SBI Clerk

Banking Knowledge / Financial Awareness Quiz for IBPS

1. “Infrastructure” would include which sectors?
a) power, roads, highways, bridges
b) ports, airports, rail system, water supply, irrigation, sanitation and sewerage system
c) telecommunication, housing
d) industrial park or any other public facility of a similar nature as may be notified by CBDT in the Gazette from time to time
e) All the above (The coverage under “infrastructure “would be the same as defined under Section 10 (23 G) of the Income Tax Act, 1961)

2. Which of the following is correct?
a) NEFT : National electronic funds transfer
b) CTS :Cheque truncation system
c) IMPS : Immediate payment service
d) NACH : National automated clearing house
e) All the above

3. Process of verifying identity of an individual, device, or process. Authenticati on typically occurs through the use of one or more authentication factors
a) Something you know, such as a password or passphrase
b) Something you have, such as a token device or smart card
c) Something you are, such as a biometric
d) All the above e) None of these

4. What is ‘Card Skimming’? Give details?
a) It is the illegal copying of information from the magnetic strip of a credit or ATM card.
b) It is a more direct version of a phishing scam. The scammers try to steal your details so they can access your accounts.
c) Once scammers have skimmed your card, they can create a fake or ‘cloned’ card with your details on it. The scammer is then able to run up charges on your account.
d) Card skimming is also a way for scammers to steal your identity (your personal details) and use it to commit identity fraud. By stealing your personal details and account numbers the scammer may be able to borrow money or take out loans in your name
e) All the above

5. What is ‘Network Eavesdropping’? Give details.
a) It is also known as ‘Network Sniffing’. It is a network layer attack consisting of capturing packets from the network transmitted by others’ computers and reading the data content in search of sensitive information like passwords, pin, session tokens, or any kind of confidential information.
b) The attack could be done using tools called network sniffers.
c) These tools collect packets on the network and, depending on the quality of the tool, analyze the collected data like protocol decoders or stream reassembling.
d) All the above
e) None of these

6. What is used for authentication and/or authorization during payment transactions using the cards?
a) cash
b) Data encoded in the magnetic stripe or chip
c) cheques
d) DDs
e) None of these

7. RSA public key technology. In the abbeviation RSA, three inventors names are there. Who are they?
a) Rivest
b) Shamir
c) Adleman
d) All the above. (inventors of the RSA crypto system)
e) None of these

8. ECBs (External Commercial Borrowings) can be raised as what ?
a) Loans, ex: bank loans, loans from equity holder, etc.
b) Capital market instruments
c) Buyers’ credit / suppliers’ credit
d) Financial lease
e) All the above

9. What is FCCB? Give details
a) A foreign currency convertible bond (FCCB)
b) It is a type of corporate bond issued by an Indian company in an overseas market in a currency different from that of the issuer.
c) Investors have the option of redeeming their investment on maturity or converting the bonds into equity any time during the currency of the bond
d) All the above e) None of these

10. Fully KYC compliant account holders (under PMJDY) may be allowed to withdraw how much from their account, in a month?
a) Rs.1,000/-
b) Rs.10,000/- (The branch managers may allow further withdrawals beyond Rs.10,000 within the current applicable limits only after ascertaining the genuineness of such withdrawals and duly documenting the same on bank’s record)
c) Rs.5,000/-
d) Rs.2,500/-
e) None

11. Which of the following is correct about Sovereign Gold Bonds (SGBs)?
a) The quantity of gold for which the investor pays is protected, since he receives the ongoing market price at the time of redemption/ premature redemption. The SGB offers a superior alternative to
holding gold in physical form. The risks and costs of storage are eliminated
b) Investors are assured of the market value of gold at the time of maturity and periodical interest
c) SGB is free from issues like making charges and purity in the case of gold in Jewellery form.
d) The bonds are held in the books of the RBI or in demat form eliminating risk of loss of scrip etc.
e) All the above

12. Where the Sovereign Gold Bonds are tradable ?
a) Gold Shop
b) Super markets
c) Stock Exchanges from the date to be notified by RBI
d) Any shop
e) None of these

13. How the security thread on the Indian currency notes can also be generally felt by blind people?
a) fingers (The security thread may sometimes have a small gap in some genuine notes, i.e. may appear broken, and need not cause suspicion)
b) cell phone
c) smart phone
d) credit cards
e) None of these

14. Which type of paper is used for currency notes printing& what is the speciality of it?
a) Tissue paper
b) The paper of all genuine notes is superior rag paper. When the note is new, it has a distinct crackle. The crackle, however, is reduced in humid atmosphere and as the note becomes soiled due to circulation
c) craft paper
d) drawing paper
e) None of these

15. At least 80% of the lockers shall be allotted by the bank branches on which basis?
a) first come first served basis (The remaining lockers could be allotted by the branch managers at their discretion to valued customers on business considerations.)
b) only for rich people
c) only for women
d) only for minors
e) None of these

