IBPS Specialist Officers Examination (CWE) General Awareness Solved Paper, March 2012

1. Who among the following is one of the recipients of the Nobel Peace Prize - 2011 ? 
(A) Ellen Johnson Sirleaf (B) Jules A. Hoffmann (C) Brude A. Beutler 
(D) Adam G. Riess (E) Tomas Transtromer (Ans : A)

2. The Food Security Bill-2011 which is in the process of becoming an Act, divides the entire population of the country into two groups. Which of the following are these two groups ? 
(A) Below poverty line and above poverty line 
(B) General population and excluded population 
(C) Included households and excluded households 
(D) Covered under PDS and not covered under PDS 
(E) General households and priority households (Ans : E)

3. RBI has recently deregulated the rates of interest to be provided by various Banks to their depositors/ customers with effect from 25-10-2011 on their accounts. 
(A) Time deposit (B) Saving bank (C) Loan 
(D) Fixed deposit (E) Current (Ans : B)

4. Which of the following is the main advantage of "ASBA" with the applicants for share allotment ? 
(A) ASBA applicant has got secured allotment of shares 
(B) ASBA applicant has got certain preference in allotment of shares as compared to general applicants 
(C) ASBA applicant need not remit the fund for allotment of shares, he/she will do so after shares are allotted to him/her 
(D) ASBA applicants deposit/OD account is not debited, only the funds are blocked for the same and he/she continues to avail interest till the shares are allotted to him/her 
(E) None of these (Ans : D)

5. "Many people die in Deadly Games in Egypt" –was the news in almost all major newspapers in February 2012. 
Which of the following statements is the correct representation of 'Deadly Game' given in the headlines ? 
(A) A riot broke out during a Football Match in Egypt in which many people were killed 
(B) Police had to open fire on a mob including some genuine ticket holders, who were not allowed to enter the stadium even after the start of the match 
(C) Egypt is famous for its dangerous games of 'Bull fight' and 'Martial Game'. Many participants die every year in such games 
(D) Some terrorists opened fire during a football match. About 1,000 people were killed in the incident 
(E) The defeat in the game is considered equivalent to death (Ans : A)

6. Mullaperiyar Dam, which was recently in news, is located in which of the following States? 
(A) Maharashtra (B) Karnataka (C) Andhra Pradesh 
(D) Kerala (E) Tamil Nadu (Ans : D)

7. Like telephone/Mobile number portability, the Ministry of Finance/RBI is now also considering to provide bank account number portability to bank customers. Which of the following would it mean? 
(A) Any customer/account holder can withdraw cash from any other Bank through his/her own cheques drawn on other bank even without ATM 
(B) Any borrower can draw funds from his/her loan account' from any other bank also 
(C) The account number of any account holder will remain the same even if he/she is getting his/ her account transferred to another bank also 
(D) Bank customers would have the facility of mobile Banks to with- draw cash nearby his/her place 
(E) None of these (Ans : C)

8. The total number of Kissan Credit Card holder farmers in our country is– 
(A) 8 Crores (B) 10 Crores (C) 5 Crores 
(D) 7.5 Crores (E) 6 Crores (Ans : B)

9. NRE deposit is–
(A) Non Resident External deposit (B) Non Resident Extra deposit 
(C) Non Resident Exchange deposit (D) Non Refundable External deposit 
(E) Non Resident Extended deposit (Ans : A)

10. What is offshore banking ? 
(A) It is a bank located in the sea (i.e. island). 
(B) It is a bank located in SEZ. 
(C) It is a bank located in a neighbouring country. 
(D) It is a bank located outside the country of residence of the depositor. 
(E) Offshore banking is basically dealing in foreign exchange. (Ans : D)

11. Maoists in which of the following countries recently decided to accept Govt's offer of 'Golden Handshake' fund enter into 'civilian life' or mainstream of the society ? 
(A) Myanmar (B) India (C) China 
(D) Nepal (E) Bhutan (Ans : D)

12. Which of the following is correct? 
(A) Illiterates cannot open any account in a bank 
(B) Illiterate women cannot open any account in a bank 
(C) Illiterates can open savings bank accounts in a bank 
(D) Advance can be granted to a minor 
(E) Advance can be granted to a minor if he is of sound mind (Ans : C)

13. As per newspaper reports western countries are going to impose sanctions on which of the following OPEC countries as it is said that it is trying to make a nuclear bomb ? 
(A) Kuwait (B) Iraq (C) Iran 
(D) Saudi Arabia (E) Angola (Ans : C)

14. ''The Reliance Industries Ltd. has decided to return some 'KG' fields to the Government of India" -was the news in some major newspapers. What is the major production in KG fields owned by RIL ? 
(A) Crude oil (B) Gas (C) Coal 
(D) Iron ore (E) Gold ore and Diamonds (Ans : B)

