Banking Awareness Questions for NABARD Prelims Exam 2017

Dear Readers,

Banking-Awareness-Questions-for-NABARD-Prelims-Exam-2017

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

Q1. The FATF is an inter-governmental body. FATF stands for-
(a) Financial Action Task Forum
(b) Financial Action Task Fund
(c) Financial Action Time Force
(d) Financial Agency Task Force
(e) Financial Action Task Force

S1. Ans.(e)
Sol. The Financial Action Task Force (FATF) is an inter-governmental body.

Q2. ___________ is used to describe small loans granted to low-income individuals that are excluded from the traditional banking system.
(a) Industries credit
(b) Microcredit
(c) Small credit
(d) Farmer credit
(e) None of the given options is true

S2. Ans.(b)
Sol. Microcredit is used to describe small loans granted to low income individuals that are excluded from the traditional banking system. It is part of the larger microfinance industry, which provides not only credit, but also savings, insurance, and other basic financial services to the poor. The term ‘micro’ stems from the relatively small amounts of money that are being borrowed or saved.

Q3. In which among the following year FATF was established?
(a) 1978
(b) 1982
(c) 1995
(d) 1989
(e) 1962

S3. Ans.(d)
Sol. The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 by the Ministers of its Member jurisdictions.

Q4. Which year was declared as the 'International Year of Microcredit' by United Nations?
(a) 2002
(b) 2009
(c) 2005
(d) 2011
(e) 2000

S4. Ans.(c)
Sol. Year 2005 was declared as the 'International Year of Microcredit' by United Nations.

Q5. The market in which long-term securities such as stocks and bonds are bought and sold is commonly known as-
(a) Bullion Market
(b) Capital Market
(c) Bull Market
(d) Money Market
(e) None of the given options is true

S5. Ans.(b)
Sol. A capital market is a financial market in which long-term debt or equity-backed securities are bought and sold.

Q6. 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

S6. Ans.(d)
Sol. ICICI Bank, the country’s largest private sector bank, announced the launch of EMI (Equated Monthly Installments) 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.

Q7. 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

S7. 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.

Q8. 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

S8. 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

Q9. If 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

S9. Ans.(b)
Sol. A local cheque is issued by a bank in the same city as the payee.

Q10. 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

S10. 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.

Q11. The reserves which can act as liquidity buffer for commercial banks during crisis times are-
(a) Repo Rate
(b) CRR
(c) SLR
(d) Bank Rate
(e) Both (b) and (c)

S11. Ans.(e)
Sol. CRR and SLR is reserves which can act as liquidity buffer for commercial banks during crisis times.

Q12. Money Laundering is-
(a) Conversion of money which is illegally obtained
(b) Conversion of money which is legally obtained
(c) All converted money
(d) All of the above
(e) None of the given options is true

S12. Ans.(a)
Sol. Money laundering is the process of creating the appearance that large amounts of money obtained from serious crimes, such as drug trafficking or terrorist activity (illegally sources) originated from a legitimate source.

Q13. "Good People to grow with" is the slogan of-
(a) Bank of Baroda
(b) Punjab National Bank 
(c) Central Bank of India
(d) Bank of India
(e) Indian Overseas Bank

S13. Ans.(e)
Sol. The slogan of Indian Overseas Bank is "Good People to Grow with".

Q14. Usha Ananthasubramanian is the Managing Director and Chief Executive Officer of-
(a) Bank of Baroda
(b) Allahabad Bank
(c) State Bank of India
(d) Punjab National Bank
(e) Canara Bank

S14. Ans.(b)
Sol. Usha Ananthasubramanian is the Managing Director and Chief Executive Officer of the Allahabad Bank.

Q15. Which Indian Bank's logo contains image of "Dog"-
(a) Vijaya Bank
(b) Dena Bank
(c) Syndicate Bank
(d) Indian Bank
(e) HDFC Bank

S15. Ans.(c)
Sol. Syndicate Bank's logo contains image of "Dog".

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