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SBI bank based general awareness questions and answers for practice, SBI and SBT previous years solved question papers,SBI bank based current affairs general awareness questions and answers
Bank based general awareness,terms
1. Which of the following statements is true?
(1) Banks cannot accept demand and time deposits from public
(2) Banks can accept only demand deposits from public
(3) Banks can accept both demand and time deposits from public
(4) Banks can accept both demand and time deposits from public -Answer
(5) Banks can accept demand and time deposits only from government
2. Which of the following is the correct statement?
(1) State Bank of India is the sole authority to issue and manage currency in India
(2) A nationalized bank is the sole authority to issue and manage currency in India
(3) A cooperative bank is the sole authority to issue and manage currency in India
(4) RBl is the sole authority to issue and manage currency in India-Answer
(5) None of the above
3. Interest payable on savings bank accounts is
(1) not regulated by RBI
(2) regulated by Sate Governments
(3) regulated by Central Government
(4) regulated by RBI -Answer(5) regulated by Finance Minister
4. The usual deposit accounts of banks are
(1) current accounts, electricity accounts and insurance premium accounts
(2) current accounts post office savings bank accounts and term deposit accounts
(3) loan accounts, savings bank accounts and term deposit accounts
(4) current accounts, savings bank accounts and term deposit accounts-Answer
(5) current bill accounts and term deposit accounts
5. Fixed deposits and recurring deposits are
(1) repayable after an agreed period-Answer
(2) repayable on demand
(3) not repayable
(4) repayable after death of depositors
(5) repayable on demand or after an agreed period as per bank’s choice
6. Accounts are allowed to be operated by cheques in respect of
(1) both savings bank accounts and fixed deposit accounts
(2) savings bank accounts and current accounts-Answer
(3) both savings bank accounts and loan accounts
(4) both savings bank accounts and cash accounts only
(5) both Current accounts and fixed deposit accounts
7. Which of the following is correct statement?
(1) Normally no interest is paid on current deposit accounts-Answer
(2) Interest is paid on current accounts at the same rate as term deposit accounts
(3) The rate of interest on current account and savings account are the same
(4) No interest is paid on any deposit by the bank
(5) Savings deposits are the same as current deposits
8. Mortgage is a
(1) security on movable property for a loan given by a bank
(2) security on immovable property for a loan given by a bank-Answer
(3) concession on immovable property for a loan given by a bank
(4) facility on immovable property for a loan given by a bank
(5) security on immovable property for a deposit received by a bank
9. Which of the following is known as cross selling by banks?
(A) Sale of a debit card to a credit card holder.
(B) Sale of Insurance policy to a depositor.
(C) Insurance of cash against cheque presented by a third party.
(1) Only (A) (2) Only (B) (3) Only (C) (4) Both (A) and (C) (5) All (A),(B) and (C)-Answer
10. Financial inclusion means provision of
(1) financial services namely, payments, remittances, savings, loans and insurance at affordable cost to persons not yet given the same-Answer
(2) ration at affordable cost to persons not yet given the same
(3) house at affordable cost to persons not yet given the same
(4) food at affordable cost to persons not yet given the same
(5) education at affordable cost to persons not yet given the same
11. When a bank returns a cheque unpaid, it is called
(1) payment of the cheque
(2) drawing of the cheque
(3) canceling of the cheque
(4) dishonour of the cheque-Answer
(5) taking of the cheque
12. NEFT means
(1) National Electronic Funds Transfer system-Answer
(2) Negotiated Efficient Fund Transfer system
(3) National Efficient Fund Transfer solution
(4) Non Effective Fund Transfer system
(5) Negotiated Electronic Foreign Transfer system
13. Upper limit prescribed for RTGS transaction is
(1) Rs. 1 lac (2) Rs. 2 lacs (3) Rs. 5 lacs (4) Rs. 50 lacs (5) No upper limit is prescribed-Answer
14. Distribution of insurance products and insurance policies by banks as corporate agents is known as
(1) General Insurance (2) Non-life Insurance (3) Bancassurance-Answer (4) Insurance Banking (5) Deposit Insurance
15. In order to attract more foreign exchange the Government of India decided to allow foreign investment in LLP firms. What is full form of ‘LLP’ as used in this reference?
