BANKING AWARENESS SET 6

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 give you banking awareness practice sets:

1.  Indian Financial System comprises of
A. Scheduled Commercial Banks
B. Non-Banking Financial Institutions
C. Urban Co-operative Banks
D. All of the above
E. None of the above

2.  Non- Banking Financial Institutions consist of
A. Development Finance Institutions (DFIs)
B. Insurance Companies
C. Non-Banking Financial Companies (NBFCs), Primary Dealers (PDs) and capital market intermediaries e.g., mutual funds
D. All of the above
E. None of the above

3.  Which of the following is a Term Lending Institutions?
A. EXIM Bank
B. IDBI Bank Ltd.
C. ICICI Bank Ltd.
D. All of the above
E. None of the Above

4.  Which of the following fall in the category of refinance institutions?
A. NABARD
B. SIDBI
C. National Housing Bank (NHB)
D. All of the above
E. None of the above

5.  Which of the following is an investment institution?
A. Life Insurance Corporation of India
B. IDBI Bank Ltd.
C. ICICI Bank Ltd.
D. State Bank of India
E. HDFC

6.  Which of the following FIs are under full- fledged regulation and supervision of Reserve Bank of India?
A. EXIM Bank
B. NABARD
C. NHB
D. SIDBI
E. All of the above

7.  The leader of the Indian Money Market is
A. Lead Banks
B. Commercial banks
C. Reserve Bank of India
D. State Bank of India
E. None of these

8.  The Commercial banking system in India consists of
A. Nationalised Banks and Private Sector Banks
B. Scheduled and Non-Scheduled Banks
C. Regional Rural Banks, Co-operative Banks and Land Development Banks
D. All of the above
E. None of the above

9.  The money market in India consists of two sectors, namely, the organized sector and the unorganized sector. Which of the following do not fall under organized sector?
A. Reserve Bank of India, State Bank of India and Commercial Banks
B. Life Insurance Corporation and General Insurance Corporation
C. Unit Trust of India
D. SIDBI
E. Indigenous bankers

10.  Which of the following is known as the Central Bank of the country?
A. Central Bank of India
B. Reserve Bank of India
C. IDBI
D. IBRD
E. SBI

11.  Central monetary authority of the country is
A. Union Finance Ministry
B. Reserve Bank of India
C. Planning Commission
D. Central Board of Direct Taxes
E. None of the above

12.  “Scheduled Bank” means a bank
A. Incorporated under the Companies Act, 1956
B. Authorized to transact Government Business
C. Governed by the Banking Regulation Act, 1949
D. Government Banking Regulation Act, 1921
E. Included in the Second Schedule of the Reserve Bank of India Act, 1934

13.  A “Scheduled Bank” must have a paid-up capital and reserves of an aggregate value of not less than
A. Rs. 1 lakh
B. Rs. 5 lakh
C. Rs. 2 lakh
D. Rs. 15 lakh
E. Rs. 10 lakh

14.  Which of the following are the scheduled banks?
A. State Bank of Mauritius Ltd.
B. HDFC Bank Ltd.
C. ICICI Bank
D. IDBI Bank Ltd.
E. None of the above

15.  Land development Banks in India is specialised in
A. Crop Loans
B. Short-term lending
C. Medium-term lending
D. Seeds and fertilizer loan
E. Long-term lendin

16.  Which of the following intermediaries are not working for banks?
A. Direct sales Agents
B. Automobile Dealers
C. Whole Sellers
D. Merchant Establishments
E. None of the above

17.  The advantage of factoring are
A. Entire sales practically become cash sales to the seller
B. Money blocked with sundry debtors become available for business
C. Working capital management becomes efficient
D. All of the above
E. None of the above

18.  The provision of section 21 of the Banking Regulation Act, 1949 empowers Reserve Bank of India to
A. Inspect the banking companies
B. To regulate CRR and SLR
C. Control advances by banking companies
D. All of the above
E. None of the above

19.  Which of the following are the actions introduced by the SEBI?
A. Allotment of shares only if minimum 90% subscription is received from the public
B. Refund of application money in case of non-allotment within 90 days
C. Publication of quarterly results
D. Free pricing of equity issues by companies
E. All of the above

20.  The term “Merchant Banking” connotes
A. Services rendered by banks for merchants and traders
B. A special scheme for granting term loans for working capital requirements to merchants covered under DICGC Guarantee Scheme
C. Telegraphic transfers effected by merchants
D. Catering to the needs of corporate customers raising finance
E. None of the above

             

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  • Vende††a – BlaCk mE†aL

    6th answer is wrong … it must be all of the above…

    13th answer is 5 lakh

    Scheduled commercial Banks are banks, which have been included in the Second Schedule of the Reserve Bank of India (RBI) Act, 1934. According to Sec. 42(6)(a) of the Act, a bank should fulfill the following conditions to be included in this schedule: –

    1. It must have a paid-up capital and reserves of an aggregate value of not less than Rs.5 lakhs
    2. It must satisfy the RBI that its affairs are not conducted in a manner detrimental to the depositors
    3. It must be a state co-operative bank or a company under the Companies Act, 1956 or an institution notified by the Central Government in this behalf or a corporation or a company incorporated by or under any law in force in any place outside India