Banking Awareness

Q.1.FRBM Act stands for :

1.Fiscal Revenue and Budget Management
2.Foreign Revenue and Business Management
3.Fiscal Responsibility and Budget Management
4.Foreign Responsibility and Budget Management
5.None of these
Q.2When prices of goods are falling continuously, the phenomenon is called as
:
1.Stagflation
2.Disinflation
3.Deflation
4.Reflation
5.Skeflation
Q.3.Commercial banks in India were nationalised in 1969 because :
1.There was urban bias
2.Agriculture sector was neglected
3.There was concentration of economic power
4.All of the above
5.None of these
Q.4.Which of the following organization finance the Rural Infrastructure
Development Fund?
1.NABARD
2.SEBI
3.SIDBI
4.RBI
5.Govt. of India
Q.5.Slogan of poverty Abolition was given in which Five Year Plan?
1.First five year plan
2.Second five year plan
3.Third five year plan
4.Fifth fiver year plan
5.None of these

Q.6.After how many years of terrorist attack World Trade Centre reopen for
business?
1.12 years
2.13 years
3.15 years
4.7 years
5.None of these
Q.7.Justice Mukul Mudgal comm. is related with which of the following
subject?
1.IPL spot fixing
2.Hike in prices of Automobile
3.Rise in prices of petrol
4.Banking Reforms
5.None of these
Q.8.Who is the new Chief Minister of Maharastra?
1.Manohar Parrikar
2.Manohar Lal Khattar
3.Devendra Fadnavis
4.Hemant Soren
5.None of these
Q.9.Who is the author of the book Odyssey of My Life?
1.Karan Singh
2.Kwasi Kwarteng
3.James Astill
4.Shivraj V Patil
5.None of these
Q.10.National Sports Day was observed on .
1.15 August
2.29 August
3.19 August
4.20 September
5.None of these
Q.11.Which of the following states is not included in those states, where IIM
will be established, according to Union Budget 2014-15?
1.Punjab

2.Bihar
3.Odisha
4.Rajasthan
5.Goa
Q.12.What amount was allocated to make Delhi a world class city?
1.Rs. 100 crore
2.Rs. 200 crore
3.Rs. 300 crore
4.Rs. 400 crore
5.None of these
Q.13.Which of the following countries becomes the first country to ratify
Marrakesh Treaty?
1.Pakistan
2.Bhutan
3.India
4.Myanmar
5.Sri Lanka
Q.14.The sensitive Index of National Stock Exchange of India is popularly
known as1.Sensex
2.CRIS
3.CSE
4.MCX
5.Nifty
Q.15.Which of the following terms is not used in the field of Biology?
1.DNA
2.RNA
3.GST
4.Osmosis
5.None of these
Answers:
1.3
2.3
3.4

4.1
5.4
6.2
7.1
8.3
9.4
10.2
11.5
12.2
13.3
14.5
15.3
1. Which of the following is a third party product often sold by banks?
(a) Gift cheques
(b) Credit cards
(c) Debit cards
(d) Mutual funds
(e) All of the above
2. The co-operative bank is governed by the banking regulation Act 1949 and
co-operative societies Act of
(a) 1962
(b) 1963
(c) 1960
(d) 1969
(e) 1965
3. A scheduled bank must be
(a) A corporative or company incorporated by any law in force in any place in
India
(b) An institution notified by GOI
(c) A company as defined by companies act, 2013
(d) All of the above
(e) None of these
4. Kapoor committee, 1999 is related to ____.
(a) Micro-finance
(b) Restructuring of RRBs
(c) Capital Account convertibility
(d) Co-operative Banking Reforms

(e) None of these

5. Which of the following institution is meant for small and medium
enterprises?
(a) RBI
(b) NABARD
(c) IFCI
(d) SIDBI
(e) None of these
6. Under the second phase of nationalization, 07 banks were nationalized.
Their deposits were over ________ crore.
(a) 2
(b) 20
(c) 200
(d) 100
(e) None of these
7. The tag line A friend you can bank on is of which bank?
(a) Bank of Baroda
(b) Bank of Maharashtra
(c) Vijaya Bank
(d) UCO Bank
(e) None of these
8. Who is having the major stakes in NABARD?
(a) RBI
(b) Central Government
(c) SBI
(d) Ministry of Finance
(e) None of these
9. Expand REDP. It is an initiative by NABARD.
(a) Rural Employment Development Programme
(b) Rural Entrepreneurship Development Programme
(c) Rural Employment Development Planning
(d) Rural entrepreneurship Development Planning
(e) None of these
10. When was SEBI established?

