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BANKING GENERAL AWARENESS


BANKING GENERAL AWARENESS


1. What are the main functions of RBI?
(I). Issuing notes
(Ii). Government banker
(Iii). Banker bank
(Iv). Bank supervision
A. Only (i)
B. Both (ii) and (iii)
C. Both (iii) and (iv)
D. all of this.
Answer: Option D
the explanation:
The Reserve Bank of India (RBI) is the highest banking authority of India. All public and private sector banks or any financial institution in India are regulated by the RBI.
RBI is responsible for issue, exchange or destruction of currency.
RBI acts as a merchant banker for central and state government. RBI maintains all the banking accounts of scheduled banks.
RBI operates all financial and banking operations in India.

2. In India, microfinance development and equity funds are maintained-
A Small Industries Development Bank of India (SIDBI)
B RBI (Reserve Bank of India).
C. NABARD (National Bank for Agriculture and Rural Development)
D-CII (Association of industries in India).
Answer: Option A
the explanation:Small Industries Development Bank of India (SIDBI) was established on April 2, 1990. Its headquarter is in Lucknow, Uttar Pradesh, India. SIDBI is playing a role in the development and development of Micro, Small and Medium Enterprises (MSME).

3. How is the decision of the following rate by the Reserve Bank of India (RBI), which is called "Policy Rate"?
A Cash Reserve Ratio
B loan rate
C bank rate
D. Deposit rate

Answer: Option A
the explanation:
The cash reserve ratio (CRR) is the money that all Scheduled Banks have to maintain with the Reserve Bank of India (RBI), India's highest banking authority. Extract excess funds from RBI-determined banks by increasing CRR.
Example: Suppose CRR is 5%. One person / customer Rs. Opens a savings bank account with 10,000 in State Bank of India So now the State Bank of India will get Rs. According to the CRR rate, the Reserve Bank of India (RBI)
5% of 10,000 = 500 (CRR = 5%)

4. According to the newspaper report, one of the major public sector banks sold their RS. 500 crore loan to IIFCL (India Infrastructure Finance Company Limited) This type of loan is popularly known in the banking sector,
A Teaser Rate Financing
B Tech-Out Financing.
C Infrastructure Financing
D Development Funding

Answer: Option B
the explanation:
Take-out financing is a type of long-term financing by banks. Like 15-20 years. It is also called a 'take-out loan'. Generally, take-out financing is used for real estate and business purposes.

5. The KFW Group released another installment of its financial assistance to India. 'KFW' is an organization / bank base;
A France
B japan
C Germany
D China
Answer: Option C
the explanation:
'KFW' is the financial and banking group of Germany. It is a government owned group / bank established in 1948. It has its headquarters in Frankfurt, Germany.

6. Retail banking refers to settlement of commercial banks with individual customers,
(i) Liabilities
(ii) Assets
A. Only me
B only ii.
C. I and II both.
D. None of these.

Answer: Option C
the explanation:
Retail banking is a banking system where banks (basically large commercial banks) are directly related to customers.
Like retail banking services offered; Savings Account, Checking / Transactional Account, Debit Card, Credit Card, Personal Loan, Mortgage, Deposit Certificate and etc.

7. Bulk banking is also called,
(i) Corporate Banking
(ii) Commercial Banking
A. Only me
B only ii.
C. I and II both.
D. None of these.

Answer: Option C
the explanation:
Bulk Banking is a merchant bank services to other banks and financial institutions (large corporate clients, real estate developers, etc.).
Where retail banking is banking with small individual customers.

8. In relation to wholesale banking, 'term landing' is one,
(i) Fund based services.
(ii) Non-fund based services.
A. Only me
B only ii.
C. I and II both.
D. None of these.
Answer: Option B

9. The meaning of DTL in banking means;
A. Expansion time limit
B. Demand and time limit
C Demand and Time Liabilities.
D. None of these.
Answer: Option C

10. Cash Reserve Ratio (CRR) means,
A cash is required to keep all banks with RBI.
B. A few percent of the DTL of all the banks.
C. Both A and B
D. None of these.
Answer: Option C
the explanation:
Cash Reserve Ratio (CRR) is the money that all Scheduled Banks should maintain with RBI.
Example: Suppose CRR is 4%. Opens a bank account with a bank. 5000 in SBI So now SBI gets Rs. According to the CRR rate, the RBI will get Rs 200.
5000 = 4% of 200

11. The purpose of SLR (statutory liquidity ratio) is / are;
a. To limit the expansion of bank credit.
To increase the investment of banks in B-approved securities.
C. To ensure the salvability of banks.
D. all of this.

