Banking Awareness Bits for IBPS Exam Set 1

Which Stock Exchange and United Bank of India has signed a Memorandum of Understanding with for offering an internetbased equity trading platform? Calcutta Stock Exchange Ltd The committee which has been set by the government of India regarding the issues of merging of AirIndia and Indian airlines's staff into Air India Ltd. Is___________ Dharmadhikari Committee What is meant by Public Sector Bank? Government of India or RBI or both have the least 51 % shares in the bank An important source of capital formation in India has been____________ Household savings The term 'insider trading' is associated with_____________ Stock Markets Effective from 11th August 2012, RBI reduced SLR (Standard Liquidity Ratio) by_______ 1%
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If a cheque bearing date prior to the date, when it was actually drawn, it is called_____ Anti-dated cheque Which of the following organisations / agencies has specifically been set up to boost overall rural development in India? NABARD Reserve Bank of India is funding to encourage advance training and research on banking issues, economic Growth. It is funding National Institute of Bank Management (NIBM) at_____________ Pune Foreign Exchange Reserves are kept in the custody of ___________ RBI Banking Regulation Act was passed in which year ? 1949 Andhra Bank's head office is at ____________ Hyderabad 'e - Choupal' is the Rural marketing network initiative of___________ ITC What is meant by GAAR ? General Anti-Avoidance Rules Name the country Which is going to be the 2nd largest producer of crude steel in the world by 2015 ? India Which card provides the instant and needy loan to farmers in India _________ Kisan credit card

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RBI buys and sells the government securities in the open market. By buying the securities, it increases the circulation of money and by selling it decreases the circulation of money. This process is called as ? Open Market Operations Bank note Press Dewas is in the state of ___________ Madhya Pradesh The first phase of Indian banking runs between 1786 to _______________ 1969 Which account in India is called the common man account? Savings account On 15th August, which country also celebrates Independence Day like India? South Korea Rise in Stock Market is usually referred to as ____________ Bull ICICI Bank made an agreement with ECO bank to extend the banking regulations on 15th October 2012. ECO bank original base is in __________ Africa Banking Awareness Model Paper for IBPS PO / Clerks Exams Set 2

Which of the following term is NOT related with Banking / Finance ?

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1. 2. 3. 4. 5.

Annuity Line of Credit Heir Fore Closure Lipitor

Lipitor Which of the following Negotiable Instruments can be crossed to the banks ?

1. 2. 3. 4. 5.

Cheques Bills of Exchange Drafts All of these None of these

Bills of Exchange "The Global Enabling Trade Report" is released by ? World Economic Forum Coins are minted at __________ 1. 2. 3. 4. 5. Mumbai Hyderabad Noida Kolkata All of these

All of these The set of directive principles issued by the Central Bank of a country or the process adopted by it to control the supply of money, availability of money, cost of money and rate of interest, etc, in order to bring stability and growth of the "economy" are commonly known as ? Monetary policy of the central Bank of the country
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Which of the following is NOT a funciton of a commercial bank ? 1. 2. 3. 4. 5. Providing project finance Selling Mutual Funds Deciding policy rates like CRR, Repo Rates and SLR etc Settlement of Payments on behalf of the customers Providing services such as locker facilities, remittances etc

Deciding policy rates like CRR, Repo Rates and SLR etc Banks do not issue _________ 1. 2. 3. 4. 5. Cheque Book PAN Card Demand Draft Letter of Credit Withdrawal Form

PAN Card Out of the 27 members of the European Union, which country is India's biggest trading partner? Germany Petro Dollar Means ? Money owned by oil rich countries invested in USA

Which of the following Acts was framed specially to deal more effectively with the problem of Non Performing Assets in Banking system? 1. 2. 3. 4. Industrial Disputes Act Banking Regulation Act Foreign Exchange Management Act All of these
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5. None of these Banking Regulation Act The New Capital Adequacy Framework prescribed for the banks is commonly known as ? Basel Acord PFRDA stands for ? Pension Fund Regulatory and Development Authority Which of the following origanizations / agencies recently prepared a charter of the Banking Codes and Services ? (All banks are required to sign the same) 1. 2. 3. 4. 5. Indian Bank Association (IBA) Indian Institute of Banking and Finance (IIBF) All India Bank Employee's Union Reserve Bank of India (RBI) None of these

Indian Bank Association (IBA) Which of the following agencies / bodies has asked all foreign funds to come forward and register themselves as Foreign Institutional Investors (FIIs) prior to any investment in India ? SEBI Pradhan Mantri Gram Sadak Yojana (PMGSY) was launched in _______________ 2000 As compared to traditional budgeting, in case 0of Performance and Programme Budgeting System (PPBS), which one of the following statements is correct ? 1. 2. 3. 4. 5. It stresses on outcome only It stresses on expenditure allocation only It stresses more on outcome and less on expenditure allocation It stresses less on outcome and less on expenditure allocation None of these
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It stresses more on outcome and less on expenditure allocation

