BANKING MCQs

                        

1. The Holidays for the Banks are declared as per........? 

A RBI act 

B Banking Regulation Act

C Negotiable Instruments Act 

D Companies Act 

Ans- C 

2. Interest below which a bank is not expected to lend to customers is known as ...? 

A Deposit Rate 

B Base Rate

C Prime Lending Rate 

D bank Rate 

Ans- B 

3. What does the letter"C" denotes in the term CBS as used in Banking operations? 

A Central 

B Core 

C Commercial 

D Capital 

Ans- B 

4. The Term FTZ stand for......? 

A Free trade Zone 

B Food trade Zone 

C Foriegn Trade one 

D Fiscal Trade Zone 

Ans- A 

5. Excise duty is the tax levied on? 

A Production of goods 

B Import of goods 

C Profits on sale of oods 

D None of these 

Ans- A 

6. A money deposited at a bank that cannot be withdrawn for a period fixed period of time is 

known as a ......? 

A Term Deposit

B Checking Account 

C Savings bank deposits 

D Current Deposit 

Ans- A 

7. The term Smart Money refers to? 

A Credit cards 

B Us Dollars 

C Internet Banking 

D Foreign currency 

Ans- A 

8. What does the letter P denote in the term PAN as used in Financial transactions? 

A Primary 

B Partial 

C Provisional 

D Permanent 

Ans- D 

9. The economy in which there is a mixture of public and private sector both is called.....? 

A Closed Economy 

B Mixed Economy 

C Open Economy 

D Public Economy 

Ans- B 

10. Which of the following is a retail banking product? 

A Home loans 

B Working capital finance 

C Corporate term loans 

D Export Credit 

Ans- A 

11. When the RBI opts to reduce liquidity in the banking system, it increases which of the 

following? 

1) CRR 

2) SLR 

3) Repo rate

4)None

Ans-5 

12.What is the term used for the debt instrument, secured by the collateral of an immovable property, in which the borrower is obliged to pay back the debt on terms agreed upon? 

1) Lien

2) Assignment 

3) Mortgage 

4) Hypothecation 

5) Pledge 

Ans-3 

13. A Banking Ombudsman can reject a complaint at any stage on which of the following grounds?

1) There is no loss or damage or inconvenience caused to the complainant in the opinion of the 

Banking Ombudsman. 

2) The compensation sought from the Banking Ombudsman is beyond `10 lakh. 

3) The complaint is not pursued by the complainant with reasonable diligence. 

4) Any of the above 

5) Only 1) and 3) 

Ans-4 

14. What does the letter'A' represent in the abbreviation CRAR? 

1) Allocation 

2) Advance 

3) Adequacy 

4) Assets

5) None of these 

Ans-4 

15. Revolving credit is made available by the issuer in the case of which of the following instruments? 

1) Debit card 

2) Credit card 

3) ATM card

4) None of these 

Ans-2 

16. A debit card holder cannot perform which of the following functions? 

1) Make Point of Sale (PoS) purchase

2) Recharge pre-paid mobile phones 

3) Pay life insurance premium 

4) None of the above 

Ans-4

17.Which of the following is the best option to park money for a long period of time to earn a high rate of interest? 

1) Savings account 

2) Current account 

3) Fixed Deposit account 

4) Recurring account 

5) None of these 

Ans-3 

18. The Reserve Bank of India (RBI) granted QCCP status to Clearing Corporation of India Ltd (CCIL) recently. QCCP stands for 

1) Queried Central Counterparty 

2) Qualifying Central Counterparty 

3) Qualitative Central Counterparty 

4) Quantitative Central Counterparty 

5) None of these 

Ans-2 

19. The process through which an investor‘s physical share certificate gets converted to electronic format which is maintained in an account with the Depository Participant, is termed as 

1) Materialisation 

2) Dematerialisation 

3) Conversion 

4) Prioritisation 

5) None of these 

Ans-2 

20.Which of the following abbreviations and their expanded forms is NOT matched correctly? 

1) BIFR: Board for Industrial and Financial Reconstruction 

2) CBS: Central Banking Solution 

3) FPO: Follow-on Public Offer 

4) NCD: Non-Convertible Debentures 

5) None of these 

Ans-2

21. Which of the following card product launched by the banks is working on the principle of 

Buy Now Pay Later? 

