ibps po exam.docx

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7/27/2019 ibps po exam.docx http://slidepdf.com/reader/full/ibps-po-examdocx 1/24 Take the test now to further enhance your preparation. Directions (Q. 1-15) : Read the following passage carefully and answer the questions given below it. Certain , words/phrases have been printed in bold to help you locate themwhile answering some of the questions. It was in the offing. With shortages mounting across the board for water as they are for energy, it was only inevitable that the Central government would be stirred into starting a Bureau of Water Efficiency (BWE), much like the Bureau of Energy Efficiency (BEE) that was launched some years ago. Early reports suggest that the draft norms for various sectors consuming water will be created by the BWE soon. The alarm bells have been ringing for some years now. Water availability per capita in India has fallen from about 5 million litres in the 1950s to 1.3 million litres in 2010-that's a staggering 75 per cent drop in 50 years. Nearly 60 percent of India's aquifers have slumped to critical levels injust the last 15 years. Thanks to the rate at which borewells are being plunged in every city with no law to ban such extraction, groundwater tables have depleted alarmingly. The BEE's efforts in the last seven years have only been cosmetic. The bureau has looked at efficiency rating systems for white goods in the domestic sector and has not paid attention to the massive consumption of energy in metals manufacture, paper and textiles. These sectors are very intense in both energy and water consumption. But very little attention has been paid to the water and energy used per tonne of steel or cement or aluminium that we buy, and without significant changes in these areas, the overall situation is unlikely to change. Use of water is inextricably interlinked with energy. One does not exist without the other. The BWE should steer clear of the early mistakes of BEE-of focusing on the 'softer targets' in the domestic sector. Nearly 80 per cent of fresh water is used by agriculture, with industry coming a close second. The domestic sector's consumption of fresh water is in single digit. So, the BWE's priority should be to look at measures that will get farmers and industrialists to follow good practices in water use. Water resources have to be made, by law, an indivisible national asset. The protection and withdrawal of this resource as well as its sustainable development are of general importance and, therefore, in the public interest. This will mean that individuals and organisations may own land but not water or the other resources that lie below the first 20 metres of the surface of those lands. Drilling of borewells into such 'national assets' wiil have to be banned, or at the very least they must be regulated. What would be more sensible for the new water bureau to do would be to look at some of the low-hanging fruits that

Transcript of ibps po exam.docx

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Take the test now to further enhance your preparation.

Directions (Q. 1-15) : Read the following passage carefully and answer the questions given below it.

Certain , words/phrases have been printed in bold to help you locate themwhile answering some of the

questions.

It was in the offing. With shortages mounting across the board for water as they are for energy, it was

only inevitable that the Central government would be stirred into starting a Bureau of Water Efficiency

(BWE), much like the Bureau of Energy Efficiency (BEE) that was launched some years ago.

Early reports suggest that the draft norms for various sectors consuming water will be created by the

BWE soon. The alarm bells have been ringing for some years now. Water availability per capita in India

has fallen from about 5 million litres in the 1950s to 1.3 million litres in 2010-that's a staggering 75 per

cent drop in 50 years. Nearly 60 percent of India's aquifers have slumped to critical levels injust the last

15 years. Thanks to the rate at which borewells are being plunged in every city with no law to ban such

extraction, groundwater tables have depleted alarmingly.

The BEE's efforts in the last seven years have only been cosmetic. The bureau has looked at efficiency

rating systems for white goods in the domestic sector and has not paid attention to the massive

consumption of energy in metals manufacture, paper and textiles. These sectors are very intense in both

energy and water consumption. But very little attention has been paid to the water and energy used per

tonne of steel or cement or aluminium that we buy, and without significant changes in these areas, the

overall situation is unlikely to change.

Use of water is inextricably interlinked with energy. One does not exist without the other. The BWE

should steer clear of the early mistakes of BEE-of focusing on the 'softer targets' in the domestic sector.

