Banking Awareness Questions for IBPS RRBs PO and Clerk Exam 2017

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Banking Awareness for IBPS Exam 2017

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

Q1. Which bank becomes first Bank in India to launch EMI facility on debit cards?
(a) Bandhan Bank
(b) SBI
(c) HDFC Bank
(d) ICICI Bank
(e) Axis Bank

S1. Ans.(d)
Sol. ICICI Bank, the country’s largest private sector bank, announced the launch of EMI (Equated Monthly Instalments) facility on debit cards to enable its customers to convert high value transactions into easy instalments. ICICI Bank is the first in the country to introduce this facility.

Q2. Which of the following is correct?
(a) Reserve Bank of India Act, 1935
(b) Reserve Bank of India Act, 1934
(c) Reserve Bank of India Act, 1930
(d) Reserve Bank of India Act, 1921
(e) Reserve Bank of India Act, 1942

S2. Ans.(b)
Sol. The Reserve Bank of India Act 1934 is an Act to constitute a Reserve Bank of India (RBI) and provide the central bank (RBI) with various powers to act as the central bank of India.

Q3. Which of the following features fit for E-Banking-?
(a) Providing Ease in banking operations
(b) Stress on branchless banking
(c) Time Saving
(d) All of the above
(e) None of the given options is true

S3. Ans.(d)
Sol. Here is the following features fit for E-Banking-
(a) Providing Ease in banking operations
(b) Stress on branch less banking
(c) Time Saving

Q4. If the cheque is issued by a bank in the same city as the payee, the cheque will be called?
(a) Outstation Cheque
(b) Local Cheque
(c) At par Cheque
(d) Multicity Cheque
(e) None of the given options is true

S4. Ans.(b)
Sol. A local cheque is issued by a bank in the same city as the payee.

Q5. CTS is a cheque clearing system undertaken by the Reserve Bank of India (RBI) for faster clearing of cheques. What is the meaning of "T" in CTS?
(a) Truncation
(b) Transfer
(c) Travel
(d) Ticket
(e) Trust

S5. Ans.(a)
Sol. Cheque Truncation System (CTS) is a cheque clearing system undertaken by the Reserve Bank of India (RBI) for faster clearing of cheques. As the name suggests, truncation is the process of stopping the flow of the physical cheque in its way of clearing.

Q6. SAT is a statutory body established under the provisions of Section 15K of the Securities and Exchange Board of India (SEBI) Act, 1992. SAT stands for-
(a) Securities Appellate Tribunal
(b) Securities Appellate Treaty
(c) Securities Association Tribunal
(d) Saving Appellate Tribunal
(e) None of the given options is true

S6. Ans.(a)
Sol. Securities Appellate Tribunal (SAT) is a statutory body established under the provisions of Section 15K of the Securities and Exchange Board of India Act, 1992 to hear and dispose of appeals against orders passed by the Securities and Exchange Board of India or by an adjudicating officer under the Act and to exercise jurisdiction, powers and authority conferred on the Tribunal by or under this Act or any other law for the time being in force.

Q7. 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

S7. 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.

Q8. 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

S8. 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).

Q9. 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

S9. 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.

Q10. 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

S10. Ans.(c)
Sol. The term bad debts usually refers to accounts receivable (or trade accounts receivable) that will not be collected.

Q11. Which among the following countries has contributed $100,000 to a UN fund to help developing countries actively participate in the discussion of tax issues, becoming the first country to make the contribution?
(a) India
(b) UK
(c) Austria
(d) Canada
(e) China

S11. Ans.(a)
Sol. India has contributed $100,000 to a UN fund to help developing countries actively participate in the discussion of tax issues, becoming the first country to make the contribution. The UN Tax Trust Fund aims to support the work of the Committee of Experts on International Cooperation in Tax Matters.

Q12. Which bank has started insolvency resolution process against Lanco Infratech Ltd. following a directive from the Reserve Bank of India (RBI), While this is the first resolution process initiated by the lenders against 12 large borrowers identified by the RBI recently?
(a) State Bank of India
(b) IDBI Bank
(c) Punjab National Bank
(d) Bank of India
(e) ICICI Bank

S12. Ans.(b)
Sol. IDBI Bank has started insolvency resolution process against Lanco Infratech Ltd. following a directive from the Reserve Bank of India (RBI), While this is the first resolution process initiated by the lenders against 12 large borrowers identified by the RBI recently.

Q13. Stepping up its fight against tax evasion, the Centre has made it mandatory to quote the Aadhaar number for opening bank accounts and for transactions exceeding-
(a) Rs.10,000
(b) Rs.80,000
(c) Rs.50,000
(d) Rs.1,00,000
(e) Rs.1,50,000

S13. Ans.(c)
Sol. Stepping up its fight against tax evasion, the Centre has made it mandatory to quote the Aadhaar number for opening bank accounts and for transactions exceeding Rs.50,000. With the amendments to the Prevention of Money Laundering (Maintenance of Records) Rules, 2005 notified earlier this month, banks will have to demand both Aadhaar and the Permanent Account Number (PAN) for verification of identity.

Q14. The Reserve Bank of India has initiated PCA on Bank of Maharashtra placing a restriction on the banking activities. What is the meaning of "A" in PCA?
(a) Against
(b) Assets
(c) Association
(d) Action
(e) Agency

S14. Ans.(d)
Sol. The Reserve Bank of India has initiated prompt corrective action (PCA) on Bank of Maharashtra placing a restriction on the banking activities. This RBI has said that the action is taken on the bank in view of the high level of bad loans. This is the sixth bank to be placed under PCA by the RBI and of this five banks were placed under PCA in the last three months. RBI has initiated PCA on Central Bank of India, IDBI Bank, UCO Bank, Dena Bank and Indian Overseas Bank.

Q15. Which among the following international organisation has cleared a USD 250-million loan for making Indian youth more employable through reskilling, in a move that is seen to aid the Skill India Mission?
(a) Asian Development Bank (ADB)
(b) World Trade Organization (WTO)
(c) Asian Infrastructure Investment Bank (AIIB)
(d) International Monetary Fund (IMF)
(e) World Bank (WB)

S15. Ans.(e)
Sol. The World Bank has cleared a USD 250-million loan for making Indian youth more employable through reskilling, in a move that is seen to aid the Skill India Mission. The multi-lateral lender is keen to support the Indian government in its efforts to better equip the young workforce with employable skills. Under the program, adults in 15-59 years of age, underemployed or unemployed, will get the skill training.

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