Banking and Financial Awareness for IBPS/BOM Exams

Q1. Banks and other financial institutions in India are required to maintain a certain amount of liquid assets like cash, precious metals and other short-term securities as a reserve all the time. In Banking World this is known as?
(a) CRR
(b) Fixed Asset
(c) SLR
(d) PLR
(e) None of the above

Q2. What is the full form of the term ‘NPA’ as used in banking environment?
(a) Not Profitable Assets
(b) New Potential Accounts
(c) Non Performing Assets
(d) Net Performing Assets
(e) None of the above
Q3. Which of the following is NOT a Public Sector Unit? 
(a) HPCL 
(b) Yes Bank
(c) HAL 
(d) SAIL
(e) IDBI Bank
Q4. As a practice, all banks now deduct some amount from their pre-tax income and set aside in a separate account to create a cushion for the loans which may go bad. This is called …………. .?
(a) CRR 
(b) SLR
(c) Provisioning
(d) PLR
(e) None of the above
Q5. In a Poverty Pyramid index, which of the following segments of population faces the highest poverty risk?
(a) Formal Wage Employment
(b) Informal Self-Employment : Employers
(c) Regular Informal Wage Employment
(d) Informal Self Emloyment : Own Account
(e) Casual Informal Wage Employment and Domestic Work
Q6. Which of the following acts is specially launched to facilitate banks in recovery of bad loans?
(a) RBI Act
(b) Banking Regulation Act
(c) Companies Act
(d) Income Tax Act
Q7. Banking and financial services all over the world are regulated usually by the Monetary Authority of the land. Who controls this function in India?
(a) Ministry of Finance
(b) SEBI
(c) RBI
(d) IRDA
Q8. Which among the following is related to bank risks?
(a) Deposits 
(b) Bank funds
(c) NPA
(d) All of the above
(e) None of the above
Q9. The objectives of forming SHG is/are
I. to build mutual trust and confidence between the bankers and the rural poor people.
II. to encourage banking activities, both on the thrift as well as credit sides, in a segment of the population that the formal financial institutions usually find difficult to cover.
III. to meet the needs of the poor by combining the flexibility, sensitivity and responsiveness of the Informal Credit System with the strength of technical and administrative capabilities and financial resources of the formal credit institutions.
Select the correct answer using the codes given below:
(a) Only I 
(b) I and II
(c) I and III 
(d) II and III
(e) All of the above
Q10. Which bank in India has introduced vertical credit cards?
(a) Kotak Bank
(b) Yes Bank
(c) HDFC Bank 
(d) ICICI Bank
(e) SBI
Q11. Many a time we read in newspaper about the benefits of National Electronic Funds Transfer (NEFT), a dlivery service launched by the bank. Why do banks advocate for such delivery channels? 
(1) It is a system in which no physical transfer takes place, hence risk is very low.
(2) In this system banks are not required to transfer any money actually to the account of the customer. Only book
adjustment is done. Hence actual fund is not needed.
(3) This facility is available to anybody at any place. Even having a bank account is not at all necessary.
(a) Only (1) is correct
(b) Only (2) is correct
(c) Only (3) is correct
(d) Both (1) & (2) are correct
(e) All (1), (2) & (3) are correct
Q12. A lot of Banks in India these days are offering M-Banking Facility to their customers. What is the full form of` ‘M’ in ‘M-Banking’? 
(a) Money 
(b) Marginal
(c) Message 
(d) Mutual Fund
(e) Mobile Phone
Q13. Which of the following is the limitation of the ATMs owing to which people are required to visit branches of the bank?
(1) It does not accept deposits.
(2) It has a limited cash disbursement capacity.
(3) Lack of human interface.
(a) Only (1) 
(b) Only (2)
(c) Only (3) 
(d) All (1), (2) & (3)
(e) None of these are limitations
Q14. As we all know, more and more countries/organisations are now going for Non-Cash Transactions and accordingly Banks have launched many new products in the market for the same. Which of the following products is a non-cash transaction product? 
(a) Only ATM Card
(b) Only Credit Card
(c) Only Prepaid Card
(d) Only Debit Card
(e) All are non-cash transaction products
Q15. Many times we read a term CBS used in banking operation. What is the full form of the letter ‘C’ in the term ‘CBS’?
(a) Core
(b) Credit
(c) Continuous 
(d) Complete
(e) None of the above