Banking Awareness Capsule for SBI IBPS and other Exams Part 1
1
Lending of scheduled Commercial Banks, on a fortnightly average basis, should not exceed — of their capital fund.-25 per cent
2
Specified interest rate on a fixed maturity security fixed at the time of issue is called-coupon rate
3
‘A faithful and friendly financial partner’ is the tagline of which bank ~~~~Syndicate Bank
4
‘Aapka Bhala Sabki Bhalai’ is the tagline of which bank ? ~~~~> Bandhan Bank.
5
“Pure Banking Nothing Else” is the tagline of which bank? ~~~~> State Bank of India.
6
A centralized databases with online connectivity to branches, internet as well as ATM-network which has been adopted by almost all major banks of our country is Known as-core Banking
7
A cheque which has completed the stipulated validity period of the cheque is called as- stale cheque (The validity period is 3 months as at present)
8
A Country which participate in the International trade is known as? ~~~~> Open Economy.
9
A customer drawing a cheque on a bank has the right to stop payment of the cheque before it is paid
10
Accounts are allowed to be operated by cheques in respect of current and savings accounts
11
ALM is called as Asset Liability Management
12
ARCIL - is the asset reconstruction company
13
As declared by RBI recently the New RS 50 banknote will have ?Inset Letter ‘R’
14
At which Rate commercial Bank Borrow fund from RBI or overnight basis ~~~~MSF (Marginal Standing Facility)
15
Bank are required to maintain a percentage of deposit with RBI and this percentage is called ? ~~~~> Cash Reserve Ratio (CRR).
16
Bank Holidays are covered under which Act?Negotiable Instrument Act
17
Banks are subject to operational risk, credit risk, market risk,liquidity risk
18
Banks can accept both demand and time deposits from the public
19
BCBS expand this term? ~~~~> Basel Committee on Banking Supervision.
20
BCSBI - Banking Codes and Standards Board of India
21
Bombay stock exchange was made functional as early as 1870
22
Call money borrowings - is not the source of finance for any commercial bank
23
CAMEL denotes – capital adequacy, asset quality, management,efficiency and liquidity
24
Capital market is a market which deals in long term funds
25
Capital market is a market which deals in- long-term funds
26
Cash Reserve Ratio and Statutory Liquidity Ratio are terms most closely related to the following industries/markets - Banking industry
27
CIBIL - Credit Information Bureau of India Limited
28
Commercial banks do not undertake the following functions: deciding policy rates like CRR, SLR and repo rates
29
Commercial paper is a short-term security issued by ________ to raise funds.-large and well-known companies
30
Consortium Advances refers to ~~~~Joint Financing by more than one bank
31
Deposit Insurance and Credit Guarantee Corporation of India Limited is called as DICGC
32
Depreciation of an asset does not occur on account of the following namely; fire in the unit; theft; labour trouble; wear and tear;
33
Dhoni has been nominated in the savings bank account of Raina and Dhoni requests the bank authorities to allow him to operate Raina's account as he is found to be unwell. What will the bank do? - As nomination will come into effect only after the death of the depositor, the bank will not permit
34
Exchange rate is the term used in the field of economics
35
Expand the term ‘CARE’ ~~~~Credit Analysis and research limited
36
Expand the term ‘CTS’?Cheque Truncation System
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Expand the term ‘FSLRC’ ~~~~Financial secor legislatine reforms commission
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Expand the term ‘QIB’ - Qualified Institutional Buyers
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Expand the term AMFI ? ~~~~> Association of Mutual funds of India.
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Expand the Term ANBC?Adjusted Net Bank Credit
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Expand the Term BBPS ? ~~~~> Bharat Bill Payment System.
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Expand the Term BBPS ? Bharat Bill Payment System
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Expand the Term CIBIL ~~~~Credit Information Bureau of India Limited.
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Expand the term CIRL ?Central Insurance Repository Limited
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Expand the Term CVPS ? Currency verification and Processing System
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Expand the Term DEAF ~~~~Depositors Education and Awareness Fund.
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Expand the term FIMMDA? ~~~~> Fixed Income Money Market and Derivatives Association.
48
Expand the Term GAAR ~~~~General Anti Avoidance Tax Rules.
49
Expand the Term IRDAI ?Insurance regulatory development authority of India
50
Expand the Term OECD ~~~~organization for Economic Co-operation and development
51
Expand the term SWF ? Sovereign Wealth Fund
52
Expand the Term ULIP ? ~~~~> Unit Linked Insurance Plan.
53
Expnd the term IGMS ?Integrated Grievance Management System
54
Financial assets are classified into primary or direct securities and secondary or indirect securities
55
Financial inclusion means provision of-financial services namely, payments, remittances, savings, loans and insurance at affordable cost to persons not yet given the same
56
Financial instruments of the capital market are classified into the following two categories namely; government or gilt edged securities and corporate securities
57
Financial markets can be classified into money market and capital market
58
Fixed deposits and recurring deposits are- repayable after an agreed period
59
For purchase of white goods, the following loan is granted by the banks -consumer durables loan
60
Forward Markets commission established in which year?1953
61
ICICI Bank Limited is the first Universal Bank established in the country
62
If an Insurance Policy holder is not satisfied with the award of the Insurance Ombudsman, he or she can approach to ?Courts of law or consumer forums
63
If the RBI wants to block foreign Capital outflow and contain the currency depreciation which would be the most possible action? Increase Interest Rates.
