3653 + Mcqs in General Awareness Page 40 McqOptions

1951.	Which of the following is not insured by the DICGC (Deposit Insurance and Credit Gurantee Corporation)? [IBPS 2013]
A.	All Indian commercial Banks
B.	Foreign Banks branches functioning in India
C.	Local Area Banks
D.	Cooperative Banks
E.	Primary cooperative societies
Answer» F.

Discussion

1952.	NABARD is responsible for regulating and supervising the functions of [IBPS 2013]
A.	Investment and Industrial Finance Banks
B.	Cooperative Banks and Regional Rural Banks
C.	Corporate Finance and Overseas Banking Units
D.	Private Sector and Multinational Banks
E.	Reserve Bank of India
Answer» E. Reserve Bank of India

Discussion

1953.	Which of the following is the purpose of introducing 'Know Your Customer' norms by the banks? [IBPS Po 2012]
A.	To bring more and more people under the banking net
B.	Identifying people who do not pay income tax
C.	To ensure that the money deposited in banks has come from genuine sources
D.	To ensure whether the money deposited in the bank is of an India or a foreign national
E.	None of these
Answer» D. To ensure whether the money deposited in the bank is of an India or a foreign national

Discussion

1954.	Micro credit or micro finance is a novel approach to banking with the poor. In this approach, bank credit is extended to the poor through [Corporation Bank 2011]
A.	Self Help Groups
B.	Anganwadi
C.	Cooperative Credit Societies
D.	RBI
E.	None of these
Answer» D. RBI

Discussion

1955.	As per the reports published in various journals and newspapers, the "small borrowers" in rural areas still prefer to take informal route for their credit needs. Which of the following is the "informal route" of credit in the financial sector? [Punjab &Sindh 2011]
A.	Credit cards
B.	Loan against gold from financial institute
C.	Debit cards
D.	Money lender
E.	None of these
Answer» E. None of these

Discussion

1956.	As we all know, the cooperative banks in India are passing through a difficult phase and their performance is NOT as glamorous as that of the commercial banks today. What went wrong with cooperative banks? [RBI 2009] (1) The cooperative banks disbursed credit on the loans on demand mostly without proper guarantees and documents. Hence repayments were always at the mercy of the borrowers and up to some extent on good crops. (2) The cooperative banks are mostly under the supervisory control of the Panchayats, which are not professionally qualified to control suchinstitutions. (3) Cooperative Banks do not get any relief package from the Govt. Hence they have to manage their affairs on their own resources only.
A.	Only (2)
B.	Only (1)
C.	Only (3)
D.	All (1), (2) & (3)
E.	None of these
Answer» C. Only (3)

Discussion

1957.	Which of the following schemes was launched a few years back to provide wage employment to the rural people in India (The programme is being run successfully in addition to NREGA)? [BOM 2009]
A.	Indira Awas Yojana
B.	Accelerated Rural Water Supply Programme
C.	Total Sanitation Campaign
D.	Sampoorna Grameen Rozgar Yojana
E.	Pradhan Mantri Gram Sadak Yojana
Answer» E. Pradhan Mantri Gram Sadak Yojana

Discussion

1958.	Regional Rural Banks (RRBs) are classified as [NABARD 2009]
A.	scheduled commercial banks
B.	subsidiaries of the sponsor banks
C.	subsidiaries of NABARD
D.	All of the above
E.	None of these
Answer» B. subsidiaries of the sponsor banks

Discussion

1959.	The sponsor bank helps and aids the RRB sponsored by it, by [Vijaya Bank 2009] I. subscribing to its share capital. II. training its personnel. III. providing managerial and financial assistance during the first 5 years or extended period. Select the correct answer using the codes given below
A.	I and II
B.	II and III
C.	I and III
D.	All of these
E.	None of these
Answer» E. None of these

Discussion

1960.	As we have noticed, many banks are now entering into Insurance business. Why are Banks entering into this sector, particularly when many insurance companies are already there in India? [RBI 2009] (1) By providing insurance products, banks are earning additional revenue in terms of fee/commission. (2) Banks with their huge customer base are leveraging on their existing relationship to convert customers into policyholders. (3) With increase of health-related problems, everybody wants an insurance cover, no matter how big or small it is. Banks are coming up with many attractive offers, which are also affordable.
A.	Only (1)
B.	Only (2)
C.	Only (3)
D.	All (1), (2) & (3)
E.	Only (1) & (2)
Answer» F.