(1) Local Labour Promotion
(2) Low Labour Projects
(3) Limited Loan Partnership
(4) Longer Liability Partnership
(5) Limited Liability Partnership-Answer
16. Interest on Saving bank account is now calculated by banks on
(1) minimum balance during the month
(2) minimum balance from 7th to last day of the month
(3) minimum balance from 10th to last day of the month
(4) maximum balance during the month
(5) daily product basis-Answer
17. Largest shareholder (in percentage shareholding) of a nationalized bank is
(1) RBI (2) NABARD (3) LICI (4) Government of India -Answer(5) IBA
18. When the rate of inflation increases
(1) purchasing power of money increases
(2) purchasing power of money decreases-Answer
(3) value of money increases
(4) purchasing power of money remains unaffected
(5) amount of money in circulation decreases
19. A centralized databases with online connectivity to branches, internet as well as ATM-network which has been adopted by almost all major banks of our country is own as
(1) Investment Banking (2) core Banking-Answer
(3) Mobile Banking (4) National Banking
(5) Specialized Banking
20. The Unit Trust of India came into existence in
(1) 1960 (2) 1962 (3) 1964-Answer (4) 1966 (5) 1968
21. Which of the following is example of financial assets?
(1) National Saving Certificates
(2) Infrastructure Bonds (3) Indira Vikas Patra
(4) Krishi Vikas Patra (5) All of the above-Answer
22. Capital market is a market which deals in
(1) short-term funds (2) long-term funds-Answer (3) gilt-edge securities (4) All of the above (5) None of the above
23. Regional Rural Banks fall within supervisory purview of
(1) SBI (2) RBI -Answer(3) SEBI 4) IRDA (5) None of these
24. IRDA with its headquarters at ……… is the regulatory authority for all insurance companies in India including the Life Insurance Corporation of India.
(1) Hyderabad-Answer (2) Bengaluru (3) Mumbai (4) Delhi (5) Chandigarh
25. Mutual Funds fall within 7 supervisory purview of
(1) SBI (2) RBI (3) SEBI -Answer(4) IRDA (5) None of these
26. Which of the following does not come under the category of Development Banks?
(1) Industrial Development Bank of India
(2) Small Industries Development Bank of India
(3) Industrial Investment Bank of India
(4) State Finance Corporation
(5) Export-import Bank-Answer
27. Main financial instruments of corporate sector are
(1) Shares (ii) Debentures (iii) Public Deposits
(iv) Loan from Institutions
Select the correct answer by using of the following codes
(1) i and ii (2) ii and iii (3) iii and iv (4)1, ii and iv (5) All I, ii, iii and iv-Answer
28. Financial institutions
(1) promote savings (2) mobilise savings (3) allocate savings among different users
(4) All of the above -Answer(5) None of the above
29. Which of the following is not an / example of primary securities?
(1) Bills (2) Bonds (3) Shares (4) Book debts (5) New currency-Answer
30. Indian Financial System / comprises of
(1) Scheduled Commercial Banks
(2) Non-banking Financial Institutions
(3) Urban Cooperative Banks
(4) All of the above
(5) None of the above-Answer
31. The Bombay Stock Exchange was 7 made functional as early as
(1) 1870 -Answer(2) 1901 (3) 1935 (4) 1951 (5) 1949
32. The Unit Trust of India come into existence in
(1) 1964-Answer (2) 1970 (3) 1975 (4) 1980 (5) 1982
33. 19 July 1969, how commercial Banks were nationalised?
(1) 13 (2) 14 -Answer(3) 15 (4) 16 (5) 20
34. New Private Banks are being given licenses since
(1) 1991 (2) 1992 (3) 1993-Answer (4) 1995 (5) 2001
35. The gilt-edged market refers to the market for
(i) Government securities
(ii) Semi-government securities
(iii) Corporate securities
Select the correct answer
(1) only i (2) i and ii -Answer(3) ii and iii (4) i, ii and iii (5) only iii
36. First share market in India established in
(1) Delhi (2) Mumbai-Answer (3) Kolkata (4) Chennai (5) None of these
37. Consider the following statements:
(i) Securities that have an original maturity that is greater than one year are traded in capital markets.
