SBI Clerk

Banking Awareness Quiz for IBPS / SBI Clerks

1. The Reserve Bank of India was established on?
a. April 1, 1935 
b. July 12, 1982
c. May 26, 2006     
d. September 30, 2005
2. Who works as RBI’s agent at places where it has no office of its own?
a. State Bank of India 
b. Ministry of Finance
c. Government of India 
d. International Monetary Fund
3. Which of the following is true about the functions performed by RBI?
(i) It is the Bank of Issue
(ii) It acts as banker to the Government
(iii) It is the banker of other banks
(iv) It regulates the flow of credit
a. Both (i) and (ii)      
b. Both (iii) and (iv)
c. All the above         
d. None of the above
4. What does ‘Nomination’ for a deposit account in the bank mean?
a. Mandate given by the close relatives of the depositor to settle the death claim in case of death of the depositor
b. Mandate decided by the bank to settle the death claim of its depositor
c. Mandate of the depositor in favor of one or more persons to claim the amount on death of the depositor
d. Mandate of the depositor in favor of a close relative who can claim the amount on death of the depositor

5. When were the draft guidelines for building grievance red reseal mechanism within NBFCs (Non-Banking Financial Companies) published?
a. April 5, 2006 
b. May 26, 2006
c. June 29, 2007      
d. September 30, 2005
6. Which subsidiary bank was merged with the State Bank of India on August 13,2008?
a. State Bank of Hyderabad 
b. State Bank of Indore
c. State Bank of Mysore 
d. State Bank of Saurashtra
7.When did the government acquire RBI’s share holding (72.5%) in NABARD?
a. May, 2008 
b. June, 2008
c. August, 2008 
d. March, 2009

