Banking Awareness Quiz for SBI PO

Q1. PSLCs are tradable certificates issued against priority sector loans of banks. What does meaning of “Cs” in PSLCs?
(a) Cess
(b) Cities
(c) Census
(d) Certificates
(e) None of the given options is true

Q2. The Banking Ombudsman Scheme is introduced under Section 35 A of the Banking Regulation Act, 1949 by RBI with effect from –
(a) 1995
(b) 1999
(c) 1990
(d) 1982
(e) 1988


Q3. MTSS is a way of transferring personal remittances from abroad to beneficiaries in India. What does MTSS stand for-?
(a) Mobile Transfer Service Scheme 
(b) Money Transfer System Scheme 
(c) Money Timing Service Scheme 
(d) Market Transfer Service Scheme 
(e) Money Transfer Service Scheme


Q4. How much cash can payment be made to the beneficiary in India under MTSS? 
(a) Rs 2,00,000
(b) Rs 50,000
(c) Rs 1, 00,000
(d) Rs 10,000
(e) None of the given options is true


Q5. RDA is a channel to receive cross-border remittances from overseas jurisdictions. What does meaning of “A” in RDA?
(a) Account
(b) Assembly
(c) Arrangement 
(d) Association
(e) Amount


Q6. Most banks are offering teaser rates on home loans. What does it mean?
(a) The rates keep fluctuating during the period of loan with high uncertainty 
(b) The initial rate is offered at a rate lower than the prevailing market rate for a few months and then gradually keeps increasing
(c) The initial rate is higher than the current market rate with offer of lower rates at a later date 
(d) Home loan borrowers of shorter duration are given preferential rate 
(e) None of the given options is true 


Q7. Who decides the value and volume of bank notes to be printed?
(a) Finance Ministry 
(b) Planning Commission 
(c) RBI
(d) Stock Exchange 
(e) None of the given options is true 


Q8. Indian Banking Regulation Act was passed in the year?
(a) 1971
(b) 1969
(c) 1949
(d) 1947
(e) None of the given options is true 


Q9. Financial Market consists of-
(a) Foreign exchange 
(b) Debt Instruments  
(c) Equities  
(d) All of the above
(e) None of the given options is true 


Q10. Who is authorised to sign ‘one-rupee’ note?
(a) Secretary, Ministry of Finance
(b) RBI Governor 
(c) Prime Minister 
(d) Finance Minister  
(e) None of the given options is true


Q11. Under OLTAS, only a Single Copy Challan is used with a tear off portion for the Tax Payer. What does OLTAS stand for-?
(a) On-line Tax Accounting Service
(b) On-line Tax Amounting System
(c) On-line Timing Accounting System
(d) On-line Tax Association Service
(e) On-line Tax Accounting System


Q12. What is the minimum period of maturity prescribed for Commercial Paper (CP)?
(a) 17 Months
(b) 14 Days
(c) 01 Year
(d) 07 days
(e) 05 years


Q13. Which banks are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC)?
(a) Foreign Banks functioning in India
(b) Local Area Banks
(c) Regional Rural Banks
(d) All of the above
(e) None of the given options is true


Q14. What is the maximum period of maturity prescribed for Commercial Paper (CP)?
(a) 10 years
(b) 06 years
(c) 01 Year
(d) 02 years
(e) 05 years


Q15. Each depositor in a bank is insured by DICGC up to a maximum of _____________________ for both principal and interest amount held by him in the same capacity and same right as on the date of liquidation/cancellation of bank’s licence or the date on which the scheme of amalgamation/merger/reconstruction comes into force.
(a) Rs.1, 00,000
(b) Rs.2, 00,000 
(c) Rs.3, 00,000 
(d) Rs.4, 00,000 
(e) Rs.5, 00,000