15. Non-convertible debentures are– 
(A) Debt instruments which acquire equity status at the issuers' option. 
(B) Debt instruments which acquire equity status at the investors' option. 
(C) Debt instruments which acquire equity status with the permission of Registrar of Companies. 
(D) Debt instruments which acquire equity status on maturity. 
(E) Debt instruments which retain their debt character and cannot acquire equity status. (Ans : E)

16. India's Dipika Pallikal and Sarah Cardwell of Australia recently played an international match in Chennai. Both of them are– 
(A) Badminton players (B) Golf players (C) Chess players 
(D) Squash players (E) Table Tennis players (Ans : D)

17. "IRDA 'norms will boost online distribution" -was the news in some major newspapers. This means online distribution of which of the following will boost up ? 
(A) Bank products (B) Insurance policies/products 
(C) Licenses to open new banks/ branches of existing banks 
(D) Licenses to operate 2G / 3G spectrums 
(E) Permits for export of iron ore (Ans : B)

18. 'Lajja' is a book written by– 
(A) Salman Rushdie (B) Taslima Nasreen (C) Sunil Ganguli 
(D) Rabindranath Tagore (E) Bimal Mitra (Ans : B)

19. To prevent frauds in multiple mortgage cases, under SARFAESI Act, 2002 one special thing has been created and made operative from 01. 04. 2011. Which one is that from the following? 
(A) Special Registrar Office at Lucknow 
(B) Special Central Arbitration Bureau at Lucknow 
(C) Central SARFAESI Tribunals at Six Centres 
(D) Central Electronic Registry 
(E) State Electronic Registries (Ans : D)

20. SBI has merged which of the following two associate banks with itself? 
(A) State Bank of Hyderabad and State Bank of Patiala 
(B) State Bank of Hyderabad and State Bank of Travancore 
(C) State Bank of Mysore and State Bank of Travancore 
(D) State Bank of Indore and State Bank of Hyderabad 
(E) State Bank of Indore and State Bank of Saurashtra (Ans : E)

21. Assembly elections took place in which one of the following States recently? (in January 2012) 
(A) Madhya Pradesh (B) Maharashtra (C) Kerala 
(D) Punjab (E) Tamil adu (Ans : D)

22. Which one of the following is not a salient feature of Debit Card? 
(A) No bad debts to banks and no suits for recovery 
(B) 0 interest earning for banks 
(C) Works like a normal withdrawal 
(D) Can be used at ATM and POS 
(E) 45 days credit is given to the card holder (Ans : E)

23. Banks issue a letter to beneficiary on behalf of its constituents like guarantee for making payment on their behalf on fulfillment of its terms and conditions. What is this arrangement known in banking context ? 
(A) Line of Credit (B) Loan to Client (C) Loan on Credit 
(D) Loan against Credit (E) Letter of Credit (Ans : E)

24. As per Financial Inclusion drive one of the following Banks introduced Tilly Cards with Biometric identification. Which of the following is that Bank? 
(A) Central Bank of India (B) Oriental Bank of Commerce (C) Indian Bank 
(D) State Bank of India (E) Bank of Maharashtra (Ans : D)

25. World leaders are to assemble in Rio de Janeiro in June 2012 for the United Nations Conference on Sustainable Development (Rio+20). All nations are going to make some commitment towards the goal of the conference. As per the agenda circulated, what commitment do world leaders want from India in the Conference ? 
(A) India should agree to double its energy efficiency under a global understanding 
(B) India should suspend its nuclear pact with USA or at least should reduce it to 50% level of agreed capacity 
(C) Nuclear power plants are highly risky as seen in Japan recently. Hence, no new plant should be made 
(D) India has a vast resource of coal. It must share its coal resources with other countries to enable them to produce thermal power which they are not doing so far due to lack of coal mines there 
(E) None of these (Ans : C)

26. Who among the following is the recipient of the Padma Vibhushan given in 2012 ? 
(A) Late (Dr.) Bhupen Hazarika (B) Sri Vanraj Bhatia (C) Sri Javed Akhtar 
(D) Sri Amitabh Bachchan (E) Smt. Ambika Soni (Ans : A)

27. Under the liberialised scheme of interest subsidy, Govt. of India provides interest subsidy on housing loan at the rate of– 
(A) 0. 50% (B) 1. 00% (C) 2. 00% 
(D) 2. 00% + 1. 00% for prompt repayment (E) None of these (Ans : B)

28. When a Bank provides a loan for purchase of white goods, it is categorised as– 
(A) Consumption loan (B) White Goods loan (C) Consumer Durable loan 
(D) Working Capital (E) Bridge loan (Ans : D)

