BANKING KNOWLEDGE
/ FINANCIAL AWARENESS
1) Who can set data standards banking sector ?
a) Large banks in commercial
b) large banks in
mortgage lending, and
c) large NBFCs and micro-finance institutions in rural
and
d) MSME lending
e) All the above
Ans: e
2) What is ‘FX Global Code’ ?
a) It is a single global code of conduct for the wholesale
foreign exchange (FX) market.
b) The publication of this code welcomed by The Bank of Korea (BOK), the Hong
Kong Monetary Authority (HKMA), the Monetary Authority of Singapore (MAS), the
Reserve Bank of Australia (RBA) and the Reserve Bank of India (RBI)
c) The Code is developed through a collaborative process
between the Bank for International Settlements’ (BIS) Foreign Exchange Working
Group1 and
private sector market participants.
d) The Code sets out principles that promote a robust, fair,
liquid, open and appropriately transparent market, underpinned by high ethical
standards. The Code is voluntary and applies to wholesale FX market
participants.
e) All the above
Ans : e
3) Phillips curve framework was the basic theoretical premise
to examine how shocks affect which of the following ?
a) inflation
b) unemployment
c) depression
d) interest
e) None of these
Ans : a
4) Which monsoon has always played a vital role in India in
determining inflation trajectory over the years ?
a) North – East
b) south-west
c) North - West
d) South East
e) None of these
Ans : b
5) The new Keynesian Philips curve is a modified version of
Phillips curve introduced by Philips in which year ?
a) 1939
b) 1958
c) 1934
d) 1939
e) None of these
Ans : b
6) The P-star approach, first proposed by Hallman et al.
(1991), is based on the quantity theory of money. Under this approach, the
short run fluctuations in inflation are attributed to the determinants of long
run equilibrium price. Theoretically, the long run equilibrium price is
determined by current money supply, potential income and the equilibrium
velocity. What is P* (P-Star) ?
a) price
b) equilibrium price
c) power
d) people
e) None of these
Ans : b
7) Preamble to the Reserve Bank of India Act 1934 specifies the
central bank’s objective as regulating “the issue of Bank notes and the keeping
of reserves with a view to securing monetary stability in India …” Thus
currency management, which was originally the _________ of a central bank,
still continues to be one of its major functions.
a) primary function
b) secondary function
c) last function
d) not an important function
e) None of these
Ans : a
8) EFT-PoS reduces which of the following ? (The impact of ATMs
on currency demand is ambiguous )
a) currency demand
b) supply of material
c) unemployment
d) economic growth
e) None of these
Ans : a
9) Among the important determinants of the demand for currency, which of the following deserve special attention ?
a) volume of transactions demand arising in the formal economy
b) transactions demand arising from the underground economy
c) precautionary, prudential and speculative demand; (iv) the
type and pace of financial innovation
d) use by other countries (in case of India, primarily Nepal
and Bhutan
e) All the above
Ans : e
10) Rs.500 denomination notes quickly emerged as the second most
important denomination since 1998-99 and replaced Rs.100 denomination as the most
important denomination in 2003-04. Its share in value among all denominations
peaked at _____ per cent in 2010-11.
a) 47
b) 50
c) 60
d) 70
e) None of these
Ans :a
11) Currency in circulation is the sum of which of the following
?
a) notes in circulation which is the principal liability of the
Reserve Bank under Section 22 of the Reserve Bank of India Act, 1934
b) government’s currency liabilities to the public comprising
rupee coins and small coins.
c) Both (a) & (b)
d) Gold
e) Silver
Ans : c
12) Rs.1000 and notes of higher denomination were demonetised in
______, since higher denomination notes were being used for hoarding purposes
and for carrying out illegal transactions, generating black income and wealth.
a) 1978
b) 1947
c) 1961
d) 1964
e) None of these
Ans : a
13) Liberalised Exchange Rate Management System (LERMS) was put
in place in _______ involving the dual
exchange rate system in the interim period. The dual exchange rate system was
replaced by a unified exchange rate system in March 1993.
a) March, 1992
b) 1966
c) 1969
d) 1971
e) None of these
Ans : a
14) India’s
exchange rate policy has seen a shift from a par value system to a basket-peg
and further to a managed float exchange rate system.
a) During the period 1947 till 1971, India followed the par
value system of the exchange rate whereby the rupee’s external par value was
fixed at 4.15 grains of fine gold
b) With the breakdown of the Bretton Woods System, in December
1971, the rupee was linked with pound sterling.
c) In order to
overcome the weaknesses associated with a single currency peg and to ensure
stability of the exchange rate, the rupee, with effect from September 1975, was
pegged to a basket of currencie
d) All the above
e) None of these
Ans : d
15) The devaluation of the rupee in September 1949 and June 1966
in terms of ______ resulted in the reduction of the par value of rupee in terms
of gold to 2.88 and 1.83 grains of fine gold, respectively.
a) Gold
b) Silver
c) Copper
d) Bronze
e) None of these
Ans : a
16) By the late ‘eighties and the early ‘nineties in India, it
was recognised that both macroeconomic policy and structural factors had
contributed to balance of payment difficulties. The Current Account Deficit
(CAD) widened to 3.0 per cent of GDP in 1990-91 and the foreign currency assets
depleted to less than a billion dollar by_________ .
a) June 1, 2010
b) July 1991
c) 1969
d) 1980
e) None of these
Ans : b
17) The Indian foreign exchange market is a decentralised
multiple dealership market comprising two segments – the spot and the
derivatives market. In a spot transaction, currencies are traded at the
prevailing rates and the settlement or value date is two business days ahead.
