Banking Awareness Questions and answers

1. Reserve Bank of India has already advised banks to review their lending policies to the MSE sector and incorporate provisions for which of the following?
a) Sanctioning of Standby Credit Facility
b) Additional Working Capital Limits
c) Mid Term Review of Regular Working Capital Limits
d) To set timelines for credit decisions
e) All the above
Answer :   E

2. The common forms of alternative finance include which of the following?
a) Crowd-funding
b) Invoice trading
c) Peer-to-peer or marketplace lending
d) Angel investors
e) All the above
Answer :   E

3. What is the maximum limit of amount that is allowed in account in Paytm Payment Bank?
a) Rs.2 Lakhs
b) Rs.5 Lakhs
c) Rs.One Lakh
d) Rs.0.75 Lakhs
e) None of these
Answer :   C

4. Punjab National Bank gets a fund of Rs.500 Crores for Solar Roof Top construction from which bank?
a) African Development Bank
b) Asian Development Bank
c) ECB
d) AIIB
e) NDB
Answer :   B

5. 'V' stands for what in LTV?
a) Virtue
b) Value (Loan to Value)
c) Vote
d) Verify
e) Vault
Answer :   B

6. What is the currency of Maldives?
a) Euro
b) Rufiyaa
c) Pound
d) Dinar
e) Rial
Answer :   B

7. Ease of doing business index is created by whom?
a) WEF
b) UNIDO
c) World Bank Group
d) UNICEF
e) UNESCO
Answer :   C

8. DishaMicrofin gets which type of licence from RBI?
a) NBFC MFI
b) Insurance
c) Social Security
d) Police Security
e) None of these
Answer :   A

9. What is the full form of LAF?
a) Liquidity Adjustment Facility
b) Leave Adjustment Facility
c) Loss Adjustment Facility
d) Late Attendance Facility
e) None of these
Answer :   A

10. T-Wallet is launched by which state?
a) Telangana
b) Gujarat
c) MP
d) Karnataka
e) Kerala
Answer :   A

11. Which is India's first White Label ATM services?
a) Tata Communications Payment Solutions Limited (TCPSL)
b) IPPB Ltd.
c) HDFC Bank
d) ICICI Bank
e) Yes Bank
Answer :   A

12. In the abbreviation NSDL, the letter S stands for what?
a) Social
b) Securities (National
Securities Depository Limited)
c) Science
d) Severe
e) Sense
Answer :   B

13. Which banks cannot take deposits under PMGKY ?
a) Co-operative banks
b) PSBs
c) SBI
d) ICICI Bank
e) None of these
Answer :   A

14. Which of the following is not a money market instrument?
a) Stocks
b) Treasury Bills
c) Commercial Paper
d) Banker's Acceptances
e) None of these
Answer :   A

15. Ping Pay app is from which bank?
a) Axis Bank
b) Bandhan Bank
c) IDFC Bank
d) Kotak Mahindra Bank
e) Indusind Bank
Answer :   A

16. State government's share in RRBs is how much?
a) 50 %
b) 15%
c) 35%
d) 30%
e) 40%
Answer :   B

17. Maximum insurance cover in PMSBY is how much?
a) Rs. 5 Lakhs
b) Rs. 2 Lakhs
c) Rs.10 Lakhs
d) Rs.15 Lakhs
e) None of these
Answer :   B

18. National Automated Clearing House is implemented by whom ?
a) UTI
b) NPCI
c) NHB
d) DICGC
e) NSE
Answer :   B

19. In the abbreviation WIPO, the letter I stands for what?
a) Intellectual
b) Interest
c) Informal
d) Information
e) None of these
Answer :   A

20. In the abbreviation IIN, the letter N stands for what?
a) Number (IIN : Issuer Identification Number)
b) Name
c) Nest
d) Near
e) Neat
Answer :   A

21. Where is the headquarters of HDFC Bank?
a) Mumbai
b) Chennai
c) Bengaluru
d) Kolkata
e) New Delhi
Answer :   A

22. In the abbreviation ASBA, the letter B stands for what?
a) Bank
b) Blocked
c) Before
d) Best
e) Bill
Answer :   B

23. Under 'Stand up India Scheme' SC, ST and Women borrowers may get loans how much?
a) Rs. 10 Lakhs to Rs.100 Lakhs
b) Rs. 150 Lakhs
c) Rs.250 Lakhs
d) Rs.300 lakhs
e) None of these
Answer :   A

