Banking Awareness Questions for IBPS PO and Clerk Mains 2017

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Banking-Awareness-Questions-for-IBPS-PO-Exam-2017
Banking Awareness for IBPS Exam 2017

Just a few days are left for IBPS PO Mains. It is time to pace up your preparation of Banking Awareness for IBPS PO and Clerk Mains. These questions related to Banking Awareness will also help you in preparing for other upcoming banking recruitment examination.

Q1. An account for which a bank acts as an uninterested third party is termed as?
(a) Savings Account
(b) Current Account
(c) Reserve Account
(d) Escrow Account
(e) Fixed Account

S1. Ans.(d)
Sol. An escrow account is a temporary pass through account held by a third party during the process of a transaction between two parties. Definition: An escrow account is a temporary pass through account held by a third party during the process of a transaction between two parties.

Q2. A signed undertaking from one party containing a promise to pay a stated sum to a specified person or a company is known as ________
(a) Power of Attorney
(b) Promissory Note
(c) Purchasing Power Parity
(d) Plastic Notes
(e) None of the given options is true

S2. Ans.(b)
Sol. A promissory note is a legal instrument in which one party (the maker or issuer) promises in writing to pay a determinate sum of money to the other (the payee).

Q3. Which of the following is defined as the difference between current assets and current liabilities?
(a) Venture Capital
(b) Working Capital
(c) Equitable Mortgage
(d) Loss Assets
(e) Profit and Loss Account

S3. Ans.(b)
Sol. The capital of a business (working capital) which is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities.

Q4. A debt which is irrecoverable and is therefore written off as loss in the accounts of an institution or bank is known as __________
(a) external debt
(b) good debt
(c) bad debt
(d) internal debt
(e) None of the given options is true

S4. Ans.(c)
Sol. The term bad debts usually refers to accounts receivable (or trade accounts receivable) that will not be collected.

Q5. Many a time we read in the newspapers that RBI has changed or revised a particular ratio/rate by a few basis points. What is basis point? 
(a) Ten percent of one-hundredth point 
(b) One-hundredth of 1%
(c) One-hundredth of 10% 
(d) Ten percent of 1000
(e) None of the given options is true

S5. Ans.(b)
Sol. A basis point is the smallest measure used in quoting yields on fixed income products. Basis points also pertain to interest rates. One basis point is equal to one one-hundredth of one percentage point (0.01%). Therefore, 100 basis points would be equivalent to 1%.

Q6. Which of the following Act provides provisions for the regulation of credit information companies?
(a) Companies Act, 1956
(b) Credit Information (Companies Regulation Act, 2005)
(c) Information Technology Act, 2000
(d) Banking Regulation Act, 1949
(e) None of the given options is true

S6. Ans.(b)
Sol. Credit Information (Companies Regulation Act, 2005) provides for regulation of credit information companies and to facilitate efficient distribution of credit and for matters connected therewith or incidental thereto.

Q7. Which bank has launched India’s first golf-centric credit card?
(a) SBI
(b) UBI
(d) PNB
(d) RBL
(e) ICICI

S7. Ans.(d)
Sol. RBL Bank (formerly Ratnakar Bank) has launched India’s first golf-centric credit card. The card based on the premium MasterCard World platform was launched in association with the Indian Golf Union (IGU).

Q8. Which bank has launched India’s first contactless mobile payment solution-?
(a) ICICI
(b) Kotak Mahindra Bank
(c) IndusInd Bank
(d) South Indian Bank
(e) Axis Bank

S8. Ans.(a)
Sol. ICICI Bank has unveiled the country’s first contactless mobile payment solution to enable its credit and debit customers make in-store contactless payments by just waving their smartphones near an NFC-enabled merchant terminal. The mobile payment solution available in the Bank’s ‘Pockets’ app, provides improved convenience of ‘Touch & Pay’ as customers are no longer required to carry physical card or cash to pay in stores.

Q9. IBA was set up in ________ with 22 members to discuss issues of common interests.
(a) 1946
(b) 1955
(c) 1934
(d) 1921
(e) 1961

S9. Ans.(a)
Sol. Indian Banks' Association (IBA) set up in 1946 with 22 members to discuss issues of common interests. Over the years, IBA emerged as the Voice of Indian Banking Industry. IBA adopts a consultative approach to give its views on any issue pertaining to banking sector.

Q10. Which among the following bank is the first bank to launch the Mudra Card based on the RuPay platform?
(a) SBI
(b) Corporation Bank
(c) Vijaya Bank
(d) PNB
(e) HDFC Bank

S10. Ans.(b)
Sol. Corporation Bank is the first bank to launch the Mudra Card based on the RuPay platform under the Pradhan Mantri MUDRA Yojana (PMMY).

Q11. A centralised database with online connectivity to branches and Internet as well as ATM Network which has been adopted by almost all major banks of our country is known as_________
(a) Investment Banking
(b) Mobile Banking
(c) Specialised Banking
(d) Core Banking Solution
(e) None of the given options is true

S11. Ans.(d)
Sol. Core Banking Solution (CBS) is networking of branches, which enables Customers to operate their accounts, and avail banking services from any branch of the Bank on CBS network.

Q12. Which of the following is the purpose of introducing “Know Your Customer” norms by the banks?
(a) Identifying people who do not pay Income Tax
(b) To bring more and more people under the banking net
(c) To ensure that the money deposited in banks has come from genuine sources
(d) All of the Above
(e) None of the given options is true

S12. Ans.(c)
Sol. Know your customer(KYC) is an important step developed globally to prevent identity theft, financial fraud, money laundering and terrorist financing.

Q13. Security Printing and Minting Corporation of India (SPMCIL) Limited was incorporated under the Companies Act, 1956 with its corporate office at-
(a) Mumbai
(b) Kolkata
(c) Bangalore
(d) New Delhi
(e) Nasik

S13. Ans.(d)
Sol. Security Printing and Minting Corporation of India (SPMCIL) Limitedis an Indian government-owned corporation that engages in the production of bank notes, coins, non–judicial stamps, postage stamps, and other government related documents for India. It was formed in 2006 as the result of corporatisation of security presses and mints functioning under the India Ministry of Finance. It contains nine units, which include four presses, four mints, and a paper mill. Corporate office of SPMCIL is at Janpath in New Delhi.

Q14. Security Paper Mill (SPM) was formally inaugurated and dedicated to the nation on the 9th March, __________ by the then Deputy Prime Minister, Shri Morarji Desai.
(a) 1956
(b) 1968
(c) 1949
(d) 1962
(e) 1971

S14. Ans.(b)
Sol. Security Paper Mill was established in 1968 at Hoshangabad, Madhya Pradesh. It produces papers for banknotes and non–judicial stamps.

Q15. What is Gross Domestic Product (GDP)?
(a) It is the market value of all final goods and services made in the country
(b) It is the Cost production of all final goods and services made in the country
(c) It is the Cost services of all final goods and services made in the country
(d) It is the market value of all final goods and services made within the borders of a country in a year
(e) None of the given options is true

S15. Ans.(d)
Sol. Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country's borders in a specific time period.


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