the prime lending rate mechanism for fixing of interest rate on bank loans and advances. What is the reason for this decision of RBI?
To exercise greater control of RBI over banks
In accordance with Damodaran Committee recommendations
To improve banks’ profitability
For effective transmission of monetary policy changes and greater transparency
None of the given options is true
Solution:
For effective transmission of monetary policy changes and greater transparency.

Q13. Reverse mortgage loans are meant to provide liquidity for the senior citizens. Which of the following is a proper description of this facility?
Banks make either monthly payments or a lump sum payment to the senior citizen
The senior citizen has to surrender the property after 15 years
The legal heirs cannot repay the loan amount in case of death of the senior citizen
All of the above
None of the given options is true
Solution:
Banks make either monthly payments or a lump sum payment to the senior citizen.

Q14. Debt restructuring is often mentioned when discussing about banks’ credit portfolio. What does it suggest?
The loan portfolio of banks is classified according to the amount of each loan
Irregular loan accounts are assisted to regularize with modification in terms and conditions of the loan sanction
Asset classification into performing and non performing accounts
Substandard loan accounts are given further loans
None of the given options is true
Solution:
Irregular loan accounts are assisted to regularize with modification in terms and conditions of the loan sanction.

Q15. Banks are not comfortable in lending to the infrastructure sector. What are the reasons for this?
Banks find it difficult to fund infrastructure projects of 15 years and more
Infrastructure projects require large scale funding
Infrastructure financing becomes a asset liability problem for banks
All of the above
None of the given options is true
Solution:
All of the above.

               


    

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