Banking Awareness: GK for IBPS PO 2015
1
Banking Awareness: GK for IBPS PO 2015 1. Which of the following statements in true? (1) Banks cannot accept and demand time deposits from public. (2) Banks can only accept demand deposits from public. (3) Banks can only accept time deposits from public. (4) Banks can accept both time and demand deposits from public. (5) Banks can accept demand and time deposits from Government. 2. Interest Payable on savings bank account is (1) Not regulated by RBI (2) Regulated by State Governments. (3) Regulated by Central Government (4) Regulated by RBI (5) Regulated by Finance Minister. 3. Which among the following is the correct statement? (1) State Bank of India is the sole authority to issue and manage currency in India. (2) A Nationalised Bank in the sole authority to issue and manage currency in India. (3) A Cooperative bank is the sole authority to issue and manage currency in India. (4) RBI is the sole authority to issue and manage currency in India. (5) None of the above. 4. Accounts are allowed to be operated by cheques in respect of (1) Both Saving bank accounts and Fixed deposit accounts. (2) Saving bank accounts and Current bank accounts. (3) Both Savings bank accounts and Loan accounts. (4) Both Savings bank accounts and Cash accounts. (5) Both Current accounts and Fixed deposit accounts. 5. Which of the following is the correct statement? (1) Normally no interest is paid on Current Deposit Accounts (2) Interest is paid on the current accounts on the same rate as term deposit accounts. (3) The rate of Interest on the current account and deposit account is the same. (4) No Interest is paid on any deposit is the bank. (5) Saving deposits are same as the current deposits. 6. The usual deposit accounts of banks are: (1) Current accounts, Electricity accounts and Insurance premium accounts (2) Current accounts, Post office savings bank accounts and Term deposit accounts (3) Loan accounts, Savings banks accounts and Term deposit accounts (4) Current accounts, Savings banks accounts and Term deposit accounts (5) Current bill accounts and Term deposit accounts Vidya Guru Tilak Nagar - 9311566241, Karol Bagh - 8376934679/81, Pitampura - 8376934648/73, Munirka - 9650549487
www.vidyaguru.in
Banking Awareness: GK for IBPS PO 2015 2 7. If you Deposit Rs.5000 over the counter, what does the person sitting behind the counter do? (1) Credit your account with Rs. 5000 without debiting your account (2) Debit cash account and credit your account with Rs. 5000 (3) Pay you the same amount next time you visit bank (4) Can’t say (5) None of these 8. Financial Inclusion means provision of (1) Financial services namely, Payment remittances, savings, loan etc. at affordable cost to persons not yet given the same. (2) Ration at affordable cost to persons not yet given the same. (3) House at affordable cost to persons not yet given the same. (4) Food at affordable cost to persons not yet given the same. (5) Education at affordable cost to persons not yet given the same. 9. Which of these is said to be cross selling by banks? (A) Sale of debit card to a credit card holder (B) Sale of Insurance Policy to a depositor (C) Issuance of Cash against cheque presented by a third party (1) Only A (2) Only B (3) Only C (4) Both A and C (5) A, B and C 10. Which loan is cheaper? (1) Home loan (2) Crop loan (3) Education loan (4) Car loan (5) None of these 11. 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 (5) Taking of the cheque 12. Mortgage is a (1) Security on movable property for a loan given by a bank (2) Security on immovable property for a loan given by a bank (3) Concession on immovable property for a loan given by a bank (4) Facility on immovable property for a loan given by a bank (5) Security on immovable property for a deposit received by the bank. 13. Which of the following types of accounts are known as Demat Accounts? (1) Accounts which are zero balance accounts (2) Accounts which are open to facilitate repayment of a loan taken from the bank. No other business can be conducted from there (3) Accounts in which shares of various companies are traded in electronic form (4) Accounts which are operated through Internet Banking Facility 14. Distribution of Insurance products and insurance policies by banks as corporate agents is known as Vidya Guru Tilak Nagar - 9311566241, Karol Bagh - 8376934679/81, Pitampura - 8376934648/73, Munirka - 9650549487
www.vidyaguru.in