(a) 1990
(b) 1991
(c) 1992
(d) 1984
(e) None of these
11. Unilateral transfers such as donations by Government of India come
under which part of Balance of Payment (BOP)?
(a) Current account
(b) Capital account
(c) Financial account
(d) Current and capital account both
(e) None of these
12. Gilt-edged securities market is the market for government and semigovernment securities. These securities carry
(a) Floating interest rate
(b) Fixed interest rate
(c) Fixed as well as floating interest rate
(d) No interest rate at all
(e) None of these
13. Expand AEPS in terms of banking.
(a) Aadhaar-enabled Payment Service
(b) Aadhaar-enabled Payment system
(c) Automated engineered payment service
(d) Aadhaar-enabled promotion scheme
(e) None of these
14. Who provides refinance facilities to RRBs?
(a) SIDBI
(b) RBI
(c) Government of India
(d) NABARD
(e) None of these
15. Expand DRI related to a scheme meant for weaker section of our country.
(a) Different rate of interest
(b) Differential rate of interest
(c) Different ration for Indians

(d) Different rate of interest-bond

(e) None of these
ANSWERS
1
d
11
2
e
12
3
d
13
4
d
14
5
d
15
6
c
7
c
8
b
9
b
10 c

a
b
b
d
b

1. Certificate of Deposit (CD) is a _____ instrument.

(1) Shot term
(2) long term
(3) negotiable money market
(4) unsecured money market
(5) None of these
2. Which one of the following is not a 'Money Market Instrument'?
(1) Treasury Bills
(2) Commercial Paper
(3) Certificate of Deposit
(4) Equity Shares
(5) None of these
3. "CRAR" stands for?
(1) Currency to risk weighted assets ratio
(2) Capital to risk weighted assets ratio
(3) Capital to risk weighted accurate ratio
(4) Capital to rest weighted assets ratio
(5) None is correct
4. Central Bank of India was the first public bank to introduce:
(1) Credit card

(2) ATM Card

(3) Mobile ATM
(4) Internet Banking Facility
(5) None of these
5. Slogan of Federal Bank is _________?
(1) For all your needs
(2) One family one bank
(3) Together we can
(4) Your Perfect Banking Partner
(5) Trusted Family Bank
6. What does WPI stand for?
(1) Wholesale Price Index
(2) Wholesale Price India
(3) Wholesale Price International
(4) Wholesale Price Industrial
(5) Wholesale Prices Industries
7. What does CRISIL stand for?
(1) Credit Rating and Industrial Services of India Limited
(2) Cash Rating and Industrial Services of India Limited
(3) Credit Rating and Investment Services of India Limited
(4) Currency Rating and Investment Services of India Limited
(5) Cash Rating and Investment Services of India Limited
8. Base Rate regime was introduced with effect from
(1) 1st August 2009
(2) 1st July 2009
(3) 1st August 2010
(4) 1st July 2010
(5) None of these
9. Full Form of CDR
(1) Commercial Debt Recovery
(2) Corporate Debt Restructuring
(3) Credit Debit Rate
(4) Currency Default Ratio
(5) Company Debt Recovery

10. FD in a commercial bank can be done for a maximum period of

(1) 15 yrs
(2) 25 yrs
(3) 10 yrs
(4) No limit
(5) None of these
11. Which of the following conducts the Annual Survey of Industries (ASI)?
(1) Central Statistics Office
(2) National Sample Survey Organisation
(3) Ministry of Heavy Industries and Public Enterprises
(4) Ministry of Economy
(5) Ministry of Finance
12. The beneficiaries of Micro finance business are _____________
(1) Land Less labour
(2) Marginal farmers
(3) Vendors in the small markets
(4) Hawkers
(5) All the above
13. NABARD (National Bank for Agriculture and Rural Development)
established JLG to extract the productive capability from rural population.
JLG stands for ?
(1) Junior Link Group
(2) Join Life Group
(3) Joint Line Group
(4) Joint Liability Group
(5) None of these
14. Foreign Exchange Reserves of India are kept in the custody of which of the
following ?
(1) International Bank for Reconstruction and Development
(2) Internatinal Monetary Fund
(3) Goverment Treasury
(4) RBI
(5) SBI
15. One of the delivery channel for Micro Finance is SHG model. SHG
means ?

