Banking and Financial Awareness for RBI/IBPS Exams

Q1. Scheduled Bank is that bank which is?
(a) Nationalied
(b) Not Nationalied
(c) Based at foreign country 
(d) Included in the second schedule of RBI

Q2. Which Bank is limited to the needs of agriculture and rural finance?
(a) SBI
(c) IFC
(d) RBI
Q3. What is Export credit…………?
(a) Buyers’ credit only 
(b) Loan facility extended to an exporter by a bank in the exporter’s country.
(c) Both (a) and (b)
(d) None of the above 
Q4. Statutory liquidity ratio (SLR) of commercial banks means?
(a) The percentage of cash that banks keep with them under rules 
(b) The bank rate which is reference rate also
(c) Every bank is required to maintain at the close of business every day, a minimum proportion of their Net Demand and     Time Liabilities as liquid assets in the form of cash, gold and un-encumbered approved securities
(d)  The rate at which central bank of the country (in India it is RBI) allows finance to commercial banks 
Q5. If banks want to increase credit creation?
(a) They should increase interest rate to have more deposits
(b) They should reduce the rate of interest
(c) They should have high cash reserves with them 
(d) They should force investors to create demand for loans 
Q6. Monetary-base is made up of?
(a) Required reserves with the central bank and currency with the public 
(b) Currency with the public and total deposits
(c) Reserves of banking system and currency with the public 
(d) Borrowed reserves and non-borrowed reserves 
Q7. As regards changes in interest rates, the most sensitive money market is the?
(a) Bill market 
(b) Un-organised money market  
(c) Call money market
(d) Collateral loan market 
Q8. The unit Banking System is very popular in?
(a) England 
(b) Japan 
(c) India 
(d) USA
Q9. which of the following statement is correct………?
I. Maintenance of a fixed reserve ratio by the commercial banks
II.Maintenance of little or no excess reserves by the commercial banks 
III.Reserve Bank of India is the apex monetary Institution of India. It is also called as the central bank of the country.
(a) II and III are correct 
(b) I and II are correct 
(c) III alone is correct 
(d) I and III are correct
Q10. Which of the following instruments for quantitative control of credit are used by Reserve Bank of India?
(a) Cash requirement ratio 
(b) Statutory liquidity ratio 
(c) Open market operations
(d) Margin requirements