IBPS RRB PO/Clerk Main Banking Awareness Quiz: 12th September 2019

With the increased competition in the field of banking examinationsit has now become very important to cover up all the sections efficiently. One subject that can help you bagging graceful marks in the minimum time in these examinations is Banking Awareness. Banking Awareness Quiz not only helps you deal with the General Awareness Section of Banking Exams but also, the Personal Interview round of Banking Recruitment.

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Q1. Which of the following co-operative banks is considered as the first Co-operative Bank in India?
(a) Amanath Co-operative Bank Ltd
(b) Anyonya Co-operative Bank
(c) Greater Bombay Co-operative Bank Ltd
(d) Abhyudaya Co-operative Bank Ltd
(e) None of the given options is true

S1. Ans.(b)
Sol. Anyonya Co-operative Bank Limited located in the city of Vadodara in Gujarat, is the first co-operative bank in India. The Reserve Bank of India ordered the bank to stop most of its operations under Section 35 of the Banking Regulation Act.

Q2. The first Cooperative Credit Society in India was started in-
(a) 1929
(b) 1950
(c) 1904
(d) 1980
(e) 1975

S2. Ans.(c)
Sol. The first Cooperative Credit Society in India was started in 1904 at Thiroor in Tiruvallur District in Tamil Nadu.

Q3. Co-operative Banks in India are registered under-
(i) Banking Laws (Co-Operative Societies) Act, 1965
(ii) Banking Regulation Act, 1949
(iii) Companies Act, 1956
(a) Only (i)
(b) (i) and (ii)
(c) (ii) and (iii)
(d) (i), (ii) and (iii)
(e) None of the given options is true

S3. Ans.(a)
Sol. Cooperative Banks in India are registered under the Co-operative Societies Act. The cooperative bank is also regulated by the RBI. They are governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965.

Q4. According to the Sarraya Committee, average membership of the society‟s is______.
(a) 19
(b) 48
(c) 25
(d) 32
(e) 45

S4. Ans.(d)
Sol. National development council has accepted the principle of forming societies taking village community as the primary unit. According to Sarraya Committee, average membership of the societies is 32.

Q5. Monetary Policy as an arm of the economic policy is administered by_______.
(a) Prime Minister of India
(b) Government of India
(c) State Bank of India
(d) Reserve Bank of India
(e) SEBI

S5. Ans.(d)
Sol. In India, monetary policy of the Reserve Bank of India is aimed at managing the quantity of money in order to meet the requirements of different sectors of the economy and to increase the pace of economic growth.

Q6. Which organisation provides refinance support and takes care of inspection of State Cooperative Banks and Central Cooperative Banks?
(b) RBI
(c) SBI
(d) Central Government
(e) State Government

S6. Ans.(a)
Sol. The State Cooperative Banks and Central Cooperative Banks are licensed by Reserve Bank of India under the Banking Regulation Act. While the StCBs and DCCBs function like a normal Bank they focus mainly on agricultural credit. While Reserve Bank of India is the Regulating Authority, National Bank for Agriculture and Rural Development (NABARD) provides refinance support and takes care of inspection of StCBs and DCCBs.

Q7. Co-Operative Banks in India do not finance rural areas under_______.
(a) Personal Finance
(b) Long-term loans for big business
(c) Farming
(d) Cattle
(e) None of the given options is true

S7. Ans.(b)
Sol. Cooperative banks and commercial banks by their very nature are not in a position to provide long-term loans because their deposits are mainly demand (short-term) deposits and long-term loans for big business.

Q8. Co-Operative Bank in India has a________.
(a) Four tier system
(b) Two tier system
(c) Three tier system
(d) Five tier system
(e) Six tier system

S8. Ans.(c)
Sol. While overseeing the activities of 1926 primary (urban) cooperative banks, the Urban Banks Department performs three main functions : regulatory, supervisory and developmental. The Department performs these functions through its 17 regional offices.

Q9. Which of the following statements is TRUE about National Federation of State Co-Operative Banks (NAFSCOB)?
(a) Provides research and consultancy inputs to the member banks
(b) Promotes and protects the interests of the member banks
(c) Provides a common forum to the member banks
(d) All of the above
(e) None of the given options is true

S9. Ans.(d)
Sol. The National Federation of State Cooperative Banks Ltd. (NAFSCOB), was established on 19th May 1964 with a view to facilitate the operations of State and Central Cooperative Banks in general and Development of Cooperative Credit in particular. The specific objectives of NAFSCOB are:
1. To provide a common forum to the member banks to examine the problems of cooperative credit, banking and allied matters and evolve suitable strategies to deal with them.
2. Promote and protect the interests of the member banks in all spheres of their activities and to give expression to the views of the member banks.
3. Co-ordinate and liaison with Government of India , Reserve Bank of India respective State Governments, NABARD and other higher financing institutions for the development of cooperative credit on behalf of the member banks.
4. Provide research and consultancy inputs to the member banks in order to facilitate them to strengthen their own organizations.
5. Organise conferences/seminars/workshops/meeting to share the views of common interest with a view to contribute for better policy decisions.

Q10. The State Co-Operative Bank, being the Apex Bank at the State level______.
(a) Provides the link between the RBI and the money market on one hand, and the entire cooperative credit structure on the other
(b) Acts as the custodian of the surplus resources and the reserves of the Central Co-operative Banks and supplements them by attracting sizeable deposits and by obtaining loans from RBI.
(c) Operates as balancing centre for the movement of the resources in the entire state
(d) All of the Above
(e) None of the given options is true

S10. Ans.(d)
Sol. All of the above.

Q11. RBI known as lender of last restore because-?
(a) It has to meet the credit need to citizens to whom no one else is willing to lend
(b) Banks lend to go to RBI as a last restore
(c) It comes to help banks in times of crisis
(d) All of the above
(e) None of the given options is true

S11. Ans.(c)
Sol. RBI is known as Lender of last resort because , Banks are supposed to meet their shortfalls of cash from other resources and of the other sources don’t meet the demand , then they approach RBI.

Q12. The seed capital of Bharatiya Mahila Bank was-?
(a) Rs 5000 crore
(b) Rs 1000 crore
(c) Rs 500 crore
(d) Rs 100 crore
(e) Rs 700 crore

S12. Ans.(b)
Sol. The Bank’s initial capital consisted of Rs 1,000 crores.

Q13. Which is incorrect with regard to powers of RBI?
(a) RBI is the supreme monetary authority of India
(b) RBI works as a custodian of foreign reserve
(c) RBI is responsible for printing of currency notes and managing the supply of money in the Indian economy.
(d) RBI presents Union Budget every year
(e) None of the given options is true

S13. Ans.(d)
Sol. Union budget presents by Central government.

Q14. Which of the following is an investment advisory discipline?
(a) Corporate Industrial Finance
(b) Offshore Banking
(c) Wholesale Banking
(d) Wealth Management
(e) Trade Finance

S14. Ans.(d)
Sol. Wealth management as an investment-advisory discipline incorporates financial planning, investment portfolio management and a number of aggregated financial services.

Q15. When banks accept a fixed sum of money from an individual for a definite term and pay on maturity with interest, the deposit is known as-?
(a) Term Deposit
(b) Demand Deposit
(c) Bond
(d) Mortgage
(e) Advance

S15. Ans.(a)
Sol. A term deposit is a contract between the bank and the customer for a definite term and it cannot be paid prematurely at the bank’s option. However, a term deposit can be paid prematurely at the request of the customer subject to the terms of the contract, including penalty, if any.

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