IBPS RRB PO/Clerk Main Banking Awareness Quiz: 27th August 2019

Dear Aspirants,

IBPS RRB PO/Clerk Main Banking Awareness Quiz

With the increased competition in the field of banking examinations, it 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.

Q1. Which of the following terms is used in the field of finance and banking?
(a) Guage Pressure
(b) Quantum number
(c) Adjustment Credit 
(d) Absolute Zero
(e) Single bond
S1. Ans.(c)
Sol. A banking credit adjustment is distinct from an accounting credit adjustment, but both constructs often interrelate. When a bank credits a customer account, it’s simultaneously increasing the client’s cash balance and increasing its own debt account. 
Q2. GST is an Indirect Tax which has replaced many Indirect Taxes in India. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017. The Act came into effect on-
(a) 1st July 2016
(b) 1st December 2016
(c) 1st January 2017
(d) 1st July 2017 
(e) 1st July 2018
S2. Ans.(d)
Sol. GST is an Indirect Tax which has replaced many Indirect Taxes in India. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017. The Act came into effect on 1st July 2017; Goods & Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition.
Q3. Normally Banks accepts Fixed Deposits for a maximum period of________.
(a) 5 years
(b) 3 years
(c) 7 years
(d) 20 years
(e) 10 years 
S3. Ans.(e)
Sol. A Term (Fixed) Deposit Accounts can be opened for a minimum period of 7 days up to a maximum period of 10 years. The minimum/maximum periods are subject to change.
Q4. What is the full form of IFRS-?
(a) International Financial Reporting Standards 
(b) Indian Financial Rating Standards
(c) International Financial Rating Standards
(d) Indian Functional Reporting Standards
(e) None of the given options is true
S4. Ans.(a)
Sol. International Financial Reporting Standards, usually called IFRS, are standards issued by the IFRS Foundation and the International Accounting Standards Board to provide a common global language for business affairs so that company accounts are understandable and comparable across international boundaries.
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
(c) Indian Banks Association
(d) Financial Intelligence Unit
(e) Reserve Bank of India
S5. Ans.(e)
Sol. KYC guidelines followed by the Banks have been framed on the recommendations of the RBI. 
Q6. Short-term assets, representing amounts due to a vendor or suppliers of goods or services that were sold on credit terms is known as _______.
(a) Account Receivable 
(b) Fixed Asset
(c) Deposit Asset
(d) Current Liabilities
(e) None of the given options is true
S6. Ans.(a)
Sol. Accounts receivable is the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers. Said another way, account receivable are amounts of money owed by customers to another entity for goods or services delivered or used on credit but not yet paid for by clients.
Q7. What is the rate at which commercial banks charge on their surplus funds with RBI?
(a) SLR
(b) Reverse Repo Rate 
(c) Repo Rate
(d) Cash Reverse Ratio
(e) Bank Rate
S7. Ans.(b)
Sol. Reverse repo as the name suggests is an opposite contract to the Repo Rate. Reverse Repo rate is the rate at which the Reserve Bank of India borrows funds from the commercial banks in the country. In other words, it is the rate at which commercial banks in India park their excess money with Reserve Bank of India usually for a short-term. Current Reverse Repo Rate as of August 2019 is 5.15%.
Q8. _________ is the rate at which commercial bank needs to maintain in the form of cash, or gold or government approved securities (Bonds) before providing credit to its customers.
(a) Reverse Repo Rate
(b) Repo Rate
(c) CRR Rate
(d) SLR Rate 
(e) Bank Rate
S8. Ans.(d)
Sol. Section 24 and Section 56 of the Banking Regulation Act 1949 mandates all commercial banks in India to maintain SLR. It becomes pertinent to know in detail about the components of the SLR. These are assets one can easily convert into cash – like gold, treasury bills, govt-approved securities, government bonds and cash reserves. 
Q9. Who appoints the governor of Reserve Bank of India?
(a) Financial Secretary
(b) Financial Ministry
(c) Government of India 
(d) President of India
(e) None of the given options is true
S9. Ans.(c)
Sol. The Government of India has appoints the governor of RBI.
Q10. FII Stands for _______.
(a) Foreign Institutional Investor 
(b) Foreign International Investor
(c) Forward Institutional Investor
(d) Formal Institutional Investor
(e) Formal International Investor
S10. Ans.(a)
Sol. A foreign institutional investor (FII) is an investor or investment fund registered in a country outside of the one in which it is investing.
Q11. Which among the following is a qualitative tool of monetary policy?
(a) Credit Ceiling
(b) Credit Rationing 
(c) Cash Reserve Ratio
(d) Bank Rate
(e) None of the given options is true
S11. Ans.(b)
Sol. The quantitative instruments are Open Market Operations, Liquidity Adjustment Facility (Repo and Reverse Repo), Marginal Standing Facility, SLR, CRR, Bank Rate, Credit Ceiling etc. On the other hand, qualitative instruments are credit rationing, moral suasion and direct action (by RBI on banks).
Q12. In India, the Chit funds are governed regulated by ________.
(a) Local Bodies
(b) RBI
(c) Central Government
(d) State Government 
(e) None of the given options is true
S12. Ans.(d)
Sol. Chit funds in India are governed by the Chit Funds Act, 1982. Under this Act, the chit fund businesses can be registered and regulated only by the respective State Governments. Regulator of chit funds is the Registrar of Chits appointed by respective state governments under Section 61 of Chit Funds Act.
Q13. CAG of India is an authority, established by Article 148 of the Constitution of India. CAG Stands for _______.
(a) Comptroller and Auditor General of India 
(b) Constant and Author General of India
(c) Constant Auditor General of India
(d) Central Auditor General of India
(e) None of the given options is true
S13. Ans.(a)
Sol. The Comptroller and Auditor General (CAG) of India is an authority, established by Article 148 of the Constitution of India, which audits all receipts and expenditure of the Government of India and the state governments, including those of bodies and authorities substantially financed by the government.
Q14. What is the full form of CPI?
(a) Cost Price Index
(b) Current Price Index
(c) Consumer Price Index 
(d) Cash Price Index
(e) None of the given options is true
S14. Ans.(c)
Sol. A Consumer Price Index (CPI) measures changes in the price level of market basket of consumer goods and services purchased by households. The CPI is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically.
Q15. SEBI is a _______.
(a) Non-Advisory body
(b) Statutory body 
(c) Advisory body
(d) Constitutional body
(e) Non- Statutory body
S15. Ans.(b)
Sol. Securities and Exchange Board of India (SEBI) is a statutory regulatory body entrusted with the responsibility to regulate the Indian capital markets. It monitors and regulates the securities market and protects the interests of the investors by enforcing certain rules and regulations.
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