29. India has decided to acquire Rafale Fighter planes for its airforce wing. Which country is going to supply Rafale fighter planes ? 
(A) Italy (B) Britain (C) Canada 
(D) France (E) Germany(Ans : D)

30. Which of the following statements about contribution (approximately) of agriculture sector in GDP is correct? 
(A) Agriculture contributes 50% of total GDP 
(B) Agriculture does not contribute significantly to India's GDP as the share is less than 1 % 
(C) India's GDP does not take agricultural sector into account 
(D) Agricultural Sector is the part of Service Sector. Hence, it is not considered as an independent sector 
(E) Agricultural Sector contributes 20% in India's GDP (Ans : E)

31. Banks are considered as 'financial intermediaries'. Which of the following activity correctly and comprehensively explains this role of banks ? 
(A) Accepting deposits of money for the purpose of lending and investment 
(B) Granting loans to the weaker sections of the society 
(C) Accepting money for remittance and issuing bank drafts 
(D) Providing safe deposit services 
(E) Opening accounts and accepting deposits therein (Ans : A)

32. The rate below which banks cannot generally lend is called as– 
(A) Base rate (B) Floor rate (C) Repo rate 
(D) Call money rate (E) Ceiling rate (Ans : A)

33. As per the data released by the Union Health Ministry (of India) the infant mortality rate is lowest in– 
(A) Tamil Nadu (B) Maharashtra (C) Goa 
(D) Uttar Pradesh (E) Madhya Pradesh (Ans : C)

34. Dada Saheb Phalke Awards are given by the Ministry of– 
(A) Social Welfare (B) Corporate Affairs (C) Home Affairs 
(D) Human Resource Development (E) Information and Broadcasting (Ans : E)

35. Which of the following is not a type of Cheque ? 
(A) Crossed cheque (B) Blank cheque (C) Speed cheque 
(D) Bearer cheque (E) Order cheque (Ans : C)

36. Mr. John Key is the present–
(A) Prime Minister of Canada (B) Prime Minister of Australia 
(C) Prime Minister of New Zealand (D) President of Australia 
(E) President of Canada (Ans : C)

37. In relation to banking, what do you' understand by "Ever-Greening of Loan Account" ? 
(A) Full repayment of a loan account before maturity-Pre-payment 
(B) Full repayment of a loan account exactly at maturity 
(C) Fresh loan sanctioned during the tenure of account for enhancement of limits 
(D) Adjusting the NPA/Sticky account with fresh sanction of loans 
(E) Loans provided for new projects to new customers 
(Ans : D)

38. Which of the following is the name of an autonomous organisation for rural technology ? 
(A) CAPART (B) MGNREGA (C) PURA 
(D) IRDP (E) NGAPS (Ans : A)

39. With a view to facilitate payment of balance in deposit account of the person named by the depositor without any hassles in the event of death of the account holder, the following facility was introduced in bank accounts in our country. 
(A) Will (B) Registration (C) Nomination 
(D) Indemnity (E) Guarantee (Ans : C)

40. Which of the following countries is not a member of ASEAN ? 
(A) Thailand (B) Myanmar (C) Singapore 
(D) Vietnam (E) Brazil (Ans : E)

41. Which of the following is not a Negotiable Instrument? 
(A) Cheque (B) Fixed Deposit Receipt (C) Promissory Note 
(D) Bill of Exchange (E) All (A) to (D) above are negotiable instruments (Ans : B)

42. Which of the following Stock Exchanges in India recently launched "Carbon Index" so that investors can assess risk and opportunities associated with climate change? 
(A) Delhi Stock Exchange (B) National Stock Exchange 
(C) Bombay Stock Exchange (D) Kolkata Stock Exchange 
(E) Ahmedabad Stock Exchange (Ans : C)

43. Which of the following would be the venue of the World Athletic Championship 2013 ? 
(A) New Delhi (B) Tokyo (C) London 
(D) Paris (E) Moscow (Ans : E)

44. Who among the following represented India in 17th SAARC Summit held at Addu in Maldives in November 2011 ? 
(A) Smt. Sonia Gandhi (B) Dr. Manmohan Singh 
(C) Shri Pranab Mukherjee (D) Shri P. Chidambaram 
(E) Shri Rahul Gandhi (Ans : B)

45. What is the maximum balance amount that is eligible for earning interest in a normal savings bank account ? 
(A) Rs. 1 lac (B) Rs. 2 lacs (C) Rs. 3 lacs 
(D) Rs. 5 lacs (E) No limit (Ans : E)

46. When a customer opens a Deposit account with the Bank, which one of the following is the status of the Bank? 
(A) Debtor (B) Creditor (C) Trustee 
(D) Beneficiary (E) None of these (Ans : A)

