SBI Clerk

Banking Awareness Questions for Bank Exams

1. ‘Hryvnia’ is the currency of which country?
a) Ukraine
b) Belgium
c) Holland
d) Germany
e) Russia

2. What is ‘bankruptcy’ in the context of banks?
a) The word “bankruptcy” – a term used to describe the situation when a borrower defaults on repayments to be made
b) It is derived from the Italian term “bancarotta”
c) It also means a “broken bank”, i.e., describing the depositors of a bank breaking the bench or the counter of the teller in the Republic of Genoa when the banker was unable to meet their demands
on deposit withdrawals
d) All the above
e) None of these

3. Which are called as bank’s assets?
a) Loans. The bank makes loans to the individuals and families, assessing their ability to repay the loans, signing appropriate agreements to claim repayments in due course, and attaching the property and other assets as collateral that it can have access to in case the repayments fall through for some reason.
b) CRR
c) SLR

4. In the balance-sheet of a bank, which side liabilities are shown?
a) Liabilities of the bank are shown on the right-hand side of its balance-sheet. They are in the form of deposits that must be repaid when depositors so demand. (Similarly, it has assets, the left-hand side of its balance-sheet, in the form of bank loans that have some fixed points of time at which the bank can command repayments)
b) Top portion
c) Bottom portion
d) Backside
e) None of these

5. What is Bank Liquidity?
a) Lands
b) Bank can save some money purely as a reserve or a buffer to meet the unexpected coincidence in deposit withdrawals. It is called as liquidity. The benefit of such bank liquidity is that it is an impeccable defense as long as withdrawals are smaller than the size of the reserve
c) Buildings
d) Computers
e) None of these

6. How many legacy mandates can be uploaded by sponsor Bank in a single file?
a) 1.0 Lakh records
b) Maximum of 10,000 records can be uploaded in a single file.
c) 2.0 Lakh records
d) 3.0 Lakh records
e) None of these

7. How the legacy mandates will be identified?
a) Legacy mandates are identified through file name which has the keyword “LEGACY”. In case of processing through GUI, UMRN number will have the 5th digit as 9.
c) http
d) TCP
e) IP

8. Who is an issuer Bank for ATM cards?
a) RBI
b) Issuer is the Bank in which the cardholder has his/her account and holds RuPay card issued by the Bank.
d) NHB
e) None of these

9. What is CVD (Card Validation Data)?
a) It is Card Validation Data. It’s a three digit number printed on the back of the card same as CVV as referred to by other international schemes
b) Diskette
c) DOS
e) None of these

10. What is Aadhaar Enabled Payment System?
a) Aadhaar Enabled Payment System is a payment service empowering a bank customer to use Aadhaar as his/her identity to access his/ her respective Aadhaar enabled bank account and perform basic banking transactions like balance enquiry, cash deposit, cash withdrawal, remittances through a Business Correspondent.
b) Distribution of ration items
c) Distribution of school books
d) Collection of funds
e) None of these

11. What is ‘Crowd Funding’?
a) ‘Crowd Funding’ generally refers to a method of funding a project or venture through small amounts of money raised from a large number of people, typically through a portal acting as an intermediary
b) Donations
c) Charity
d) NGO
e) None of these

12. P2P lending is a form of crowd-funding. It is used for which purpose?
a) To raise loans which are paid back with interest.
b) To exchange US dollars
c) To exchange Euros
d) To exchange Japan Yens
e) None of these

13. In which country, the P2P lending industry is the largest in the world with hundreds of platforms offering diverse services but it is not regulated currently?
a) Japan
b) UK
c) China
d) USA
e) Russia

14. What is EbC?
a) Correspondence
b) Equity based Crowd Funding (EbC). It is raising equity through a crowd funding platform
c) Course
d) Co-opeation
e) None of these

15. What is DbC?
a) Debt based Crowd Funding (DbC). It is raising of funds by issuing debentures or debt securities through a crowd funding platform
b) Study
c) Web Platform
d) http
e) TP

16. What is FbC?
a) Tour programme
b) Fund based Crowd Funding (FbC) – raising of funds for pooling under an Alternative Investment Fund (AIF) through a crowd funding platform.
c) Flight chart
d) Sea route
e) None of these

17. What is Interest Rate Risk (IRR)?
a) Insurance
b) Commisison
c) The Interest Rate Risk (IRR) is the risk where changes in market interest rates affect a bank’s financial position.
d) Flow of data
e) None of these

18. When a bank customer shall be liable for the loss occurring due to fraudulent transactions?
a) In cases involving negligence by a customer, such as where he has shared the payment credentials, the customer will bear the entire loss
b) In cases where the responsibility for the unauthorised electronic banking transaction lies neither with the bank nor with the customer
c) Both (a) and (b)
d) When income tax is paid
e) None of these

19. Whether banks can accept interest free deposits?
a) Only in RD account
b) Banks cannot accept interest free deposits other than in current account.
c) Only in FD account
d) Only in FDI account
e) None of these

20. How is the computation of interest on savings bank deposits done by banks?
a) Payment of interest on savings bank accounts by scheduled commercial banks would be calculated on a daily product basis.
b) Yearly basis
c) 2 year basis
d) 3 year basis
e) None of these

21. Net worth of a bank comprise which of the following?
a) Paid-up capital
b) Free Reserves including Share Premium but excluding Revaluation Reserves
c) Investment Fluctuation Reserve and credit balance in Profit & Loss account,
d) All the above
e) None of these

22. Whether banks can sanction bridge loans to companies?
a) Yes. Banks can sanction bridge loans to companies for a period not exceeding one year against the expected equity flows/ issues as also the expected proceeds of non-convertible Debentures, External Commercial Borrowings, Global Depository Receipts and/ or funds in the nature of Foreign Direct Investments, provided the bank is satisfied that the borrowing company has made firm arrangements for raising the aforesaid resources/ funds.
b) No
c) It is only for airports construction
d) It is only for sea ports construction
e) None of these

23. Which of the following re basic banking services?
a) Deposit Accounts (cheque book facility, issue of pass book / statement, ATM Card, Debit Card, stop payment, balance enquiry, account closure, cheque return – inward, signature verification)
b) Loan Accounts (no dues certificate)
c) Remittance facilities (Demand Draft – issue/ cancellation/ revalidation, Payment Order – issue/ cancellation/ revalidation/ duplicate, Telegraphic Transfer – issue/ cancellation/ duplicate,
d) All the above
e) None of these

24. Where Reserve Bank of India maintains the Principal Accounts of Central as well as State Governments?
a) Central Accounts Section, Nagpur
b) Lucknow
c) Patna
d) Bhubaneswar
e) Chennai

25. Which private sector banks authorized branches can act as RBI’s agents to conduct Govt. business?
a) ICICI Bank Ltd.,
b) HDFC Bank Ltd.
c) Axis Bank Ltd
d) Above three only
e) None of these

26. A micro enterprise is an enterprise where investment in plant and machinery does not exceed _____
a) Rs.1 Crores
b) Rs. 25 lakh
c)Rs. 2 Crores
d) Rs.3 Crores
e) None

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