Discussion

1961.	As we all know, Govt of India is giving much emphasis these days on the development of Small and Medium Enterprises (SMEs). Which of the following statements reflects the importance of the SME sector in the India economy? [RBI 2009] (1) The Govt is following a policy of keeping some items reserved for SMEs only. Hence a good number of items for local consumption come from these alone. (2) The main advantages of SMEs are reduction of regional imbalances, low investment, greater operational flexibility and low production cost. This helps in good control over prices of such items in local markets. (3) A very large number of people are employed in this sector and this sector is the second largest employer in India, after agriculture.
A.	Only (1)
B.	Only (2)
C.	Only (3)
D.	All (1), (2) & (3)
E.	None of these
Answer» E. None of these

Discussion

1962.	The Govt of India recently provided an amount of Rs. 65,300 cr to about 3.6 cr farmers in India. What was the purpose of the distribution of this much amount to the farmers? [Andhara Bank 2009]
A.	To enable them to purchase tractors and other hitech agricultural machines
B.	This was given to them as a debt waiver and relief package.
C.	To provide them fertilisers and advanced high- yielding seeds for the next harvesting season
D.	To help them avail Internet services and update their knowledge about the farming techniques and adopt new methods of the same
E.	None of these
Answer» C. To provide them fertilisers and advanced high- yielding seeds for the next harvesting season

Discussion

1963.	Which of the following correctly describes what sub-prime lending is? [IOB 2008] (1) Lending to the people who cannot return the loans. (2) Lending to the people who are high- value customers of the banks. (3) Lending to those who are not a regular customer of a bank.
A.	Only (1)
B.	Only (2)
C.	Only (3)
D.	All (1), (2) & (3)
E.	None of these
Answer» D. All (1), (2) & (3)

Discussion

1964.	Which of the following is not viewed as a national debt? [IBPS 2015]
A.	Provident Fund
B.	Life Insurance Policies
C.	National Saving Certificate
D.	Long-term Government Bonds
E.	None of these
Answer» D. Long-term Government Bonds

Discussion

1965.	Which of the following is not correct regarding the Systemically Important Non- deposit taking NBFCs (NBFC-ND Sis)? [IBPS 2014]
A.	They came into being in the wake of the recent global recession
B.	NBFCs with assets of Rs. 100 crore and above are being classified as NBFC- ND-Sis
C.	Prudential regulations are applicable to them
D.	It was created in 2006
E.	None of these
Answer» B. NBFCs with assets of Rs. 100 crore and above are being classified as NBFC- ND-Sis

Discussion

1966.	What does the term 'Call Money' refer to? [IBPS Main 2016]
A.	A loan made for a very short period of a few days or a week
B.	Student loans to help cover the cost of higher education
C.	Loans to allow consumers to buy homes they can't pay for upfront
D.	Personal loans for any personal expenses which don't have a designated purpose
E.	Loans to veterans and their families
Answer» B. Student loans to help cover the cost of higher education

Discussion

1967.	Loan and Advances of a bank come under the category of.___. [IBPS Main 2016]
A.	Deposits
B.	Expenditure
C.	Liabilities
D.	Assets
E.	None of the above
Answer» E. None of the above

Discussion

1968.	The lock-in period in case of a term deposit means - [IBPS Main 2016]
A.	Locker service is not available
B.	Premature withdrawal is not possible
C.	Another account cannot be opened
D.	No further investment is possible
E.	None of these
Answer» C. Another account cannot be opened

Discussion

1969.	Banks these days have launched a new scheme product known as "Reverse Mortgage". The scheme is designed keeping which of the following groups of society in consideration? [BOM 2008]
A.	Youngsters who have just started earning
B.	Defence personnel whose life is always at high risk
C.	Senior citizens
D.	Women who do not have independent source of income
E.	None of these
Answer» D. Women who do not have independent source of income

