Banking Awareness Questions for IBPS RRBs PO and Clerk Mains 2017

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

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

Q1. __________ An asset, including a leased asset, becomes non­ performing when it ceases to generate income for the bank.
(a) NPA
(b) KCC
(c) NPV
(d) GDP
(e) GNP

S1. Ans.(a)
Sol. Non ­performing Assets (NPA) is an asset, including a leased asset, becomes non­ performing when it ceases to generate income for the bank.

Q2. NPA stands for- 
(a) National ­performing Assets 
(b) New ­performing Assets 
(c) Non ­production Assets 
(d) Non ­performing Assembly
(e) Non ­performing Assets

S2. Ans.(e)
Sol. NPA stands for Non ­performing Assets.

Q3. MUDRA is a financial institution has been set up by Government of India for development and refinancing micro-units’ enterprises. What is the meaning of "A" in MUDRA?
(a) Agency
(b) Association
(c) Assembly
(d) Agent
(e) Alert

S3. Ans.(a)
Sol. MUDRA, which stands for Micro Units Development & Refinance Agency Ltd, is a financial institution being set up by Government of India for development and refinancing micro units’ enterprises.

Q4. MUDRA stands for- 
(a) Micro Units Development & Refinance Agent
(b) Midium Units Development & Refinance Association
(c) Micro Units Department & Refinance Agency 
(d) Micro Units Development & Refinance Agency
(e) Micro Unique Development & Refinance Assembly

S4. Ans.(d)
Sol. MUDRA, which stands for Micro Units Development & Refinance Agency Ltd, is a financial institution being set up by Government of India for development and refinancing micro units’ enterprises. It was announced by the Hon’ble Finance Minister while presenting the Union Budget for FY 2016. The purpose of MUDRA is to provide funding to the non-corporate small business sector through various Last Mile Financial Institutions like Banks, NBFCs and MFIs.

Q5. India was one of the first in Asia to recognize the effectiveness of the EPZ model in promoting exports. EPZ stands for-
(a) Export Point Zone
(b) External Processing Zone
(c) Export Production Zone
(d) Export Processing Zone
(e) Export Processing Zonal

S5. Ans.(d)
Sol. India was one of the first in Asia to recognize the effectiveness of the Export Processing Zone (EPZ) model in promoting exports, with Asia's first EPZ set up in Kandla, Gujarat in 1965.

Q6. The concept of insuring deposits kept with banks received attention for the first time in the year ___________ after the banking crises in Bengal. 
(a) 1941
(b) 1933
(c) 1961
(d) 1948
(e) 1919

S6. Ans.(d)
Sol. The concept of insuring deposits kept with banks received attention for the first time in the year 1948 after the banking crises in Bengal. The question came up for reconsideration in the year 1949, but it was decided to hold it in abeyance till the Reserve Bank of India ensured adequate arrangements for inspection of banks. Subsequently, in the year 1950, the Rural Banking Enquiry Committee also supported the concept.

Q7. The Deposit Insurance Corporation (DIC) Bill was introduced in the Parliament on August 21, 1961. After it was passed by the Parliament, the Bill got the assent of the President on December 7, 1961, and the Deposit Insurance Act, 1961 came into force on January 01st-
(a) 1962
(b) 1975
(c) 1956
(d) 1949
(e) 1935

S7. Ans.(a)
Sol. The Deposit Insurance Corporation (DIC) Bill was introduced in the Parliament on August 21, 1961. After it was passed by the Parliament, the Bill got the assent of the President on December 7, 1961 and the Deposit Insurance Act, 1961 came into force on January 1, 1962. The Deposit Insurance Scheme was initially extended to functioning commercial banks only. This included the State Bank of India and its subsidiaries, other commercial banks and the branches of the foreign banks operating in India.

