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Banking / General / Financial Awareness Quiz for IBPS

1. ‘Startup enterprises’ are permitted to access loans under ECB framework. What are the conditions?
a) The borrowing should be denominated in any freely convertible currency or in Indian Rupees (INR) or a combination thereof.
b) In case of borrowing in INR, the nonresident lender, should mobilise INR through swaps/outright sale undertaken through an AD Category-I bank in India.
c) Both (a) and (b)
d) External Commercial Borrowings not allowed
e) None of these

2. The borrowing per Startup will be limited to how much?
a) USD 3 million or equivalent per financial year either in INR or any convertible foreign currency or a combination of both.
b) Rs.10 Lakhs
c) Rs.50 Lakhs
d) Rs.25 Lakhs
e) None of these

3. What is RDB?
a) Currency
b) Rupee Denominated Bond (They have been allotted loan registration number during the period)
c) Oil
d) Petrol
e) None of these

4. ‘Money Market Instruments’ are as defined in which Act ?
a) SEBI
b) Sub-section (b) of Section 45(U) of the Reserve Bank of India Act 1934.
c) IRDAI
d) PFRDA
e) None

5. Reserve Bank of India, in consultation with Government of India, had placed in public domain MTDS articulated for a period of three years (2015-16 to 2017-18) on December 31, 2015. In the abbreviation MTDS, the letter M stands for what?
a) Model
b) Medium (MTDS: Medium-Term Debt Management Strategy)
c) Most
d) Mutual
e) None

6. What is purpose of the setting up of White Label ATMs (WLA)?
a) To distribute cash to all
b) To distribute coins
c) To bridge the gap in ATM infrastructure particularly in rural and semi urban areas.
d) To distribute share certificates
e) None of these

7. National Automated Clearing House (NACH) started by which of the following?
a) UTI
b) National Payments Corporation of India (NPCI). This is a pan-India system for processing
bulk and repetitive payments and the ECS is gradually being subsumed into NACH.
c) NSE
d) BSE
e) None of these

8. Vision 2018 will continue to focus on which of the following?
a) Agriculture development
b) Industrial development
c) migrating to a “less-cash” and more digital society
d) Rural development
e) None of these

9. CRR is unchanged and kept at what percent of net demand and time liabilities (NDTL)?
a) 6%
b) 4.0 %
c) 2%
d) 7%
e) None

10. Scheduled commercial banks & Scheduled urban co-operative banks are eligible to open and maintain a CSGL account. In the abbreviation CSGL, the letter C stands for what?
a) constituents’ (CSGL: Constituents’ subsidiary general ledger account)
b) Constitution
c) Coastal
d) Crude
e) None of these

11. RBI decided to reduce the minimum daily maintenance of the cash reserve ratio (CRR) from 95 per cent of the requirement to 90 per cent with effect from which date?
a) the fortnight beginning April 16, 2016
b) 1.4.2016
c) 1.1.2016
d) 1.4.2017
e) None of these

12. What is the concept behind credit card?
a) Use now, debit later
b) Buy now, pay later
c) pay now, get credit later
d) Lend now and do not reimburse
e) None of these

13. Who is Banking Ombudsman?
a) He is a Manager
b) He is Security Officer
c) The Banking Ombudsman is a senior official appointed by the Reserve Bank of India to redress customer complaints against deficiency in certain banking services
d) Stock Broker
e) None of these

14. Is there any cost involved in filing complaints with Banking Ombudsman?
a) Yes . Rs.10,000/-
b) Yes. Rs.5,000/-
c) No. The Banking Ombudsman does not charge any fee for filing and resolving customers’
complaints.
d) Yes. Rs.20,000/-
e) None of these

15. Can the Banking Ombudsman reject a complaint at any stage?
a) Yes. When, the compensation sought from the Banking Ombudsman is beyond Rs 10 lakh.
b) No.
c) Yes. When the compensation sought from the Banking Ombudsman is beyond Rs.1.0 Lakh
d) Yes. When the compensation sought from the Banking Ombudsman is beyond Rs.2.0 Lakhs
e) None of these

16. What is the maximum deposit amount insured by the DICGC?
a) Each depositor in a bank is insured upto a maximum of Rs.1,00,000 (Rupees One Lakh) for both principal and interest amount held by him in the same capacity and same right as on the date of liquidation/cancellation of bank’s licence or the date on which the scheme of amalgamation/ merger /reconstruction comes into force.
b) Rs.10.0 Lakhs
c) Rs.20.0 Lakhs
d) Rs.5.0 Lakhs
e) None of these

17. Who pays the cost of deposit insurance?
a) Deposit insurance premium is borne entirely by the insured bank.
b) RBI
c) PFRDAI
d) Government of India
e) None of these

18. The first banknote issued by independent India was the one rupee note issued in which year?
a) 1947
b) 1949
c) 1950
d) 1952
e) None

