Banking Awareness Questions for IBPS Clerk Mains 2017

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Banking Awareness Questions for IBPS Clerk Mains 2017
Banking Awareness for IBPS Exam 2017

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

Q1. ___________ is a computerized machine that provides the customers of banks the facility of accessing their account for dispensing cash and to carry out other financial & non-financial transactions without the need to actually visit their bank branch.
(a) Financial Fund
(b) Core Sector
(c) Online Banking
(d) ATM
(e) Net Banking

S1. Ans.(d)
Sol. Automated Teller Machine (ATM) is a computerized machine that provides the customers of banks the facility of accessing their account for dispensing cash and to carry out other financial & non-financial transactions without the need to actually visit their bank branch.

Q2. PIN is the numeric password which is separately mailed/handed over to the customer by the bank while issuing the card. PIN stands for-
(a) Personal Identification Number
(b) Product Identification Number
(c) Payment Identification Number
(d) Permanent Identification Number
(e) Percent Identification Number

S2. Ans.(a)
Sol. Personal Identification Number (PIN) is the numeric password which is separately mailed/handed over to the customer by the bank while issuing the card. Most banks require the customers to change the PIN on the first use. Customer should not disclose PIN to anybody, including to bank officials. Customers should change the PIN at regular intervals.

Q3. What is the meaning of "T" in ATM?
(a) Time
(b) Trade
(c) Teller
(d) Timing
(e) Treat

S3. Ans.(c)
Sol. ATM stands for- Automated Teller Machine.

Q4. What are White Label ATMs (WLAs)?
(a) Owned and operated by non-banks
(b) ATM operators are authorized under Payment & Settlement Systems Act, 2007
(c) WLAs may offer many other services/facilities to bank customers
(d) All of the above
(e) Owned and operated by PSBs

S4. Ans.(d)
Sol. All of the given options are properties of White Label ATMs (WLAs) except Owned and operated by PSBs.

Q5. LTV ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. LTV stands for-
(a) Loan-To-Vehicles
(b) Loan-To-Value
(c) Loan-To-Van
(d) Lease-To-Value
(e) List-To-Value

S5. Ans.(b)
Sol. The loan-to-value (LTV) ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased.

Q6. SEPA Stands for-
(a) Scottish Environment Protection Agency
(b) Single Euro Payments Area
(c) Scottish Environment Protection Area
(d) Single Euro Payments Agency
(e) None of the given options is true

S6. Ans.(b)
Sol. The Single Euro Payments Area (SEPA) is a payment-integration initiative of the European Union for simplification of bank transfers denominated in euro.

Q7. The Definition of ‘Banking’ is given in-
(a) Negotiable Instrument Act, 1881
(b) RBI Act, 1934
(c) The Banking Regulation Act, 1949
(d) Indian Contract Act, 1872
(e) None of the given options is true

S7. Ans.(c)
Sol. As per Section 5(b) of the Banking Regulation Act, 1949 , “banking” means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdraw-able by cheque, draft, order or otherwise.

Q8. Which of the following is governed by the provisions of Section 42 (1) of the Reserve Bank of India Act, 1934?
(a) Bank rate
(b) Reverse Repo Rate
(c) SLR
(d) CRR
(e) MSF

S8. Ans.(d)
Sol. CRR is governed by the provisions of Section 42 (1) of the Reserve Bank of India Act, 1934.

Q9. Spurious coins detected at the counter are sent to-
(a) RBI
(b) GOI
(c) IBRD
(d) Mint
(e) Finance Ministry

S9. Ans.(d)
Sol. when Spurious coins tendered over the counter, it should be cut and handed over to the tenderer. If the tenderer disputes it, the coins should be sent to the mint at his cost, for examination.

Q10. National Sample Survey Organisation (NSSO) is an organization under the-
(a) Ministry of Finance
(b) Ministry of Rural Development
(c) Ministry of Commerce and Industry
(d) Ministry of Electronics and Information Technology
(e) Ministry of Statistics and Programme Implementation

S10. Ans.(e)
Sol. The National Sample Survey Organisation (NSSO), now known as National Sample Survey Office, is an organization under the Ministry of Statistics and Programme Implementation of the Government of India. It is the largest organisation in India conducting regular socio-economic surveys.

Q11. NPA is a loan or an advance where interest and/or installment of principal remain overdue for a period of more than ______ days in respect of a term loan.
(a) 100 days
(b) 30 days
(c) 90 days
(d) 60 days
(e) 120 days

S11. Ans.(c)
Sol. A non ­performing asset (NPA) is a loan or an advance where interest and/or installment of principal remain overdue for a period of more than 90 days in respect of a term loan.

Q12. NPA is a loan or an advance where?
(a) the instalment of principal or interest there on remains overdue for one crop season for long duration crops.
(b) the account remains ‘out of order’ in respect of an Overdraft/Cash Credit (OD/CC).
(c) the instalment of principal or interest there on remains overdue for two crop seasons for short duration crops.
(d) All of the above
(e) None of the above

S12. Ans.(d)
Sol. A non ­performing asset (NPA) is a loan or an advance where;
1. interest and/or installment of principal remain overdue for a period of more than 90 days in respect of a term loan.
2. the account remains ‘out of order’ in respect of an Overdraft/Cash Credit (OD/CC).
3. the bill remains overdue for a period of more than 90 days in the case of bills purchased and discounted.
4. the instalment of principal or interest there on remains overdue for two crop seasons for short duration crops.
5. the instalment of principal or interest there on remains overdue for one crop season for long duration crops.
6. the amount of liquidity facility remains outstanding for more than 90 days, in respect of a securitisation transaction undertaken in terms of guidelines on securitisation dated February 1, 2006.
7. in respect of derivative transactions, the overdue receivables representing positive mark-to-market value of a derivative contract, if these remain unpaid for a period of 90 days from the specified due date for payment.

Q13. The purpose of MUDRA is to provide funding to the non-corporate small business sector through various Last Mile Financial Institutions like-
(a) Banks
(b) NBFCs
(c) MFIs 
(d) All of the above
(e) None of the above

S13. 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.

Q14. MUDRA Bank, a Non Banking Finance Company as MUDRA Ltd has been set up as a subsidiary of............?
(a) SIDBI
(b) IDBI
(c) RBI
(d) NABARD
(e) SBI

S14. Ans.(a)
Sol. MUDRA Bank, a Non Banking Finance Company as MUDRA Ltd has been set up as a subsidiary of SIDBI.

Q15. In which among the following year Asia's first Export Processing Zone (EPZ) was set up?
(a) 1959
(b) 1971
(c) 1965
(d) 1956
(e) 1975

S15. Ans.(c)
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. With a view to overcome the shortcomings experienced on account of the multiplicity of controls and clearances; absence of world-class infrastructure, and an unstable fiscal regime and with a view to attract larger foreign investments in India, the Special Economic Zones (SEZs) Policy was announced in April 2000.


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