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Banking Awareness Questions

Banking Awareness Questions Quiz – III


  1. The foreign exchange reserves of India are kept in the custody of

(a) IMF

(b) World Bank

(c) RBI

(d) None of these


 2. National Stock Exchange functions from 

(a) Mumbai

(b) New Delhi

(c) Chennai

(d) Kolkatta


3. Fiscal Policy is related to 

(a) Issue of currency

(b) Public Revenue  & Expenditure

(c) Credit Creation

(d) All of these


4. Which of the following organization is known as the market regulator in India?

(a) SEBI

(b) AMFI


(d) IBA


5. ” Smart Money ” is the term used for ———–?

(a) Internet Marketing

(b) Credit Card

(c) Debit Card

(d) Cash


6. National Rural Credit Stabilization Fund is an institution of purpose specific funds in which of the following?



(c) SEBI

(d) IDBI


7. When a person has a savings account in the bank, the bank assumes the position of  ____? 

(a) Debtor

(b) Creditor

(c) Agency

(d) Employee


8. The central banking functions in India are performing by the

(a) RBI

(b) SBI

(c) IMF

(d) PNB


9. If the Cash Reserve Ratio is lowered by the RBI, Its impact on credit creation will be to

(a) increase it

(b) decrease it

(c) no impact

(d) constant


10. Deficit Financing means that the government borrows money from ……………..?

(a) IMF

(b) World Bank

(c) RBI



11.The currency convertibility concept in its original form originated in

Bretton Woods Agreement


12. Which denomination of currency notes has the portrait of Mahatma Gandhi printed on them

(a) 100

(b) 500

(c) 1000

(d) 10


13. In order to avoid crowding of customers wanting to withdraw cash in the branches, banks have provided alternative delivery channels. which of the following is one of the most popular channels of instant hard cash?

(a) ATM

(b) Demand Draft

(c) Pay Orders

(d) Check


14. Which of the following terms is not associated with banking operations?

(a) Repo Rate

(b) Prime Lending Rate

(c) SLR

(d) Equator





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