Banking Awareness for IBPS PO 2016 |

Banking Awareness

Q1. In order to attract more foreign exchange the Govt of India decided to allow foreign investment in LLP firms.What is full form of “LLP” as used in this reference?

(a) Local Labour Promotion

(b) Low Labour Projects

(d) Longer Liability Partnership

(e) Limited Liability Partnership

Q2. The process by which a life insurance policyholder can transfer all rights, title and interest- under a policy contract to a third person is known as?

(a) Assignment of the policy

(b) Hypothecation of the policy

(d) Negotiation of the policy

(e) Nomination of the policy

Q3. Which of the following is the popular name of the norms by which a bank satisfies itself about the customer’s identity and activities?

(a) Basel norms

(b) KYC norms

(d) Lending norms

(e) None of the above

Q4. Banks, today, in addition to normal banking services, offer which of the following services?

(a) Internet Banking

(b) Depository Services

(d) Only (a) and (b) above

(e) All of the above above

Q5. KYC guidelines followed by the banks have been framed on the recommendations of the?

(a) Ministry of Home Affairs

(b) Ministry of Rural Development

(d) Financial Intelligence Unit

(e) Reserve Bank of India

Q6. The Reserve Bank of India began production of notes in 1938, issuing Rs.25 Rs.10 Rs.1000 notes. Rs 1000 note was re-introduced again in…….?

(a) 1987

(b) 2000

(d) 2006

(e) 2010

Q7. One rupee notes bear the signature of……….?

(a) Governor of Reserve Bank of India

(b) Prime Minister of India

(d) Secretary, Ministry of Finance (Government of India)

(e) None of the above

Q8. Mortgage is a…………..?

(a) security on movable property for a loan given by a bank

(b) security on immovable property for a loan given by a bank

(d) facility on immovable property for a loan given by a bank

(e) security on immovable property for a deposit received by a bank

Q9. In terms of Section 5(1) (5) of the Banking Regulation Act, 1949, a ‘banking company’ means any company which-

(a) accepts deposits from the public

(b) undertakes lending of money

(d) All of the above

(e) None of the above

Q10. Which of the following is not a negotiable instrument?

(a) Cheque

(b) Pay order

(d) All of the above are negotiable instruments

(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

(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

(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

(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

(d) inflation with depression

(e) None of the above