Professional Documents
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(tobeheldinSeptember2014)
Part4FinancialAwarenessSpecial
RajeshGoyal*
(Rajesh Goyal joined as Management Trainee (also called PO) in a nationalized Bank in 1980 and
worked for over 30 years in banking sector, and took VRS from the post of Assistant General
Manager. He is also the owner and editor of www.AllBankingSolutions.com - the most popular
website among the serving and retired bankers)
Disclaimer:Weatbestguru.comhavetriedourbesttocompilethestudymaterial,whichisbeing
providedabsolutelyFREEofcost,fromvariousauthenticsources.However,candidates,incaseof
doubt,areadvisedtorecheckthesamefromtheirownsources.Wewillnotberesponsibleforany
mistake/omissionforwhatsoeverreasons.
Releasedon:3rdSeptember,2014
StudyMaterialforFinancialAwareness
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(a) SEBI
(b) CIBIL
(c) RBI
(d) IBA
Answer CIBIL
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Q2 : Loans of very small amounts not exceeding Rs. 50,000 per borrower granted by
financial institutions are recognised by which of the following names?
(a) ARCIL
(b) FITCH
(c) SEBI
(d) IDBI
Answer ARCIL
Q4 : What is the major cause, which compelled adoption of Basel II norms by banks?
(a) Risk management
(b) To adopt international standards of accounting
(c) Transparency in disclosure
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Q6 : Which of the following is the most essential financial service which needs to be
provided to the poor people so as to bring them in the network of financial inclusion?
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(a) Formal
(b) Fiscal
(c) Federal
(d) Functional
Answer Functional
Q8 : We know Standard and Poors is a Credit Rating Agency of international repute.
Which of the following is a Rating Agency operating in India?
(a) BASEL
(b) IBA
(c) RBI
(d) CRISIL
Answer CRISIL
Q9 : Which of the following services/products of banks is specially designed and launched
to help students?
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Answer SENSEX
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Q10 : Which of the following terms is NOT directly associated with the functioning of RBI?
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Q11 : Which of the following is one of the major activities of the National Bank of
Agriculture and Rural Development (NABARD)?
(a) On-site inspection of Cooperative Banks and Regional Rural Banks (RRBs)
(b) Helping Govt. of India in preparing Union Budget and presenting it in the Cabinet
Meeting
(c) Acting as custodian of the foreign exchange reserves of the country
(d) Representing India in World Bank and other such agencies
Answer On-site inspection of Cooperative Banks and Regional Rural Banks (RRBs)
(d) Cement
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(a) Eucador
(b) Pound
(c) Dinar
(d) Rand
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Answer Eucador
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Q18 : Bank deposits that can be withdrawn without notice are known as :
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Q19 : Banks issue a letter to beneficiary on behalf of its constituents like guarantee for
making payment in their behalf on fulfilment of its terms and conditions. What is this
arrangement known in banking context?
Q20 : Banks are considered as 'financial intermediaries'. Which of the following activity
correctly and comprehensively explains this role of banks?
(a) Accepting deposits of money for the purpose of lending and investment
(b) Granting loans to the weaker sections of the society
(c) Accepting money for remittance and issuing bank drafts
(d) Providing safe deposit services
Answer Accepting deposits of money for the purpose of lending and investment
Q21 : The rate below which banks cannot generally lend is now a days known as
(a) Base rate
(b) Floor rate
(c) Repo rate
(d) Call money rate
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Q23 : In relation to credit given by banks, what is the meaning of "Ever-Greening Loan
Account"?
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Q24 : Which of the following functions is not being performed by the Reserve Bank of
India?
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Q29 : which one transfers money from one bank to another internationally?
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Q33 : Base Rate is the rate below which no bank can allow their lending to anyone. Who
sets this 'Base Rate' for banks?
Answer Permanent
Q36 : Regional Rural Banks
(a) Have limited area of operation and access to refinance from NABARD
(b) Are required to lend only to narrow sections
(c) Are mandated to do only narrow banking
(d) Can only extend agricultural loans
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Answer Have limited area of operation and access to refinance from NABARD
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Q39 : What does the letter "C" denote in the term CBS as used in banking operations?
(a) Central
(b) Critical
(c) Commercial
(d) Core
Answer Core
Q40 : The term "plastic Money" refer to (a) ATM/credit cards
(b) Pastic-wated currency notes
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Q42 : Which of the following is not a measure to control inflation adopted by the
government and or the RBI?
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Q43 : Which of the following is /are considered a policy rate (s) in the hands of the RBI? (i)
Repo Rate, (ii) SLR, (iii) Inflation
Q44 : Which one of the following is not a function of the central bank in a economy?
(a) Dealing with foreign exchange
(b) Controlling monetary policy
(c) Controlling government spending
(d) Acting as a banker's bank
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Q47 : In order to attract more foreign exchange the govt of India decided to allow foreign
investment in LLP firms what is full form of "LLP" as used in this reference?
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Q48 : MCX is the index of which of the following stock exchanges of India?
(a) NSE
(b) BSE
(c) Delhi stock exchange
(d) Multi commodity stock exchange
Answer RBI
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(a) Rs 1 lakh
(b) Rs 10 lakh
(c) Rs 25 lakh
(d) Rs 1 crore
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Answer Rs 1 lakh
Q51 : ARCIL is an example of:
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Q52 : NABARD has started its Farmer's Club Scheme which plays a major role in uplifting
the Sheep and Goat Rearing Sector and Pashmina Rearing in which of the following states?
Q53 : Which one of the following is not an electronic Banking delivery channel?
(a) Mobile Vans
(b) Mobile Phone Banking
(c) Internet Banking
(d) Tele Banking
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Q55 : Every bank is required to maintain, at the close of business every day, a minimum
proportion of their net demand and time liabilities as liquid assets in the form of cash
(book value), and balances in Unencumbered approved securities. It is termed as ?
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(a) 0.01
(b) 0.001
(c) 0.0001
(d) 0.00001
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Q56 : We often about decreasing or increasing different rates and ratios by the RBI by
certain basis points. One basis point is equal to which of the following ?
Answer 0.0001
Q58 : The Head Quarters of the World Trade Organisation (WTO) are located in ?
(a) Geneva
(b) London
(c) New York
(d) Washington DC
Answer Geneva
Q59 : Which of the following is NOT a Consumer Right as per Consumer Protection Act
1986 ?
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