Nearly 80 per cent of fresh water is used by agriculture, with industry coming a close second. The

domestic sector's consumption of fresh water is in single digit. So, the BWE's priority should be to look

at measures that will get farmers and industrialists to follow good practices in water use. Waterresources have to be made, by law, an indivisible national asset. The protection and withdrawal of this

resource as well as its sustainable development are of general importance and, therefore, in the public

interest. This will mean that individuals and organisations may own land but not water or the other

resources that lie below the first 20 metres of the surface of those lands. Drilling of borewells into such

'national assets' wiil have to be banned, or at the very least they must be regulated. What would be

more sensible for the new water bureau to do would be to look at some of the low-hanging fruits that

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can be plucked, and pretty quickly, with laws that can emanate from the Centre, without the risk of 

either dilution or inaction from state administrations. The other tactical approach that the BWE can

adopt is to devise a policy that addresses the serious water challenge in industry segments across a

swathe of companies: this will be easier-than taking on the more disparate domestic sector which hurts

the water crisis less than industry. Implementing a law is more feasible when the concentration is dense

and identifiable. Industry offers this advantage more than the domestic or the commercial sector of 

hotels and offices.

As for agriculture, though the country's water requirement is as high as 80 per cent, the growing of 

water within the loop in agriculture de-risks the challenge of any perceived deficit. Rice and wheat,

sugarcane are crops that need water-logging, which ensures groundwater restoration. Surface water

evaporation doesn't amount to any more than 7-8 per cent and only strengthens precipitation and

rainfall. Agriculture and water need is not quite as much a threat as industry and domestic sectors that

account for the rest of the 20 per cent.

The primary challenge in industry and the building sector is that no conscious legal measures have been

enacted that stipulate 'growing your own water' with measures that will 'put all water in a loop' in any

residential or commercial building. This involves treating all used water to a grade that it can be

'upcycled' for use in flush tanks and for gardens across all our cities with the polluter owning the

responsibility for treating and for reuse. The drop in fresh water demand can be dramatic with such

upcyole, reuse and recycle of treated water. Water by itself, in industry and the domestic sector, is not

as much a challenge as pollution of water. Not enough measures exist yet to ensure that such polluters

shift the water back for reuse. If legislation can ensure that water is treated and reused for specificpurposes within industry as well as in the domestic sector, this will make all the difference to the crisis

on fresh water.

So is the case in industry, especially in sectors like textiles, aluminium and steel. Agriculture offers us the

amusing irony of the educated urbanites dependent on cereals iike rice and wheat that consume 4000

litres of water for every kilogramme, while the farmer lives on the more nutritious millets that consume

less than half the quantity. Sugarcane consumes as much as 12,000 litres of water for a kilo of cane that

you buy!

A listing of such correlations of water used by every product that we use in our daily lives will make

much better sense than any elaborate rating system from the newly formed BWE. Such sensitising with

concerted awareness campaigns that the new Bureau drives will impact the urban consumer more than

all the research findings that experts can present. What is important for us is to understand the life-cycle

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impact in a way that we see the connect between a product that we use and the resources it utilises up

to the point where we bring the visible connect to destruction of natural resources of our ecosystems.

1. How, according to the author, can the bureau sensitise the urban consumer about careful utilisation

of water?

(1) By encouraging them to consume more rice instead of millets daily and, thereby, reduce the amount

of water consumption

(2) By providing them more insight into the water consumption cycle of the textile, aluminium and steel

industries

(3) By making them aware ofthe linkages between water consumption for daily activities and the

resource utilization and subsequent ecological destruction associated with it

(4) By publishing research findings of experts in popular media whereby people gain awareness on the

impact of water misuse

(5) By conducting elaborate drives which notify the urban population about the penalties levied on

misuse of water resources

2. Why, according to the author, is the water consumption for agricultural activities the least risky?

(1) The proportion of water consumed for agricultural activities is much less as compared to that

consumed for domestic and industrial purposes.

(2) Most farmers are aware of the popular methods of water conservation and hence do not allow

wastage of water.

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(3) Water is fairly recycled through groundwater restoration due to water-logging and surface water

evaporation.

(4) Farmers in India mostly cultivate crops that require less amount of water.

(5) None of these

3. Which of the following is possibly the most appropriate , title for the passage?

(1) Water Challenges in the New Millennium

(2) The Bureau of Water Efficiency vs the Bureau of Energy Efficiency

(3) Unchecked Urban Consumption of Water

(4) Challenges of the Agricultural Sector and Water Resources

(5) The Route to Conservation of Water Resources

4. What does 'low-hanging fruits that can be plucked, and pretty quickly' mean in the context of the

passage?

