Banking and Financial Awareness for RBI/IBPS Exams

Q1. Which of the following efforts fall under Financial Inclusion Plan (FIP) of RBI / government? 

(a) Nationalization of banks 

(b) Priority Sector Lending (PSL) targets 

(c) Zero balance accounts, like BSBDA, Jan-Dhan Account, Small Account, etc. 

(d) All of the above

(e) None of the above

Q2. Which of the following is not true regarding Financial Inclusion Plan? 

(a) Relaxed and simplified KYC norms for account opening 

(b) Mandatory branches in unbanked villages 

(c) BSBDA Accounts with minimum balance criteria

(d) Micro branches to be opened in rural area, that can be operated by Business Correspondents 

(e) None of the above

Q3. According to the new proposal on PSL, what sub-target is to be created for Micro Enterprises in India by March 2017? 

(a) 7 % 

(b) 7.5 %

(c) 8 % 

(d) 8.5 % 

(e) None of the above

Q4. Financial Inclusion means provision of – 

(a) Financial services namely, payments, remittances, savings, loans and insurance at  affordable cost to persons not yet  given the same

(b) ration at affordable cost to persons not yet given the same 

(c) house at affordable cost to persons not yet given the same 

(d) education at affordable costs to persons not yet given the same 

(e) None of the above

Q5. What is the full form of ‘FINO’ – a term we see frequently in financial newspapers? 

(a) Financial Investment Network and Operations 

(b) Financial Inclusion Network and Operations

(c) Farmers’ Investment in National Organization 

(d) Farmers’ Inclusion News and Operations

(e) None of the above 

Q6. Who is a Banking / Business Correspondent Agent (BCA)? 

(a) An authorized representative of a bank, who offer banking services where the bank doesn’t have a branch

(b) Any person who provides banking services in rural area 

(c) An authorized representative of a bank, who makes profit for banks, by making business 

(d) All of the above 

(e) None of the above

Q7. Which of the following is true regarding SHG? 

(a) A small voluntary group of poor people, generally from the same economic background, that promotes small savings among the members and make a common fund to help themselves 

(b) Government / RBI has introduced several SHG – bank linkage program for Financial Inclusion 

(c) Full form of SHG is Self Help Group 

(d) All of the above 

(e) None of the above

Q8. Suppose, two or more people have taken a loan. If one of them is unable to pay, then other members are fully liable to pay the whole amount of loan. This refers to – 

(a) Joint Liability

(b) Several Liability 

(c) Both (a) and (b) 

(d) Several Assets  

(e) None of the above 

Q9. PAN card is mandatory for – 

(a) Income Tax returns 

(b) Tax Deduction at Source (TDS) 

(c) bank deposits above Rs. 50,000 

(d) All of the above

(e) None of the above  

Q10. What is the full form of KYC? 

(a) Know Your Company 

(b) Know Your Customer

(c) Know Your Custodian 

(d) Know Your Current-Account

(e) None of the above   

Q11. Under the Corporate Debt Restructuring (CDR) mechanism, loan assets of banks have been categorized. Which one of the following statements is not correct? 

(a) Assets belonging to Standard and Sub-Standard category come under category I

(b) Assets belonging to Doubtful category come under category II

(c) Assets belonging to Doubtful and Loss categories come under Category II

(d) Out of total Loan Assets, 90 per cent is Standard and Sub-standard and Doubtful is 10 per cent this lot comes under   Category I

(e) None of the above   

Q12. Under which of the following methods of depreciation, amount of depreciation varies every year? 

(a) Written Down Value Method

(b) Straight Line Method 

(c) Amount of depreciation does not very on year to year basis

(d) All of the above

(e) None of the above   

Q13. Usually, the validity period of an Income Tax Refund Order is? 

(a) 1 months 

(b) 2 months 

(c) 3 months

(d) 6 months

(e) None of the above   

Q14. What do you mean by “Outcome Budget”?

(a) It denotes reaction of the media after Budget Papers are approved in the Parliament 

(b) It aims to measure performance of the Government in various departments 

(c) It is a report submitted by the Government of India indicating made in different projects by ministries and  departments   as a first step towards converting outlays into income

(d) All of the above

(e) None of the above   

Q15. What is “Stagflation”?

(a) inflation with growth 

(b) deflation with growth 

(c) inflation after deflations

(d) inflation with depression 

(e) None of the above