Banking and Financial Awareness for IBPS Exams

Q1. The cash reserve requirements for Non-schedule Banks are laid down in?

(a) Section 41(i) of the Reserve Bank of India Act, 1934

(b) Section 41(i) of the Negotiable Instruments Act. 1881

(c) Section 41 of the Banking Regulation Act, 1881 

(d) All of the above

(e) None of the above

(a) Government Securities 

(b) Balance with Reserve Bank of India

(c) Balance with State Bank of India 

(d) All of the above 

(e) None of the above

Q3. RBI is empowered to prescribe Cash Reserve Ratio ranging between?

(a) five per cent to twenty per cent of net demand and time liabilities 

(b) RBI is empowered to vary CRR between 15 percent and 3 percent

(c) three per cent to forty per cent of net demand and time liabilities 

(d) One of the above

(e) None of the above 

Q4. The functions of Back office are?

(a) It verifies and settles the deals 

(b) It maintains proper record of Book keeping 

(c) It submits financial returns of RBI

(d) All of the above 

(e) None of the above

Q5. What does LMS stand for in e-learning?

(a) Learning Management System

(b) Life Management System 

(c) Learning Management Software 

(d) Liquidity Management Service

(e) None of the above  

Q6. Liability-side of the balance-sheet comprises ______?

(a) Capital and reserve 

(b) Long-term liabilities 

(c) Current liabilities 

(d) All of the above 

(e) None of the above  

Q7. Banks can receive deposits from customers up to a maximum period of?

(a) 10 years

(b) 15 years 

(c) 20 years 

(d) 25 years

(e) None of the above  

Q8. Certificate of Deposit (CD) is issued by a commercial bank. Which of the following is true of the Certificate of Deposit ?

(a) it is issued in the form of a receipt

(b) it is issued in the form of a Bill of Exchange 

(c) it is issued in the form of a Demand Promissory Note 

(d) it is issued in the form of usance promissory, at a discount to the face value 

(e) None of the above  

Q9. Khandelwal Committee relates to study of ………….. issue in Public Sector Banks? 

(a) Capital Adequacy Ratio 

(b) Human Resources  

(c) Branch Expansion  

(d) Foreign Exchange

(e) None of the above  

Q10. Credit Card related grievances can also be referred to?

(a) Consumer Forum 

(b) Ombudsman 

(c) LokAdalat

(d) All of the above

(e) None of the above 

Q11. “Treasury bills” means?

(a) salary bills drawn by Government officials on the treasury  

(b) bills drawn by the Government contractors and other suppliers on the treasury for the dues owed to them by the     Government 

(c) obligations of the Government of India issued by the Reserve Bank of India and payable normally ninety-one days after issue 

(d) a mode of drawings by the Treasury Officer on the Reserve Bank of India

(e) None of the above  

Q12. Who decides the value and volume of bank notes to be printed and on what basis?

(a) Finance Ministry 

(b) Planning Commission 

(c) RBI

(d) Stock Exchange

(e) None of the above  

Q13. There are many security features which are regularly being explained and stressed to check against forged currency notes. One of them is Intaglio printing. What is Intaglio printing?

(a) It is specialized printing of Rs. 1,000 and Rs. 500 denomination currency notes 

(b) It is raised printing on the currency notes of RBI seal, e.g. Ashoka Pillar emblem etc

(c) It is printing on special printing press of RBI

(d) It is printing through special inks of the security features on currency notes 

(e) None of the above 

Q14. Pledge means? 

(a) advance against goods 

(b) open working capital limits 

(c) bailment of goods as security for payment of a debt or performance of a promise

(d) All of the above

(e) None of the above  

Q15. What are the RBI guidelines for the development of Interest Rate Swaps (IRS)? 

(a) Banks can use IRS for hedging and Trading both 

(b) MIFOR is a benchmark for IRS

(c) Under ISDA agreement Banks can opt for dual jurisdiction i.e., Indian as well as common law 

(d) All of the above 

(e) None of the above