Banking Quiz for IBPS Clerk Mains and Canara Bank PO Exam 2018

Dear Aspirants,

Banking Quiz for IBPS Clerk Mains and Canara Bank PO Exam 2018

With the increased competition in the field of banking examinations, it has now become very important to cover up all the sections efficiently. One subject that can help you bagging graceful marks in the minimum time in these examinations is Banking Awareness. Banking Awareness not only helps you deal with the General Awareness Section of Banking Exams but also, the Personal Interview round of Banking Recruitment.

Q1. Securities Appellate Tribunal is a/an __________ established under the provisions of Section 15K of the Securities and Exchange Board of India Act, 1992
(a) Constitutional body
(b) Advisory body
(c) non-statutory body
(d) Statutory body
(e) None of the given options is true

S1. Ans.(d)
Sol. Securities Appellate Tribunal 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.

Q2. Which of the following is a function of SEBI?
(a) to approve by-laws of stock exchanges.
(b) inspect the books of accounts of financial intermediaries.
(c) to require the stock exchange to amend their by-laws.
(d) compel certain companies to list their shares in one or more stock exchanges.
(e) All of the Above

S2. Ans.(e)
Sol. Function of SEBI:
1. To approve by-laws of stock exchanges.
2. Inspect the books of accounts of financial intermediaries.
3. To require the stock exchange to amend their by-laws.
4. Compel certain companies to list their shares in one or more stock exchanges.

Q3. Which of the following services is NOT provided by the post offices in India?
(a) Savings Bank Scheme
(b) Retailing of Mutual Funds
(c) Sale of stamp Papers (Judicial)
(d) Life Insurance cover
(e) Issuance of Demand Drafts

S3. Ans.(e)
Sol. Issuance of Demand Drafts is NOT provided by the post offices in India.

Q4. Credit rating is _______
(a) is used to rate the borrowers while giving advances
(b) is used to work out performance of the employees
(c) is used to calculate the number of excellent audit rated branches
(d) is not used in any bank
(e) is necessary before giving promotion to employees

S4. Ans.(a)
Sol. Credit rating is an analysis of the credit risks associated with a financial instrument or a financial entity. An assessment of the creditworthiness of a borrower with respect to a particular debt or financial obligation.

Q5. Currency swap is an instrument to manage _______
(a) Interest Rate Risk
(b) Currency Risk
(c) Cash flows in different countries
(d) All of the Above
(e) None of the given options is true

S5. Ans.(c)
Sol. A currency swap (or a cross currency swap) is a foreign exchange derivative between two institutions to exchange the principal and/or interest payments of a loan in one currency for equivalent amounts, in net present value terms, in another currency.

Q6. The Aadhaar-Enabled Payment Systems (AEPS) is a bank led model that facilitates banking facilities by allowing transactions at Point of Sale through the Business Correspondent (BC) using the Aadhaar authentication number. Aadhaar enabled basic types of banking do not include-
(a) Balance Enquiry
(b) Cash Withdrawal
(c) Online Payment
(d) Cash Deposit
(e) Aadhaar to Aadhaar funds transfer

S6. Ans.(c)
Sol. Services Offered by AEPS-
1. Balance Enquiry
2. Cash Withdrawal
3. Cash Deposit
4. Aadhaar to Aadhaar Fund Transfer
5. Gateway Authentication Services

Q7. Loans against the security of shares, debentures and bonds should not exceed the limit of Rupees _______________ per individual if the securities are held in dematerialised form.
(a) ten lakhs
(b) five lakhs
(c) thirty lakhs
(d) fifty lakhs
(e) twenty lakhs

S7. Ans.(e)
Sol. Loans against the security of shares, debentures and bonds should not exceed the limit of Rupees ten lakhs per individual if the securities are held in physical form and Rupees twenty lakhs per individual if the securities are held in dematerialised form. Such loans are meant for genuine individual investors, and banks should not support collusive action by a large group of individuals belonging to the same corporate or their inter-connected entities to take multiple loans in order to support particular scrip or stock-broking activities of the connected firms.Such finance should be reckoned as an exposure to capital market.