(1) The bureau should employ the cheapest methods possible to effectively control the current situation

of improper usage of water resources.

(2) The bureau should target the industrial sector as well as the domestic sector to reduce water

wastage.

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(3) The bureau should target the agricultural sector only for producing quick results in reducing wastage

of water.

(4) The bureau should ensure that all the state officials concerned with the measures are actively

involved.

(5) The bureau should start with adopting measures which are simple to execute and produce

immediate results in reducing water wastage.

5. Which of the following, according to the author, is/are the indicationls of a water crisis?

(A) Many agrarian areas in the country are facing a drought-like situation.

(B) Almost three-fifths of the naturally available water has been reduced to a very critical level in a

relatively short span of time.

(C) There has been a significant drop in the availability of water over the past fifty years.

(1) Only (B)

(2) Only (A) and (C)

(3) Only (C)

(4) Only (B) and (C)

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(5) All (A), (B) and (C)

BANKING AWARENESS

GENERAL AWARENESS WITH SPECIAL REFERENCE TO BANKING INDUSTRY

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Friday, 8 June 2012

BANKING AWARENESS PRACTICE MCQs 

1. When Government of India was approved SBISBS Merger ?(A) In August 2007

(B) In August 2009

(C) In March 2011

(D) In July 2011

See Answer:(A)

2. When RBI made compulsory to the Basel II norms for Banks ?(A) March 31, 2007(B) March 31, 2008

(C) March 31, 2010

(D) March 31, 2011

See Answer:(B)

3. Which bill passed for reducing the minimum level of government's shareholding in equity of 

SBI from 55 per cent to 51 per cent ?(A) SBI (Amendment) Bill 2009

(B) SBI (Amendment) Bill 2010

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(C) RBI (Amendment) Bill 2012

(D) None of these

See Answer:(B)

4. The Reverse Repo rate as announced by RBI on April 17, 2012 stand at —  

(A) 7•0% (B) 9•0% (C) 8•0% 

(D) 8•5% 

See Answer:(A)

5. The new president of ASSOCHAM for the year 2012-13 is —  

(A) Dilip Modi

(B) R. V. Kanoria(C) Raj Kumar Dhoot

(D) N. L. Kidwai

See Answer:(C)

6. The saving-investment gap during 2010-11 has been estimated at —  

(A) 2•8% of GDP 

(B) 3•0% of GDP (C) 3•2% of GDP 

(D) 3•8% of GDP 

See Answer:(A)

7. The pace of credit growth for Private Sector banks increased to 11•7 per cent during—  

(A) 2010 -11

(B) 2009 -10(C) 2012 -13

(D) 2008 -10

See Answer:(B)

8. According to RBI, bank loan registered a growth of 21•38 per cent in—  

(A) 2010-11(B) 2009-10

(C) 2010-12

(D) 2011-12

See Answer:(A)

9. As per RBI, bank deposits growth stood at....... in 2010-11.

(A) 12%

(B) 13%(C) 15•84% 

(D) 14•13% 

See Answer:(C)

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10. RBI has projected growth of 17% in bank deposits for the entire financial year  —  

(A) 2011-12

(B) 2010-11(C) 2011-13

(D) 2012-13

See Answer:(A)

11. RBI has projected credit growth of...........for the financial year 2011-12.

(A) 19%

(B) 18%(C) 21%

(D) 8%

See Answer:(A)

12. At present (As on 30 June, 2011), the authorized capital of SBI is —  

(A) 1500 crore

(B) 5000 crore(C) 16000 crore

(D) None of these

See Answer:(B)

13. For a scheduled bank the paid up capital and collected funds of bank should not be less

than —  

(A) Rs. 5 lakh(B) Rs. 6 lakh

(C) Rs. 1 crore

(D) Rs. 5 crore

See Answer:(A)

14. Which Act is fully applicable to all commercial banks ?

(A) Companies Act, 1956(B) Partnership Act, 1932

(C) Banking Regulation Act, 1949

(D) Sale of Goods Act, 1930

See Answer:(C)

