Banking Awareness Questions for IBPS RRBs PO and Clerk Exam 2017

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Banking Awareness for IBPS Exam 2017

Just a month is 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. SMERA Ratings Limited is a full-service Credit Rating Agency, registered with-
(a) ECAI
(b) RBI
(c) SEBI
(d) NSIC
(e) NABARD

S1. Ans.(c)
Sol. SMERA Ratings Limited is a full service Credit Rating Agency, registered with the Securities and Exchange Board of India (SEBI), and accredited by Reserve Bank of India (RBI) as an External Credit Assessment Institution (ECAI), for Bank Loan Ratings under BASEL-II norms. SMERA is empanelled with National Small Industries Corporation (NSIC), the nodal agency of the Ministry of MSME, Government of India to provide SMERA-D&B-NSIC Micro & Small Enterprises Rating for MSEs in India. SMERA has assigned more than 44,000 ratings since inception.

Q2. Which of the following is India’s first Credit Information Company?
(a) CRISIL
(b) CIBIL
(c) SMERA
(d) CERSAI
(e) CARE

S2. Ans.(b)
Sol. Trans Union CIBIL Limited is India’s first Credit Information Company, also commonly referred as a Credit Bureau. It collect and maintain records of individuals’ and non-individuals’ (commercial entities) payments pertaining to loans and credit cards.

Q3. Which of the following is an apex financial institution for housing?
(a) AIFI
(b) NHB
(c) DFI
(d) SIDBI 
(E) NABARD

S3. Ans.(b)
Sol. NHB is an apex financial institution for housing. NHB has been established with an objective to operate as a principal agency to promote housing finance institutions both at local and regional levels.

Q4. NHB is wholly owned by ______
(a) GOI
(b) RBI
(c) SEBI
(d) NABARD
(e) Finance Ministry

S4. Ans.(b)
Sol. NHB is wholly owned by Reserve Bank of India.

Q5. The International Bank for Reconstruction and Development (IBRD) is an international financial institution that offers loans to-
(a) Multinational Banks
(b) Multinational Financial Institutions
(c) Middle-Income Developing Countries
(d) Non-Government Organizations
(e) None of the given options is true

S5. Ans.(c)
Sol. The International Bank for Reconstruction and Development (IBRD) is an international financial institution that offers loans to middle-income developing countries.

Q6. ___________ is an electronic fund transfer system that operates on a Deferred Net Settlement (DNS) basis which settles transactions in batches.
(a) NEFT
(b) RTGS
(c) NPCI
(d) BBPS
(e) IMPS

S6. Ans.(a)
Sol. National Electronics Funds Transfer (NEFT) is an electronic fund transfer system that operates on a Deferred Net Settlement (DNS) basis which settles transactions in batches.

Q7. The Central Office of the Reserve Bank was initially established in Calcutta (now Kolkata) but was permanently moved to Mumbai in-
(a) 1949
(b) 1937
(c) 1943
(d) 1945
(e) 1934

S7. Ans.(b)
Sol. The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. The Central Office of the Reserve Bank was initially established in Calcutta but was permanently moved to Mumbai in 1937.

Q8. The Reserve Bank of India (RBI) is vested with the responsibility of conducting monetary policy. This responsibility is explicitly mandated under which act?
(a) Companies Act, 1956
(b) Negotiable Instruments Act, 1881
(c) Reserve Bank of India Act, 1934
(d) Banking Regulation Act, 1949
(e) None of the given options is true

S8. Ans.(c)
Sol. The Reserve Bank of India (RBI) is vested with the responsibility of conducting monetary policy. This responsibility is explicitly mandated under the Reserve Bank of India Act, 1934.

Q9. A facility under which scheduled commercial banks can borrow the additional amount of overnight money from the Reserve Bank by dipping into their Statutory Liquidity Ratio (SLR). It is called? 
(a) Repo Rate
(b) Reverse Repo Rate
(c) Bank Rate 
(d) Marginal Standing Facility (MSF)
(e) Liquidity Adjustment Facility (LAF)

S9. Ans.(d)
Sol. Marginal Standing Facility (MSF) is a facility under which scheduled commercial banks can borrow additional amount of overnight money from the Reserve Bank by dipping into their Statutory Liquidity Ratio (SLR).

Q10. National Housing Bank (NHB) was set up on ______________ under the National Housing Bank Act, 1987.
(a) 01st July 1956
(b) 02nd October, 1976
(c) 01st January 1934
(d) 21st May 1956
(e) 09th July 1988

S10. Ans.(e)
Sol. The Hon’ble Prime Minister of India, while presenting the Union Budget for 1987-88 on February 28, 1987 announced the decision to establish the National Housing Bank (NHB) as an apex level institution for housing finance. NHB was set up on July 9, 1988 under the National Housing Bank Act, 1987.

Q11. BCSBI was set up to ensure that the common person as a consumer of financial services from the banking Industry is in no way at a disadvantageous position and really gets what he/she has been promised. BCSBI stands for-?
(a) Branch Codes and Standards Board of India
(b) Banking Codes and Stability Board of India
(c) Banking Codes and Standards Bank of Industry
(d) Banking Codes and Society Board of Investment
(e) Banking Codes and Standards Board of India

S11. Ans.(e)
Sol. In November 2003, Reserve Bank of India (RBI) constituted the Committee on Procedures and Performance Audit of Public Services under the Chairmanship of Shri S.S.Tarapore (former Deputy Governor) to address the issues relating to availability of adequate banking services to the common person. Therefore, the Committee recommended setting up of the Banking Codes and Standards Board of India (BCSBI). BCSBI was set up to ensure that the common person as a consumer of financial services from the banking Industry is in no way at a disadvantageous position and really gets what he/she has been promised.

Q12. When was the currency system in India converted into the decimal system?
(a) April 01st 1959
(b) April 01st 1957
(c) April 01st 1955
(d) April 01st 1953
(e) April 01st 1951

S12. Ans.(b)
Sol. The Indian currency system was converted into decimal system by Indian Coinage (Amendment) Act 1955 which brought into force from April 01st 1957.

Q13. Which of the following field Dalal Street in Mumbai is famous?
(a) NABARD
(b) Stock Exchange
(c) RBI
(d) SEBI
(e) Commerce and industry ministry

S13. Ans.(b)
Sol. The Bombay Stock Exchange (BSE) is located at Dalal Street.

Q14. Deposits which can be withdrawn by a customer without notice is called?
(a) Time Deposits
(b) Demand Deposits
(c) Variable Deposits
(d) Low-cost Deposits
(e) None of the given options is true

S14. Ans.(b)
Sol. A deposit of money that can be withdrawn without prior notice is known as Demand Deposits, Ex:- in a current account.

Q15. Which of the following is not e-banking software?
(a) ECS
(b) RTGS
(c) PIPS
(d) NEFT
(e) M-Banking

S15. Ans.(c)
Sol. ECS – Electronic Clearing Service.
RTGS – Real Time Gross Settlement.
NEFT- National Electronics Funds Transfer System.
Mobile banking is a service provided by a bank or other financial institution that allows its customers to conduct financial transactions remotely using a mobile.
PIPS is not an e-banking software.



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