1. ATM card

2. Debit card

3. Charge Card 

4. Credit card 

Ans-4 

22. Which of the following organisation provides credit history of the borrowers? 

1. CIBIL 

2. SEBI 

3. RBI 

4. IBA 

Ans-1 

23. What is the Full form of NSE the term we see very frequently in newspaper? 

1. New service exchange 

2. New stock evauation 

3. National stock exchange 

4. National service emporium 

Ans-3 

24. The term Deficit Financing means the government borrows money from the....? 

1. IMF 

2. Local bodies 

3. RBI 

4. large corporates 

Ans-3 

25. Excise duty is the tax levied on which of the following? 

1. Production of goods 

2. purchase of goods 

3. export of goods 

4. sale of goods 

Ans-1 

26. Upper limit prescribed for RTGS transactions is ? 

1. Rs 1 lakh 

2. Rs 2 lkah

3. Rs 5 lakh 

4. No upper limit is prescribed 

Ans-4 

27. When a bank returns a cheque unpaid, it is called...? 

1. payment of cheque 

2. dishonour of cheque 

3. cancelling of cheque 

4. taking of cheque 

Ans-2 

28. Which of the following is not a negotiable instrument? 

1. Cheque 

2. Fixed deposit reciept 

3. promissory note 

4. Bill of exchange 

Ans-2 

29. In economic terms. the total market value of all final goods and services produced in a 

country in a given year is known as .....? 

1. GNI 

2. GDP 

3. Inflation 

4. PPP 

Ans-2 

30. Special Drawing Rights are the rights of countries provided by....? 

1. World Bank 

2. IMF 

3. ADB 

4. Federal reserves 

Ans-2 

31. Pre-shipment finance is provided by the banks only to…..? 

1. Credit card holders

2. Students aspiring for further studies 

3. Brokers in equity market 

4. Exporters 

Ans-4

32. In banking business, when the borrowers avail a Term Loan, initially they are given a 

repayment holiday and this referred as……….?

1. Subsidy 

2. Interest Waiver 

3. Re-phasing 

4. Moratorium 

Ans-4 

33. When a person opens an account in a bank, the bank is a ………. Towards the person 

1. Creditor 

2. Debtor 

3. Agent 

4. Borrower 

Ans-2 

34. Concept of Tobin Tax is associated with which field? 

1. Foreign Exchange Transactions 

2. Share Trading 

3. Commodity Trading 

4. Bullion Trading 

Ans-1 

35. Which act pertains to effectively dealing with the problem of non- performing assets (NPAs) 

in Indian Banking ? 

1. RBI ACT 

2. Banking and Regulation Act 

3. SARFAESI Act 

4. Banking Ombudsman 

Ans-3 

36. Which agency/ institution is the regulatory authority for home loans in India? 

1. Housing Development Finance Corporation (HDFC)

2. National Housing Bank (NHB) 

3. National Housing Board

4. Housing Finance Corporation ltd.(HFCL) 

Ans-2 

37. Which of the following countries has ranked as top gold producer in World? 

1. Germany

2. South Africa 

3. China 

4. India 

Ans-3 

38. Commercial paper can be issued……..? 

1. By all corporate

2. By all corporate with net worth of at least Rs 10 crore 

3. By all corporate with net worth of at least Rs 5 crore 

4. Can be issued only by Banks 

Ans-3 

39. Sub-prime lending refers to……..?

1. Lending to the customer who are most value for the banks 

2. Lending to the customer who vist bank for the very first time 

3. Lending to the people with less than standard credit status 

4. None of these 

Ans-3 

40. This committee is associated with finance to small scale industries 

1. C.E Kamath 

2. Malegam 

3. G.S Patel 

4. Chatelier 

Ans-2 

41. CRR funds are kept by the Banks in.........? 

1. Cash in hands at branches 

2. Balance with other banks 

3. Balance in a special accounts with RBI 

4. Funds in the currency chest

Ans-3 

42. India's first indigenous payment gateway is ..........? 

1. India Expenditure 

2. India Payment 

3. India Challan 

4. India Pay 

Ans-4

43. The interest on recurring deposit is paid on the basis of ? 

1. Simple interest calculated monthly basis 

2. Simple interest on monthly product basis 

3. Quarterly compounding 

4. Interest calculated on daily product basis 

Ans-3 

44. Which of the following is not an imperfect note? 

1. Wahsed note 

2. Bleached note 

3. Multilated note 

4. Oiled note 

Ans-3 

45. When bank accept a fixed sum of money from an individual for a definite term and pay on 

maturity with interest, the deposit is known as.....? 

1. Term deposit 

2. Demand Deposit 

3. Bond 

4. Mortgage 

Ans-1 

46. Issuing credit cards is a component of? 

1. Corporate Banking 

2. Rural banking 

3. Retail Banking 

4. Micro finace 

Ans-3 

47. Certificate of deposits have a minimum value of......? 

1. Rs 1 lakh 

2. Rs 10 Lakh 

3. Rs 25 lakh 

4. Rs 1 crore 

Ans-1 

48. CAPART is associated with which of the following? 

1. Energy sector 

2. Rural Developemnt

3. Infrastructure 

4. Foreign trade 

Ans- 2 

49. A loan bearing low rate of interest is known as ........? 

1. Hard loan 

2. Soft loan 

3. Capital Loan 

4. Real Loan 

Ans-2 

50.When the loan is guaranteed for purchase of white goods it is called......? 