15. As on 31st March, 2010 how many RRBs were recapitalized with total funding support of 

Rs. 1795•97 crore by Government of India ?(A) 96

(B) 98

(C) 27

(D) 15

See Answer:(C)

16. The share of long-term debt in India's total external debt at the end of September, 2011stands at —  

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(A) 72%

(B) 78%

(C) 80%(D) 82%

See Answer:(B)

17. Which is/are mutual fund ?(A) HDFC Top 200

(B) HDFC Equity Fund

(C) IDFC Small and Mid Cap(D) All of these

See Answer:(D)

18. The external debt to GDP ratio at the end of September 2011 in India Stands at —  (A) 16•6% 

(B) 17•8% 

(C) 17•0% (D) 18•4% 

See Answer:(B)

19. What is the corpus of RIDF-XVIII ?(A) Rs. 20,000 crore

(B) Rs. 18000 crore

(C) Rs. 16000 crore(D) Rs. 14000 crore

See Answer:(A)

20. RIDF XVIII is related to..........year.(A) 2010-11

(B) 2009-10

(C) 2012-13(D) 2011-12

See Answer:(C)

Posted by BANKING AWARENESS at Friday, June 08, 2012 0 comments Email ThisBlogThis!Share to TwitterShare to Facebook  

BANKING AWARENESS MCQs

1. For the development of the banking facilities in the rural areas the Imperial Bank of India was partially nationalised on —  

(A) June 1, 1940

(B) June 1, 1942(C) July 1, 1955

(D) July 1, 1949

Answer: July 1, 1955

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2. The Imperial Bank of India was named as the —  

(A) Reserve Bank of India

(B) State Bank of India(C) Union Bank of India

(D) Bank of India

Answer: State Bank of India

3. Which is/are not an associated bank of SBI ?

(A) The State Bank of Hyderabad

(B) The Union Bank of India(C) The State Bank of Bikaner and Jaipur 

(D) The State Bank of Mysore

Answer: The Union Bank of India

4. In order to have more control over the banks, 14 large commercial banks whose reserves were

more than Rs. 50 crore each were nationalized on —  

(A) 19th July, 1969(B) 19th July, 1970

(C) 19th July, 1971

(D) 19th July, 1972

Answer: 19th July, 1969

5. Which is not a nationalised bank ?

(A) Bank of India(B) Canara Bank 

(C) AXIS Bank 

(D) Vijaya Bank 

Answer: AXIS Bank 

6. When the Government of India merged the New Bank of India with Punjab National Bank ?

(A) Sept. 4, 1993(B) July 1, 1990

(C) July 1, 1993

(D) March 1, 1993

Answer: Sept. 4, 1993

7. Which is the Central Bank of India ?

(A) The Central Bank of India(B) The State Bank of India

(C) The Reserve Bank of India

(D) The Union Bank of India

Answer: The Reserve Bank of India

8. The RBI was established in —  

(A) 1935(B) 1940

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(C) 1947

(D) 1949

Answer: 1935

9. When RBI was set up, the Capital of the Bank was —  

(A) 500 crore(B) 50 crore(C) 15 crore

(D) 5 crore

Answer: 5 crore

10. The general administration and direction of RBI is managed by a Central Board of Directors

consisting of  –  

(A) 20 members(B) 15 members

(C) 5 members

(D) 25 membersAnswer: 20 members

11. RBI released Rs. 1000 currency note for circulation on —  

(A) October 1, 1970(B) July 1, 1980

(C) October 9, 2000

(D) October 3, 2011

Answer: October 9, 2000

12. Which of the following instruments cannot be presented for payment in a clearing house ?

(A) Demand draft(B) Dividends

(C) Fixed deposit receipt

(D) All of the above

Answer: Fixed deposit receipt

13. The Security Printing Press at Hyderabad was established in —  (A) 1982

(B) 1983

(C) 1980

(D) 1950

Answer: 1982

14. ‘‘Swabhiman’’ Scheme is related—  

(A) Rich Customers of the Bank (B) RRBs

(C) To provide basic banking services to bankless villages

(D) None of the above

Answer: To provide basic banking services to bankless villages

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15. When RBI has decided to circulate ‘Plastic Currency Notes’ in the market ? 

