Banking Awareness Test for IBPS, RBI, SBI, NABARD & other Bank Examinations - Set 5

1)   Why do banks borrow money in the call money market?

a. To meet sudden demand for funds arising out of large outflows
b. To fill the temporary mismatches in funds
c. To meet the Statutory reserve requirements
d. All of the above
Answer  Explanation 

ANSWER: All of the above

Explanation:
Banks can borrow money in the call money market for the following reasons: To cover the gaps or temporary mismatches in funds To meet the Statutory reserve requirements such as Cash Reserve Ratio(CRR) & Statutory Liquidity Ratio(SLR) To meet sudden demand for funds arising out of large outflows.

2)   When was the SARFAESI Act enacted?

a. 2004
b. 2006
c. 1999
d. 2002
Answer  Explanation 

ANSWER: 2002

Explanation:
The Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (or the SARFAESI Act) allows the banks and other financial institution to auction residential or commercial properties(of Defaulter) to recover loans.

3)   Which organisation developed BHIM Application?

a. SBI
b. RBI
c. NPCI
d. SEBI
Answer  Explanation 

ANSWER: NPCI

Explanation:
The BHIM mobile app was developed by the National Payments Corporation of India (NPCI). It is based on the Unified Payments Interface (UPI).

4)   When was UPI service launched?

a. 2016
b. 2017
c. 2018
d. 2019
Answer  Explanation 

ANSWER: 2016

Explanation:
UPI was introduced on 11th April 2016. The interface was created by NPIC and is regulated by the Reserve Bank of India.

5)   What is the length of UPI pin?

a. 2 digits
b. 10 digits
c. 4-6 digits
d. 2-4 digits
Answer  Explanation 

ANSWER: 4-6 digits

Explanation:
UPI-PIN (UPI Personal Identification Number) is a 4-6 digit pass code you create/set during first time registration with the App.

6)   Which of the following is/are included in FOREX? 1. Foreign currency assets held by the RBI 2. Gold holdings of the RBI 3. SDRs 4. Reserve position in the IMF

a. 1,2,3
b. 2,3,4
c. 1,2,4
d. All of the above
Answer  Explanation 

ANSWER: All of the above

Explanation:
No explanation is available for this question!

7)   Which of the following is facilitated by Foreign Exchange Reserves?

a. External trade
b. Orderly development
c. Maintenance of foreign exchange market
d. All of the above
Answer  Explanation 

ANSWER: All of the above

Explanation:
No explanation is available for this question!

8)   Which of the following about money supply measures adopted in 1998 is wrong?

a. M1= currency with public +demand deposits with banking system + other deposits with RBI
b. M2= M1 + savings deposits of post office savings bank
c. M3= M1+ time deposits with banking system
d. None of the above
Answer  Explanation 

ANSWER: None of the above

Explanation:
Money supply is defined as the total quantity of money circulating in the economy at a particular time. There are three measures of money supply M1, M2, and M3.

9)   Balance in a current account is classified as which of the following?

a. Hybrid deposit
b. Term deposit
c. Demand deposit
d. Fixed deposit
Answer  Explanation 

ANSWER: Demand deposit

Explanation:
Demand deposits, bank money or scriptural money are funds held in demand deposit accounts in commercial banks.

10)   On which architecture is UPI built upon?

a. IMPS
b. NEFT
c. RBI
d. None of the above
Answer  Explanation 

ANSWER: IMPS

Explanation:
UPI is built on the IMPS architecture. Immediate Payment Service (IMPS) is an instant payment inter-bank electronic funds transfer system in India.

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