Banking Awareness Questions for IBPS Clerks 2016 -2017
(1) The reserve Bank of India keeps on changing various ratio/rates frequently. What is the purpose of doing this?
(A) To keep inflation (rising prices) under control
(B) To ensure that Indian Rupee does not loose its market value
(C) To ensure that banks do not earn huge profits at the cost of public money.
(a) Only A
(b) Only B
(c) Only C.
(d) All A, B & C.
(2) A new private bank is established under which of the following?
(a) Banking Regulation Act 1949
(b) Companies Act 1956.
(c) RBI Act 1934
(d) All of the above
(3) 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
(4) A student has got admission to a foreign university. From where can she/he get the foreign currency?
(a) From the bank of that country
(b) From the ministry of Foreign Affairs
(c) From office of the Consulate general of that country
(d) From an authorized foreign exchange dealer.
(e) From any big five star hotel as many foreigners come to stay there
(5) Deficit Financing means that the government borrows money from the RBI
(b) Local Bodies
(c) Big business
(6) Which of the following is NOT a part of India’s Money Market?
(a) Bill Market
(b) Call Money Market
(d) Mutual Funds
(e) Indian Gold Council.
(7) The accounting year of Reserve Bank of India is
(a) April – March.
(b) July – June
(c) October – September
(d) January – December
(8) RBI’s open market operation transactions are carried out with a view to regulate
(a) liquidity in the economy
(b) prices of essential commodities
(d) borrowing the power of the banks
(e) All of the above.
(9) A financial instrument that derives its value from a specified underlying (currency, gold, stocks, etc.,) is known as _________.
(b) Securitization receipts
(c) Hedge fund
(e) Venture Capital Funding
(10) Selling of securities in the open market by the central bank creates ________
(c) Both of Above
(d) None of these
(11) The stock market index of London Stock Market is referred as __________
(b) Footsie (FTSE).
(12) What is an Indian Depository Receipt?
(a) A depositor account with a public sector bank
(b) A depository account with any depositories in India
(c) An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company.
(d) An instrument in the form of deposit receipt issued by Indian depositories.
(13) On which one of the following issues can SEBI penalize any company in India?
(A) Violation of Banking Regulation Act
(B) Violation of foreign portfolio investment guidelines .
(C) For violation of Negotiable Instrument Act
(a) Only (A)
(b) All (A), (B) & (C)
(c) Only (A) & (B)
(d) Only (B) & (C).
(e) Only (B).
(14) Expand the term ALM as used in Banking/Finance sector?
(a) Asset Liability Mismatch
(b) Asset Liability Maturity
(c) Asset Liability Management
(d) Asset Liability Man Power
(15) In which year Statutory Liquidity Ratio was first imposed on banks?
(16) Which is the monetary measure to control inflation?
(a) Increase in taxation
(b) Decrease in taxation
(c) Soft credit policy
(d) Hard credit policy.
(17) Mobile banking is set to get a boost from IMPS, which stands
(a) Inter Bank Mobile Payment Service
(b) Inter Bank Money Payment Service
(c) Inter-Bank Mobile Payment System
(d) Inter-Bank Money Payment System
(18) Which of the following is not correctly matched ?
(a) Mutual Fund ? SEBI
(b) Pension ? PFRDA
(c) ULIP ? SEBI
(d) Insurance ? IRDA
(19) The Foreign Exchange Reserves of India are kept in the custody of
(a) Prime Minister Rahat Kosh
(b) International Monetary Fund
(c) World Bank
(d) Reserve Bank of India.
(20) As we know the RBI is the apex bank of India, similarly , the apex Bank of USA is called ________.
(a) Federal Reserve
(b) Central Bank of USA
(c) Bank of America
(d) Reserve Bank of America