Banking Awareness

Q1. Borrower’s ability to meet the immediate liabilities is indicated by?

(a) Current Ratio

(b) Acid Test Ratio

(c) Debt Equity Ratio

(d) All of the above

(e) None of the above

Q2. Branches receive Potential Linked Plan through?

(a) Block Level Banker’s Committee

(b) State Level Banker’s Committee

(c) District Consultative Committee

(d) Lead Bank Department

(e) None of the above

Q3. By “Deemed Exports” it means?

(a) supplies of goods and services to units within the country which can earn foreign currency to the country

(b) exports made by units situated in EPZ areas to out of country

(c) exports made by EOU out of the country

(d) anticipated value of exports

(e) None of the above

Q4. By devaluation we mean?

(a) A fall in the domestic value of a currency

(b) A fall in the external value of a currency caused by the market forces

(c) A fall in the external value of a currency caused by Government action

(d) All of the above

(e) None of the above

Q5. Capitalization of Reserves is carried out by issue of ___________ to the existing shareholders.

(a) Additional shares

(b) Bonus shares

(c) Incentives

(d) All of the above

(e) None of the above

Q6. As per RBI guidelines, when a counterfeit note is detected at the branch, it should be:

(a) Branded with a stamp “COUNTERFEIT BANKNOTE”

(b) Recorded in a separate register under authentication

(c) acknowledged in the prescribed format of RBI and issued to the tenderer

(d) All of the above

(e) None of the above

Q7. Asset Reconstruction Company is associated with..........?

(a) DICGC

(b) ECGC

(c) NPA

(d) SEBI

(e) None of the above

Q8. Association of National Exchange Members of India (ANMI) is a body consisting of?

(a) Bankers and SEBI

(b) SEBI and IBA

(c) Brokers Operating in the National Exchanges

(d) Bankers, SEBI, IBA and RBI

(e) None of the above

Q9. At what stage of opening of bank account is the checking of Politically Exposed Persons (PEP) carried out:

(a) at the first point of customer interaction

(b) at the Account Services Level

(c) at the Central Account Services Level

(d) one month after the account is opened

(e) None of the above

Q10. Authorized Dealers for foreign exchange transactions are appointed by:

(a) Reserve Bank of India

(b) Government of India

(c) Individual Banks

(d) FEDAI

(e) None of the above

Q11. Currency Note containing political slogan is not a legal tender as per:

(a) Legal Tender (Inscribed Notes) Act, 1964

(b) Negotiable Instruments Act, 1881

(c) Reserve Bank of India Act

(d) All of the above

(e) None of the above

Q12. Demand draft for Rs. 20,000 and above:

(a) can be paid in cash

(b) should not be paid in cash

(c) mode of payment will depend on the status of the customer 

(d) All of the above

(e) None of the above

Q13. Deposits under NRE/FCNB accounts are linked to-

(a) Base Rate

(b) SIBOR

(c) LIBOR

(d) All of the above

(e) None of the above

Q14. Electronic Fund Transfer scheme of RBI has been renamed as:

(a) Clearing

(b) Core Banking Solutions

(c) Real Time Gross Settlement

(d) National Electronic Fund Transfer

(e) All of the above

Q15. Escrow account is useful/helpful to-

(a) importers

(b) exporters

(c) people

(d) Assets

(e) None of the above