47. Which of the following states decided to give Khatedhari Rights to about 30,000 farmers occupying the custodian lands ? 
(A) Gujarat (B) Rajasthan (C) Madhya Pradesh 
(D) Uttar Pradesh (E) Uttarakhand (Ans : B)

48. Which of the following functions is not being performed by the Reserve Bank of India ? 
(A) Regulation of Banks in India 
(B) Regulation of Foreign- Direct Investment in India 
(C) Foreign Currency Management in India 
(D) Control and Supervision of Money Supply 
(E) Currency Management in India (Ans : B)

49. A bank is called as 'Scheduled Bank' when– 
(A) its business has crossed Rs. 1,000 crore mark. 
(B) its branch network is over 100 
(C) it is included in the second Schedule of the RBI Act 
(D) when it complies with all the three above 
(E) None of these (Ans : C)

50. Australian Govt. recently decided to sell Uranium to India. Uranium is used mainly for– 
(A) manufacturing of chemical fertilizers. (B) manufacturing of Drugs/Pharma products. 
(C) nuclear power generation. (D) making arsenals. 
(E) making electronic chips. (Ans : C) 

Promotional Functions of RBI

★ Development of the Financial System:
The financial system comprises the financial institutions, financial markets and financial instruments. The sound and efficient financial system is a precondition of the rapid economic
development of the nation. The RBI has encouraged establishment of main banking and non-banking institutions to cater to the credit requirements of diverse sectors of the economy.

★ Development of Agriculture: 
Agriculture is the back bone of Indian Economy. Even today at least half of the Indian population
depends on Agriculture. Banks accept deposits from the public, but may divert funds to earn more and more profits offering higher interest rates to public. RBI made it mandatory to lend at least 18% of total loans to Agriculture. It does regular auditing of the banks accounts. RBI time to time
gives subvention on the rate of interest to farmers' loans.

★ Promotion of Small Scale Industries Finance: 
In order to boost the Micro, Small scale and Medium Enterprises, RBI formulated many policies and programmes. The Prime Minister's Task Force on MSME headed by T.K.A. Nair has advised
banks to achieve a 20 percent year-on-year growth in credit to micro and small enterprises, a 10 percent annual growth in the number of micro enterprise accounts and 60% of total lending to MSME.

★ Promotion of Export through Refinance:
Export credit refinancing is a scheme started by RBI to promote exports. By promoting exports RBI helps to bring more foreign currency for the country, in turn decreasing current account deficit and decreasing rupee depreciation.

★ Provisions of Training: 
RBI provides the Training facilities to bankers, customers and also to lay man through various programmes. National Institute of Bank Management (NIBM) was established in 1969 by RBI in Pune. It is engaged in Research (policy and operations), Training & Education of senior executives of banks, and provides consulting support to the banking and financial sectors. It runs various programmes on pan India basis to educate the customers and lay man to educate them in bank frauds and security features of currency notes.

★ Collection of Data and Publication of Reports: 
RBI collects, process and disseminates statistical data on several topics. It includes interest rate, inflation, savings and investments etc. This data proves to be quite useful for researchers and policy makers. Its separate publication publishes data on several sectors of the economy. The reports and
bulletins are regularly published by the RBI. It includes RBI weekly reports, RBI Annual
Report, Report on Trend and Progress of Commercial Banks in India., etc. This information
is made available to the public also at cheaper rates.

★ Promotion of Banking Habits: 
As an apex organization, the RBI always tries to promote the banking habits in the country. It institutionalizes savings and takes measures for an expansion of the banking network. During
economic reforms it has taken many initiatives for encouraging and promoting banking
in India. It always order the banks not to disturb the customers by making the rigidity of banking rules.

Supervisory Functions of RBI
★ Granting license to banks: 
RBI grants license to banks for carrying its business. License is also given for opening extension counters, new branches, even to close down existing branches. It also authorized to renew the license of banks. Its role is unquestionable at the time of giving licenses to foreign bank branches.

★ Bank Inspections: 
RBI grants license to banks working as per the directives and in a prudent manner without undue risk. It does regular inspections of banks and bank branches. In addition to this it can ask for periodical information from banks on various components of assets and liabilities.

★ Control over NBFIs: 
Non-Bank Financial Institutions are not more influenced by the working of a monitory policy. However RBI has a right to issue directives to the NBFIs from time to time regarding their functioning. Through periodic inspection, it can control the NBFIs.

★ Implementation of the Deposit Insurance Scheme: 
RBI has set up the Deposit Insurance Guarantee Corporation in order to protect the deposits of small depositors. All bank deposits below Rs. 1 lakh are insured with this corporation. The RBI work to implement the Deposit Insurance Scheme in case of a bank failure.

