IBPS examinations for recruitment of clerks and officers for banks in India - Banking awareness

gausan By gausan, 13th Nov 2015 | Follow this author | RSS Feed
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IBPS is conducting common written examinations for recruitment of clerks and officers in nationalised banks in India and the following is a model question paper in banking awareness

Banking awareness - Practice test: 001

01. Which of the following cannot be called as a debt instrument as referred in the financial transactions?
a) Certificate of deposit; b) Bonds; c) Buildings; d) Commercial papers; e) Debentures

02. Whenever RBI does some open market operation transactions, actually it wishes to regulate which among the following?
a) Inflation; b )Liquidity in economy; c) Borrowing powers of the banks; d) Flow of foreign direct investments;
e) None of the above

03. In economics, it is generally believed that the main objective of a public sector financial company like bank is to:
e) Employ more and more people; b) Maximize the total profits; c) Maximize total production; d) Provide financial services to the people of the nation of its origin across the country; e) Sell the goods at subsidized rates

04. In a company by the use of price sensitive corporate information about the company, people closer to the company try to adopt the technology to make gains or cover losses in share market dealings and such process is known as:
a) Insider trading; b) Future trading; c) Foreign trading; d) Stock trading; e) None of these

05. What is meant by Repo rate?
a) When a bank is in need of cash it can discount bills of exchange and avail loan facilities from Reserve Bank of India.
b) When a bank has excess cash, they buy securities from Reserve Bank of India against cash on the condition that they resell the securities to RBI on a pre fixed day and price
c) It is the rate at which RBI allows temporary loan facilities to commercial banks against government securities on the condition that the bank will repurchase the securities within a short period.
d) It is a rate which is offered by banks to their most valued customers or prime customers; e) None of these

06. Bharat Nirman does not cover which among the following areas?
a) Rural employment; b) Rural housing c) Rural water supply; d) Irrigation facilities; e) It covers all the above areas

07. Which of the following committees has given its recommendations on “Financial inclusion”?
a) Rakesh Mohan committee; b) Rangarajan committee; c) Sinha committee; d) Gadgil committee; d) None of these

08. The actual return of an investor is reduced sometimes when the prices of the commodities go up all of a sudden and in financial sector this type of phenomenon is known as
a) Probability risk; b) Market risk; c) Inflation risk; d) Credit risk; e) None of these

09. An industry which is fighting hard to increase its market share in the existing market (with new popular products) is known as:
a) Market vendor; b) Market operator; c) Market leader; d) Market follower; e) Market challenger

10. Which of the following products launched by most of the banks help farmers in getting instant credit for various agricultural purposes?
a) Kisan credit card; b) Personal loan; c) Business loan; d) Smart card; e) None of these

11. Which of the following products of a bank is specifically designed to provide financial help to children in their higher studies in India or in a foreign country?
a) Personal loan; b) Corporate loan; c) Housing loan; d) Educational loan; e) Mortgage loan

12. Which of the following policies of the financial sectors is basically designed to transferring local financial assets into foreign assets freely and at market determined exchange rates?
a) Capital account convertibility; b) Financial deficit management; c) Minimum support price; d) Restrictive trade practices
e) None of these

13. A customer is willing to purchase some US dollars in the country. He/she should go to:
a) Public Debt Division office of the RBI only; b) American Express Bank only; c) RBI or any branch of a bank which is authorized for conducting such business; d) Ministry of Foreign affairs; e) None of these

14. Which of the following is not a social assistance program launched by Government of India?
e) National old age pension scheme; b) Annapurna scheme; c) National family benefit scheme; d) Indira Gandhi National Disability Pension Scheme; e) All are social assistance programs

15. Many times we see in newspapers that some projects are launched by the Government authorities on PPP basis. What is the full form of PPP?
a) Preferential Payment Plan; b) Public private partnership; c) Partial payment project; d) Popular private project
e) Public private plan

16. The ratio of the cash reserves that the banks are required to keep with RBI is known as:
a) Liquidity ratio; b) Statutory liquidity ratio; c) Cash Reserve Ratio; d) Net demand and time liabilities; e) None of these