1. White goods loan 

2. Consumer durable loan 

3. Business loan 

4. Consumption loan 

Ans-2 

51. Tier-I capital of Banks doesn't not includes......? 

1. Paid up capital 

2. Statutory reserves 

3. Revaluation reserves 

4. Investment fluctuation reserves 

Ans-3 

52. The Full form of MIBOR is......? 

1. Mumbai Inter bank offer rate 

2. Melboure inter bank offer rate 

3. Madrid inter bank offer rate

4. None of these

Ans-1 

53. Many times we read in newspaper a term CBS. What does B denotes in the term CBS? 

1. Business 

2. Banking 

3. Base

4. Bond 

Ans- 2

54. The RBI has helped to finance India's Foreign trade through.......? 

1. NABARD 

2. EXIM bank 

3. SBI 

4. IDBI 

Ans-2 

55. Which of the following is generally referred to as Broader measure of money supply? 

1. M1 

2. M2 

3. M3 

4. M4 

Ans-3 

56. What do you understand by Para Banking services? 

1. Eligible financial services rendered by bank 

2. utility services provided by bank 

3. services provided through business correspondent 

4. Services proved to armed force personnel

Ans-1 

57. To get the credit History of a company, which among the following should be approached? 

1. ECGC 

2. CIBIL 

3. SEBI 

4. RBI 

Ans-2 

58.If a person wants Fixed deposit in a bank, will KYC norm applicable on the person? 

1. Yes 

2. No 

3. Partially 

4. Depend on discretion of bank 

Ans-1 

59. Which of the following is called Paper Gold? 

1. Euro 

2. Dollar 

3. Yuan 

4. SDR

Ans-4 

60. Open market operations RBI refers to.........? 

1. Buying and selling of securites 

2. Trading in shares 

3. Auctioning of treasuring bills 

4. Selling& purchasing of goods 

Ans-1 

61. Bank Rate is..........? 

1. Rate at which commercial banks borrow long term funds from Central Bank. 

2. Rate at which commercial banks borrow Short term funds from Central Bank. 

3. None of these

4. Both 1 and 3 

Ans-1 

62. CRISIL is a...........? 

1. Mutual Fund 

2. Credit rating agency 

3. Investment bank 

4. share depository 

Ans-2 

63. Which of the following releases " World Economic Outlook" Report? 

1. Asian development Bank 

2. World Bank 

3. International Monetary Fund 

4.World Trade organisation 

Ans-3 

64. Which day is celebrated as the Banks Nationalization Day? 

1. 19 july 

2. 1 august 

3. 1 june 

4. 1 september 

Ans-1 

65. National income indicates? 

1. The number of families below poverty line

2. Goods and services in Economy 

3. Growth of Economy 

4. 2 and 3 

Ans-4 

66. The govt. of India replaced the FERA by..........? 

1. FEMA 

2. FRBMA

3. Monopolies Act 

4. FRTP 

Ans-1 

67. Functions of NBFC includes........? 

1. Equipment leasing 

2. Term Deposits 

3. Housing Finance & investment in Financial securities 

4. 1&3 

Ans-4 

68. Gilt- Edged market means...........? 

1. Bull market 

2. Gun market 

3. Market of government securities 

4. market of ure metal 

An-3 

69. What is used to manage cash flows in different currencies? 

1. Credit crunch 

2. Arbitrage 

3. Mirco credit 

4. Currency swap 

Ans-4 

70. Stagflation refers to...........? 

1. High inflation in periods of full employment 

2. High deflation in periods of high unemployment 

3. deflation in periods of stagnant employment 

4. high inflation in periods of high unemployment 

Ans-4

71. What is the share of sponsor bank in the capital of RRB? 

1. 35% 

2. 49% 

3. 51% 

4. 71% 

Ans- 1 

72. Open market operation is a part of........? 

1. Income policy 

2. Fiscal Policy 

3. Credit Policy 

4. Labour Policy 

Ans- 3 

73. Body which regulates micro-finance is ......? 

1. RBI 

2. IBA 

3. NABARD 

4. SIDBI

Ans- 3 

74. The first deposit in the newly opened account can be.........? 

1. Cash only 

2. Bank draft 

3. Cheque 

4. Banker's cheque 

Ans-1 

75. Permanent account number is must for..........? 

1. Nostro accounts 

2. numbered bank accounts 

3. Joint accounts 

4. Demat accounts 

Ans- 4 

76. If a credit card is lost, the card member should call up the customer helpline number and he 

says his request for deactivating the card. This is card.....? 