64
IFSC code consists of eleven digits
65
In order to attract more foreign exchange the Government of India decided to allow foreign investment in LLP firms. What is full form of ‗LLP‘ as used in this reference?-Limited Liability Partnership
66
In the case of Regional Rural Banks, the contribution structure between Government of India, State Government and Sponsoring banks are in the ratio of 50:15:35
67
Income Generated from Tourism Can be placed in? ~~~~> Invisible Export
68
Indian financial system is composed of three components –financial assets, financial markets and financial intermediaries or institutions
69
Insurance cover for bank deposits in the country is provided by DICGC
70
Interest on Saving bank account is now calculated by banks on- daily product basis
71
Interest payable on savings bank is not regulated by RBI
72
IRDA - Insurance Regulatory Development Authority
73
IRDA has its headquarters at Hyderabad
74
IRDA is the regulatory authority for all insurance companies in the country including LIC of India
75
Know your customer (KYC) has which two components? ~~~~> Identity and address
76
LAB means local area banks
77
Lack of access of financial Services is technically known as ? ~~~~> Financial Exclusion.
78
LAF means liquidity adjustment facility
79
Largest shareholder (in percentage shareholding) of a nationalized bank is-Government of India
80
Monetary policy as an arm of the economic policy is administered by - Reserve Bank of India
81
Money laundering means - the process of conversion of money obtained illegally to appear to have originated from legitimate sources
82
Money laundering refers to conversion of money which is legally obtained
83
Money lend for 15 days or more in Inter-bank market is called-term money
84
Money lent for one day is called-call money
85
Money market is the center of dealings mainly of short term character in monetary assets
86
Mortgage is a-security on immovable property for a loan given by a bank
87
Mutual funds fall within the supervisory purview of SEBI
88
NABARD was established in 1982
89
National Income Estimates in India are prepared by Central Statistics Commission
90
National savings certificates, infrastructure bonds, Indira Vikas Patras, Krishi Vikas Patra etc. are examples of financial assets
91
Normally Economic Growth is coupled with ? ~~~~> Inflation.
92
NRI deposits are called as hot money
93
On which Rate at which commercial banks borrow short term funds with RBI ~~~~Repo Rate
94
Public sector bank, foreign bank, private sector bank and regional rural bank are classified as commercial banks
95
RBI declared that it has withdrawn the instruction of compensation to banks at how much percent of the national value of counterfeit notes detected?25 Percent
96
Regional Rural Banks fall within supervisory purview of-RBI,Note: RBI is supervisor and NABARD is regulator.
97
Regional Rural Banks were set up in 1975
98
Reserve Bank of India issues all the currency notes except one rupee note
99
Reserve Bank of India undertakes the following rates: CRR; SLR and repo rates
100
Revelling credit is made available by the issuer in the case of ~~~~Credit Card
101
Savings bank accounts are opened by individuals for savings purposes
102
Scheduled commercial banks are banks which have been included in the second schedule of RBI act, 1934; registered under companies act and got licence as per Banking Regulations act 1949
103
SEBI means Securities and Exchange Board of India.
104
Securities and Exchange Board of India was established in 1988
105
Six banks were nationalized during the second stage on 15.4.1980
106
Small finance Banks must disburse how much percent of their total adjusted net bank credit to priority sector?75%
107
State Bank of India was formulated as per SBI act 1955
108
State Bank of Indore was merged with state Bank of India in which year ? ~~~~> 2010
109
T-bills are financial instruments initially sold by ________ to raise funds.-the government
110
The account in which trading of shares in their electronic form is called as DEMAT account
111
The bank branches which can undertake foreign exchange business directly are known as approved dealers in foreign exchange
112
The banking ombudsman resolves the complaints of the customers in regard to services provided by the banks
113
The capital market deals in long term funds, both debt and equity
114
The conversion of money which is illegally obtained is called as - money laundering
115
The credit risk to the bank is high from which of these cards - Credit cards
116
The crossing on a cheque can be cancelled by the drawer of the cheque under his full signature
117
The Economy in which there is a mixture of Public and Private Sector both is called ? ~~~~> Mixed Economy.
118
The excess of the total expenditures over total receipts is known as ? ~~~~> Budget Deficit.
119
The financial literacy includes the following namely; how to invest the funds; how to use the limited funds carefully; how to minimize the risks and how to reinvest the money earned
120
The first bank in India was set up on modern lines in 1770 by an agency house
121
The first bank note issued by Independent India was the One Rupee note issued in which year? ~~~~> 1949
122
The first Indian bank to open a branch outside India in London in 1946 is Bank of India
123
The first public sector bank to issue capital to public is – Oriental Bank of Commerce
124
The fixed deposits, reinvestment deposits and recurring deposits are repayable after an agreed period.