★ Central clearing house of payment and settlement systems: 
The increasing monetization in the economy, the country's large geographic expanse, people's preference for paper-based instruments and rapid changes in technology are among factors that make this task a formidable one. Recently, a provision was incorporated by the Information Technology Act, 2000 which enabled the RBI to make regulations for regulating payment systems of banks and financial institutions.

Names of the Directors of the Central Board of the Reserve Bank of India
(as on 6 April 2015)
1. Dr. Raghuram Rajan - Governor
2. H.R. Khan - Deputy Governor
3. Dr. Urjit R. Patel - Deputy Governor
4. R. Gandhi - Deputy Governor
5. S. S. Mundra - Deputy Governor
6. Dr. Anil Kakodkar
7. Kiran Karnik
8. Dr. Nachiket M. Mor
9. Y.H. Malegam
10. Prof. Dipankar Gupta
11. G.M. Rao
12. Ms. Ela Bhatt
13. Dr. Indira Rajaraman
14. Y.C. Deveshwar
15. Prof. Damodar Acharya
16. Rajiv Mehrishi
17. Dr. Hasmukh Adhia

13th UN Congress on Crime Prevention and Criminal Justice held in Doha

The 13th UN Congress on Crime Prevention and Criminal Justice was held from 12 April 2015 to 19 April 2015 at Qatar National Convention Centre in Doha, Qatar. The Summit concluded with the adoption of Doha Declaration.

The Doha Declaration aims at integrating crime prevention and criminal justice into the wider United Nations (UN) agenda to address social and economic challenges and to promote the rule of law at the national and international levels, and public participation.

During the conference, delegates pledged action to promote justice for all, underline link between rule of law, sustainable development and by adopting a statement to that effect participants committed themselves to integrating crime prevention and criminal justice into the wider UN agenda.

The Doha Congress in 2015 coincided with the 60th anniversary of the Crime Congress. The summit was attended by a large group of policymakers, academicians working in the field of crime prevention and criminal justice to contribute to the drafting of the United Nations agenda and standards on Crime Prevention and Criminal Justice.

The UN conference on crime control is held at every five-year intervals. The first Congress was held in Geneva, Switzerland in 1955 while the 12th Congress was held in Salvador, Brazil in 2010.

Shah Rukh Khan, Zayn Malik honoured at the 5th Asian Awards

Bollywood actor Shah Rukh Khan and teen idol Zyan Malik on 17 April 2015 were honoured at the 5th Asian Awards held at the Grosvenor House Hotel in London.  

Khan was awarded with the prestigious Outstanding Contribution to Cinema award. The 49-year-old actor received the award by Indian-origin British filmmaker Gurinder Chadha.

Previous winners in the cinema category included Irrfan Khan (2014), Anupam Kher (2013) and Yash Chopra (2011).

On the other hand, 22-year-old Malik was awarded with the Outstanding Contribution to Music. He is an English singer and songwriter, and a previous member of the boy band One Direction. 

List of Awardees

Category	Winners
Founders Award		Dr. Amar Bose, Founder of Bose Corporation
Entrepreneur of the Year		Jack Ma, Founder & CEO of Alibaba
Outstanding Achievement in Cinema		Shah Rukh Khan, Bollywood actor
Chivas Regal Social Entrepreneur of the Year		Gopi Gopalakrishnan, President, World Health Partners
Outstanding Achievement in Sport		Kumar Sangakkara, Cricketer of Sri Lanka
Business Leader of the Year		The Hinduja Brothers
Outstanding Achievement in Television		Sanjeev Bhaskar, Comedian, actor and broadcaster
Outstanding Achievement in Art & Design		John Rocha, Designer
Outstanding Achievement in Science & Technology		Sir Tejinder Singh Virdee, Experimental particle physicist
Outstanding Achievement in Music		Zayn Malik, English singer and songwriter

About Asian Awards
It was launched in 2010 by Paul Sagoo, entrepreneur and Founder of the Lemon Group to recognise and reward exemplary achievement from within the Asian community across 14 categories that include business, philanthropy, entertainment, culture and sport. 

In 2010 and 2011, the awards were only open to those born in or with direct family origin from India, Sri Lanka, Pakistan, or Bangladesh, however, in 2013, the Awards were opened to all people of both South and Eastern Asian origin.

UN Report India fifth biggest E waste producer

Global E-Waste Monitor Report   which takes a detailed overview of e-waste generation across the countries  is released by UN University- a UN Think Tank.