24. Which bank recently joined 'Top 50' Banks in the world?
a) SBI
b) PNB
c) Allahabad Bank
d) UCO Bank
e) Vijaya Bank
Answer :   A

25. Where is the headquarters of Ujjivan Small Finances Bank?
a) Bengaluru
b) Kolkata
c) Chennai
d) Trivendrum
e) Kottayam
Answer :   A

26. RBI's maximum denomination printed currency is ______
a) Rs.10,000/-
b) Rs.25,000/-
c) Rs.1,000/-
d) Rs.2,000/-
e) Rs.500/-
Answer :   A

27. Where is the headquarters of Bandhan Bank?
a) Kolkata
b) Kohima
c) Itanagar
d) Imphal
e) Tripura
Answer :   A

28. What is the % of Small Finance Banks to be opened in unbanked rural areas?
a) 25%
b) 5%
c) 2%
d) 10%
e) 15%
Answer :   A

29. Under MUDRA scheme 'Kishore' covering loans above Rs. 50,000 and up to how much?
a) Rs.15 Lakhs
b) Rs. 5 Lakhs
c) Rs.25 Lakhs
d) Rs.30 Lakhs
e) None of these
Answer :   B

30. The capital account (in BoP) comprises which of the following?
a) Credit and debit transactions under non-produced non-financial assets
b) Capital transfers between residents and non-residents.
c) Both (a) & (b)
d) SDRs
e) None of these
Answer :   C

31. Which of the following is correct?
a) The financial account reflects net acquisition and disposal of financial assets and liabilities during a period.
b) The transactions under financial account appear both in the Balance of Payments (BoP) and in the integrated IIP statement owing to their effect on the stock of assets and liabilities
c) Both (a) & (b)
d) One rupee note carries the signature of Governor, RBI
e) None of these
Answer :   C

32. General merchandise covers goods "whose economic ownership is changed between a resident and a non-resident and that are not included in the following specific categories?
a) Goods under merchanting,
b) Non-monetary gold, and.
c) Parts of travel, construction,
d) Government goods and services
e) All the above
Answer :   E

33. Six domestic credit rating agencies have been accredited for the purpose of risk weighting the banks' claims for capital adequacy purposes. What are they?
a) CARE, CRISIL,
b) FITCH India, ICRA,
c) Brickwork Ratings
d) SMERA
e) All the above
Answer :   E

34. Basel III reforms are the response of which of the following, to improve the banking sector's ability to absorb shocks arising from financial and economic stress, whatever the source, thus reducing the risk of spill over from the financial sector to the real economy?
a) Narasimham Committee
b) Basel Committee on Banking Supervision (BCBS)
c) Rangarajan Committee
d) Royal Commission
e) None of these
Answer :   B

35. The Basel III capital regulations continue to be based on three-mutually reinforcing Pillars. What are they?
a) Minimum capital requirements
b) Supervisory review of capital adequacy
c) Market discipline of the Basel II capital adequacy framework
d) All the above
e) None of these
Answer :   D

36. Banks are required to maintain a minimum Pillar 1 Capital to Risk-weighted Assets Ratio (CRAR) of how much on an on-going basis (other than capital conservation buffer and countercyclical capital buffer etc.)?
a) 5%
b) 9%
c) 3%
d) 2%
e) None of these
Answer :   B

37. Which of the following is a Multilateral Development Bank (MDB)?
a) Asian Development Bank
b) African Development Bank
c) European Bank for Reconstruction and Development
d) Caribbean Development Bank
e) All the above
Answer :   E

38. Risk of loss arising from movements in market prices or rates away from the rates or prices set out in a transaction or agreement is called as what?
a) Market risk
b) Interest rate risk
c) Credit risk
d) Basis Risk
e) None of these
Answer :   A

39. "Securities where the intention is to trade by taking advantage of shortterm price / interest rate movements" is known as what?
a) Held for Trading
b) Discount
c) Demat
d) Free trading
e) None of these
Answer :   A

40. "A fund with the purpose of investing in start-up businesses that is perceived to have excellent growth prospects but does not have access to capital markets" is called as what?
a) Mutual Fund
b) Provident Fund
c) 'Venture capital Fund'
d) Growth fund
e) None of these
Answer :   A