Banking and Financial Awareness for BOB/IBPS Exams

Q1. Which of the following is the abbreviated name of the new Act which deals with money laundering?
(a) AILTA 
(c) TERLS 
(d) SALT
(e) PMLA

Q2. Which of the following is NOT a function of a bank? 
(a) Providing project finance
(b) Selling Mutual Funds
(c) Deciding policy rates like CRR, Repo Rate/SLR etc
(d) Settlement of payments of behalf of the customers
(e) All of these are functions of a bank
Q3. Which of the following terms is NOT used in the Banking/Financial world?
(a) Holding Company
(b) Postdated cheque
(c) Credit
(d) Time deposit
(e) Centripetal force
Q4. Whenever some people wish to enter into the business world, it is a must for them to approach a bank. What services do banks provide them in this regard?
(1) Banks act as payment agents by operating current accounts, paying cheques and receiving payments for them.
(2) Maintaining account books for them for their day-to-day activities so that they are not required to appoint account/
finance personnel on a regular basis
(3) Lending money by way of overdraft, installment loan, credit or advance for business activities
(a) Only (1) 
(b) Only (2)
(c) Only (3) 
(d) Only (1) & (3)
(e) All of the above
Q5. A bank normally does not have to deal with an issue related to……….?
(a) payments and settlement systems
(b) contractual rights of creditors
(c) intellectual property rights
(d) cases of insolvency
(e) coordination between regulators active in banking / financial sectors
Q6. As we all know, banks publish their quarterly performance to bring transparency in the system and also to give a clear picture of their performance to the public. How were results of Quarter 2 different from the results of Quarter 1 of the listed banks including giants like SBI & ICICI banks?
(1) Performance was subdued in Quarter 2.
(2) Yields on advances of almost all listed banks have come down.
(3) Advances grew at a slower pace when compared to deposits.
(a) Only (1) is true
(b) Only (2) is true
(c) Only (3) is true
(d) All (1), (2) & (3) are true
(e) None of the above
Q7. One of the major challenges banking industry is facing these days is deliberate efforts of some people to bring moneyearned through illegal activities in circulation. Which of the following acts has been passed to prevent this activity?
(a) Payment & Settlements Act
(b) Banking Regulation Act
(c) Negotiable Instruments Act
(d) Narcotics and Psychotropic Substance Act
(e) Prevention of Money Laundering Act
Q8. When a bank returns a cheque unpaid, it is called?
(a) payment of the cheque
(b) drawing of the cheque
(c) cancelling of the cheque
(d) dishonor of the cheque
(e) taking of the cheque
Q9. A bank’s ‘fixed deposit’ is also referred to as a…………? 
(a) term deposit
(b) savings bank deposit
(c) current deposit
(d) demand deposit
(e) home savings deposit
Q10. Banking Ombudsman Scheme is applicable to the business of __________ . 
(a) All scheduled commercial banks excluding RRBs
(b) All scheduled commercial banks including RRBs
(c) Only Public Sector Banks
(d) All Banking Companies
(e) All scheduled banks except private banks
Q11. In India, the computerization program of banks are regulated and monitored by?
(a) SBI
(b) RBI
(c) ET and T
(d) Intell UNIV
(e) None of the above
Q12. The …… Committee on computerization in year 1984 recommended introduction of mechanization at branch, RO/ZO and HO levels?
(a) Rangarajan
(b) Shere
(c) Saraf
(d) Narasimham
(e) None of the above
Q13. Net Interest Income means? 
(a) Interest generated from bank’s assets less interest paid on liabilities 
(b) Interest earned on advances 
(c) Miscellaneous Income 
(d) All of the above
(e) None of the above
Q14. PannirSelvam Committee Report relates to?
(a) Customer service 
(b) Exposure Norms 
(c) Frauds 
(d) NPAs
(e) None of the above
Q15. Saraf Committee on Technology issues recommended?
(a) Remittance Facilities to Banks Customers 
(b) Reporting of SGL Transactions in Government Securities 
(c) Reporting of Currency Chest Operations & Government Transactions 
(d) All of the above
(e) None of the above