(A) July 1, 1999(B) July 1, 2010

(C) July 1, 2011

(D) Sept. 1, 2011Answer: July 1, 2010

16. Which is the measures of credit control ?

(A) Quantitative credit control(B) Qualitative credit control

(C) Budgetary control

(D) Both (A) and (B)

Answer: Both (A) and (B)

17. NPAs stands for  —  

(A) Net Present Value(B) Non Preforming Assets

(C) Net Pure Assets

(D) Net Permanent Assets

Answer: Non Preforming Assets

18. When was introduced the Differential Rate of Interest (DRI) ?

(A) In 1972(B) In 1990

(C) In 2009

(D) In 2011

Answer: In 1972

19. When was addopted, New strategy for Rural Lending : Service Area Approach ?

(A) April 1, 1989(B) March 1, 2007

(C) April 1, 2010

(D) April 1, 2011

Answer: April 1, 1989

20. As on June 30, 2010, Which Indian Bank has the maximum number of offices in abroad ?

(A) Bank of India(B) SBI

(C) Bank of Baroda

(D) None of these

Answer: SBIPosted by BANKING AWARENESS at Friday, June 08, 2012 0 comments

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Friday, 25 May 2012

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Banking Terms

AIDB- All India Development Bank 

ATM- Automated Teller Machine is a machine uses a computer that verifi es your accountinformation and PIN (Personal Identification Number) and will dispense or deposit funds per your request)Annuity- Fixed amount of cash to be received every year for a specified period of 

time

Asset/Liability Risk- A risk that current obligations/ liabilities cannot be met with current

assets.

Assets- Things that one owns which have value in financial terms.

Banking Cash Transaction Tax (BCTT) - BCTT is a small tax on cash withdrawal from bank 

exceeding a particular amount in a single day

Bank Credit – Bank Credit includes Term Loans, Cash Credit, Overdrafts, Bills purchased &discounted, Bank Guarantees, Letters of Guarantee, Letters of credit.

Bank Debits - Sum of the value of all cheques and other instruments charged against thedeposited funds of a bank’s customer. 

Bank Rate - Interest rate paid by major banks if they borrow from RBI, the Central Bank of thecountry.

Bank Statement - A periodic record of a customer’s account that is issued at regular intervals,

showing all transactions recorded for the period in question

Basis Point- Basis Point is one-hundredth of one percentage point (i.e. 0.01%), normally used

for indicating spreads or cost of finance.

Balance of Payment (BoP) –  BoP is a statement showing the country’s trade and financial

transactions (all economic transactions), in terms of net outstanding receivable or payable from

other countries, with the rest of the world for a period of time

BR Act - Banking Regulation Act

Cash reserve Ratio (CRR) - CRR is the amount of funds that the banks have to keep with the

RBI. If the central bank decides to increase the CRR, the available amount with the banks comes

down

CAD- current account deficit

Capital Adequacy Ratio (CAR) – CRR is a ratio of total capital divided by risk-weighted assets

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and risk-weighted off-balance sheet items.

Cash Credit (CC) - An arrangement whereby the bank gives a short-term loan against the self-liquidating security

Certificate of Deposit (CD) - CD is a negotiable instrument issued by a bank evidencing timedeposit

Cheque - A written order on a bank instrument for payment of a certain amount of money.

C-D ratio- Credit- Deposit Ratio

Corporate Banking - Banking services for large firms

CRAR - Capital to Risk-Weighted Assets Ratio

Credit Crunch - Fall in supply of credit even though there is sufficient demand for it

Cross default - Two loan agreements connected by a clause that allows one lender to recall the

loan if the borrower defaults with another, and vice versa.

Deposit: A check or cash that is put into your bank account.

Endorse: To sign the back of your check before cashing or depositing it, as proof that you arethe person the check was written out to.