Report Highlights: 

•    India has generated total 1.7 Mt (million tonnes) of electronic and electrical equipment in 2014. 
•    Ranking: 1. USA  2. China, 3. Japan 4. Germany 5. India
•    The US and China produced 32% of total world s e-waste which is highest e-waste generation in 2014.
•    Asia is the largest e-waste producer in the world . Total e-waste generated by Asia is 16 Mt or 3.7 kg per inhabitant.  
•    e-waste generation ranking in Asia : 1. China -6.0 million tonnes  2. Japan- 2.2 million tonnes  3. India -1.7 million tonnes.
•    Africa generated the lowest amount of e-waste per inhabitant in 2014 which amounts 1.7 kg/inhabitant. Total waste generated by Africa is only 1.9 Mt.
•    Developed countries from Europe are among the top per capita producers.  The top five being Norway, Switzerland, Iceland, Denmark, and the UK.
•    People discarded mostly kitchen equipments, laundry and bathroom equipments like microwave ovens, washing machines and dishwashers.
•    Report estimated that the e-waste volume may rise from 21% in 2014 to 50 million tonnes in 2018 which highlights the world s fast-growing e-waste problem. Increase in sales of electrical and electronic equipments coupled with reduced product life cycle period , have been resulting into rapid rate e-waste generation.
•    Less than 16% of e-waste has been recycled and reused. Thus recycling of e-waste is a major challenge.
•    Toxins in e-waste include lead glass, batteries, mercury, cadmium, chromium and ozone-depleting substances (CFCs) which pose health associated problems like impaired mental development, cancer, and damage to livers and kidneys.

Banking Awareness Practice Questions for Bank Exams

1. Interest payable on savings bank accounts is. 
(A) not regulated by RBI (B) regulated by Sate Governments 
(C) regulated by Central Government 
(D) regulated by RBI 
(E) regulated by Finance minister 

2. 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 

3. When a bank returns a cheque unpaid, it is called.  
(A) payment of the cheque (B) drawing of the cheque (C) cancelling of the cheque 
(D) dishonor of the cheque (E) taking of the cheque 

4. Which of the following states became the first state in the country to launch RBI’s e-payment system for commercial tax payers?  
(A) Andhra Pradesh (B) Kerala (C) Gujarat 
(D) Maharashtra (E) Karnataka 

5. NEFT means–  
(A) National Electronic Funds Transfer system (B) Negotiated Efficient Fund Transfer system 
(C) National Efficient Fund Transfer solution (D) Non Effective Fund Transfer system 
(E) Negotiated Electronic Foreign Transfer system 

6. Largest shareholder (in percentage shareholding) of a nationalized bank is.  
(A) RBI (B) NABARD (C) LICI 
(D) Govt. of India (E) IBA 

7. 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 

8. A centralized database with online connectivity to branches, internet as well as ATM-network which has been adopted by almost all major banks of our country is known as.  
(A) investment banking (B) core banking (C) mobile banking 
(D) national banking (E) specialized banking 

9. 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 

10. What is money laundering?  
(A) Conversion of assets into cash (B) Conversion of Money which is illegally obtained 
(C) Conversion of cash into gold (D) Conversion of gold into cash 
(E) Conversion of gold with foreign currency 

11. Which one of the following is not a salient feature of debit card? 
(A) No bad debts to banks and no suits for recovery (B) No interest earning for banks 
(C) Works like a normal withdrawal slip (D) 45 days credit is given to the card holder 
(E) All the above 

12. Which of the following is a measure taken by Reserve Bank of India to control inflation in our country?  
(A) Increase in CRR (B) Increase in SLR (C) Contraction of supply of currency 
(D) Raising of Repo / Reverse Repo Rate (E) Decrease the SLR 

13. What type of loan is granted by banks for purchase of white goods?  
(A) Consumption loan (B) Mortgage loan (C) Consumer durables loan 
(D) Home loan (E) None of these 

14. 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 

15. Which one 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 

16. Credit risk to the bank is high from which of these cards?  
(A) Debit cards (B) Credit cards (C) ATM cards 
(D) All the above (E) None of these 

17. Depreciation of an asset occurs due to.  
(A) Fire in the unit (B) Theft (C) Labour Trouble 
(D) Wear and tear (E) None of these 

18. Which of the following is NOT a source of funds of a commercial bank?  
(A) Capital (B) Borrowings from RBI (C) Call money borrowings 
(D) Deposits (E) Cash Reserves with RBI 

19. Which one of the following is a Credit Card Association?  
(A) India Card (B) Master Card (C) SBI Cards 
(D) City Bank Cards (E) BOB Card

20. Which one 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 

21. The Rate at which the domestic currency can be converted into foreign currency and vice-versa is known as the.  
(A) Exchange rate (B) MIBOR (C) Inter bank Call money rate 
(D) Base rate (E) UBOR 

22. Crossing on a cheque can be cancelled by the of the cheque, under his full signature.  
(A) payee (B) drawee (C) endorser 
(D) holder (E) drawer 