1. Hotlisting 

2. Crosslisting 

3. Shortlisting

4. Blocklisting 

Ans- 1 

77. Payee of the cheque refers to....? 

1. The bank who pays the cheque 

2. The customer who ussues the cheque 

3. In whose favor the cheque is issued 

4. Who cancels the cheque 

Ans-3 

78. The RBI's methods of credit control maybe broadly divided into....? 

1. Qualitative and Quantitative 

2. Open and close 

3. Monetary and fiscal 

4. Rural and urban 

Ans- 1 

79. The first public sector bank in India which obtained license for Internet Banking from RBI 

is....? 

1. Punjab National bank 

2. Oriental bank of Commerce 

3. Corporation Bank 

4. State Bank of India 

Ans- 1 

80.The Export- Import Bank of India was set up in........? 

1. April 1982 

2. January 1982 

3. April 1970 

4. July 1969 

Ans- 2 

81. Finance Ministry has asked the Reserve Bank ot India to allow common ATM's that will be 

owned and managed by non-banking entities hoping to cut transaction costs for banks. Such 

ATM's are known as—

1. Black Label ATM's 

2. off site ATM's 

3 on site ATM's or red ATM's 

4 white label ATM's

Ans-4

82. The term 'Smart Money' refers to 

1 Foreign CURRENCY 

2 Internet Banking 

3 US Dollars 

4 Credit Cards 

Ans-4

83. What is the maximum deposit amount insured by DICGC ? 

1 2,00,000 per depositor per bank 

2 2,00,000 per depositor across all banks 

3 1,00,000 per depositor per bank 

4 1,00,000 per depositor across all banks 

Ans-4 

84. With reference to a cheque which ol the following is the 'drawee bank' ? 

1 The bank that collects the cheque 

2 The payee's bank 

3 The endorsee's bank 

4.The bank upon which the cheque is drawn 

Ans-4

85. Which of the following is the example of near money? 

1. Small coins of 50 paisa 

2. Fait money 

3. Bank draft 

4. Treasury Bills 

Ans-4 

86. Treasury Bills are sold by-? 

1. SEBI 

2. State Government 

3. RBI 

4. Commercial Banks 

Ans-3 

87. An instrument of qualitative credit control in India is..........? 

1. Open market operation 

2. Repo rate policy 

3. Credit rationing 

4.None of these 

Ans-3 

88. What is the base year for WPI(Whole Sale Price Index) ? 

1. 2004-05 

2. 2003-04 

3. 2002-03 

4. None of these 

Ans-1 

89. Open Market operation is a part of .........? 

1. Income Policy 

2. Fiscal Policy 

3. Credit Policy  

4. None of These 

Ans-3 

90. RBI increases Repo Rate to control which economic situation of economy? 

1. Deflation 

2. Inflation 

3. Recession 

4. Stagflation 

Ans- 2 

91. Largest shareholders (in % shareholding) of a nationalized bank is .........? 

1. RBI 

2. NABARD 

3. LIC 

4. Government of India 

Ans- 4

92. Banks in our country normally publicizes that additional interest rate is allowed on retail domestic term deposits of .......? 

1. Minors 

2. Married women 

3. Senior citizens 

4. Government employees 

Ans-3 

93. Which of the following is not considered a money market instrument? 

1. Treasury bills 

2. Repurchase agreement 

3. Commercial Paper 

4. Share and Bonds 

Ans-4 

94. NEFT means....? 

1. National Electronic Funds Transfer system 

2. Negotiated Efficient Fund Transfer system 

3. National Efficient Fund trasfer solution 

4. None of these 

Ans-1 

95. Upper limit prescribe for RTGS transaction is ......? 

1. Rs 1 lakh 

2. Rs 2 lakh 

3. No upper limit 

4. Rs 50 lakh 

ans-3 

96. Distribution of insurance products and insurance policies by banks as corporate agents is known as .....? 

1. General insurance 

2. Non-life Insurance 

3. Bancassurance

4. Deposit insurance 

Ans-3 

97. When a bank returns a cheque unpaid it is called.......?

1. payment of the cheque 

2. drawing of the cheque 

3. cancelling of the cheque 

4. dishonour of the cheque 

Ans-4 

98. Fixed deposits and recurring deposits are..........? 

1. repayable after an agreed period 

2. repayable on demand 

3. not repayable 

4. repayable after death of depositors 

Ans-1 

99. Which of the following is the correct statement/

1. SBI is the sole authority to issue and manage currency in India 

2. A nationalised bank is the sole authority to issue and manage currency in India 

3. RBI is the sole authority to issue and manage currency in India 

4. None of these 

Ans- 4 

100. Interest payable on savings bank account is .......? 

1. not regulated by RBI 

2. regulated by State Government 

3. regulated by Central government 

4. regulated by RBI 

Ans-4