(ii) The best known capital market securities are stocks and bonds.
Select the correct answer
(1) (i) is true and (ii) is false (2) (i) is false and (ii) is true (3) Both are true-Answer (4) Both are false (5) None of the above
38. Consider the following statements:
(i) Securities that have an original maturity that is greater than one year are traded in money markets.
(ii) The best known money market securities are stocks and bonds.
(1) (i) is true and (ii) is false (2) (i) is false and (ii) is true (3) Both are true (4) Both are false-Answer (5) None of the above
39. The primary issuers of capital market securities include
(1) the Central Government (2) the local Government (3) corporations 4) the Central and Local Governments and corporations-Answer (5) Local Government and corporations
40. Which of the following is a / characteristic of a capital market instrument?
(a) Liquidity (b) Marketability (3) Long maturity (4) Liquidity premium 5) All of the above-Answer
41. Which one of the following is a money market instruments?
(1) A Treasury bill
(2) A negotiable certificate of deposit was
(3) Commercial paper
(4) All of the above -Answer
(5) None of the above
42. T-bills are financial instruments initially sold by ________ to raise funds.
(1) Commercial Banks
(2) the government-Answer
(3) corporations
(4) agencies of the State Government
(5) None of the above
43. Commercial paper is a short-term security issued by ________ to raise funds.
(1) the Reserve Bank of India
(2) Commercial Banks
(3) large and well-known companies-Answer
(4) National Stock Exchange
(5) State and Local Governments
44. Which of the following statements is true regarding a corporate bond?
(1) A corporate callable bond gives the holder the right to exchange it for a specified number of the company’s common shares
(2) A corporate debenture is a secured /‘ bond
(3) A corporate indenture is a secured bond
(4) A corporate convertible bond gives the holder the right to exchange thebond for a specified number of the company’s common shares -Answer
(5) Holders of corporate bonds have voting rights in the company
45. Which one 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-Answer (5) Repo
46. Money lend for 15 days or more in Inter-bank market is called
(1) call money (2) notice mone (3) term money-Answer (4) All of these (5) None of these
47. Money lent for one day is called
(1) call money -Answer(2) notice money (3) term money (4) All of these (5) None of these
48. Specified interest rate on a fixed maturity security fixed at the time of issue is called
(1) market rate of interest (2) call rate (3) repo rate (4) coupon rate -Answer5) discount rate
49. Lending of scheduled Commercial Banks, on a fortnightly average basis, should not exceed — of their capital fund.
(1) 25 per cent -Answer(2) 35 per cent (3) 15 per cent (4) 50 per cent (5) None of these
50. A short-term credit investment created by a non-financial firm and guaranteed by a bank to make payment is called
(1) bankers acceptance market-Answer (2) collateral loan market (3) treasury bill market (4) call money market (5) repo market
51.From the given options A to E , please find out the one which is not an objective of a central Bank of a country?
(A)The central Bank of a country aims at profit-Answer
(B)The central bank is given powers to control and regulate the working of the commercial banks
(C)Central Bank generally is a organ of the government and run by government officials
(D)Central Bank generally controls the credit
(E)Central bank is generally banker of the government
52.From the given options, bring out the one which is not a function / power of Reserve Bank of India:
(A)To assume the responsibility of meeting directly or indirectly all reasonable demands for accommodation
(B)To hold cash reserves of the commercial banks and make available financial accommodation to them
(C)To enjoy monopoly of the note issue
(D)To assume responsibility of all banking operations of the government
(E)To assume the responsibility of statistical analysis of data related to macro economy of India-Answer
53.Many a times we read in the newspapers about margin requirements. From the given options, find out the one which correctly indicates margin requirements:
(A)Margin requirements aim at the regulation of the volume of credit as well as flow of the credit
(B)Margin requirements imply that every bank has to keep certain minimum cash reserves with the reserve bank of India
(C)Margin requirements imply that every bank has to keep certain proportion of its total deposits in the form of cash with it self
(D)Margin requirements imply that RBI has certain rate at which it discounts the bills of exchange of the commercial bank
(E)Margin requirements imply to a cushion against the decline in the value of the security-Answer
54.What will be the impact on the cash reserves of commercial banks if RBI conducts a sale of securities ?