Q8. The process by which the central bank of a country controls the supply of money in the economy by exercising its control over interest rates in order to maintain price stability and achieve high economic growth is known as?
(a) Economic Policy
(b) Monetary Policy
(c) Fiscal Policy
(d) Credit Policy
(e) Budgetary Policy

S8. Ans.(b)
Sol. Monetary Policy is the process by which monetary authority of a country, generally a central bank controls the supply of money in the economy by exercising its control over interest rates in order to maintain price stability and achieve high economic growth. In India, the central monetary authority is the Reserve Bank of India (RBI) is so designed as to maintain the price stability in the economy.

Q9. Who amongst the following is the regulator in the financial system of the country?
(a) CERC
(b) SEBI
(c) CRISIL
(d) TRAN
(e) None of the given options is true

S9. Ans.(b)
Sol. The financial system in India is regulated by independent regulators in the field of banking, insurance, capital market, commodities market, and pension funds. Example of Financial Regulators: RBI, IRDAI, SEBI, PFRDA.

Q10. Bank Holidays are covered by which of the following?
(a) As per the order of the GOI
(b) As per the order of the IBA
(c) Negotiable Instruments Act
(d) RBI Act
(e) Banking Regulation Act 1949

S10. Ans.(c)
Sol. Bank Holidays are declared by Central/State Governments/ Union Territory under the Negotiable Instruments (NI) Act, 1881.

Q11. The foreign shareholding in the small finance bank would be as per the FDI policy for _______________ as amended from time to time.
(a) Private Sector Banks
(b) Public Sector Banks 
(c) Foreign Sector Banks 
(d) Regional Rural Banks
(e) All of the above

S11. Ans.(a)
Sol. The foreign shareholding in the small finance bank would be as per the Foreign Direct Investment (FDI) policy for private sector banks as amended from time to time.

Q12. The promoter's minimum initial contribution to the paid-up equity capital of such small finance bank shall at least be ---------?
(a) 50 per cent
(b) 40 per cent
(c) 60 per cent
(d) 30 per cent
(e) 20 per cent

S12. Ans.(b)
Sol. The promoter's minimum initial contribution to the paid-up equity capital of such small finance bank shall at least be 40 per cent and gradually brought down to 26 per cent within 12 years from the date of commencement of business of the bank.

Q13. Small Finance Banks will be required to extend ________ of its ANBC to the sectors eligible for classification as priority sector lending (PSL) by the Reserve Bank.
(a) 55%
(b) 35%
(c) 75%
(d) 50%
(e) 10%

S13. Ans.(c)
Sol. The small finance banks will be required to extend 75 per cent of its Adjusted Net Bank Credit (ANBC) to the sectors eligible for classification as priority sector lending (PSL) by the Reserve Bank.

Q14. The small finance bank will be subject to all prudential norms and regulations of RBI as applicable to existing commercial banks including requirement of maintenance of CRR and SLR. What is the present rate of SLR?
(a) 20.75 per cent
(b) 19.75 per cent
(c) 20.25 per cent
(d) 19.50 per cent
(e) 21.25 per cent

S14. Ans.(d)
Sol. The small finance bank will be subject to all prudential norms and regulations of RBI as applicable to existing commercial banks including requirement of maintenance of Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR). No forbearance would be provided for complying with the statutory provisions. Present rate of SLR is 19.50 per cent.

Q15. FDI is an investment made by a company or individual in one country in business interests in another country. FDI stands for-
(a) Foreign Direct Industries
(b) Fully Direct Investment
(c) Foreign Department Investment
(d) Foreign Direct Installment
(e) Foreign Direct Investment

S15. Ans.(e)
Sol. Foreign direct investment (FDI) is an investment made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country, such as ownership or controlling interest in a foreign company.


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