23. 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 

24. Insurance cover for bank deposits in our country is provided by.  
(A) SBI (B) Govt. of India (C) GIC 
(D) UCI (E) DICGC 

25. Loan of very small amounts given to low income groups is called.  
(A) Cash credit (B) Micro credit (C) Simple overdraft 
(D) No frills loans (E) Rural credit 

26. When a banker talks about CDR, what is he talking about?  
(A) Corporate Debt Restructuring (B) Corporate Debt Rollover (C) Company Debt Rollover 
(D) Corporate Deposit Restructuring (E) Company Deposit Restructuring 

27. Expand the term ALM as used in Banking/Finance sector ?  
(A) Asset Liability Management (B) Asset Liability Maturity (C) Asset Liability Mismatch 
(D) Asset Liability Manpower (E) Asset Liability Maintenance 

28. Cash Reserve Ratio (CRR) and Statutory’ Liquidity Ratio (SLR) are terms most closely related to which of the following industries/ markets?  
(A) Capital Market (B) Banking industry (C) Commodities market 
(D) Money Market (E) Mutual fund industry 

29. 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 

30. 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 

ANSWERS : 
1. (D) 2. (B) 3. (D) 4. (E) 5. (A) 6. (D) 7. (C) 8. (E) 9. (C) 10. (B) 
11. (D) 12. (D) 13. (C) 14. (C) 15. (E) 16. (B) 17. (D) 18. (A) 19. (B) 20. (A) 
21. (A) 22. (E) 23. (E) 24. (E) 25. (B) 26. (A) 27. (A) 28. (B) 29. (D) 30. (A) 

Banking Awareness Practice MCQs

1. The Banking Ombudsman–  
(A) is in charge of bank loans for buses (B) fixes the rates of interest for loans (C) resolves complaints of customers 
(D) issues licences for new bank branches (E) is the head of all nationalised banks 

2. Which of the following is NOT classified as a commercial bank?  
(A) Public sector bank (B) Foreign bank (C) Private sector bank 
(D) Regional rural bank (E) Urban cooperative bank 

3. Which of the following is not the name of a Banking Organisation?  
(A) HDFC (B) IDBI (C) YES 
(D) SEBI (E) ICICI 

4. Monetary Policy as an arm of the economic policy is administered by–  
(A) Government of India (B) Reserve Bank of India (C) State Bank of India 
(D) Governments of the respective states (E) None of these 

5. Which of the following is not a primary function of a Bank?  
(A) Granting Loans (B) Collecting Cheques/Drafts customers (C) Facilitating import of goods 
(D) Issuing Bank Drafts (E) Selling Gold/Silver Coins 

6. Reserves which can act as a liquidity buffer for commercial banks during crisis times are–  
(A) CAR (B) CRR (C) CAR and CRR 
(D) CRR and SLR (E) SLR 

7. For repayment of loan availed from Banks NBFC we come across a term known as EMI What does it stand for?  
(A) Equated Money Index (B) Easy Money Installment (C) Equated Monthly Installment 
(D) Equal Monthly Installment (E) Equal Minimum Installment 

8. Many a times we read in the news paper about CASA deposits of banks. CASA deposits are.  
(A) Demand deposits (B) Term deposits (C) Hybrid deposits 
(D) Recurring deposits (E) Special schemes of banks 

9. While investing in mutual funds we come across a term called NAV. What is the meaning of NAV?  
(A) Net Annual Value (B) Non Asset Value (C) Net Actual Value 
(D) Net Asset Value (E) Net Average Value 

10. Assume that Reserve Bank of India reduces the Bank Rate by 1%, what will be its impact?  
(A) Less liquidity in the market (B) More liquidity in the market 
(C) No change in the liquidity in the market (D) Mobilization of more deposits by commercial-banks 
(E) None of these 

11. Whose signature is found on a 50 rupee currency note in India?
(A) President of India (B) Governor, RBI (C) Finance Minister 
(D) Prime Minister of India (E) Secretary, Ministry of Finance 

12. Which of the following institutions is involved mainly in granting Housing Loans?  
(A) RBI (B) SBI (C) IBA 
(D) ICICI (E) HDFC 

13. Which of the following terms is not related to banking?  
(A) Repayment (B) Loan (C) NPA 
(D) Fasting (E) Deposit 

14. Almost all banks in our country have introduced facility for granting crop loans to farmers.  
(A) Term Loans (B) Kisan Credit Cards (C) Bank Guarantee 
(D) Foreign Exchange (E) Reverse Mortgage 

15. Many times we read the term ‘ECB’ in newspapers. What is the full form of ‘ECB’ ?  
(A) Essential Commercial Banking (B) European Credit Borrowing (C) External Credit For Business 
(D) External Commercial Borrowing (E) None of these 