Discussion

1970.	All bank loans, including home loans, taken are now linked to the bank's marginal cost of funds based lending rate (MCLR). MCLR has effective from? [IBPS Main 2016]
A.	January 1, 2016
B.	September 1, 2015
C.	April 1, 2015
D.	April 1, 2016
E.	None of these
Answer» E. None of these

Discussion

1971.	Basic Savings Bank Deposit Account (BSBDA) is a Zero Balance Savings Account that takes care of your simple banking needs with Free ATM card, monthly statement, and cheque book. How much amount has withdrawal and transfer limit under BSBDA? [IBPS Main 2016]
A.	Rs. 1,00,000 per month
B.	Rs. 20,000 per month
C.	Rs. 50,000 per year
D.	Rs. 10,000 per month
E.	No Limit
Answer» E. No Limit

Discussion

1972.	Bad advances of a bank are called [IBPS Main 2015]
A.	standard accounts
B.	book debt
C.	non-performing assets
D.	out of order account
E.	overdrawn accounts
Answer» D. out of order account

Discussion

1973.	Banks with higher proportion of demand deposits will have I [SBI 2014]
A.	Low cost money at its disposal
B.	Low interest money at its disposal
C.	Higher number of current and savings accounts
D.	High amount of liquid money
E.	All of the above
Answer» F.

Discussion

1974.	Cheque truncation can be done by? [IBPS 2014]
A.	Using MICR data
B.	Sending cheque by speed post
C.	Using image processing
D.	Both [a] & [b]
E.	None of the above
Answer» E. None of the above

Discussion

1975.	The concept of 'Micro Credit' essentially concentrates on [IBPS 2013]
A.	consumption smoothening as and when needed
B.	providing safe place to hold savings
C.	accepting deposits
D.	provision of credit to the poor
E.	facility to transfer money
Answer» E. facility to transfer money

Discussion

1976.	As per the reports published in the newspapers, the banks, particularly public sector banks, are tying up with various rating agencies for providing a qualitative assessment of the credit needs of the borrowers. Which amongst the following is/are such credit rating agencies in India? [RBI Assistant 2015] (1) CARE (2) CRISIL (3) ULIP
A.	Only (1)
B.	Only (2)
C.	(1) & (2) only
D.	Only (3)
E.	All (1), (2) & (3)
Answer» D. Only (3)

Discussion

1977.	As published in the newspapers, the RBI has issued certain guidelines to be followed by the Recovery Agents appointed by the banks. In addition to this, the Indian Bank Association (IBA) has to formulate a special training course for them. Why do RBI and IBA have to come into picture for such an issue which is the responsibility of the banks? [OBC 2008] (1) RBI and Govt were getting many complaints from the public about the misbehaviour of Recovery Agents. (2) Govt of India is paying much emphasis on providing banking service to the poor section of the society. News about ill - treatment by agents or suicides due to inability to pay back loans create a negative picture. RBI does not want this to happen. (3) Despite banks' efforts to recover loans' many people still do not wish to repay their loans, intentionally. Recovery agents will help banks to get their money back by all possible means.
A.	Only (1)
B.	Only (2)
C.	Both (1) & (2)
D.	Only (3)
E.	All (1), (2) & (3)
Answer» D. Only (3)

Discussion

1978.	In banking business/ when the borrowers avail a Term Loan, initially they are given a repayment holiday and this is referred as ________. [SBI Bank 2013]
A.	Subsidy
B.	Interest Waiver
C.	Re-phasing
D.	Interest concession
E.	Moratorium
Answer» F.