19. The Reserve Bank, in consultation with Government of India, has decided to conduct a field trial with one billion pieces of ______ banknotes on plastic substrate.
a) Rs.1,000/-
b) Rs.10/-
c) Rs.2,000/-
d) Rs.500/-
e) None of these

20. Which currency notes numerals appear green when the bank notes are held flat but would change to blue when the banknotes are held at an angle?
a) The numeral 500 & 1000 on the? 500 and? 1000 bank notes are printed in Optically Variable Ink viz., a colour-shifting ink.
b) Rs.5/-
c) Rs.2/-
d) Re.1/-
e) None

21. The security thread of the Rs. 1000 bank note contains which of the following?
a) the inscription ‘Bharat’ in the Devanagari script,
b) Rs.1000
c) RBI
d) All the above
e) None of these

22. Investments classified under HTM need not be marked to market and will be carried at acquisition cost, unless it is more than the face value, in which case the premium should be amortised over the period remaining to maturity. Expand the abbreviation HTM?
a) Half to maturity
b) Held to Maturity
c) Hand to maturity
d) Held to Minimum
e) None of these

23. What is Debenture?
a) It is a debt security issued by a company (called the Issuer), which offers to pay interest in lieu of the money borrowed for a certain period. In essence it represents a loan taken by the issuer who pays an agreed rate of interest during the lifetime of the instrument and repays the principal normally,
unless otherwise agreed, on maturity.
b) It is a share
c) It is Government Security
d) It is Deposit
e) None of these

24. What is bond?
a) Long-term debt securities issued by the Government of India or any of the State Government’s or undertakings owned by them or by development financial institutions are called as bonds
b) It is an insurance policy
c) It is a commission receipt
d) It is a discount
e) None of these

25. What is the Coupon rate of the Security?
a) Discount
b) The Coupon rate is simply the interest rate that every debenture/Bond carries on its face value and is fixed at the time of issuance. For example, a 12% p.a coupon rate on a bond/debenture of Rs 100 implies that the investor will receive Rs 12 p.a
c) Allowance
d) Value
e) None of these

26. What are T-Bills?
a) Treasury bills are actually a class of Central Government Securities. Treasury bills, commonly referred to as T-Bills are issued by Government of India against their short term borrowing requirements with maturities ranging between 14 to 364 days.
b) Bills related tea supply
c) Bills related to transaction charges
d) Bills related to State Government transactions
e) None of these

27. What are ‘Gilt edged’ securities?
a) The term government securities encompass all Bonds & T-bills issued by the Central Government, state government. These securities are normally referred to, as “gilt-edged” as repayments of principal
as well as interest are totally secured by sovereign guarantee.
b) Rolled Gold ornaments
c) Pure gold ornaments
d) Gold biscuits
e) None of these

28. ‘Gilt Securities’ are issued by the RBI, the central bank, on behalf of the Government of India. Being sovereign paper, gilt securities carry __________
a) fully risky
b) absolutely no risk of default.
c) prone to losses
d) no interest
e) None of these

29. What are derivatives/ derivative securities?
a) Gold
b) Derivative securities are those whose value depends on the value of another asset (called the underlying asset)
c) Silver articles
d) Diamonds
e) None of these

30. What are securities?
a) Securities are financial instruments that represent a creditor relationship with a corporation
or government. Generally they represent agreements to receive a certain amount depending on the terms contained within the agreement.
b) Guarantees
c) Sureties
d) Currency notes
e) None of these

31. What is CVV2?
a) It is a 3 digit security code
b) CVV2 stands for Card Verification Value 2
c) It is printed on the back of Credit Card at the end of the signature panel
d) All the above
e) None of these

32. Which is called as plastic money?
a) Debit cards, Credit cards and prepaid cards are called as plastic money
b) Notes printed to purchase plastic material
c) Notes printed on PVC material
d) Notes printed in Security Printing Press
e) None of these

33. ‘Universal Banking’ refers which of the following?
a) World Bank
b) to those banks that offer a wide range of financial services, beyond the commercial banking functions like Mutual Funds, Merchant Banking, Factoring, Credit Cards, Retail loans, Housing Finance, Auto loans, Investment banking, Insurance etc
c) IMF
d) Asian Development Bank
e) BRICS Bank

34. A ‘Universal Bank’ is compared to___
a) a superstore for financial products under one roof
b) co-operative bank
c) RRB
d) UCB
e) None of these

35. What is ‘financial literacy’?
a) Financial Awareness includes awareness about money, knowledge and skills to make decisions about savings, investments, borrowings and expenditure in an informedmanner. Financial literacy can lead to financial wisdom, ability to manage money not just deal with it, ability to use skills to
take wise decisions for the future.
b) MBA Education
c) B.Ed., course
d) Computer Course
e) None of these

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