SBI Clerk

Banking Knowledge / Financial Awareness Quiz for Bank PO’s / SBI Clerks

1. The new Rs. 500 banknotes are different from the earlier specified bank note (SBN) series in colour, size, theme, location of security features and design elements; which of the following principal features are correct?
a) The size is 66mm x150mm
b) The colour is stone grey
c) Red Fort image of Indian heritage site with Indian flag on the reverse
d) All the above
e) None of these

2. What is proof of identity to exchange demonetized notes?
a) Aadhaar Card
b) Driving License
c) Voter ID Card,
d) Pass Port, NREGA Card, PAN Card,  Identity Card
e) Any one of the above

3. “Banking company” is definedwhere?
a) in Section 5(c) of the Banking Regulation Act, 1949 (Act 10 of 1949)
b) Indian Contract Act
c) Indian Evidence Act
d) Negotiable Instruments Act
e) None

4. “doubtful asset” means 
a) property in losses
b) an asset which remains a sub-standard asset for a period exceeding 12 months
c) money expected
d) money in metals
e) None of these

5. “Hybrid debt capital instrument” means 
a) Thermometer
b) Barometer
c) capital instrument which possesses certain characteristics of equity as well as of debt
d) electrical board
e) None of these

6. “Tier-I Capital” means 
a) owned fund as reduced by investment in   shares of other non-banking financial companies
and in shares, debentures, bonds, outstanding loans and advances including hire purchase and lease finance made to and deposits with subsidiaries and companies in the same group exceeding, in aggregate, ten per cent of the owned fund
b) money kept in capital city
c) money for raw material purchasing
d) money for petrol purchasing
e) None of these

7. “Tier II Capital” includes which of the following ?
a) preference shares;
b) revaluation reserves at discounted rate of fifty five percent;
c) general provisions and loss reserves to the extent these are not attributable to actual diminution in value or identifiable potential loss in any specific asset and are available to meet unexpected losses and provisions made on standard assets, to the extent of one and one fourth percent of risk
weighted assets;
d) hybrid debt capital instruments; andsubordinated debt,
e) All the above

8. Where Money changers are operating?
a) villages
b) at International airports
c) hamlets
d) forest areas
e) None

9. BSR Code number of the bank branch has how many digits?
a) four
b) 7 digits
c) 12
d) 10
e) None

10. In the abbreviation OLTAS, the letter T stands for what?
a) Time
b) Tax : (OLTAS : On-line Tax Accounting System )
c) Toll
d) Total
e) None

11. Automated Teller Machines (ATMs)  have gained prominence as a delivery channel for banking transactions in India. The ceiling / cap on customer charges of per transaction (plus service tax, if any) was how much, earlier?
a) RS.5/-
b) Rs.20/-
c)Rs. 100/-
d) Rs. 200/-
e) None of these

12. The ATMs in India may resume functioning from November 11, 2016 upon their recalibration to dispense bank notes. What is recalibration?
a) Necessary changes to suits bank notes size
b) giving freely
c) getting easily
d) payments as donation
e) None of these

13. It has become necessary to re-calibrate  all ATMs/ Cash handling machines to  dispense the new design notes following introduction of Mahatma Gandhi (New) Series Banknotes including a new High Denomination (Rs. 2000) in new designs. Who is the chairman of the Task Force ?
a) S.S.Mundra, Dy. Governor, RBI
b) Ratan Tata
c) NusliWadia
d) Cyrus Mistry
e) None of these

14. When RBI Act was passed?
a) 1934
b) 1935
e) None

15. Re-calibration of ATMs involves multiple agencies. Who are they?
a) banks, ATM manufacturers
b) National Payment Corporation of India (NPCI)
c) Switch Operators
d) All the above
e) None of these

16. In olden days, which was treated as ?money?? Later, the governments issued coins made of these precious metals as money; still later, the paper money, the currency, became the norm as the money. Thus people settled their economic transactions by paying in currency notes and coins.
a) Iron
b) precious metals like gold and silver
c) Aluminium
d) Uranium
e) Coal

17. The World Bank in July, 2010 estimated the size of the shadow economy for India at _____ of the GDP in 1999.
a) 20.7%
b) 23.2%
c) 30%
d) 45%
e) None

18. In the last two years, the Government has taken a number of steps to curb the menace of black money in the economy including setting up of which of the following?
a) a Special Investigation Team (SIT)
b) enacting a law regarding undisclosed foreign income and assets
c) demonetization
d) All the above
e) None of these