Discussion

1979.	Interest below which a bank is not expected to lend to customers is known as _______. [SBI Bank 2013]
A.	Deposit Rate
B.	Base Rate
C.	Prime Lending Rate
D.	Bank Rate
E.	Discount Rate
Answer» C. Prime Lending Rate

Discussion

1980.	Banks in India are required to maintain a portion of their demand and time liabilities with the Reserve Bank of India. This portion is called ________. [SBI Bank 2013]
A.	Statutory Liquidity Ratio
B.	Cash Reserve Ratio
C.	Bank Deposit
D.	Reserve Repo
E.	Government Securities
Answer» C. Bank Deposit

Discussion

1981.	Which one of the following is a retail banking product? [IBPS 2012]
A.	Home Loans
B.	Working capital finance
C.	Corporate term loans
D.	Infrastructure financing
E.	Export Credit
Answer» C. Corporate term loans

Discussion

1982.	Which one of the following is not a 'Money Market Instrument'? [IBPS 2012]
A.	Treasury Bills
B.	Commercial Paper
C.	Certificate of Deposit
D.	Equity Shares
E.	None of these
Answer» E. None of these

Discussion

1983.	Which of the following types of accounts are known as 'Demat Accounts'? [IBPS 2011]
A.	Accounts which are Zero Balance Accounts
B.	Accounts which are opened to facilitate repayment of a loan taken from the bank. No other business can be conducted from there.
C.	Accounts in which shares of various companies are traded in electronic form
D.	Accounts which are operated through internet banking facility
E.	None to these
Answer» D. Accounts which are operated through internet banking facility

Discussion

1984.	Which of the following schemes is launched specifically for helping senior citizens to avail loan by mortgage of their residential property? Indian Overseas Bank 2011]
A.	English Mortgage Scheme
B.	Senior Capital loan Scheme
C.	Reverse Mortgage Loan scheme
D.	Senior Citizen Personal Loan scheme
E.	None of these
Answer» D. Senior Citizen Personal Loan scheme

Discussion

1985.	'Sub Prime Lending' is a term applied to the loans made to [Punjab & Sindh 2011]
A.	those borrowers who do not have a good credit history.
B.	those who wish to take loan against the mortgage of tangible assets.
C.	those who have a good credit history and are known to bank since 10 years.
D.	those borrowers who are most preferred customers of the Bank.
E.	None of these
Answer» B. those who wish to take loan against the mortgage of tangible assets.

Discussion

1986.	Which of the following schemes has been launched specifically for helping Senior Citizens to avail loan by mortgage of their residential property? [OBC 2008]
A.	English Mortgage Scheme
B.	Senior Capital Loan Scheme
C.	Reverse Mortgage Loan Scheme
D.	DEMAT Account Scheme
E.	None of these
Answer» D. DEMAT Account Scheme

Discussion

1987.	One of the key factors that provide impetus to strong growth is Interest Rates. How do interest rates contribute to the growth of economy, particularly when these are lowered down? [RBI 2009] (1) It gives corporations the opportunity to prepay high-cost debts and replace them with fresh funds raised at lower rates. (2) Banks use this opportunity to maximize profits on their treasury operations and these excess profits are used to clean their Balance Sheets by making higher provisions for NPAs or sticky loans. (3) The Govt also gets benefited as it can borrow funds from open market at low interest rates and bridge its fiscal deficit.
A.	Only (1)
B.	Only (2)
C.	Only (3)
D.	All (1), (2) & (3)
E.	None of these
Answer» F.

Discussion

1988.	As reported in some major financial newspapers, many times it is said that "Other Income" boosts the profit of a bank to a substantial level. What is this other income for a bank? [Pick up the option(s) which are the part(s) of this other income. [OBC 2008] (1) Commission for selling insurance policies (2) Fee for providing various services (like ATM/Extra cheque etc) (3) Interest on advances and loans
A.	Only (1)
B.	Only (2)
C.	Both (2) & (3)
D.	Only (3)
E.	All (1), (2) & (3)
Answer» D. Only (3)

Discussion

1989.	A non-performing asset is ________. [SBI 2013]
A.	Money at call and short notice.
B.	An asset that ceases to generate income
C.	Cash balance in till
D.	Cash balance with RBI
E.	Balance with other banks
Answer» C. Cash balance in till

Discussion

1990.	When there is a difference between all receipts and expenditure of the Govt. of India, both capital and revenue, it is called [IBPS 2012]
A.	Revenue Deficit
B.	Budgetary Deficit
C.	Zero Budgeting
D.	Trade Gap
E.	Balance of payment problem
Answer» B. Budgetary Deficit

Discussion

1991.	Which of the following is NOT a Public Sector Unit? [Indian Overseas Bank 2011]
A.	HPCL
B.	Yes Bank
C.	HAL
D.	SAIL
E.	IDBI Bank
Answer» C. HAL

Discussion

1992.	As a practice, all banks now deduct some amount from their pre-tax income and set aside in a separate account to create a cushion for the loans which may go bad. This is called.............. [Punjab & Sindh 2010]
A.	CRR
B.	SLR
C.	Provisioning
D.	PLR
E.	None of these
Answer» F.

