SBI Clerk

Banking Awareness Quiz for IBPS / SBI Clerks

1. Negoatiable Instruments Act, 1881 came into force w.e.f. _____
a) 1947
b) 1.3.1882
c) 1.4.1935
d) 1.1.1949
e) None

2. What is ‘Negotiability’?
a) The instrument is freely transferable by delivery if it is payable to bearer and by endorsement and delivery if it is payable to order
b) A person (i.e.,) transferee) taking the instrument bonafide for value (known as holder in due course) gets an absolute title to the instrument notwithstanding any defect in the title of the transferor or any prior party
c) Bargaining
d) Both (a) and (b)
e) None of these

3. Current account should not be opened in the name of whom ?
a) Blind persons
b) minors to be operated by himself/herself
c) illiterates except in exceptional circumstances
d) minors to be operated by guardian without obtaining an indemnity from the guardian
e) All the above 

4. All cheques/drafts of Rs.25,000/- and above should be examined under which lamp before effecting payment ?
a) Kerosene lamp
b) ultra violet lamp 
c) Magic lamp
d) Street lamp
e) None

5. Issuance of rupee denominated bonds overseas (Masala Bonds) by banks as AT1 and T2 capital and under the framework of incentivising issuance of long term bonds by banks for financing infrastructure and affordable housing. What is AT1 and T2 ?
a) Timer
b) Additional Tier I capital and Tier II capital, 
c) ATM
d) Locker
e) None of these

6. The Reserve Bank of India (the Bank), exempted which category non-banking financial companies from certain provisions of the Reserve Bank of India Act, 1934 (the RBI Act, 1934)?
a) Housing Finance Institutions (i.e. a non-banking financial company which is a housing finance institution as defined in section 2(d) of the National Housing Bank Act, 1987)
b) UTI
c) HDFC Bank
d) ICICI Bank
e) None of these

7. New players have entered the MSME lending landscape in form of P2P companies.. What is P2P?
a) Payment to Payment
b) Peer to Peer 
c) Press to Press
d) Pure to Pure
e) None

8. Two new universal banks have started operations while in-principle approval has been granted to 10 entities to set up Small Finance Banks that would primarily focus on lending to unserved and underserved sections including whom?
a) small business units,
b) small and marginal farmers,
c) micro and small industries
d) unorganized sector entities
e) All the above 

9. In the abbreviation IRAC, the letter I stands for what?
a) Income [IRAC: income recognition & asset classification (IRAC) norms]
b) Insurance
c) Instant
d) Information
e) None of these

10. Post-reform years (after 1991) saw several far-reaching reforms in banking industry also. A few of these include which of the following?
a) Deregulation of credit processes and interest rate structures
b) Introduction of prudential IRAC norms
c) Licensing of banks in the private sector/ part divestment in PSBs
d) Migration to CBS; VRS (year 2001); Gradual reduction in pre-emptions

e) All the above

11. Financial innovation is sometimes seen in a bleak light as a way to evade or avoid taxes and regulations. Give Examples of financial innovation?

a) interest rate futures
b) Inflation Indexed Bonds (IIBs) tied to the Wholesale Price Index (WPI)
c) tax-protected Gold Monetization Bonds
d) All the above 
e) None of these

12. The first issuesof ‘Masala Bonds’ reflect a coming of age of Indian debt that has been insufficiently remarked upon – for the first time in recent decades. Masala Bonds are issued in which currency denomination?
a) Indian Rupees 
b) Yuan
c) Ringgit
d) Dong
e) Dinar

13. RBI has asked the banks not to insist on collateral in case of loans up to how much amount extended to units in the MSE sector?
a) Rs.5 Lakhs
b) Rs 10 lakh 
c) Rs.3 Lakhs
d) Rs. 2 Lakhs
e) None

14. The 4th All India survey of MSMEs states that close to how much of MSMEs are dependent on informal sources, which by any standards is a worrisome figure?
b) 20%
c) 90 per cent 
d) 40%
e) None of these

15. “Asset Finance Company” means any com pany which is a financial institution carrying on as its principal business the financing of physical assets supporting productive/economic activity, such as_____.
a) automobiles, tractors, lathe machines, generator sets,
b) earth moving and material handling equipments
c) moving on own power
d) general purpose industrial machines
e) All the above 

16. A banker should not certify any cheque as “Good for Payment”. Instead he should advise the customer to take a _______
a) Banker’s Cheque 
b) Cash
c) Gold
d) Silver
e) None of these
17. A person appointed by the Testator to administer his estate as per his will is called
a) Administrator
b) Testatee
c) Parcener
d) Arbitrator
e) Executor

18. According to MSME Ministry’s Annual Report for 2015-16, MSME sector in India today is a network of 51 million enterprises providing employment to how many persons and contributing 37.5 per cent of India’s GDP?
a) 117.1 million (The development of this sector is, therefore, crucial in generating significant levels of employment across the country, more so since we have a large young and educated population which is on lookout for employment.) 
b) 100 million
c) 90 million
d) 40 million
e) None of these

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