The two-day period gives adequate time for the parties to send instructions to
debit and credit the appropriate bank accounts at home and abroad. The
derivatives market encompasses which of the following ?
a) forwards
b) swaps
c) options
d) All the above
e) None of these
Ans : d
18) ABN AMRO Bank Headquarter located in which of the
country country ?
a) Netherlands
b) USA
c) France
d) Switerland
e) Japan
Ans : a
19) Dishonour of cheque for insufficiency of funds in the
bank account, deal with under which section ?
a) Section 138
b) Section 151
c) Section 160
d) Section 170
e) None of these
Ans : a
20) In United Kingdom ‘ merchant banking’ institutions are
referred to as ?
a) Investments Banks
b) Commercial Banks
c) Industrial banks
d) Development Banks
e) None of these
Ans : a
21) Indradhanush 2.0 related with ?
a) SHG
b) recapitalization of PSBs
c) Insurance
d) PF
e) Pension Schemes
Ans : b
22) LIME app is launched by which of the following Bank ?
a) SBI
b) UCO Bank
c) Axis Bank
d) ICICI Bank
e) Yes Bank
Ans : c
23) What does CNP stand for ?
a) Card Not Present
b) Call Not Present
c) Cash Not Present
d) Card Net Present
e) None of these
Ans : a
24) What is BBPS in NPCI ?
a) Bharat Bill Payment System
b) Bharat Base Payment System
c) Bharat Bill Paid System
d) Bharat Best Payment System
e) None of these
Ans : a
25) What is the full form of APBS ?
a) Aadhar Payments Bridge System
b) Aadhar Payment Best System
c) Aadhar Payment Bill System
d) Aadhar Paise Best System
e) None of these
Ans : a
26) What VPA stands for in UPI ?
a) Virtual Payment Address
b) Value Payment Address
c) Vote Payment Address
d) Voice Payment Address
e) None of these
Ans : a
27) What is the size of Rs.2000 ?
a) 160 mm * 60 mm
b) 166 mm * 66 mm
c) 170 mm * 60 mm
d) 180 mm * 60 mm
e) None of these
Ans : b
28) What does R stand for in the expansion of MUDRA ?
a) Rural
b) Relevant
c) Re-finance
d) Reliance
e) None of these
Ans : c
29) What does D stand for in the expansion of RIDF ?
a) Debt
b) Deep
c) Development
d) Draft
e) None of these
Ans : c
30) 100% government equity payment bank ?
a) Bandhan Bank
b) IDFC Bank
c) India Post Payment Bank
d) Yes Bank
e) None of these
Ans : c
31) What is full form of AEPS ?
a) Aadhar Enabled Payment System
b) Aadhar Estate Payment System
c) Aadhar Equity Payment System
d) Aadhar Enquiry Payment System
e) None of these
Ans : a
32) PCA stands for ?
a) Prompt Corrective Action (RBI)
b) Payment Corrective Action
c) Past Corrective Action
d) Present Correct Action
e) None of these
Ans : a
33) RBI nationalized in
which year ?
a) 1935
b) 1949
c) 1934
d) 1969
e) 1980
Ans : b
34) Authorised Capital
of NABARD will be increased from Rs.
5000 Crores to ____?
a) Rs. 25,000 Crores
b)
Rs 30,000 crore
c) Rs.20,000 Crores
d) Rs.15,000 Crores
e) None of these
Ans : b
35) Maximum limit of
loan under PMMY?
a)
Rs 10 lakh
b) Rs.20 Lakhs
c) Rs.25 Lakhs
d) Rs.15 Lakhs
e) None of these
Ans : a
36) Micro Industry
investment limit in manufacturing is how much ?
a) Rs.5 Lakhs
b)
Rs 25 lakh
c) Rs.2 Lakhs
d) Rs.One Lakh
e) None of these
Ans : b
37) Banker’s lien comes
under which act?-
a)
Indian Contract Act 1872
b) Negotiable Instrument Act
c) ID Act
d) Factories Act
e) Trade Union Act
Ans : a
38) Which of the
following is a Fully digital and paperless bank ?
a)
Airtel Payment Bank
b) SBI
c) Indian Bank
d) Indian Overseas Bank
e) None of these
Ans : a
39) Airtel Payment Bank is joint venture with ?
a) Kotak Mahindra Bank Ltd.
b) ICICI Bank
c) HDFC Bank
d) Axis Bank
e) None of these
Ans : a
40) Number of customers
in SBI after Merger?
a)
50 Crore (as per SBI website)
b) 25 Crores
c) 10 Crores
d) 5 Cores
e) None of these
Ans : a
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