Banking Awareness: GK for IBPS PO 2015 3 (1) General Insurance (2) Non-Life Insurance (3) Banacassurance (4) Insurance Banking (5) Deposit Insurance 15. In order to attract more foreign exchange, GOI has decided to allow foreign investment in LLP firms. What is the full form of LLP? (1) Local Labour Promotion (2) Low Labour Projects (3) Limited Loan Partnership (4) Longer liability Partnership (5) Limited Liability Partnership 16. When the rate of Inflation increases (1) Purchasing power of money increases (2) Purchasing power of money decreases (3) Value of money increases (4) Purchasing power of money remains unaffected (5) Amount of money in circulation decreases 17. Money earned from stocks is called (1) Fringe Benefit (2) Capital Gain (3) Monetary Gains (4) Stocks Gains (5) All of the above 18. A Centralized database with online connectivity to branches, Internet as well as ATM network which has been adopted by most banks in India is known as (1) Investment Banking (2) Core Banking (3) Mobile Banking (4) National Banking (5) Specialized Banking 19. Which of the following is not considered a money market instrument? (1) Treasury Bills (2) Repurchase Agreement (3) Commercial Paper (4) Certificate of Deposit (5) Shares and Bonds 20. Interest on savings accounts in calculated on (1) Minimum balance during the month (2) Minimum balance from 7th to last day of the month (3) Minimum balance from 10th to last day of the month (4) Maximum balance during the month (5) Daily Product basis 21. With a view to facilitate the Payment of Balance in the deposit account to the person named by the depositor without any hassles in the event of the death of the account holder, the following facility was introduced by the bank accounts in our country (1) Will (2) Registration (3) Nomination (4) Indemnity (5) Guarantee 22. What is shown along with current year balance sheet? (1) Previous year balance (2) Previous 2 yr balance & future balance plan (3) Illicit Earnings of the company (4) Earnings of the board of director (5) None of these 23. Which of the following aptly describes the business of insurance? (1) Insurance is about collective bearing of risk (2) Insurance pays to one person from money collected from another person Vidya Guru Tilak Nagar - 9311566241, Karol Bagh - 8376934679/81, Pitampura - 8376934648/73, Munirka - 9650549487
www.vidyaguru.in
Banking Awareness: GK for IBPS PO 2015 4 (3) Insurance is about disaster management (4) Insurance is about paying for others’ mistakes (5) None of these 24. What are teaser loans? (1) Fixed Rate of Interest charged by Banks (2) Floating rate of interest charged by banks (3) Rate of interest in the initial period is very less and increases steeply in later years (4) Rate of interest in the later years goes down substantially (5) None of these 25. Which of the following assets can be mortgaged? (1) Stock (2) Book Debts (3) National Savings Certificates (4) Shares (5) Land and Building 26. Which of the following instruments cannot be transferred from one person to another by Endorsement? (1) Fixed Deposit Receipt (2) Cheque (3) Bill of Exchange (4) Promissory Note (5) None of these 27. ‘Crossing’ applies to which of these? (1) Cheques (2) Bills (3) Promissory Notes (4) Bundles (5) Fixed Deposit receipts 28. Exporters and importers in India are required to know ‘FEMA’ rules. What does the letter ‘M’ denote in the term ‘FEMA’? (1) Money (2) Material (3) Mega (4) Management (5) Micro 29. In our country, a cheque remains valid for payment for _______ from the date of issue. (1) 3 months (2) 6 months (3) 9 months (4) 12 months (5) 18 months 30. Which of these isn’t the sensitive index of a global stock exchange? (1) Nasdaq (2) Nikkei (3) Kospi (4) Dow Jones (5) SEBI 31. What is money laundering? (1) Conversion of assets into cash (2) Conversion of money which is illegally obtained (3) Conversion of cash into gold (4) Conversion of gold into cash (5) Conversion of gold with foreign currency 32. Which of the following category of advance accounts is not an NPA? (1) Standard account (2) Substandard account (3) Doubtful account (4) Loss account (5) All (1) to (4) are NPAs 33. The rate at which the domestic currency can be converted into foreign currency and vice-versa is known as the _________. (1) Exchange rate (2) MIBOR (3) Inter-bank call money rate (4) Base rate (5) LIBOR 34. Which of the following is NOT a source of funds of a commercial bank? Vidya Guru Tilak Nagar - 9311566241, Karol Bagh - 8376934679/81, Pitampura - 8376934648/73, Munirka - 9650549487
www.vidyaguru.in
Banking Awareness: GK for IBPS PO 2015 5 (1) Capital (2) Borrowing from RBI (3) Call money borrowings (4) Deposits (5) Cash Reserves with RBI 35. Depreciation of an asset occurs due to _______. (1) Fire (2) Theft (3) Labour Trouble (4) Wear and tear (5) None of these 36. What type of loan is granted by banks for purchase of white goods? (1) Consumption loan (2) Mortgage loan (3) Consumer durables loan (4) Home loan (5) None of these 37. An ECS transaction gets bounced and you are unable to recover your money from your customer. Under which act criminal action can be initiated? (1) Indian Penal Code (2) Negotiable Instruments Act (3) Criminal Procedure Code (4) Payment and Settlements Act (5) Indian Contract Act 38. Which one of the following is a retail banking product? (1) Home Loans (2) Working capital finance (3) Corporate term loans (4) Infrastructure financing (5) Export Credit 1. (4) 11. (4) 21. (3) 31. (2)
2. (1) 12. (2) 22. (1) 32. (1)
3. (4) 13. (3) 23. (1) 33. (1)
4. (2) 14. (3) 24. (3) 34. (5)
ANSWER KEY 5. (1) 6. (4) 15. (5) 16. (2) 25. (5) 26. (1) 35. (4) 36. (3)
7. (2) 17. (2) 27. (1) 37. (4)
8. (1) 18. (2) 28. (4) 38. (1)
9. (2) 19. (5) 29. (1)
10. (2) 20. (5) 30. (5)
Vidya Guru Tilak Nagar - 9311566241, Karol Bagh - 8376934679/81, Pitampura - 8376934648/73, Munirka - 9650549487
www.vidyaguru.in