19. Which of the following latest suggestions to control black money / shadow economy?
a) encouraging the use of non-cash and digital payments;
b) amending the Benami Transactions Act;
c) implementing the Income Declaration Scheme 2016
d) All the above
e) None of these

20. On which of the following no restriction on the use of any non-cash method of operating the account?
a) cheques, demand drafts,.
b) credit/debit cards,
c) mobile wallets
d) electronic fund transfer mechanisms
e) All the above

21. The term ?tax haven? has been widely used since the 1950s. What is tax heaven?
a) income tax to be paid at 100%
b) The OECD initially defined tax havens as being characterised by no or very low taxes, lack of effective exchange of information, and lack of transparency about substantial activities.
c) No private property
d) All property in the name of government
e) None of these

22. A Participatory Note (PN) is what? It is issued in foreign jurisdictions, by a Foreign Institutional Investor (FII) / its sub-accounts or one of its associates, against underlying Indian securities. PN?s are popular among foreign investors since they allow these investors to earn returns on investment in the Indian market without undergoing the significant cost and time implications of directly investing in India.
a) derivative instrument
b) share certificate
c) debenture
d) bond
e) None of these

23. The Direct Taxes Enquiry Committee followed the method adopted by Kaldor with some modifications. It estimated assessable non-salary income for the year 1961-62 at Rs. 2686 crore and non-salary income actually assessed to tax to be of the order of Rs. 1875 crore. Which Committee studied black money in India ?
a) Wanchoo Committee
b) Kelkar committee
c) YV Reddy committee
d) Rajan committee
e) None of these

24. NIPFP Study on Black Economy in India: The NIPFP conducted a study under the guidance of Dr S. Acharya (1985). In the abbreviation NIPFP, the letter F stands for what?
a) Finance (NIPFP:National Institute of  Public Finance and Policy)
b) Free
c) Floating
d) Flex
e) None

25. Which of the following are there to control black money in India?
a) Enforcement Directorate (ED),
b) Financial Intelligence Unit (FIU),
c) Economic Offences Wing of the State Police, Central Bureau of Investigation (CBI), Serious Frauds Investigation Office (SFIO), and
d) Narcotics Control Bureau
e) All the above

26. The fight against the monstrosity of black money has to be at which level?
a) ethical level
b) socio-economic level
c) administrative level
d) All the above
e) None of these

27. The Consumer Protection Act, defines the rights of consumers in India and is applicable to banking services as well. Currently, the rights and liabilities of customers availing of mobile banking services are being determined by bilateral agreements between the banks and customers. Which this act approved ?
a) 1986
b) 1976
c) 1977
d) 1991
e) None

28. How mobile transactions are protected?
a) Establishing data file and system integrity checking, surveillance and incident response procedures
b) containment procedures
c) proper firewalls,
d) intruder detection systems (IDS),
e) All the above

29. If a currency note has slogans and message of a political nature written across it. What happens?
a) it ceases to be a legal tender and the claim on such a note will be rejected
b) respected
c) accepted
d) exchanged
e) sent to RBI

30. “Call Money” means deals in which type of funds ?
a) overnight funds
b) five year funds
c) 10 year funds
d) 3 year funds
e) None of these

31. “Notice Money” means deals in which type of funds?
a) overnight funds
b) 2 – 14 days
c) six months
d) three months
e) None

32. “Term Money” means deals in which type of funds funds?
a) 15 days-1 year
b) 2 years
c) four years
d) five years
e) None

33. National Minorities Development and Finance Corporation (NMDFC) was established in which yearto promote economic and developmental activities for the backward sections amongst the minorities?
a) 2014
b) 2015
c) September, 1994
d) 1976
e) 1973

34. In the abbreviation OBE, the letter B stands for what?
a) Balance (OBE: Off-Balance Sheet Exposures)
b) Bill
c) Benefit
d) Buyer
e) None

35. Every 1 rupee rise in the dollar-rupee rate would costs us (i.e.,India) more in import costs. It amounts to how much ?
a) Rs. 1 crore
b) Rs. 40,000 crores
c) Rs. 50,000
d) Rs.10,000
e) Rs.1000/-

36. IFCI Statutory Corporation established in which year under an Act of Parliament?
a) 1948
b) 1947
c) 1949
d) 1950
e) 1952

37. Keyman Insurance Policyis given to whom?
a) A life insurance policy taken by a person on the life of another person who is or was his employee/connected to his business in any manner whatsoever
b) Postman
c) Watchman
d) Security Guards
e) None of these

38. Vesting Age refers to what?
a) Youth
b) The age at which the receipt of pension starts in an insurance-cum-pension plan
c) Boyhood
d) Adult
e) None of these

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