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Banking Awareness Questions for Bank Exams 2016

Banking Awareness Questions  for Bank Exams 2016.

1. Finance Ministry advised RBI to allow common ATMs to be owned and managed by Non-Banking Financial Institutions. Such type of ATMs are called __________
(a) White Label ATMs
(b) Off-Site ATMs.
(c) Third Party ATMs
(d) NBFC ATMs.

2. With reference to the cheque, which of the following bank is called as Drawee Bank?
(a) The bank that collects cheque.
(b) The payee’s bank.
(c) The bank of the Drawer of the cheque.
(d) None of the bank.

3. Money deposited at a bank and that amount cannot be withdrawn whenever we need it and we can able to get that after a fixed time period is known as
(a) Current Deposit.
(b) Checking Amount.
(c) Saving Bank Deposit.
(d) No Frills Account.
(e) Term Deposit.

4. While opening the bank account, The Nomination can be given for
(a) Individuals
(b) Joint Individuals.
(c) Limited Companies.
(d) Only A and B.
(e) None of these.

5. At which rate the RBI lends short-term money to the banks?
(a) PLR (Prime Lending Rate).
(b) CRR (Cash Reserve Ratio).
(c) Reverse Repo Rate.
(d) Repo Rate.
(e) SLR

6. When a bill is drawn, accepted or endorsed for consideration , it is called a/an 
(a) accommodation bill.
(b) a genuine trade bill.
(c) escrow.
(d) ambiguous instrument.
(e) inchoate instrument.

7. When RBI acts as a banker to the government, what functionalities it do as a banker?
(a) RBI keeps bank accounts of the government.
(b) RBI carries out government transactions.
(c) RBI advises the government on all financial and monetary matters.
(d) All of the above.

8. A bank which acts as a banker of other banks is called as  __________.
(a) investment bank.
(b) commercial bank.
(c) saving bank.
(d) development bank.
(e) central bank.

9. What percentage of India’s population lives in rural areas?
(a) 60 to 65.
(b) 65 to 70.
(c) 50 to 55.
(d) 70 to 75.

10. Money lent for more than 1 day, but less than  15 days in the money market is known as 
(a) term money.
(b) call money.
(c) notice money.
(d) All of these.

11. RRBs are refinanced at __________.
(a) 2% below the bank rate.
(b) 1% below the bank rate.
(c) 2% below the repo rate.
(d) 1% below the repo rate.
(e) repo rate.

12. IRDA with its headquarters at ________ is the regulatory authority for all the insurance companies located in India including the Life Insurance Corporation (LIC)  of India.

(a) Delhi.
(b) Bengaluru.
(c) Mumbai.
(d) Hyderabad.
(e) Chandigarh.

13. Regional Rural Banks (RRBs) are classified under which category? 
(a) Development Banks.
(b) Private sector banks.
(c) Co-operative banks.
(d) Scheduled commercial banks.

14. Reserve Bank of India was set up with the recommendations of which committee?
(a) Narasimhan Committee.
(b) Hilton Young Commission.
(c) Mahalanobis Committee.
(d) Fazal Ali Commission.

15. Regional Rural Banks (RRBs) are managed by 
(a) Reserve Bank of India.
(b) The Board of Directors.
(c) The Sponsor Bank.
(d) The State government.
(e) All of these.

16. In case a depositor is a sole proprietor and holds deposits in the name of the proprietary concern as well as in the individual capacity, the maximum insurance cover is available up to

(a) Rs. 1,00, 000.
(b) Rs. 2,00, 000.
(c) Rs. 5,00,000.
(d) All of these.

17.  E-commerce is increasingly becoming a popular mode of doing business. What is this way of operating?
(a) Payment has to be made in advance before goods/services are delivered.
(b) Placing orders on the phones.
(c) Buying goods and services online from vendors.
(d) Getting 30 days credit period for payment.

18. In the case, When a depositor wishes to get this fixed deposits before maturity date, the banks
(a) do not allow the same till maturity of the deposits.
(b) charge a penalty for the same.
(c) do not charge any penalty and allow the same.
(d) All of the above.

19. For filing and resolving customer complaints the banking Ombudsman charges 
(a) a fee of Rs.500.
(b) no fee.
(c) a fee of Rs.1000.
(d) a fee of Rs.1500.

20. RRBs (Regional Rural Banks) are empowered to transact the business of banking as defined under
(a) The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970.
(b) Banking Regulation Act, 1949.
(c) Regional Rural Banks Act, 1976.
(d) Negotiable Instruments Act, 1881.

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