16. The Reserve Bank of India proposed to conduct an auction of 35 days Government of India Cash Management Bills under the Market Stabilisation Scheme (MSS) for a notified amount of Rs. 60,000 crore using which method?
a) “Multiple Price Auction” method
b) whole sale
c) retail
d) single lot
e) None of these

17. Government of India notified the sale of “Government of India Treasury Bills” on auction basis. The bills will be issued in which form?
a) Promissory Note/ Credit to Subsidiary General Ledger (S.G.L.) Account
b) Cash Memo
c) Invoice
d) DDs
e) None of these

18. Card Present (CP) Transactions (transactions at ATM and PoS delivery channels) constitute the major proportion of card based transactions in the country. In the abbreviation PoS, the letter P stands for what?
a) Point (PoS: Point of Sales)
b) Paint
c) Personal
d) Professional
e) None

19. A majority of the cards issued by banks in India are which type?
a) paper
b) ‘Magstripe’ cards. The data stored on such cards are vulnerable to skimming and cloning.
c) rubber
d) metal
e) None of these

20. What is BIN? Give details.
a) Bank Identification Number
b) First 6 digits of the card number
c) It is updated on the PoS terminal
d) All the above e) None of these

21. What is EMV ?
a) EUROPAY(EPI), MasterCard (MCI) and Visa
b) The EMV standards were started by a working group created in 1993
c) It is started by the world’s three mainstream payment organizations: EUROPAY (EPI), MasterCard (MCI) and Visa.
d) The name EMV is derived from the first letter of each of these three organizations
e) All the above

22. The Reserve Bank of India will issue Rs. 50 denomination banknotes in the Mahatma Gandhi Series-2005, bearing signature of Dr. Urjit R Patel, Governor, Reserve Bank of India, and the year of printing ‘2016’ printed on the reverse of the banknote. On this which of the following is correct?
a) without inset letter in both the number panels
b) square-shaped identification mark on the
left of the banknote has been removed.
c) without any raised printing
d) All the above e) None of these

23. The Reserve Bank of India will issue Rs. 20 denomination banknotes in the Mahatma Gandhi Series-2005, bearing signature of Dr. Urjit R Patel, Governor, Reserve Bank of India, and the year of printing ‘2016’ printed on the reverse of the banknote. It will have which English letter in both the number panels ?
a) B
b) with inset letter ‘L’
c) A
d) F
e) K

24. The Currency Note Press, Nashik Road (Maharashtra State) is one of the nine units under the “Security Printing and Minting Corporation of India Ltd.” (SPMCIL). Which of the following is correct?
a) a Mini Ratna Category-I, Central Public Sector Enterprise Company,
b) a wholly owned company of Government of India, incorporated on 13.01.2006 under the companies Act, 1956
c) Its objectives are designing, manufacturing of currency and bank notes, nonjudicial stamp papers etc.
d) All the above
e) None of these

25. The Reserve Bank has been receiving requests from certain segments of the industry for reviewing the requirement of AFA for low value online CNP transactions. In the abbreviation CNP, the letter C stands for what?
a) Cash
b) Card (CNP:Card Not Present)
c) Cushion
d) Cluster
e) None of these

26. Who is DP in the context of stock market business?
a) “Depository Participant” means a person registered under sub-section (1A) of section
12 of the Securities and Exchange Board of India Act, 1992
b) Debt participant
c) Doubt promoter
d) Direct participant
e) None of these

27. Who is called as Financial information provider?
a) means bank, banking company, nonbanking financial company,
b) asset management company, depository,
c) depository participant, insurance company,
d) insurance repository, pension fund and such other entity as may be identified by the Bank
e) All the above

28. Cheque Collection Policycovers which aspects?
a) Immediate Credit for Local / Outstation cheques
b) Time frame for Collection of Local / Outstation Instruments
c) Interest payment for delayed collection
d) All the above
e) None of these

29. Banks are advised to offer a ‘Basic Savings Bank Deposit Account’ which will offer following minimum common facilities to all their customers including which of the following?
a) Considered a normal banking service available to all.
b) This account shall not have the requirement of any minimum balance.
c) The services available in the account will include deposit and withdrawal of cash at bank branch as well as ATMs;
d) receipt / credit of money through electronic payment channels or by means of deposit / collection of cheques drawn by Central / State Government agencies and departments.
e) All the above

30. In the abbreviation CFT, the letter C stands for what ?
a) Cash
b) Combating (CFT:Combating of Financing of Terrorism)
c) common
d) currency e) None of these

31. MICR code is necessary for all Electro nic Clearing Service (ECS – Credit and Debit) transactions. In the abbreviation MICR, the lette M stands for what?
a) Magnetic (MICR: Magnetic Ink Character Recognition)
b) Money
c) Management
d) Most
e) None of these

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