(A)Increase
(B)Decrease-Answer
(C)Remain constant
(D)Increase or decrease
(E)Increase if the securities are sold in open market operations
55.Which among the following is a major qualitative control measure in India ?
(A)Bank Rate Policy
(B)Open market Operations
(C)ways and means advances
(D)Reserve Ratio Requirements
(E)Margin Requirements-Answer
56.Many a times we read in the financial newspapers that Reserve bank of India is "Lender of Last Resort (LOLR) " In India. Which among the following statement gives the most correct definition of "Lender of Last Resort"?
(A)If a person or firm which is eligible to get a loan, does not get it from any commercial bank, may approach to Reserve Bank of India for loan.
(B)If the state governments are in crisis and need money for short term , they can approach RBI for this purpose
(C)If a commercial bank is in crisis, it may place its reasonable demand for accommodation to Reserve Bank of India-Answer
(D)A scheduled commercial bank meets all of its demands in all weathers from Reserve bank of India
(E)Whenever the government declares a debt relief, the RBI will have to bear the brunt of it.
57.(The figures in this questions are imaginary). We suppose that Cash Reserve Ratio in country's economy is 10%. The banking system wish a cash deposits of Rs. 1000 Crore, creates total deposits of Rs. 10,000 Crores. The reserve Bank wishes that bank should create more deposits. Which
among the following step will be taken by the Reserve Bank?
(A)It will lower the Cash Reserve Ratio-Answer
(B)It will raise the Cash Reserve Ratio
(C)It will increase the margin Requirements
(D)It will start selling Government securities
(E)It will start rationing of credit
58.Many a times we read in the newspapers that RBI takes certain steps to curb the menace of Inflation. In this context, which among the following will not help RBI in controlling the inflation in the country?
(A)An increase in the Bank Rate
(B)An increase in the Reserve Ratio Requirements
(C)A purchase of securities in the open market-Answer
(D)Rationing of the credit
(E)Increasing the Repo Rate
59.We suppose that Reserve Bank of India would like to increase the cash Reserves of the commercial Banks. Which among the following would be most appropriate action of the RBI to achieve this aim?
(A)RBI would release gold from its reserves
(B)RBI would raise the reserve ratio
(C)RBI would buy the bonds in the open market-Answer
(D)RBI will stop the transactions which involve the bills of exchange
(E)RBI will put more reserves in the International Monetary Fund
60.Which among the following is a incorrect statement:
(A)The Reserve Bank of India has the special powers to control and regulate the commercial banking system
(B)A rise in the bank rate is a strong anti-deflationary monetary tool-Answer
(C)Minimum Reserve Requirements are fixed to ensure the liquidity and solvency of individual commercial banks
(D)Reserve Ratio Requirement is a quicker method than bank rate and OMO (Open Market Operations) in general credit regulations
(E)Rationing of credit is a powerful qualitative monetary tool
61.Since which year, Reserve bank of India is using the Selective Credit Control measures to control the amount of bank advances against the commodities having limited supply ?
(A)1949
(B)1956-Answer
(C)1969
(D)1973
(E)1982
62.The "Service area Approach" was an strategy launched to improve which of the following?
(A)Micro, Small and medium Enterprising
(B)Unorganized Sector
(C)Rural lending-Answer
(D)Urban Industrial Lending
(E)A & B
63.Which among the following bank / banks in India have set up the Financial Literacy & Credit Counseling centers ?
(A)RBI
(B)Scheduled Commercial banks-Answer
(C)Foreign Banks working in India
(D)Regional Rural Banks
(E)All of above
64.Which of the following imaginary circumstances, the Reserve bank of India will opt to sell Government securities in the open market?
(A)When the Foreign funds inflow is meek
(B)When there is enormous Foreign Funds Inflow in the Indian Economy-Answer
(C)When banks have low liquidity and need liquidity
(D)When Government of India asks the RBI to sell securities
(E)None of the above
65.Which among the following is correct full form of CAS in context with banking markets in India ?
(A)Cash Authorization Scheme
(B)Credit Authorization Scheme-Answer
(C)Credit Access System
(D)Credit Arrangement System
(E)Cash Accreditation Scheme
