Bank sample Question Papers

Banking Knowledge Questions and Answers

Banking knowledge Test

Banking Quiz

Question 1
Which of the following terms is used in the field of finance and banking?
A
Genetic process
B
Experimental Error
C
Debt instrument
D
Metabolism
Question 2
Which one of the following are key policy rates used by RBI to influence interest rates ? 1. Bank Rate / the Repo Rate 2. Reverse Repo Rate 3. CRR / SLR
A
Only 1
B
Only 2
C
All 1, 2 and 3
D
Both 1 and 3
Question 3
Which of the following terms is not used in banking ?
A
Kisan Card
B
Debit Card
C
None of these
D
Debit Card
Question 4
All banks in India get major policy decisions/ directives/guidelines related to their day 'to day operations from

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A
All India Bank Employees Union
B
Ministry of Home Affairs, Government of India
C
Reserve Bank of India (RBI)
D
Securities and Exchange Board of India (SEBI)
Question 5
What correctly describe "Sovereign Wealth Funds".? (A) These are the funds or the reserves of a government or central bank of a country which are invested further to earn profitable returns. (B) These are the funds which were accumulated by some people over the years but were not put in active circulation as they retain them as Black Money for several years. (C) The funds which are created to be used as relief funds or bailout packages are known as sovereign funds.
A
Only B
B
Only A
C
Only C
D
Both B & C only
Question 6
Which of the following is not part of the scheduled banking structure in India ?
A
Public Sector Banks
B
Money Lender
C
Private Sector Hanks
D
State Co-operative Banks
Question 7
Which of the following tools is used frequently by the RBI to control credit and monetary situations of the markets in the country?
A
Forward Rate Agreements (FRA)
B
Electronic Clearing Service (ECS)
C
Cash Reserve Ratio (CRR)
D
Real Time Gross Settlement (RTGS)
Question 8
Which of the following is not an asset of a bank?
A
Overdue recurring deposits
B
Short term loans
C
Notes and small coins
D
Staff advances
Question 9
In stock market the term Plain Vanilla Currency Options is associated with which of the following activities/operations?
A
Dollar-Rupee Exchange Rate
B
Floating of Commercial Papers
C
Launch of new mutual funds
D
Deciding the opening price of a share on a particular business day
Question 10
India has different categories of commercial banks. Which of the following is NOT one such categories ?
A
Cooperative Banks
B
Commodities Banks
C
Nationalized Banks
D
Private Banks
Question 11
Which of the following controls the working of Share Market in India ?
A
SEBI
B
BIFR
C
FERA
D
MRTP Act
Question 12
What is the full form of IRR as used in banking/financial sectors ?
A
Internal Risk Return
B
Internal Revaluation Reserve
C
Internal Rate of Return
D
Investment Reserve Ratio
Question 13
Which of the following organisations provides credit history of the borrowers ?
A
RBI
B
CIBIL
C
ARCIL
D
CCIL
Question 14
Banking and financial services, all over the world, are regulated usually by Monetary Authority of the land. Who controls this function in India ?
A
SEBI
B
FEDAI
C
IRDA
D
RBI
Question 15
Which of the following terms is not used in Banking World ?
A
Time deposit
B
Centripetal force
C
Holding Company
D
Post dated cheque
Question 16
What is a mutual fund? (A) A type of collective investment scheme that pools money from many investors and invests it in stocks, bonds or other money market instruments. (B) It is a subsidiary of a bank or financial company created specially to raise money to be invested in a particular industry, i.e. housing or insurance etc. The money raised thus cannot be invested anywhere else. (C) When several banks and financial companies come together and create a common pool of money to fund mega infrastructural project like bridges, roads, power plants etc, the common pool is known as Mutual Fund.

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A
Only A
B
Only C
C
Only B
D
All A, B & C
Question 17
One single statement that depicts the financial position of a bank and/or business enterprise at a given point of time is called ___
A
Statement of product details
B
Balance Sheet
C
Quarterly returns submitted to RBI
D
Reconciliation Statement
Question 18
The activity of purchasing shares of various companies is called ___
A
Corporate Trading
B
Real estate investment
C
On-line Trading
D
Share Trading
Question 19
On which one of the following issues can SEBI penalise any company in India? (A) Violation of Banking Regulation Act. (B) Violation of foreign portfolio investment guidelines. (C) For violation of Negotiable Instruments Act.
A
All (A), (B) & (C)
B
Only (A)
C
Only (B)
D
Only (A) & (B)
Question 20
Banks make frequent changes in their product profile including introduction of new products etc. This is called

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A
Product enrichment
B
Product Control
C
Product enhancement
D
Product marketing
Question 21
Banks need liquidity to meet which of the following objectives of banking ? 1. Meet deposit and withdrawal 2. Fund loan demands 3. Maintain public confidence
A
Only 1
B
Only 1 and 2
C
Only 2 and 3
D
Only 2
Question 22
Fixed deposits and recurring deposits are
A
repayable on demand
B
not repayable
C
repayable after an agreed period
D
repayable after death of depositors
Question 23
Which of the following terms is not used in Banking World ?
A
Rate
B
Credit
C
Financial Status
D
Absolute zero
Question 24
Which one of the following rates signal the RBI’s long term out­look on interest rates ?

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A
Bank Rate
B
SLR
C
Reverse Repo Kate
D
Repo Rate
Question 25
Through which one of the following sources domestic funds are raised by Companies ? (A) IPO only (B) FPO only (C) Commercial papers
A
Only (C)
B
Only (A) & (C)
C
Only (A)
D
All (A), (B) & (C)
Question 26
Which of the following is one of the core functions of the Reserve Bank of India?
A
Help in finalization of the Union Budget
B
Work as Banker to the Banks
C
Participate in annual meetings of the various financial institutes world wide
D
To act as Tax collector of the Govt. of India
Question 27
Banks borrow money from the RBI on which of the following rates ?

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A
Reverse Repo Rate
B
Savings Rate
C
SLR and CRR
D
Repo Rate
Question 28
Which of the following terms is in Banking Field?
A
Input Devices
B
Interest Rate Swap
C
Zero Hour
D
Sedimentary
Question 29
Mortgage is a :

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A
security on immovable property for a loan given by a bank.
B
security on movable property for a loan given by a bank.
C
facility on immovable property for a loan given by a bank.
D
concession on immovable property for a loan given by a bank.
There are 29 questions to complete.

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