Which one of the following partnership in the domestic insurance sector is incorrect ? 1. 2. 3. 4. 5. HDFC - Standard Life Birla - Sun Life Tata - Allianz Max - New York Life None of these

Tata - Allianz Consider the following statements (I) If the beneficiary of a cheque has lost the cheque, he can instruct the paying bank to stop payment of the cheque without waiting for the account holder's instruction (II) While outsourcing, the only consideration should be cost savings Which among the statements given above is / are correct ? 1. 2. 3. 4. 5. Only I Only II Both I and II Neither I nor II None of these

Neither I nor II Regional Rural Banks are empowered to transact the business of Banking as defined under ____________________ Banking Regulation Act, 1949

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According to the Securities and Insurance Laws (Amendment) Bill 201, who amongst the following will be Vice - Chairman of joint commission to resolve differences amongst the financial regulators ? RBI, Governor

Banking Awareness Bits for IBPS Bank Exams Set 3

In which circumastance Dear money policy will be adopted by Reserve Bank of India ? Inflation Banking companies (Aquisition and transfer of Undertaking) Act was passed in ? 1970 The money which is accepted temporary in lieu of gold is called ? Fiat money

Which leads to the rise in the demand, the rise in price level and a fall in teh interest rate ? the raise in the money supply
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Name of the organisation that was established by State Bank of India for buying and selling the Govt Securities ? SBI Gilts Limited Stagflation refers to ? Inflation with Recession Growth in M0 (Reserve money) during 2009-10 was ? 17 percent which committee recommended the measurments like M0, M1, M2 and M3 ? Y. V. Reddy Committee Which law states that Bad money drives good money out of circulation ? Greshnams Law Time deposits with banks are included in which measures of money stock ? M3 and M4 The RBI can increase the demand deposit component of the money supply by ? Lowering reserve requirements and increasing the volume of reserves Open market operations means sale or purchase in the open market of? Government Securities In an economy high-powered money is equal to ? Monetary liabilities of Central Bank and Govt Money Saving deposits are not a part of money stock measure M1 because ? They are not used as medium of exchange Which factor does not affect the balance sheet of Reserve Bank of India ? Loan taken by one commercial bank from the other The most liquid of all assets is ? Money
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If reserve Bank of India raises the Cash Reserve Ration then ? The value of money multiplier decreases Other things being equal, an increase in the supply of money ? Lowers nominal interest rate and raises aggregate demand The function of World Bank (IBRD) is ? Promote growth of International trade and equilibrium

The supply of money consists of ? Notes, Coins and Demand Deposits

Important Banking Awareness Bits for IBPS Exams Set 4

Which bill related to provide Operaitonal flexibility to central bank to fix SLR and CRR for different banks ? The RBI (Amendment) Bill 2005 In India which is the biggest commercial bank in public sector ? State Bank of India
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Differential rate of Interest Scheme was introduced in which year ? 1972 From which date banks were allowed free to fix base rates by RBI ? April 1, 2011 Foreign Direct Investment limit in private sector banks is ? 74 percent First chairman of private sector banks association is ? P. N. Joshi

RBI introduced Banking Ombudsman scheme in which year ? 1995 The proportion of Non - Banking financial companies assets in the total assets of the financial systems ? 11 percent Under which act Local Area Banks can be established by private promoters ? Company Act - 1956 Who is the chairman of the working group constituted by RBI to provide suggestions on regulating loans to organized sector ? S. C. Gupta Monetary policy is a policy adopted by ? Reserve Bank of india At the liquidity trap which will be very low ? The rate of Interest Interest rate policy is a part of which policy ? Monetary Policy

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Which is not an instrument of monetary policy ? Import duty Financial market department was setup in RBI in ? July, 2005 Dena bank was established in ? July 19th, 1969 With which bank of September 4, 1993, new bank of India was merged ? Punjab National Bank Number of deputy governors of RBI is ? Four Ways and means Advances was in force since ? 1977, April 1st The main funciton of NABARD is ? to provide refinancing facility

Banking Awareness Model Question Paper for IBPS PO and Clerks Exams Set 5 When a large number of investors in a country transfer investments elsewhere because of disturbed economic condition, it is called ? Flight of Capital The Govt. of India promulgated Banking Companies (Aquisition and Transfer of Undertakings) ordinance to acquire 14 commercial banks on ? 19th July 1969 Micro Credit or Micro finance is novel approach to banking with the poor. In the approach bank credit is extended to the poor through Self Help Groups
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Which one of the following rates signal the RBFs long term outlook on Interest Rates ? 1. 2. 3. 4. 5. Repo Rate Reverse Repo Rate Bank Rate SLR CRR

Bank Rate In Deposits Account "KYC" (Know Your Customer) has been implemented in 2002 as per directive of RBI Expand the term FRBM Fiscal Responsibility and Budget Management According to the National Manufacturing Policy unveiled recently, what is the percentage share of target set of the manufacturing sector in India's GDP by 2020 ? 25% A national inititative which allows pregnant women to undergo delivery free of cost in govt. health institutions was recently launched. What is the name of that scheme ? Janani-Shishu Suraksha Yojana What will be the operational period ofor the recommendation of the 13th finance commission ? 2010-15 Which of the following assets are considered as Near Money ?