17. The availability of cash and other cash like marketable instruments that are useful in purchases and investments are commonly known as:
a) Cash crunch; b) Liquidity; c) Credit; d) Marketability; e) None of these

18. Which of the following schemes launched by the Government of India provides a guaranteed 100 days employment to rural employment seekers in India?
a) Bharat Nirman; b) Swarnajayanthi Grameen Swarazgar Yojana; c) Mahatma Gandhi National Rural Employment Guarantee act; d) National Food for Work Programme; e) None of these

19. Reserve Bank of India keeps on modifying various rates/ratios to keep the flow of liquidity in the market in a balanced manner and which of the following rates/ratios/indexes is not directly controlled by the RBI?
a) Cash reserve ratio; b) Bank rate; c) Repo rate; d) Reverse repo rate; e) Wholesale price index

20. Many banks have adopted/launched “Core Banking Solutions” and what do you mean by “Core banking solutions”?
a) A marketing strategy adopted by the banks; b) A new type of automated teller machines useful for rural population; c) A delivery channel for quick and fast delivery; d) A new product launched to help senior citizens only as they are not able to visit the branches/ATMs frequently; e) None of these

21. Which of the following terms are not used in banking sector?
a) Statutory liquidity ratio; b) Non performing asset; c) Colonisation; d) Fixed; e) Repo

22. Banking sector comes under which of the following sectors?
a) Agriculture sector; b) Service sector; c) Manufacturing sector; d) Industrial sector; e) None of these

23. An account in which the trading of shares in their electronic form is done is known as:
a) Demat account; b) NRE account; c) NRO account; d) FCNR account; e) RFC account

24. Which of the following programmes/schemes of Government of India is not directly related with agriculture activities?
a) Drought Prone areas programme; b) Promotion of integrated pest management; c) Integrated wasteland development programme; d) Annapurna scheme; e) Desert Development programme

25. Find the odd man out from the following groups?
a) ICICI Bank, Canara Bank, Central Bank of India, Punjab National Bank, Indian Bank
b) Canara Bank, State Bank of India, Lakshmi Vilas Bank, Karur Vysya Bank, United Bank of India
c) Bank of India, Corporation Bank, Indian Bank, IDBI Bank, Axis bank
d) Bank of Maharashtra, Barclays bank, Oriental Bank of Commerce, Indian Bank, IDBI bank
e) Union Bank of India, Bank of India, Andhra Bank, Dena Bank, Indian Bank

26. Which among the following banks is the recently opened private sector bank in the country?
a) ICICI bank; b) Yes bank; c) AXIS Bank; d) Kotak Mahindra Bank; e) Bandhan bank

27. Mortgage relates to which type of loan among the following?
a) Housing loan; b) Educational loan; c) Car loan; d) Gold loan; e) Personal loan

28. Fourteen banks were nationalized in the country during the first stage on:
a) 19.07.1970; b) 19.07.1969; c) 19.07.1971; d) 18.07.1969; e) 18.07.1970

29. The sponsorship between State government, Central government and sponsor bank is in the ratio of___________ in respect of Regional Rural Banks in the country:
a) 15-50-35; b) 50-35-15; c) 35-15-50; d) 35-50-15; e) 15-35-50

30. When it comes to providing locker facility to the customer of any bank, the relationship between the customer and the banker is that of:
a) Debtor and creditor; b) Bailor and bailee; c) Lessee and lessor; d) Lessor and lessee; e) Agent and principal

1-C 2-A 3-B 4-A 5-A 6-E 7-A 8-A 9-E 10-A
11-D 12-A 13-C 14-C 15-B 16-C 17-B 18-C 19-E 20-C
21-C 22-B 23-A 24-D 25-D 26-E 27-A 28-B 29-A 30-C


Bank Account, Bank Jobs India, Bankers, Banking, Banks

Meet the author

author avatar gausan
Retired Senior Manager from a nationalised bank in India. I am a trainer and freelance writer and I write articles on banking, economics, health etc. I am available at gausan51@gmail.com

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author avatar SherryeB
15th Nov 2015 (#)

A lot of good information here.

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author avatar Fern Mc Costigan
16th Nov 2015 (#)

Very informative post!

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