Answer: Option D
the explanation:
SLR or statutory liquidity ratio is the amount that all commercial banks have.

13. What are the commodities given to subsidies to farmers or poor people in India?
A fertilizer
B kerosene
C LPG
D. all of this.

Answer: Option D

14. Financial inclusion or inclusive financing means-
A. Food at low cost.
B. Financial Services (Payment, Remittance, Savings, Loans, Insurance and etc.) at affordable cost for those deprived and low-income areas / segments of the society, where these services are not cheap or available.
C.Only free financial education for poor people is free financial education.
D. None of these.

Answer: Option B
the explanation:
Financial inclusion, also known as inclusive financing, is distributing various financial services to poor or deprived areas of society.


15. If the rate of inflation increases-
A. Purchasing power of money increases.
B. Purchase power of money decreases.
C. Purchasing power of money remains ineffective.
D. None of these.
Answer: Option B
the explanation:
Inflation is a steady increase in the prices of products and services of a certain period. When the rate of products or series increases, the purchasing power of money is decreasing.

16. Additional interest rate is allowed on retail home term deposits in India-
A small citizen
B women
C Senior Citizens.
D. None of these.
Answer: Option C

17. The complete form of the word "fino" is-
A. Financial Inclusion Network and Operations
B Financial Inclusion News and Operations
C Financial Investment Network and Operations
D. None of these.

Answer: Option A
the explanation:
Fino (Financial Inclusion Network and Operations), originally known as Fino Petech Limited, is a company formed on the basis of financial inclusion solution in 2006. It is a private company that provides services to banking sectors, minority institutions, insurance companies and others.

18. What is the full form of "LAF" related to monetary policy of Reserve Bank of India?
A liability and adjustment facility.
B. Liquidity Adjustment Facility
C linear adjustment feature.
D. None of these.

Answer: Option B

19. India is regulated by the banks-
A Banking Regulation Act, 1949
B rbi act, 1934
C Company Act
D. None of these.

Answer: Option A

20. What is the full form of ULIP?
A Unit Linked Insurance Scheme.
B Unsecured Link Insurance Scheme.
C Unit Responsible Insurance Plan.
D. None of these.

Answer: Option A

21. Debt of very small amount given to low income goops-
A cash credit
B. Micro Credit
Simple overdraft.
D. No frills loans
Answer: Option B

22. Establishment of Reserve Bank of India (RBI)
A1935
B1938
C. 1947
D. 1948
Answer: Option A
the explanation:
Reserve Bank of India (RBI) is India's highest monetary authority. The RBI was established in 1935 during the British rule in India. All banks and financial institutions in India are regulated by the Reserve Bank of India. RBI was nationalized in 1949.


23. What is the wrong statement in case of bank rate?
a. Banks borrow money from the highest banking authority.
B Bank borrow money from the highest banking authority by selling their financial assets.
C. Banks borrow money from the highest banking authority by selling their securities.
D. None of these.

Answer: Option C

24. Reduction in Repo Rate-
It makes the costlier for scheduled banks to borrow from RBI.
B helps RBI get money from scheduled banks at cheaper rates.
C. Banks help banks get money at a cheap rate from the RBI.
D. None of these.
Answer: Option C

25. What is the full form of ECB?
A. External Cooperative lending.
B. Extra Cooperative lending.
C External Commercial Lending
D Additional Commercial Lending
Answer: Option C

26. EMI means-
A consolidated monthly installment
B equal monthly installment
C Additional Monthly Installment
D Additional Monthly Investment
Answer: Option A

27. Non-banking financial companies (NBFCs) are financial institutions-
Hold a banking license.
B does not have a banking license.
C is a public undertaking institution.
D. None of these.
Answer: Option B

28. Which organization or group or body is a reseller for security markets in India?
A rbi
B. Sebi
C IMF
De cag

Answer: Option B

29 The central budget of India comes under the Article of the Indian Constitution?
A paragraph no. 14
B paragraph no. 16
C paragraph no. 112
D paragraph no. 114

Answer: Option C

30. The first White Label ATM has been launched in India-
A Infosys
B Reliance Group
C TCPSL
D Ashok Leyland Limited

Answer: Option C
the explanation:
Tata Communications Payment Solutions Limited (TCPSEL) introduced the first White Label Automatic Teller Machine (ATM) in India by the name of 'Indicesh'.

Generally, we see ATMs with bank logo. But White Label ATM is not related to any bank and he does not have any bank

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