Discussion

1993.	What is the full form of the term 'NPA' as used in banking environment? [SBI 2010]
A.	Not Profitable Assets
B.	New Potential Accounts
C.	Non-Performing Assets
D.	Net Performing Assets
E.	None of these
Answer» F.

Discussion

1994.	Which of the following does not constitute an asset on the Balance sheet of a company? [IBPS 2014]
A.	Cash
B.	Amounts receivable
C.	Tools and equipment
D.	Capital stock
E.	All of these
Answer» E. All of these

Discussion

1995.	With effect from July 1, 2012, for calculation of lending rates, the Reserve Bank of India has advised banks to switch over to the [IBPS 2013]
A.	MSF Rate System
B.	Reverse Repo Rate System
C.	Bank Rate System
D.	Repo Rate System
E.	Base Rate System
Answer» F.

Discussion

1996.	Which is a hybrid security, combining features of preferred stock and corporate bonds? [SBI 2016]
A.	UPI
B.	NPCI
C.	NEFT
D.	MIPS
E.	RTGS
Answer» E. RTGS

Discussion

1997.	According to the Reserve Bank of India which of the following contribute to more than three- fourth of the total Non- Performing Assets (NPAs)? [SBI 2014]
A.	Public Sector bank
B.	Foreign Bank
C.	Private Bank
D.	Regional Rural Bank
E.	Co-operatives
Answer» B. Foreign Bank

Discussion

1998.	An Equity share is also commonly referred to [IBPS 2013]
A.	ordinary share
B.	debenture
C.	convertible share
D.	security receipt
E.	preferred stock
Answer» B. debenture

Discussion

1999.	Banks and other financial institutions in India are required to maintain a certain amount of liquid assets like cash, precious metals and other short'-term securities as a reserve all the time. In Banking World this is known as [SBI 2011]
A.	CRR
B.	Fixed Asset
C.	SLR
D.	PLR
E.	None of these
Answer» D. PLR

Discussion

2000.	The Banking Industry a few years back was badly in the grip of Non-Performing Assets (bad loans) for which the RBI and banks took special measures. As per the latest financial reports of the industry/ what is the status of NPAs at present? [OBC 2008] (1) There are no NPAs now as not a single loan of ` 5 lakhs and above is given by the bank without proper paperwork. (2) As reported in the first half of 2007 the NPAs have again risen. (3) As the interest rates are very high banks are not providing loans to middle class and poor general borrowers. Hence NPAs in private and personal banking area are 'zero' where as in industrial credit sector NPAs are still at the level of 22 percent.
A.	Only (1) is correct
B.	Only (2) is correct
C.	Both (1) and (2) are correct
D.	Only (3) is correct
E.	None of these
Answer» E. None of these

Discussion

Explore topic-wise MCQs in Banking And Financial Awareness.

Which of the following is not insured by the DICGC (Deposit Insurance and Credit Gurantee Corporation)? [IBPS 2013]

NABARD is responsible for regulating and supervising the functions of [IBPS 2013]

Which of the following is the purpose of introducing 'Know Your Customer' norms by the banks? [IBPS Po 2012]

Micro credit or micro finance is a novel approach to banking with the poor. In this approach, bank credit is extended to the poor through [Corporation Bank 2011]

As per the reports published in various journals and newspapers, the "small borrowers" in rural areas still prefer to take informal route for their credit needs. Which of the following is the "informal route" of credit in the financial sector? [Punjab &Sindh 2011]

Which of the following schemes was launched a few years back to provide wage employment to the rural people in India (The programme is being run successfully in addition to NREGA)? [BOM 2009]

