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Banking Awareness Questions & Answers | IBPS POs & Clerks

Banking Awareness Questions & Answers – BA Quiz for IBPS Exams

Banking Awareness Questions & Answers

India is the following system of ‘flat money’ while issuing currency. What is ‘flat money’?
(a) The currency is backed by government guarantee.
(b) The currency, that is backed by the tangible assets
(c) The currency is backed by gold reserves
(d) Budgetary support
(e) None of the above.

Ans. (a)

A savings bank account opened with a commercial bank with zero balance or very minimal balance is known as
(a) Savings Bank Normal Account
(b) Students Savings Bank Account
(c) No-Frills Account
(d) Current Account & Savings Account(CASA)
(e) Call Deposit


Which of the following is introduced by banks to increase financial inclusion?
(a) Stimulus package
(b) Internet Banking
(c) Business correspondent
(d) Corporate banking
(e) None of these.


Which of the following rates signals the RBI’s long-term outlook on interest rates?
(a) Repo Rate (RR)
(b) Reverse Repo Rate (RRR)
(c) Bank Rate (BR)
(d) Statutory Liquidity Ratio (SLR)
(e) Cash Reserve Ratio (CRR).

Answer: Bank Rate.

Which of the following is a type of banking application which authorizes a bank to block a specific sum of money in an individual’s bank account to be invested in an Initial Public Offer(IPO)?
(a) RTGS
(b) ASBA
(c) Prefunded cheques.
(d) SCSBs
(e) None of the above.


The RBI has asked banks to spell out their policy, procedures, and size of the business on which of the following aspects of banking?
(a) On-shore banking
(b) Off-shore banking
(c) Investments in the secondary market
(d) Wealth management
(e) None of the above.


BCSBI is related to the banking sector, What does the letter ‘C’ means?
(a) Credit
(b) Code
(c) coin
(d) Coinage
(e) None of these.

Answer: (b). BCSBI – Banking Codes and Standards Board of India.

The holidays for the banks are declared as per,
(a) Banking Regulation Act.
(b) Reserve Bank Act.
(c) Negotiable Instruments Act
(d) Securities and Exchange Board of India Act
(e) Companies Act

Ans. (c)

An average citizen cannot open a savings account . The main function of commercial bank can be segregated into
(1) Payment System.
(2) Financial Intermediation.
(3) Financial Services.
Select the correct answer from the following options given below.

(a) 1, 2 and 3.
(b) 1 and 3.
(c) 1 and 2.
(d) 2 and 3
(e) None of these.

and: (a)

Which of the following is not the part of the scheduled banking structure in India?
(a) Money Lenders
(b) Public Sector Banks.
(c) Regional Rural Banks.
(d) State co-operative banks.
(e) Private Sector banks.

Ans. (a) Money Lenders.

Which of the following cannot be called as value added service offered by a bank?
(a) providing special account benefits for poor sections.
(b) Accident insurance corner.
(c) Instant credit of outstation cheques
(d) All of these.

(b) Accident insurance cover.

An account by opening that the trading of shares is done in the electronic form is called as
(a) D-mat account
(b) NRI Account
(c) Current Account
(d) NRIO Account.
(e) None of these.

(a)D-mat account.

NEFT and RTGS in banking terminology speak of
(a) various deposit products
(b) various loan products
(c) electronic payment products within a bank
(d) electronic fund transfers from bank to bank
(e) cheque transaction process

(d) electronic fund transfers from bank to bank

Which of the following agencies/organizations has decided to make major changes of ULIPs?
(a) IRDA
(b) RBI
(c) AMFI
(d) FRBI
(e) None

(a) IRDA.

Which of the following is not an example of primary securities?
(a) Bills
(b) Bonds
(c) Shares
(d) Book Debts
(e) New currency.

(e)New Currency.

When banks make advances to limited companies against their assets the required forms are to be presented to the registrar companies within ________ from the date of execution.
(a) 20 days
(b) 30 days
(c) 1 month
(d) 2 months

(b) 30 days.

Under which circumstances, can the bank close a partnership account?
(a) Death of a partner
(b) Retirement of a partner
(C) Insolvency of a partner
(d) All of the above.

Which one of the following may be the consequence of buying forex in the market by the RBI?
(a) It lends to inflation
(b) It lends to control inflation
(c) It does not affect inflation
(d) It results into deflation’


Incorporate hedging, which one of the following types of risks can be covered ?
(a) Liquidity risk
(b) Currency risk
(c) Credit risk
(d) Transaction risk


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