8. When did the Government of India setup the Export-Import Bank of India?
a. January, 1982 
b. January, 1993
c. March, 1971 
d. June, 1969
9. When did the National Housing Bankstart its operations?
a. July, 1982 
b. July, 1988
c. April, 1980 
d. March, 1971
10.When did the Government initiate the process of amalgamation of RRBs in a phased manner?
a. September, 2005 
b. March, 2009
c. June, 2009 
d. March, 2010
11.When did the Government of India appoint a committee under the chairmanship of Shri M. Narasimham to strengthen the banking system?
a. May, 2006 
b. April, 1998
c. December, 1997      
d. September, 2005
12.Which of the following does not belong to the main products of life insurance?
a. Endowment 
b. Personal accident insurance
c. Term 
d. Whole life
13.Which of the following does not belong to the major general insurance private sector companies in India?
a. Bajaj Allianz General Insurance 
b. Reliance General Insurance
c. Royal Sundaram Alliance Insurance 
d. The Oriental Insurance Company
14.What is a Lease?
a. A rental agreement between owner of a flat/house and the Tenant, whereby the Tenant pays specified amount on specified dates to the owner
b. A legal contract between the owner of an asset and its user, containing many conditions including payment of a specified amount by the user to the Owner for use of the asset
c. Both (1) and (2)
d. None of the above
15.Which of the following are Bank advances of a Bank?
a. Bad debts       
b. Non-performing Assets
c. Out of order accounts 
d. Overdrawn accounts
16.Which of the following are benefited through the Reserve mortgage scheme?
a. Government employees      
b. Minors
c. Senior citizens 
d. All the above
17.What will be the impact if Reserve Bank of India reduces the Bank Rate by 1%?
a. Less liquidity in the market 
b. More liquidity in the market
c. No change in the market liquidity 
d. Mobilisation of more deposits by commercial banks
18.What is the full form of IRR?
a. Internal Rate of Return 
b. Internal Reserve Ratio
c. Internal Rate of Ratio 
d. Internal Recession Rate
19.What does the letter ‘M’ mean in the term SME as used in the financial world?
a. Maximum 
b. Medium
c. Market 
d. Mutual
20.What is the full form of FIMMDA?
a. Fixed Income Money Markets &Derivatives Association
b. Foreign Income Money Markets &Derivatives Association
c. Floating Income Money Markets &Derivatives Association
d. Fixed Income Money Markets &Derivatives Affiliation
21.When did the nationalization of major banks happen?
a. June, 1951 
b. June, 1961
c. June, 1969 
d. July, 1969
22.The main objectives of the Export-Import Bank (EXIM Bank) are to:
(i) ensure an integrated and coordinated approach to solving the problems of exporters
(ii) provide special attention to capital goods export and export of technical services
(iii) tap domestic and overseas markets for resources, undertake development and finance activities in the areas of exports.
(iv) provide financial assistance to the exporters and importers and act as the principal financial institution for coordinating the working of other institutions engaged in financing export sand imports.
(v) provide refinance facilities to commercial banks and financial institutions against their export-import financing activities.
a. both (i) and (ii) 
b. only (iii), (iv), and (v)
c. All the above 
d. None of the above
23.When was Triton Insurance Company Ltd (The first General Insurance Company in India) established?
a. 1834 
b. 1850
c. 1907 
d. 1938
24.What is Factoring?
a. An easy way of raising capital from factoring company by small business
b. Selling of account receivables on a contract basis for cash payment to a factor before it is due
c. An arrangement for raising short term money against prepaid expenses
d. A method of discounting of long term bills
25.Which one of the following is called as initial repayment holiday given to a borrower for repayment of loan?
a. Amortization 
b. Moratorium
c. Subvention 
d. None of the above
26.What is the full form of FSDC?
a. Financial Security and Development Council 
b. Financial Stability and Development Council
c. Financial Security and Development Convention 
d. Fiscal Stability and Development Council
27.Which of the following permit cheque operation?
a. Savings bank accounts and fixed deposit accounts 
b. Current accounts and fixed deposit accounts
c. Savings bank accounts and cash accounts 
d. Savings bank accounts and current accounts
28.Which bank was the sponsor of Prathama Gramin Bank (the first Regional Rural Bank established on 2 October 1975)?
a. Bank of Baroda 
b. Indian Bank
c. Punjab National Bank 
d. Syndicate Bank
29.What does RTGS enable?
a. Immediate transfer of money from customer of one bank to customer of another bank
b. Immediate transfer of money from customer of one bank to customer of another branch within the same bank
c. Immediate transfer of money from customer of one bank to customer of another country
d. Immediate transfer of money from customer of one bank to customer of RBI

30.With whom does the ownership of Public sector banks rest?
a. Wholly with Go I 
b. Jointly with Go I and share-holders from the public
c. Jointly with GoI and SBI 
d. Jointly with GoI and RBI
31.What happens if a cheque is post dated?
a. Bank on whom it is drawn will not honour the cheque before the date of thecheque
b. Bank on whom it is drawn has to honour the cheque before the date of the cheque
c. Bank on whom it is drawn has to refer to RBI to honour the cheque before the date of the cheque
d. Bank on whom it is drawn has to refer to court to honour the cheque before the date of the cheque
32.Who issues ‘Commercial Papers’?
a. A Company to a Bank 
b. Banks to Banks
c. Banks to Companies 
d. Company to its suppliers
33.Which of the following sets up core banking infrastructure for rural banks?
a. IBA 
c. RBI 
34.Who regulates the Mutual Funds in India?
a. FRBI 
d. RBI
35.What do bank customers pay for using safe deposit locker facilities?
a. Commission on locker 
b. Exchange on locker
c. Rent on locker 
d. Safe custody charges
36.What does the letter ‘R’ denote in the abbreviation ‘BR Act’ which controls banking activities in the country?
a. Reclamation 
b. Reformation
c. Regulation 
d. Rule
37.Which is the minimum lending rate decided by RBI which shall be adopted by all Public Sector Banks?
a. Bank rate 
b. Base rate
c. Overnight rate       
d. None of the above
38.What is the cost of credit expressed as a percentage on a yearly basis called?
a. APR
b. APY
c. WPI 
d. None of these

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