Q8. The Reserve Bank of India was promoted a public limited company on January 14th 1971, named the CGCI. What was the meaning of first "C" in CGCI?
(a) Common
(b) Conclusion
(c) Corporation
(d) Concept
(e) Credit

S8. Ans.(e)
Sol. The Reserve Bank of India also promoted a public limited company on January 14, 1971, named the Credit Guarantee Corporation of India Ltd. (CGCI). The main thrust of the Credit Guarantee Schemes, introduced by the Credit Guarantee Corporation of India Ltd., was aimed at encouraging the commercial banks to cater to the credit needs of the hitherto neglected sectors, particularly the weaker sections of the society engaged in non-industrial activities, by providing guarantee cover to the loans and advances granted by the credit institutions to small and needy borrowers covered under the priority sector.

Q9. The DIC Bill was introduced in the Parliament on August 21st, 1961. What is the meaning of "D" in DIC?
(a) Distance
(b) Development
(c) Deposit
(d) Demand
(e) None of the given options is true

S9. Ans.(c)
Sol. The Deposit Insurance Corporation (DIC) Bill was introduced in the Parliament on August 21, 1961. After it was passed by the Parliament, the Bill got the assent of the President on December 7, 1961 and the Deposit Insurance Act, 1961 came into force on January 1, 1962.

Q10. DICGC stands for- 
(a) Deposit Investment and Credit Guarantee Corporation 
(b) Deposit Insurance and Credit Guarantee Corporation
(c) Deposit Insurance and Credit Guarantee Company 
(d) Demand Insurance and Credit Guarantee Corporation 
(e) Deposit Instalment and Credit Guarantee Corporation

S10. Ans.(b)
Sol. DICGC stands for Deposit Insurance and Credit Guarantee Corporation.

Q11. ______________ is basically charged when a person uses a credit card to obtain cash.
(a) Early Repayment Charge
(b) Redemption Fee
(c) Transaction Fee
(d) Cash Advance Fee
(e) None of the given options is true

S11. Ans.(d)
Sol. A cash advance fee is a charge that a credit card issuer charges a customer for accessing the cash credit line on his or her account, either through an ATM, convenience check or at a bank’s teller window.

Q12. Which is an interest-free period that is to be given by a creditor to the debtor?
(a) Fixed Period
(b) Preset Period
(c) Grace Period
(d) All of the Above
(e) None of the given options is true

S12. Ans.(c)
Sol. The grace period is the provision in most loan and insurance contracts which allows payment to be received for a certain period of time after the actual due date. During this period no late fees will be charged, and the late payment will not result in default or cancellation of the loan.

Q13. ________ is a cheque rather an amount of cheque, which is above the balance available in the account of the payer.
(a) Travellers cheque
(b) Multicity Cheque
(c) Mutilated Cheque
(d) Over Draft
(e) Bad Debts

S13. Ans.(d)
Sol. An overdraft is an extension of credit from a lending institution when an account reaches zero. An overdraft allows the individual to continue withdrawing money even if the account has no funds in it.

Q14. A cheque for a fixed amount that may be cashed or used in payment abroad after endorsement by the holder’s signature is known as ___________
(a) Travellers cheque
(b) Multicity Cheque
(c) Mutilated Cheque
(d) Crossed Cheque
(e) None of the given options is true

S14. Ans.(a)
Sol. Traveller’s cheque is a medium of exchange that can be used in place of hard currency. Traveller’s cheques are often used by individuals travelling on vacation to foreign countries.

Q15. Which of the following is not a measure of the Risk Management in Banks?
(a) CRR
(b) RTGS
(c) SLR
(d) Deposit Insurance
(e) None of the given options is true

S15. Ans.(b)
Sol. Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with the RBI. Statutory liquidity ratio (SLR) is the Indian government term for reserve requirement that the commercial banks in India require to maintain in the form of gold, government approved securities before providing credit to the customers. Deposit insurance is mandatory, and pays claims from a pool of funds to which every depository institution regularly contributes.


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