Regional Rural Banks (RRBs) are classified as [NABARD 2009]

The sponsor bank helps and aids the RRB sponsored by it, by [Vijaya Bank 2009] I. subscribing to its share capital. II. training its personnel. III. providing managerial and financial assistance during the first 5 years or extended period. Select the correct answer using the codes given below

The Govt of India recently provided an amount of Rs. 65,300 cr to about 3.6 cr farmers in India. What was the purpose of the distribution of this much amount to the farmers? [Andhara Bank 2009]

Which of the following correctly describes what sub-prime lending is? [IOB 2008] (1) Lending to the people who cannot return the loans. (2) Lending to the people who are high- value customers of the banks. (3) Lending to those who are not a regular customer of a bank.

Which of the following is not viewed as a national debt? [IBPS 2015]

Which of the following is not correct regarding the Systemically Important Non- deposit taking NBFCs (NBFC-ND Sis)? [IBPS 2014]

What does the term 'Call Money' refer to? [IBPS Main 2016]

Loan and Advances of a bank come under the category of.___. [IBPS Main 2016]

The lock-in period in case of a term deposit means - [IBPS Main 2016]

Banks these days have launched a new scheme product known as "Reverse Mortgage". The scheme is designed keeping which of the following groups of society in consideration? [BOM 2008]

All bank loans, including home loans, taken are now linked to the bank's marginal cost of funds based lending rate (MCLR). MCLR has effective from? [IBPS Main 2016]

Basic Savings Bank Deposit Account (BSBDA) is a Zero Balance Savings Account that takes care of your simple banking needs with Free ATM card, monthly statement, and cheque book. How much amount has withdrawal and transfer limit under BSBDA? [IBPS Main 2016]

Bad advances of a bank are called [IBPS Main 2015]

Banks with higher proportion of demand deposits will have I [SBI 2014]

Cheque truncation can be done by? [IBPS 2014]

The concept of 'Micro Credit' essentially concentrates on [IBPS 2013]

In banking business/ when the borrowers avail a Term Loan, initially they are given a repayment holiday and this is referred as ________. [SBI Bank 2013]

Interest below which a bank is not expected to lend to customers is known as _______. [SBI Bank 2013]

Banks in India are required to maintain a portion of their demand and time liabilities with the Reserve Bank of India. This portion is called ________. [SBI Bank 2013]

Which one of the following is a retail banking product? [IBPS 2012]

Which one of the following is not a 'Money Market Instrument'? [IBPS 2012]

Which of the following types of accounts are known as 'Demat Accounts'? [IBPS 2011]

Which of the following schemes is launched specifically for helping senior citizens to avail loan by mortgage of their residential property? Indian Overseas Bank 2011]

'Sub Prime Lending' is a term applied to the loans made to [Punjab & Sindh 2011]

Which of the following schemes has been launched specifically for helping Senior Citizens to avail loan by mortgage of their residential property? [OBC 2008]

A non-performing asset is ________. [SBI 2013]

When there is a difference between all receipts and expenditure of the Govt. of India, both capital and revenue, it is called [IBPS 2012]

Which of the following is NOT a Public Sector Unit? [Indian Overseas Bank 2011]

As a practice, all banks now deduct some amount from their pre-tax income and set aside in a separate account to create a cushion for the loans which may go bad. This is called.............. [Punjab & Sindh 2010]

What is the full form of the term 'NPA' as used in banking environment? [SBI 2010]

Which of the following does not constitute an asset on the Balance sheet of a company? [IBPS 2014]

With effect from July 1, 2012, for calculation of lending rates, the Reserve Bank of India has advised banks to switch over to the [IBPS 2013]

Which is a hybrid security, combining features of preferred stock and corporate bonds? [SBI 2016]

According to the Reserve Bank of India which of the following contribute to more than three- fourth of the total Non- Performing Assets (NPAs)? [SBI 2014]

An Equity share is also commonly referred to [IBPS 2013]

Banks and other financial institutions in India are required to maintain a certain amount of liquid assets like cash, precious metals and other short'-term securities as a reserve all the time. In Banking World this is known as [SBI 2011]