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Banking and financial Awareness Previous Year Questions

Q 121. CIBIL score is used by banks and NBFCs to ascertain your credit worthiness and the likelihood of you repaying your loan on time. How many digit numbers are there in CIBIL Score?

(a) 1 digit number
(b) 2 digit number
(c) 5 digit number
(d) 3 digit number
(e) 4 digit number
Ans: (d)

Table of Contents

Q 122. Which of the following State-owned Bank has partnered with M1Xchange Trade Receivables Discounting System platform for MSME bill discounting?

(a) Canara Bank
(b) Bank of Maharashtra
(c) Bank of Baroda
(d) Indian Bank
(e) Central Bank of India
Ans: (b)

Q 123. ICICI Bank to buy stake in ________ to buy stake in its subsidiary INX for ` 31 crore.

(a) SEBI
(b) NHB
(d) NSE
(e) BSE
Ans: (e)

Q 124. Receivables Exchange of India Ltd was incorporated on 25th February 2016 as a joint venture between-

(b) RBI
Ans: (d)

Q 125. Commercial paper is an unsecured promissory note with a fixed maturity of not more than-

(a) 300 days
(b) 365 days
(c) 235 days
(d) 290 days
(e) 270 days
Ans: (e)

Q 126. LIC has how much crore in unclaimed money?

(a) `96,000 crores
(b) `10,000 crores
(c) `10,500 crores
(d) `11,200 crores
(e) `11,500 crores
Ans: (c)

Q 127. What is the full form of MCLR?

(a) Marginal Cost of Funds based Lending Rate
(b) Manual Cost of Funds based Leading Rate
(c) Minimum Cost of Funds by Leading Rate
(d) Maximum Cost of Funds based Large Rate
(e) None of these
Ans: (a)

Q 128. What is the name given to a type of mutual fund or exchange-traded fund that emphasizes current income, either on a monthly or quarterly basis, as opposed to capital gains or appreciation?

(a) Index fund
(b) Equity fund
(c) Specialty fund
(d) Income fund
(e) None of these

Ans: (d)

Lesson 5 Banking Products (Banking and financial Awareness Previous Year Questions)
Q1. Customisation means ________.

(a) acquiring more customers
(b) regulating customers
(c) special products to suit each customer
(d) more products per customer
(e) All of these
Ans: (c)

Q 2. Immediately prior to change in the measure of Food Inflation, which of the following indexes was being used for measuring it?

(a) Wholesale Price Index
(b) Consumer Price Index
(c) Interest Rates offered by banks on deposits
(d) Sensex and Nifty
(e) None of these
Ans: (a)

Q 3. Fixed deposits and recurring deposits are

(a) repayable after an agreed period.
(b) repayable on demand
(c) not repayable
(d) repayable after death of depositors
(e) repayable on demand or after an agreed period as per bank’s choice.
Ans: (a)

Q 4. Mortgage is a

(a) security on movable property for a loan given by a bank.
(b) security on immovable property for a loan given by a bank.
(c) concession on immovable property for a loan given by a bank.
(d) facility on immovable property for a loan given by a bank.
(e) security on immovable property for a deposit received by a bank.
Ans: (b)

Q 5. Which of the following is not considered a money market instrument?

(a) Treasury bills
(b) Repurchase Agreement
(c) Commercial paper
(d) Certificate of Deposit
(e) Shares and bonds
Ans: (e)

Q 6. Banks in our country normally publicise that additional interest rate is allowed on retail domestic term deposits of

(a) Minors
(b) Married women
(c) Senior citizens
(d) Govt. employees
(e) Rural residents
Ans: (c)

Q 7. A money deposited at a bank that cannot be withdrawn for a preset fixed period of time is known as a __________ .

(a) Term deposit
(b) Checking Account
(c) Savings Bank Deposit
(d) No Frills Account
(e) Current Deposit
Ans: (a)

Q 8. Bad advances of a Bank are called ____________ .

(a) Bad debt
(b) Book debt
(c) Non Performing Asset
(d) Out of order accounts
(e) Overdrawn accounts
Ans: (c)

Q 9. A non-performing asset is ______.

(a) Money at call and short notice.
(b) An asset that ceases to generate income
(c) Cash balance in till
(d) Cash balance with RBI
(e) Balance with other banks
Ans: (b)

Q 10. The part of a company’s earnings or profits which are paid out to shareholders is known as

(a) capital gains
(b) taxes
(c) interest on borrowings
(d) dividends
(e) penal interest
Ans: (d)

Q 11. An Equity share is also commonly referred to as

(a) ordinary share
(b) debenture
(c) convertible share
(d) security receipt
(e) preferred stock?
Ans: (a)

Q 12. What is the fullform of CBS?

(a) Customer Bond Solution
(b) Core banking System
(c) Core Banking Solution
(d) Customer Bond system
(e) None of these
Ans: (c)

Q 13. In the field of banking, what does CRAR stand for?

(a) Capital Reserve Adequacy Ratio
(b) Capital to Risk Assets Ratio
(c) Capital Reserve Assets Ratio
(d) Capital Risk Adequacy Ratio
(e) None of these
Ans: (b)

Q 14. Bad debts mean which of the following?

(a) Amounts owed to a company that are going to be paid within a month
(b) Amounts owed to a company that are not going to be paid
(c) Amounts owed to a company that are going to be paid.
(d) Amounts owed to a company that are not going to be paid within 3 years
(e) Amounts owed to a company that are going to be paid within 6 months
Ans: (b)

Q 15. Preshipment packing credit advances are generally given by banks to—

(a) Farmers
(b) Retail Traders
(c) Professionals
(d) Exporters
(e) Transport Operators
Ans: (d)

Q 16. What are teaser loans?

(a) Fixed Rate of Interest charged by Banks
(b) Floating rate of interest charged by banks
(c) Rate of interest in the initial period is very less and increases steeply in later years
(d) Rate of interest in the later years goes down substantially
(e) None of these
Ans: (c)

Q 17. What do you understand by the term ‘Mortgage’?

(a) Sale of a movable security in the event of default by the borrower
(b) Registration of charge with the Registrar of Companies
(c) Making the security of immovable property available as a cover for a home loan by the borrower
(d) Registration of charge with the Regional Transport Authority
(e) Returning of the security to borrower by the bank on receipt of full payment
Ans: (c)

Q 18. Which of the following constitutes the largest percentage of Retail loans in India?

(a) Auto loans
(b) Personal loans
(c) Personal overdrafts
(d) Consumer loans
(e) Home loans
Ans: (e)

Q 19. Credit risk to the bank is high in which of the following cards?

(a) Debit cards
(b) Credit cards
(c) ATM cards
(d) All the above
(e) None of these
Ans: (b)

Q 20. What is the maximum period for which domestic term deposits are normally accepted by banks in our country?

(a) 3 years
(b) 5 years
(c) 7 years
(d) 10 years
(e) 12 years
Ans: (d)

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