GK in English

Banking and financial Awareness Previous Year Questions

Q 21. What is a stale cheque?

(a) A cheque issued without drawer’s signature
(b) A cheque with only signature of the drawer
(c) A cheque which has completed six months from its date of issue
(d) A six months post-dated cheque
(e) Anyone of these
Ans: (c)

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Q 22. Which of the following is not an electronic banking delivery channel?

(a) Mobile Vans
(b) Mobile Phone Banking
(c) Internet Banking
(d) Tele Banking
(e) ATM
Ans: (a)

Q 23. Savings bank accounts are opened by

(a) Trading entities, manufacturing entities and individuals for savings purposes
(b) Traders and manufacturers for business purposes
(c) Individuals for savings purposes
(d) Limited companies and partnerships for savings purposes
(e) Cooperative banks for savings
Ans: (c)

Q 24. What does the letter ‘L’ stands for in the term LAF commonly used in financial/economic news?

(a) Liquidity
(b) Least
(c) liabilities
(d) Long
(e) Liquid
Ans: (a)

Q 25. Which of the following terms is NOT used in banking/ finance?

(a) Public Debt
(b) Plasma
(c) Joint Venture
(d) Net Demand & Time Liability
(e) Treasury Bill
Ans: (b)

Q 26. A type of fraud wherein criminals use an innocent person’s details to open or use an account to carry out financial transactions is known as

(a) identity theft
(b) hacking
(c) money laundering
(d) espionage
(e) phishing
Ans: (e)

Q 27. What does the letter ‘L’ stands for in the term LAF commonly used in financial/economic news ?

(a) Liquidity
(b) Least
(c) liabilities
(d) Long
(e) Liquid
Ans: (a)

Q 28. Bank branches which can undertake foreign exchange business directly are known as _________in foreign exchange.

(a) Authorized dealers
(b) Foreign dealers
(c) Overseas branches
(d) Approved dealers
(e) Exchange branches
Ans: (a)

Q 29. Which of the following types of accounts are known as ‘Demat Accounts’?

(a) Accounts which are Zero Balance Accounts
(b) Accounts which are opened to facilitate repayment of a loan taken from the bank. No other business can be conducted from the bank. No other business can be conducted from there
(c) Accounts in which shares of various companies are traded in electronic form
(d) Accounts which are operated through internet banking facility
(e) None of these
Ans: (c)

Q 30. With a view to facilitate payment of balance in the deposit account to the person named by the depositor without any hassles in the event of death of the account holder, the following facility was introduced for bank accounts in our country

(a) Will
(b) Registration
(c) Nomination
(d) Indemnity
(e) Guarantee
Ans: (c)

Q 31. The ministry of Finance recently released a comprehensive paper on Govt. debt. Which of the following is/ are true about the same?
The paper presents the road map for general debt to be raised by the Govt. of India during the period of 2011–2015 which is the period of the awards of the 13th Finance commission
As per the estimates, the target debt in the terminal year 2014–15 will be lower than whatever recommended by the 13th Finance Commission.
The paper has recommended that the Govt. should try to generate resources in such a way that. It does not have to depend much on debt. The total debt should not be more than rd of the total requirements.

(a) Only
(b) Only
(c) Only &
(d) Only &
(e) None of these
Ans: (b)

Q 32. Which one of the following is not a ‘Money Market Instrument’ ?

(a) Treasury Bills
(b) Commercial Paper
(c) Certificate of Deposit
(d) Equity Shares
(e) None of these
Ans: (d)

Q 33. Base Rate is the rate below which no Bank can allow their lending to anyone. Who sets up this ‘Base Rate’ for Banks?

(a) Individual Banks, Board
(b) Ministry of Commerce
(c) Ministry of Finance
(d) RBI
Ans: (d)

Q 34. Finance Ministry has asked the Reserve Bank of India to allow common ATM’s that will be owned and managed by non-banking entities hoping to cut transaction costs for banks. Such ATM’s are known as __________.

(a) Black Label ATM’s
(b) off site ATM’s
(c) on site ATM’s or red ATM’s
(d) third party ATM’s
(e) white label ATM’s
Ans: (e)

Q 35. Interest below which a bank is not expected to lend to customers is known as _____________.

(a) Deposit Rate
(b) Base Rate
(c) Prime Lending Rate
(d) Bank Rate
(e) Discount Rate
Ans: (b)

Q 36. With effect from July 1, 2012, for calculation of lending rates, the Reserve Bank of India has advised banks to switch over to the

(a) MSF Rate System
(b) Reverse Repo Rate System
(c) Bank Rate System
(d) Repo Rate System
(e) Base Rate System
Ans: (e)

Q 37. The seed capital of Bhartiya Mahila Bank is

(a) ` 2000 crore
(b) ` 1000 crore
(c) ` 4000 crore
(d) ` 3000 crore
(e) None of these
Ans: (b)

Q 38. What is the full form of EFT?

(a) Electric funds transfer
(b) Electronic finance transaction
(c) Electronics Fund Transfer
(d) Emergency fund transfer
(e) None of these
Ans: (c)

Q 39. How RBI measured to liquidate the market?

(a) By Reverse Repo rate
(b) By Repo rate
(c) By Cash Reserve Ratio
(d) By Statutory liquidity ratio
(e) None of these
Ans: (b)

Q 40. Cheque truncation can be done by?

(a) Using MICR data
(b) Sending cheque by speed post
(c) Using image processing
(d) Both

(a) & (b)
(e) None of the above
Ans: (d)

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