125
The following are the functions of a commercial bank namely; providing project finance; settlement of payments on behalf of the customers; issuing credit and debit cards to the customers and providing services such as locker facilities and remittances
126
The following are the functions of banks - accepting deposits; granting loans;collecting cheques; issuing drafts; selling gold/silver coins
127
The following are the sources of finance for any commercial bank - capital, borrowings from RBI, deposits and cash reserves with RBI
128
The following constitutes the largest percentage of retail loans in the country - Home loans
129
The following is a measure taken by RBI in order to control inflation in the country -raising of Repo and Reverse Repo rates.
130
The following is not a primary function of a bank - Facilitating import of goods
131
The following represent the correct meaning of Repo rate - Rate for borrowing rupees by banks from RBI
132
The fourteen banks which were nationalized on 19.7.1969 were-Central Bank of India; Bank of Maharashtra; Dena Bank; Punjab National Bank; Syndicate Bank; Canara Bank; Indian Bank; Indian Overseas Bank; Bank of Baroda; Union Bank; Allahabad Bank; United Bank of India; United Commercial Bank and Bank of India
133
The headquarters of International Monetary Fund is located at which place ? ~~~~> Washington DC.
134
The letter "L" available in the term LAF commonly used in financial/economic news is called as- Liquidity
135
The loans of very small amounts given to low income group is called as - Micro credit
136
The non performing assets of any bank are called as - sub standard assets, doubtful assets and loss assets
137
The performing assets of any bank are called as - standard assets
138
The primary issuers of capital market securities include- the Central and Local Governments and corporations
139
The rate at which the domestic currency can be converted into foreign currency and vice versa is known as the - exchange rate
140
The reserves which can act as a liquidity buffer for commercial banks during crisis times are CRR and SLR
141
The subsidiaries of State Bank of India are; State Bank of Patiala;State Bank of Hyderabad; State Bank of Travancore; State Bank of Bikaneer and Jaipur and State Bank of Mysore.
142
The usual deposit accounts of banks are-current accounts, savings bank accounts and term deposit accounts
143
The usual deposit accounts of the banks are - current accounts, savings accounts and term deposit accounts
144
To which country does Mohammad Yunus, who developed the concept of Micro Credit and Micro Finance belong ? ~~~~> Bangladesh.
145
Universal banking is the roof under which various banking products are available
146
Up to what extent, FDI in Insurance sector is allowed by the government of India ?49%
147
Upper limit prescribed for RTGS transaction is-No upper limit is prescribed
148
Urban cooperative bank is not a commercial bank
149
What do you understand by the term called as mortgage ?- Making the security of immovable property available as a cover for a home loan availed by the borrower
150
What is the best option to park money for a long period of time to earn a high rate of interest ~~~~Fixed Deposit A/c
151
What is the Cap on loan amount given out by a Non-Banking financial company – Micro Finance Institution ?Rs 50000
152
What is the minimum tenure of deposits to be taken by NBFCs (Non Banking Financial Companies) ?12 Months
153
What is the name of Australian Central Bank ~~~~Reserve Bank Australia
154
What reason told by RBI governor recently for not issuing the high denomination currency above Rs 1000 bank note presently?Fear of Counterfeiting
155
When a banker talks about CDR, CDR is meant - Corporate Debt Restructuring.
156
When the ATM machine installed in the bank is out of order, it is called as operational risk
157
When the banks are not able to pay the amount to the depositors, it is called as liquidity risk
158
When the banks entertain in dealing with insurance business, it is called as bankassurance
159
When the banks products fail to survive in the market, it is called market risk
160
When the computers are not functioning, it is called as operational risk
161
When the loans are not repaid in time, it is called as credit risk
162
When the rate of inflation increases-purchasing power of money decreases
163
When the repayment period is between 37 to 84 months, such loans are called as medium term loans
164
When the repayment period is more than 84 months, they are called as long term loans
165
When the repayment period of any loan is upto 36 months, the loan is called as short term loan
166
Where is the Federal Reserve system (The USA Central bank) headquartered ~~~~New York
167
Where is the headquarter of Asian Development Bank ~~~~Manilla (Philippines)
168
Where is the headquarter of World Bank Located? ~~~~> Washington D.C.
169
Where is the headquarters of Allahabad Bank located ? ~~~~> Kolkata.
170
Where is the headquarters of Badhan Bank’s Located ~~~~(Kolkata, Chairman ~~~~Ashok Lahiri)
171
Where is the headquarters of Central Bank of India located ~~~~Mumbai
172
Which action will be taken by RBI to reduce the excess liquidity in the market ~~~~Increase CRR (Cash Reserve Ratio)
173
Which bank accredited by the green climate fund as an implementing entity for climate change related projects in India ?NABARD
174
Which card product launched by the banks is working on the principle of ‘Buy Now Pay Later’ ~~~~Credit Card
175
Which private sector bank has the maximum number of ATMs Machine in India ? ~~~~> ICICI Bank.