(1) Soar Help Group

(2) Sake Help Group
(3) Self Hope Group
(4) Store Help Group
(5) Self Help Group
ANSWERS
1 3
11
2 4
12
3 2
13
4 1
14
5 4
15
6 1
7 3
8 4
9 2
10 3

1
5
4
4
5

1. The word Punjab is made from two persian words 'Panj' and 'Ab.' 'Panj'
means five ,what does 'Ab' mean?
(a) Lands
(b) Rivers
(c) mountains
(d) waterfalls
(e) None of these
2. Which of the following happened to be the first private bank in India to
receive an in-principle approval from RBI?
(a) HDFC Bank
(b) ICICI Bank
(c) Yes Bank
(d) United Western Bank
(e) IndusInd Bank
3. Who among the following can issue commercial papers in India?
(a) Corporates
(b) Primery dealers
(c) All India financial institutions

(d) both 1 & 2

(e) All of these
4.When the credit committee corporation was created?
(a) 197
(b) 1972
(c) 1971
(d) 1973
(e) None of these
5. The co-operative bank is governed by the banking regulation Act 1949 and
co-operative societies Act of
(a) 1962
(b) 1963
(c) 1960
(d) 1969
(e) 1965
6. A scheduled bank must be
(a) A corporative or company incorporated by any law in force in any place in
India
(b) An institution notified by GOI
(c) A company as defined by companies act, 2013
(d) All of the above
(e) None of these
7. FD in a commercial bank can be done for a maximum period of
(a) 15 yrs
(b) 25 yrs
(c) 10 yrs
(d) No limit
(e) None of these
8. Which of the following is a third party product often sold by banks?
(a) Gift cheques
(b) Credit cards
(c) Debit cards
(d) Mutual funds
(e) All of the above

9. In index of financial inclusion has been launched for the first time in 2008
by
(a) BSE
(b) NSE
(c) ICRIER
(d) CCI
(e) None of these
10. Which of the following is not a contributing factor to micro-credits?
(a) EMI
(b) Collaterals
(c) KYC norms
(d) Pre-payment charges
(e) All of the above
11 .Financial assistance for a sum of Rs. 5,000 can be called as?
(a) Small finance
(b) Micro finance
(c) Crazy finance
(d) Petty finance
(e) None of these
12.What is current coverage of bank account of population (approx)?
(a) 60%
(b) 80%
(c) 40%
(d) 50%
(e) None of these
13. As per the 2011 census. which of the following states of India has the
highest literacy rate?
(a) Mizoram
(b) Tripura
(c) Goa
(d) Himachal Pradesh
(e) Kerala
14. CASA ratio is the ratio of deposits in which accounts of a bank to its total
deposits ?

(a) current account

(b) saving account
(c) Recurring accounts
(d) both 1 & 2
(e) both 2 & 3
15. Which of the following restrictions apply for opening BSBDA by banks for
individuals?
(a) Age
(b) Income
(c) Amount
(d) both 2 & 3
(e) None of these
Answers1.B
2.A
3.E
4.C
5.E
6.D
7.C
8.D
9.C
10.B
11.B
12.C
13.E
14.D
15.E
Banking Awareness: A summary on NEFT, RTGS & IMPS
National Electronic Fund Transfer (NEFT)
Meaning It is way in which you can transfer fund from any bank account
to any other bank account holder in India. NEFT is based on batch
processing system.

 Minimum amount Rs. 1

Maximum amount There is no upper ceiling for transferring money
through NEFT, but generally RTGS is used for transfer of Rs 2,00,000 or
above
Time limit The transactions are processed in hourly batches. There are
twelve settlements from 8 A.M. to 7 P.M. on the weekdays (Monday
Friday) and six settlements from 8 A.M. to 1 P.M. on Saturday. The
maximum time consumed is 2 hours from the submitting of the transaction
in a batch.
Availability NEFT is not available on the bank holidays, RBI holiday and
Sunday.
Note - For transferring funds to Nepal, the limit is of Rs. 50, 000.
Real Time Gross Settlement (RTGS)
Meaning It is way in which you can transfer fund from any bank account
to any other bank account holder in India in real time.
Minimum amount Rs 2,00,000
Maximum amount No limit
Time limit The transactions are processed on order basis i.e. Real time.
The RTGS service is available from 8 A.M to 8 P.M. on the weekdays
(Monday Friday) and from 8 A.M. to 3:30 P.M. on Saturday. The transfer
is instant but the bank is allowed to take up to 2 hours for crediting the
amount to the depositor account.
Availability RTGS is not available on the bank holidays, RBI holiday and
Sunday.

Inter Mobile Payment Service (IMPS)

 Meaning It is way in which you can transfer fund from any bank account
to any other bank account holder in India anytime.
Minimum amount Rs 1
Maximum amount Banks are allowed to set their own limit for IMPS.
Time limit It is real time. The depositor account is credited in less than 1
minute from the submission of transaction.
Availability IMPS can be done 24X7 even on bank holidays, RBI holiday
and Sunday