Equitable mortgage - Mortgage under which one still owns the property which is security for 

the mortgage. The owner can occupy or live in the property

Exchange Rate - The rate at which one currency may be exchanged for another 

FRNs - Floating Rate Notes

Fixed assets - Assets such as land, buildings, machinery or property used in operating a businessthat will not be consumed or converted into cash during the current accounting period

Fixed Rate - A predetermined rate of interest applied to the principal of a loan or credit

agreement

IFSC Code - Indian Financial System Code or IFSC code is an eleven character code assigned

 by RBI to identify every bank branches uniquely, that are participating in NEFT system in India

Liquidation – Liquidation is divestment of all the assets of a firm so that the firm ceases to exist

Liquidity- The extent to which or the ease with which an asset may quickly be converted intocash with the least administrative and other costs

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Letter of Credit (LC) - A formal document issued by a bank on behalf of a customer, stating the

conditions under which the bank will honour the commitments of the customer 

Line of Credit - pre-approved credit facility (usually for one year) enabling a bank customer to

 borrow up to the specified maximum amount at any time during the relevant period of time.

MICR- Magnetic Ink Character Recognition or MICR is the bottom line on all checks. It is

 printed using a special font.

Monthly Statement: statement received by customers at the end of the month about the

account’s activity (what went in and what came out) from the previous month. 

NEFT- national electronic funds transfer 

Non Performing Assets (NPA) - When due payments in credit facilities remain overdue above a

specified period, then such credit facilities are classified as NPA.

NBFCs- Non-banking Finance Companies

NHB- National Housing Bank 

Overdraw: To write a check for more money than what is present in the account. Usually there

is a fee (known as NSF/non-sufficient funds)

Principal- Principal is the amount of debt that must be repaid. Also means a person who deals in

securities on his own account and not as a broker 

Prime Lending Rate (PLR) - The rate of interest charged on loans by banks to their most

creditworthy customers

PSB - Public Sector Bank 

Repo rate- the rate at which the RBI lends money to banks

Reverse repo rate- Reverse Repo rate is the rate at which the RBI borrows money from

commercial banks

SCBs - Scheduled Commercial Banks

Statutory Liquidity Ratio- SLR is Statutory Liquidity Ratio. It’s the percentage of Demand and

Time Maturities that banks need to have in any or combination of the following forms:i) Cash

ii) Gold valued at a price not exceeding the current market price,

iii) Unencumbered approved securities (G Secs or Gilts come under this) valued at a price asspecified by the RBI from time to time

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Standby Letter of Credit - A guarantee issued by a bank, on behalf of a buyer that protects the

seller against non-payment for goods shipped to the buyer 

Securitization - Securitization is a process of transformation of a bank loan into tradable

securitiesSelective Credit Control (SCC) - Control of credit flow to borrowers dealing in some essentialcommodities to discourage hoarding and black-marketing

Tier 1 Capital - Refers to core capital consisting of Capital, Statutory Reserves, Revenue andother reserves, Capital Reserves (excluding Revaluation Reserves) and unallocated surplus/

 profit but excluding accumulated losses, investments in subsidiaries and other intangible assets

Tier 2 Capital - Comprises Property Revaluation Reserves, Undisclosed Reserves, HybridCapital, Subordinated Term Debt and General Provisions. This is Supplementary Capital.

Withdrawal: To take money out of your bank account. To make a withdrawal is the opposite of 

making a depositPosted by BANKING AWARENESS at Friday, May 25, 2012 0 comments

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BANKING AWARENESS PRACTICE QUESTIONS

1. First Governor of RBI was –  

a) Hilton Young b) Paul Samuelson

c) C.D.Deskmukh

d) O.A Smith

Ans. d) O.A Smith 

2. At the time of nationalization who was the Governor of RBI- a) O.A Smith b) J.B Taylor 

c) C.D. Deshmukh

d) K.C.Neogy

Ans. c) C.D. Deshmukh

3. The RBI was nationalized in the year –  a)1949

 b)1956c)1959

d)1947

Ans. a)1949

4. The general superintendence and director of the bank is entrusted to central board of 

directors of  –  a)10 members

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 b) 20 members

c) 25 members

d)30 members

Ans. b) 20 members

5. Paper currencies of our country are issued by RBI under –  a) Section- 22 of the RBI act -1934 b) Section- 24 of the RBI act -1934