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1. 2. 3. 4. 5.

Bond Equity Shares Time Deposits Traveler's Cheques All of these

All of these The Fraudlent way of acquiring PIN and bank passwords using e-mail is called as ? Phishing The Instrument in the form of depositiory receipt created by an Indian depository against underlying equity shares of the issuing company is called ? Indian Depository Receipt Which of the following programmes has been launched by th e"Ministry of Food and Civil Supplies", of the Govt. of India ? 1. 2. 3. 4. 5. Mid-Day Meal Scheme Wheat-based Nutrition Programme Public Distribution System Annapurna Scheme None of these

Mid-Day Meal Scheme

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Which of the following is the apex instituiotn which handles refinance for agriculture and rural development in India ? 1. 2. 3. 4. 5. RBI SIDBI NABARD SEBI None of these

NABARD ULIP Stands for ? Universal Loan & Investment Plan What is the most effective Channel other than 'traditional branch channel' to achieve the aim of providing banking services to the people in rural remote areas ? Putting biometric ATMs Land Development Banks form a part of the ? Co-operative Credit Structure Many a time we read in news papers about 'Know Your Customer' norms to be followed by the banks. Why so much emphasis is paid on KYC norms ? (pick up the correct statement) 1. 2. 3. 4. It is a measure to provide quick and prompt service to the customers. The purpose of this is to bring more and more people. It is basically an 'Anti - Money Laundering' exercise. It is an activity which allows banks to protest the identity of its High Worthy customers so that other banks who are their competitors, cannot approach them 5. None of these. It is basically an 'Anti - Money Laundering' exercise.

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Model Practice Paper of Banking Awareness for IBPS PO and Clerks - Set 6

Which of the following is NOT a welfare scheme launched by the Govt of India ? 1. 2. 3. 4. 5. Villiage Grain Bank Scheme Sampoorna Gramin Rozgar Yojana Annapurna Scheme Mid-Day Meal Scheme Bharat Nirman Yojana

Bharat Nirman Yojana Which of the following cannot be called as a Value Added service offered by a bank ? 1. 2. 3. 4. 5. Special Accounts for poor sections of society Accident Insurance Cover Instant Credcit of outstation cheques Free cheque books All of these

Free cheque books The minimum number of women required for foramation of women groups under Development of Women and Children in Rural Areas (DWCRA) is ? 10 Which state has been able to improve enrollement of girls in schools became of
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its "Mukhya Mantri Balika Cycle Yojana" that gives Rs. 2000 to every girl to buy herself a cycle ? Bihar Which of the following is NOT correctly matched ? 1. 2. 3. 4. 5. IFCI - 1948 ICICI - 1956 IDBI - 1964 SIDBI - 1988 None of these

SIDBI - 1988 Which of the following measure have been taken to enlarge resources available to RRBs ? 1. 2. 3. 4. 5. Lines of credit at a reasonable rate of Interest from sponsor banks. Accepts to inter-RRB term money / borrowings. Access to Repo/CBLO markets All of these None of these

All of these Which is the currency of U.A.E ? Dirham The Land Development Bank secure short term acommodation from the 1. 2. 3. 4. 5. State Governments Commercial Banks State Co-Operative Banks All of these None of these

All of these

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GNP Stands for Gross National Product What is the full form of "FINO", a term we see frequently in financial news papers ? Financial Investment Netwrok and Operations In India Nationalization of banks took place in how many phases ? 2 Industrial Exit policy means ? Allowing business units to close down Which of the following is NOT the feature of Real Time Gross Settlement (RTGS) ? 1. 2. 3. 4. Payments are settled transaction by transaction Settlement of funds is recoverable Settlement is done in real time It is a fully secured system which uses digital signatures and public key encryption for safe and secure message trasmission. 5. None of these Settlement of funds is recoverable The 2011 Census is the __________ 1. 2. 3. 4. 5. 11th Census 15th Census 14th Census 12th Census None of these

15th Census Lending done by financing institutions including banks to customers not meeting with normally reaquired credit appraisal standards is known as ? Sub-Prime
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The name of which of the following great leaders is associated with National Rural Employment Gurantee Scheme ? 1. 2. 3. 4. 5. Indira Gandhi Mahatma Gandhi Jawaharlal Nehru Rajiv Gandhi None of these

Mahatma Gandhi Which of the following terms is used in Banking ? 1. 2. 3. 4. 5. Epicenter Pascal Latency Verticity Inflation

Inflation Standard & Poor is a _____ Credit Rating Agency Which of the following is the Banker of the Banks ? 1. 2. 3. 4. 5. RBI Which of the following Mahatma Gandhi series of curreency notes issued by the RBI has a drawing of the 'Parliament House' depicted on it ? Rs. 50
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IDBI SBI RBI SBI and RBI SEBI