BANKING AWARENESS SET 3

Banking Awareness is the important section in IBPS PO and Clerk examination. To score good marks in this section, all you need is to be aware of the banking concepts and functionalities. Here we will try to provide you with banking awareness practice sets:

1. While tackling the problem of inflation, which one of the following aspects is taken into consideration by the RBI?
A.Balance between the budget deficit and price stability
B.Balance between growth and financial stability
C.Balance between prices of all essential commodities
D.Balance between growth, price stability and financial stability
E.None of these

2. Which of the following is/are a/an indicator of the financial health of a country?
1.GDP
2.PPP
3.FDI in a year
A.Only (1)
B.Only (2)
C.Only (3)
D.All (1),(2)&(3)
E.None of these

3. Stock exchanges play a role in an economy which may be termed as
A.hardly useful
B.useful but need strict regulation
C.harmful to proper capital markets
D.a gambling-where many investors get ruined
E.a very important segment to regulate inflation

4. Which of the following is/are called key policy rates by the Reserve bank of India?
1.Bank Rate
2.CRR
3.SLR
A.Only (1)
B.Only (2)
C.Only (2) & (3)
D.Only (1) & (2)
E.All (1),(2)& (3)

5. Which of the following is NOT used in the field of banking & finance?
A.Blue chip Companies
B.Commercial paper
C.Hedge
D.Premium bonds
E.Wobbe index

6. The market in which long term securities such as stocks are bought and sold is commonly known as-
A.Bullion Market
B.Commodities Exchange
C.Forex Market
D.Capital Market
E.Money Market

7. Expand terms means IFRS—
A.Indian Financial Review Standards
B.Indian Financial Reporting Standards
C.International Financial Review Standards
D.International Financial Reporting Standards
E.None of these

8. What is a corporate Hedging?
A.It is a mechanism to protect firm’s exposure to equity risk
B.It is a mechanism to protect firm’s exposure to market risk
C.It is a mechanism to protect firm’s exposure to forex risk
D.It is a mechanism to protect firm’s exposure in International trade
E.None of these

9. India is following a system of “fiat money”, while issuing currency. What is ’fiat money’?
A.The currency is backed by Government Guarantee
B.The currency is backed by tangible assets
C.The currency is backed by gold reserves
D.The currency is backed by budgetary support
E.None of these

10. A lease ……….. .
A.is a rental agreement between owner of a flat/house and the Tenant, whereby the Tenant pays specified amount on specified dates to the owner.
B.is a legal contract-between the owner of an asset and its user, containing many conditions including payment of a specified amount by the user to the Owner for use of the asset.
C.is mainly used for machinery.
D.is one of the ways resorted to by the companies.
E.None of these

11. Factoring-
A.is an easy way of raising capital from a factoring company by small business
B.is selling of account receivables on a contract basis for cash payment to a factor before it is due
C.is an arrangement for raising short term money against prepaid expenses.
D.is a method of discounting of long term bills
E.None of these

12. Which of the following institutions is involved in granting Housing Loans?
A.RBI
B.SBI
C.IBA
D.ICICI
E.HDFC

13. Which of the following tool is used by RBI for selective credit control?
A.It advises banks to lend against certain commodities
B.It advises banks to recall the loans for advances against certain commodities
C.It advices banks to charge higher rate of interest for advance against certain commodities
D.It discourages certain kinds of lending by assigning higher risk weights to loans it deems undesirable
E.None of these

14. For which of the following loan products ‘teaser loans’ are offered by banks?
A.Education Loans
B.Commercial Loans
C.Loans against security of gold
D.Retail Trade Loans
E.Home loans

15. Which one of the following has guarantee for infra loans?
A.IDBI
B.SBI
C.IIFCL
D.SIDBI
E.None of these

16. Which may of the following may be the consequence of buying forex in the market by RBI?
A.It leads to inflation
B.It leads to control over inflation
C.It does not affect inflation
D.It results into deflation
E.None of these

17. Under provisions of which one of the following Acts, the Reserve bank of India has the power to regulate, supervise and control the Banking sector?
A.RBI Act
B.Banking Regulation Act
C.Negotiable instrument Act
D.RBI and Banking Regulation Act
E.None of these

18. Which of the following is not related to banking?
A.Repayment
B.Loan
C.NPA
D.Fasting
E.Deposit

19. The NAV of a mutual fund ………… .
A.is always constant
B.keeps going up at a steady rate
C.Fluctuates with market price movements
D.Cannot go down at all
E.None of these

20. A saving bank deposit account is one where-
A.Amounts are deposited and withdrawn as per requirement of the customers
B.The deposits are made only once in a year
C.Periodical Fixed amount are deposited month wise and withdrawals are allowed after a fixed period
D.All of the above
E.None of these

             

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