c) Section- 28 of the RBI act -1934

d) None of these

Ans. a) Section- 22 of the RBI act -1934

6. One rupee currency notes bear the signature of -

a) PM b) President of India

c) Governor of RBI

d) Finance Secretary of IndiaAns. d) Finance Secretary of India 

7. Ten rupees notes bear the signature of  –  a) President b) Finance Minister 

c) Secretary of Ministry of finance

d) Governor of RBI

Ans. d) Governor of RBI 

8. Which of the following is the banker of the banks –  a) IDBI b) SBI

c) RBI

d)UTI

Ans. c) RBI

9. In which of the following banks one can’t open a personal account –  a) Co-Operative Banks

 b) Commercial banks

c) Regional Rural Banks

d) RBI

Ans. d) RBI 

10. Which of the following banks is the banker to the government –  a) SBI b) SEBI

c) RBI

d) IRDA

Ans. c) RBI

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11. Which of the followings are the function of RBI –  a) Regulation of currency and flowing of credit system b) Maintaining exchange values of rupee

c) Formulating monetary policy of India

d) All of theseAns. d) All of these 

12. Credit rationing in India is done by –  a) SBI b) LIC

c) UTI

d) RBI

Ans. d) RBI 

13. The first bank of India was –  

a) Bank of Hindusthan b) Imperial Bank 

c) Bank of Bengal

d) Oudh Commercial Bank 

Ans. a) Bank of Hindusthan

14. The first Indian fully liability and managed bank was  –  a) PNB b) Traders Bank 

c) SBI

d) 0 Presidency Bank of India

Ans. a) PNB

15. The rates at which the RBI extends credit to the commercial bank is called –  a) Bank Rate b) Reverse Repo Rate

c)Interest Rate

d) None of these

Ans. a) Bank Rate

16. In which of the following is not the any element of monetary policy of RBI –  a) Bank rate b) Open Market Operation

c) Public Expenditure

d) All of these

Ans. c) Public Expenditure

17. 100 rupees note bears the signature of  –  a) Governor of RBI b) PM

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c) Finance Secretary of India

d) Chairman of Finance Commission

Ans. a) Governor of RBI

18. Which of the following is the last lender of the last resort of commercial bank-  

a) SBI b) Union Govt.c) RBI

d) UTI

Ans. c) RBI

19. The RBI is agent of central government and of all state government except –  a) Bihar 

 b) Goac) Jammu and Kashmir 

d) Mizoram

Ans. c) Jammu and Kashmir

20. Controller of credit of commercial banks in our country is –  a) RBI

 b)SEBIc) ICI

d)UTI

Ans. a) RBI

21. The Banking Concept in India was first developed by –  a) British

 b) Frenchc) Indian

d) None of these

Ans. a) British

22. The rate at which RBI gives short term credit to the commercial banks against

government securities with buy back provision is called –  a) Bank Rate

 b) Repo Rate

c) Reverse repo rate

d) Interest rate

Ans. b) Repo Rate 

23. The rate at which RBI takes loans from commercial banks is called –  a) Repo Rate b) Reverse Repo Rate

c) Bank Rate

d) Interest Rate

Ans. b) Reverse Repo Rate

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24. At present the Reverse Repo Rate of RBI is (As of 25th Nov) –  a) 8.25 b) 7.25

c) 7.50

d)8.50Ans. d)8.50 

25. Bank rate of RBI is also known as –  a) Interest Rate b) Discount Rate

c) fed rate

d) bid rate

Ans. b) Discount Rate 

26. Which of the following is not the any element of quantitative credit control policy of 

RBI –  a) CRR 

 b) SLR 

c) Selective credit control

d) open market operation.

Ans. c) Selective credit control 

27. At present CRR of RBI is –  a) 6%

 b) 7.5%

c) 8.5%

d) none of these

Ans. a) 6% 

28. The limitation of CRR of RBI is –  a)3-10 %

 b) 3-15%

c) 15-38%d) 10-25%

Ans. b) 3-15% 

29. The apex organization of Indian money market is –  a)SBI

 b) SEBI

c) RBI

d) IRDA

Ans. c) RBI 

30. If the cash reserve is lowered by RBI, what will be its effect on credit creation  –  a) Decrease

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 b) Increase

c) No Change

d) None of these

Ans. b) Increase 

31. The expansion of money supply of an economy depends on –  a) The policy of CRR  b) The bank rate policy

c) Open market operation

d) All of these

Ans. d) All of these 

32. Among the following who are eligible to benefit from the Mahatma Gandhi National

Rural Employment Guarantee Act? –  a) Adult Members of only the scheduled caste and scheduled tribe holders

