Banking Awareness Test Questions - Set 1

1)   The Reserve Bank of India was established on _______.

a. April 1, 1935
b. July 12, 1982
c. May 26, 2006
d. September 30, 2005
Answer  Explanation 

ANSWER: April 1, 1935

Explanation:
No explanation is available for this question!


2)   Who works as RBI's agent at places where it has no office of its own?

a. State Bank of India
b. Ministry of Finance
c. Government of India
d. International Monetary Fund
Answer  Explanation 

ANSWER: State Bank of India

Explanation:
No explanation is available for this question!


3)   Which of the following is true about the functions performed by RBI?

(i) It is the Bank of Issue
(ii) It acts as banker to the Government
(iii) It is the banker of other banks
(iv) It regulates the flow of credit


a. Both (i) and (ii)
b. Both (iii) and (iv)
c. All the above
d. None of the above
Answer  Explanation 

ANSWER: All the above

Explanation:
No explanation is available for this question!


4)   What does 'Nomination' for a deposit account in the bank mean?

a. Mandate given by the close relatives of the depositor to settle the death claim in case of death of the depositor
b. Mandate decided by the bank to settle the death claim of its depositor
c. Mandate of the depositor in favor of one or more persons to claim the amount on death of the depositor
d. Mandate of the depositor in favor of a close relative who can claim the amount on death of the depositor
Answer  Explanation 

ANSWER: Mandate of the depositor in favor of a close relative who can claim the amount on death of the depositor

Explanation:
No explanation is available for this question!


5)   When were the draft guidelines for building grievance redressal mechanism within NBFCs (Non-Banking Financial Companies) published?

a. April 5, 2006
b. May 26, 2006
c. June 29, 2007
d. September 30, 2005
Answer  Explanation 

ANSWER: May 26, 2006

Explanation:
No explanation is available for this question!


6)   Which subsidiary bank was merged with the State Bank of India on August 13, 2008?

a. State Bank of Hyderabad
b. State Bank of Indore
c. State Bank of Mysore
d. State Bank of Saurashtra
Answer  Explanation 

ANSWER: State Bank of Saurashtra

Explanation:
No explanation is available for this question!


7)   When did the government acquire RBI's shareholding (72.5%) in NABARD?

a. May, 2008
b. June, 2008
c. August, 2008
d. March, 2009
Answer  Explanation 

ANSWER: June, 2008

Explanation:
No explanation is available for this question!


8)   When did the Government of India set up the Export-Import Bank of India?

a. January, 1982
b. January, 1993
c. March, 1971
d. June, 1969
Answer  Explanation 

ANSWER: January, 1982

Explanation:
No explanation is available for this question!


9)   When did the National Housing Bank start its operations?

a. July, 1982
b. July, 1988
c. April, 1980
d. March, 1971
Answer  Explanation 

ANSWER: July, 1988

Explanation:
No explanation is available for this question!


10)   When did the Government initiate the process of amalgamation of RRBs in a phased manner?

a. September, 2005
b. March, 2009
c. June, 2009
d. March, 2010
Answer  Explanation 

ANSWER: September, 2005

Explanation:
No explanation is available for this question!


11)   When did the Government of India appoint a committee under the chairmanship of Shri M.Narasimham to strengthen the banking system?

a. May, 2006
b. April, 1998
c. December, 1997
d. September, 2005
Answer  Explanation 

ANSWER: December, 1997

Explanation:
No explanation is available for this question!


12)   Which of the following does not belong to the main products of life insurance?

a. Endowment
b. Personal accident insurance
c. Term
d. Whole life
Answer  Explanation 

ANSWER: Personal accident insurance

Explanation:
No explanation is available for this question!


13)   Which of the following does not belong to the major general insurance private sector companies in India?

a. Bajaj Allianz General Insurance
b. Reliance General Insurance
c. Royal Sundaram Alliance Insurance
d. The Oriental Insurace Company
Answer  Explanation 

ANSWER: The Oriental Insurace Company

Explanation:
No explanation is available for this question!


14)   What is a Lease?

a. 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. 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 Own
c. Both (1) and (2)
d. None of the above
Answer  Explanation 

ANSWER: 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 Own

Explanation:
No explanation is available for this question!


15)   Which of the following are Bank advances of a Bank?

a. Bad debts
b. Non-performing Assets
c. Out of order accounts
d. Overdrawn accounts
Answer  Explanation 

ANSWER: Non-performing Assets

Explanation:
No explanation is available for this question!


16)   Which of the following are benefited through the Reserve mortgage scheme?

a. Government employees
b. Minors
c. Senior citizens
d. All the above
Answer  Explanation 

ANSWER: Senior citizens

Explanation:
No explanation is available for this question!


17)   What will be the impact if Reserve Bank of India reduces the Bank Rate by 1%?

a. Less liquidity in the market
b. More liquidity in the market
c. No change in the market liquidity
d. Mobilisation of more deposits by commercial banks
Answer  Explanation 

ANSWER: More liquidity in the market

Explanation:
No explanation is available for this question!


18)   What is the full form of IRR?

a. Internal Rate of Return
b. Internal Reserve Ratio
c. Internal Rate of Ratio
d. Internal Recession Rate
Answer  Explanation 

ANSWER: Internal Rate of Return

Explanation:
No explanation is available for this question!


19)   What does the letter 'M' mean in the term SME as used in the financial world?

a. Maximum
b. Medium
c. Market
d. Mutual
Answer  Explanation 

ANSWER: Medium

Explanation:
No explanation is available for this question!


20)   What is the full form of FIMMDA?

a. Fixed Income Money Markets & Derivatives Association
b. Foreign Income Money Markets & Derivatives Association
c. Floating Income Money Markets & Derivatives Association
d. Fixed Income Money Markets & Derivatives Affiliation
Answer  Explanation 

ANSWER: Fixed Income Money Markets & Derivatives Association

Explanation:
No explanation is available for this question!