MCQ Banking awareness Questions

1.    Which of the following is not a money market instrument?

(1) A treasury bill

(2) A negotiable certificate of deposit

(3) Commercial Paper

(4) Treasury Bond

(5) Repo

       2.    Lending of Scheduled Commercial Banks, on a fortnightly average basis should not exceed ___ of their capital fund?

(1) 25%                 (2) 35%

(3) 15%                 (4) 505

(5) None of these         

       3.    Bank Rate refers to the interest rate at which:
(1) Commercial banks receive deposits from the public.
(2) Central bank gives loans to Commercial banks. 
(3) Government loans are floated.
(4) Commercial banks grant loans to their customers.

(5) None of these

      4.    Purchasing Power Parity theory is related with
(1) Interest Rate.
(2) Bank Rate.
(3) Wage Rate.
(4) Exchange Rate.

(5) None of these

     5.    Foreign currency which has a tendency of quick migration is called
(1) Scarce currency.
(2) Soft currency.
(3) Gold currency.
(4) Hot currency.

(5) None of these

      6.    Which is the important source of income for Govt. of India?

(1) Interest

(2) License Fee

(3) Income Tax

(4) Excise duty

(5) None of these

      7.    Excise duty on a commodity is payable with reference to its
(1) production
(2) production and sale.
(3) Production and transportation.
(4) Production, transportation and sale.

(5) None of these

     8.    In which type of account, banks generally don’t pay interest—
(1) Saving Account 
(2) Current account
(3) Fixed Deposit Account
(4) Interest is always payable in all types of account

(5) None of these

    9.    India’s First Financial Archive has been set up at—
(1) Mumbai
(2) New Delhi
(3) Ahmadabad
(4) Kolkata
(5) None of these

       10.  When the Commercial Bank create credit areas which are in effect and increases—
(1) The national debt
(2) The supply of money
(3) The purchasing power of the rupee
(4) The real wealth of the country

(5) None of these

  11.    Which of the following is not a tool in the hands of RBI to control the inflationary pressure in the country ?

         (1) Bank Rate (BR)   

(2) Special Drawing Rights (SDR) 
(3) Statutory Liquidity Ratio (SLR)
(4) Cash Reserve Ratio (CRR)      

(5) None of these                                      Ans: (2)

        12.    Which of the following tool is used frequently by the RBI to control credit and monetary situations of the markets in the country?

(1) Cash Reserve Ratio

(2) Real Time Gross Settlement (RTGS)

(3) Balance of Trade

(4) Forward Trade Agreements

(5) Electronic Clearing Service                Ans: (1)

        13.    Which among the following organization has got the principal approval from the Reserve Bank of India (RBI) for establishing as well as operating White Label ATMs (WLAs)?

(1) Muthoot Finance

(2) Union Bank of India

(3) LIC (Life Corporation of India)

(4) NICL (National Insurance Company Limited)

(5) None of these                                                  Ans: (1)

       14.    Present minimum & maximum limit for RTGS transactions is ____.
(1) Rs.50000, Rs 200000 

(2) Rs. 1 lac, No Limit

(3) Rs. 2 lac, Rs 5 lac      

(4) Rs.5 lac, Rs 10 lac

(5) Rs. 2 lac, No Limit                   Ans: (5)

       15.    The Reserve Bank of India (RBI) constituted a working group to examine various issues concerning the deposit rates, including floating rate of interest on fixed deposits under the chairmanship of:

(1) SS Kohli                                   (2) Dalbir Singh

(3) HN Sinor                                  (4) RK Talwar

(5) None of these                                                  Ans: (3)

       16.    The maximum amount of the total revenue earned by the government of India comes from-

(1) Income Tax                 (2) Customs Duty

(3) Excise Duty                 (4) VAT                                  

(5) Corporate Tax                                     Ans: (5)

       17.    Recently RBI launch Inflation Indexed Bonds (IIBs) to stop away investors from gold to paper-based savings instruments. What is the maturity period these bonds?

(1) 5 years                         (2) 10 years

(3) 6 years                         (4) 7 years

(5) None of these                                      Ans: (2)

        18.    In order to promote lending to priority sectors, the Reserve Bank has allowed urban co-operative banks (UCBs) to grant unsecured loans up to how much percent of their assets?

(1) 5 %                          (2) 10%

(3) 15%                         (4) 20%

(5) 25%                                   Ans: (5) 

     19.    Government has extended the term of which among the following Deputy Governor of  the RBI?

(1) Ujjwal Patel                  (2) Subir Gokaran

(3) HR Khan                      (4) Anand Sinha

(5) None of these                                     Ans: (4)

     

       20.  RBI Provides ____ for meeting day - to - day receipt and expenditure mismatch to both Central and State Governments. 

1) treasury bills                 

2) Ways and Means advance 

3) date and securities       

4) All the above 

5) None of these                           Ans: 2)

        21.  The maximum number of withdrawals permitted in a savings account, half yearly is__?

(1) 90                                 (2) 60

(3) 50                                 (4) 110

(5) None of these                          Ans: (3)

       22.  The Capital Account Convertibility of the Indian rupee refers to:

(1) that the Indian rupee can be exchanged for the US dollar for international trade in goods and service

(2) that the Indian rupee can be exchanged for any major currency for the purpose of trading financial assets

(3) that the Indian rupee can be exchanged by the authorized dealer for travel purpose

(4)  that the Indian rupee can be exchanged for any major currency for the purpose of trade in goods and services

(5) None of the above                 Ans: (2)

       23.  Fiscal Responsibility and Budget Management Act (FRBM) concerns:

I. Fiscal Deficit     

II. Balance of Payment

III. Revenue Deficit

(1) Only I                           (2) Only II

(3) I & II                             (4) I & III

(5) All of these                                           Ans: (4)

        24.  Which of the principal institution for promotion, financing and development of small scale industries in the country?

(1) RBI                              (2) SBI

(3) IDBI                             (4) SIDBI

(5) None of these                                      Ans: (4)

       25.  Which of the following instruments of credit control adopted by the Reserve Bank of India (RBI) does not fall within ‘general’ or ‘quantitative’ methods of credit control?

(1) Stipulation of certain minimum margin in respect of advance against specified commodities

(2) Open market operations

(3) Bank rate

(4) Variable reserve requirement

(5) None of these                                      Ans: (1)