 b) Adult of below poverty line household

c) Adult members of household of all backward communityd) adult members of any rural household

e) None of these

Ans. d) adult members of any rural household

33. Which of the following banks merged with Punjab national banks in 1993  –  a) New bank of India

 b) Central Bank of Indiac) Imperial Bank of India

d) Common bank of India

Ans. a) New bank of India 

34. A currency, the exchange values of which is expected to remain stable due to strong

perf ormance by it’s economy. This currency is –  a) Soft Currency b) Hot currency

c) Fiat currency

d) None of these (Hard Currency)

Ans. d) None of these (Hard Currency) 

35. The Reserve Bank of India issues under the following note issue method?  –  a) Proportional Reserve System b) Minimum Reserve System

c) Maximum Reserve System

d) Fixed Fiduciary System

Ans. b) Minimum Reserve System 

36. What is a Scheduled Bank? –  a) A bank having Rs 10 Crore deposits b) A bank having Rs 100 Crore deposits

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c) A bank having Rs 5 Crore deposits

d) A bank included in the second schedule of RBI act 1934.

Ans. d) A bank included in the second schedule of RBI act 1934. 

37. How many languages are used on a Ten Rupee note?  –  

a) 2 b) 7c) 10

d) 15

e) 16

Ans. d) 15 

38. The place where bankers meet and settle their mutual claims and accounts is known as

 –  a) Treasury

 b) Clearing House

c) Dumping Housed) Collection centre

Ans. b) Clearing House 

39. The largest Public sector bank in India –  a) SBI

 b) PNB

c) RBId) ICICI

Ans. a) SBI 

40. Which of the following is not the function of RBI –  a) Banker’s bank  

 b) Banker to public

c) custodian of foreign exchanged) Bankers to Govt.

Ans. b) Banker to public 

41. Who is responsible for the collection and publication of monetary and financial

information-

a) Finance Commission

 b) Finance ministryc) RBI

d) Auditor and Comptroller general of India

Ans. c) RBI 

42. Which of the following regulatory authority to oversee the new issues, protect the

investment and investors, promote the development of Capital Market and regulate the

working of Stock Exchange –  a) UTI b) IRDA

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c) RBI

d) SEBI

e) None of these

Ans. d) SEBI 

43. After a long span of 22 years, RBI released Rs.1000/- currency note for circulation in  –  a) 2000 b) 2002

c) 2005

d) 2008

Ans. a) 2000 

44. Regional Rural banks are working in all states of the country except  –  a) Sikkim and Goa b) Sikkim and Manipur 

c) Manipur and Nagaland

d) Jammu and Kashmir Ans. a) Sikkim and Goa 

45. The National Housing Bank is a subsidiary of  –  a) RBI b) NABARD

c) IDBI

d) UTI

Ans. a) RBI 

46. At present the ceiling of Foreign Direct Investment (FDI) in insurance sector in India is

 –  a) 26%

 b) 49%

c) 51%d) 74%

Ans. a) 26% 

47. Rs. 25 Paisa was ceased by the Govt of India on –  a) 30th june 2011

 b) 30th July 2011

c) 1st January 2011d) 1st July 2011

Ans. a) 30th june 2011 

48. Initial Public Offering (IPO) is associated with –  a) RBI

 b) Stock Exchange

c) IRDAd) Indian Postal Service

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Ans. b) Stock Exchange 

49. The Basic regulatory authority for mutual funds and stock markets lies with the  –  a) Government of India

 b) Reserve Bank of India

c) Securities and Exchange Board of India (SEBI)d) Stock Exchange

Ans. c) Securities and Exchange Board of India (SEBI) 

50. Monetary policy Referes to the policy of  –  a) Money Lenders

 b) Government

c) Commercial Banks

d) RBI

Ans. d) RBI Posted by BANKING AWARENESS at Friday, May 25, 2012 0 comments

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