16. Which of the following is a Private Sector Bank in India?  
(A) Corporation Bank (B) Kotak Mahindra Bank (C) IDBI Bank 
(D) Syndicate Bank (E) Oriental Bank of Commerce 

17. A bank branch receives a counterfeit note of Rs. 100 from the customer, which customer wants it back. Which of the following action should be taken by the Bank?  
(A) Will return to customer (B) Will impound and not return 
(C) Will ask for exchange of note (D) Will replace with genuine note 
(E) Will check all the notes in possession with the customer which are not being deposited also 

18. Which of the following is not a mode of foreign capital inflow in India?  
(A) FDI (B) NRI deposits (C) FII 
(D) No frills accounts (E) None of these 

19. In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities?  
(A) Commercial Banks (B) Cooperative Banks (C) Private sector Banks 
(D) Microfinance Institutions (E) Regional Rural Banks 

20. Which of the following banks was not nationalized in 1969 ?  
(A) Punjab National Bank (B) Bank of India (C) State Bank of India 
(D) Bank of Baroda (E) Bank of Maharashtra 

21. Which of the following is NOT a bank or finance company?  
(A) ABN Amro (B) HSBC (C) Lufthansa 
(D) BNP Paribas (E) Barclays 

22. What is the maximum permissible limit for investment in PDF account in a financial year?  
(A) Rs. 1 lakh (B) Rs. 70,000 (C) Rs. 50,000 
(D) Rs. 60,000 (E) There is no limit 

23. In our country, a cheque remains valid for payment for from the date of issue.  
(A) 3 months (B) 6 months (C) 9 months 
(D) 12 months (E) 18 months 

24. The Govt. of India has acquired RBI’s stake in one of the major banks of India. Which of the following is the bank?  
(A) AXIS Bank (B) IDBI Bank (C) ICICI Bank 
(D) State Bank of India (E) None of these 

25. Credit Cards are known as.  
(A) Hard money (B) Easy money (C) Soft money 
(D) Plastic money (E) Real money 

26. On domestic term deposits, banks in our country generally offer additional rate of interest on term deposits from.  
(A) Minors (B) Married women (C) Govt. employees 
(D) Rural residents (E) Senior citizens 

27. Which of the following instruments cannot be transferred from one person to another by endorsement? 
(A) Fixed Deposit Receipt (B) Cheque (C) Bill of Exchange 
(D) Promissory Note (E) None of these 

28. ‘Crossing’ applies to which of the following instruments?  
(A) Cheques (B) Bills (C) Promissory Notes 
(D) Hundies (E) Fixed Deposit receipts 

29. Which of the following assets can be mortgaged?  
(A) Stock (B) Book Debts (C) National Savings Certificates 
(D) Shares (E) Land and Building 

30. Among the banks in our country, which of the following is not a foreign bank?  
(A) HSBC (B) Standard Chartered Bank (C) BNP Paribas 
(D) Citi Bank Na (E) Ing Vysya Bank 

ANSWERS : 
1. (C) 2. (E) 3. (D) 4. (B) 5. (C) 6. (E) 7. (C) 8. (A) 9. (D) 10. (B) 
11. (B) 12. (E) 13. (D) 14. (B) 15. (D) 16. (B) 17. (B) 18. (D) 19. (D) 20. (C) 
21. (C) 22. (B) 23. (A) 24. (D) 25. (D) 26. (E) 27. (A) 28. (A) 29. (E) 30. (E) 

Banking Awareness Practice Questions

1. Which of the following is foreign bank having offices/branches in India?  
(A) Yes Bank (B) HDFC Bank (C) IDBI Bank 
(D) Karnataka Bank (E) Standard Chartered Bank 

2. Basel-II norms are associated with which of the following aspects of the banking industry?  
(A) Risk management (B) Manpower planning (C) Retirement benefits for the employees 
(D) Corporate Governance (E) None of the above 

3. Which of the following is NOT a banking/finance related term?  
(A) Credit wrap (B) EMI (C) Held to Maturity 
(D) Exposure limit (E) Diffusion 

4. The approach of ‘Micro-Credit’ or ‘Banking with the poor’ is comparatively a new concept in the field of rural credit. This approach has been tried very successfully in which of the following countries?  
(A) Bangladesh (B) India (C) China 
(D) Japan (E) None of these 

5. The lowering of Bank Rate by the Reserve Bank of India leads to–  
(A) More liquidity in the market (B) Less liquidity in the market 
(C) No change in the liquidity in the market (D) Mobilization of more deposits by commercial banks 

6. What is the full form of ‘ULIP’, the term which was in the news recently? 
(A) Universal Life and Investment Plan (B) Unit loan and Insurance Plan 
(C) Universal Loan and Investment Plan (D) Uniformly Loaded Investment Plan 
(E) Unit Linked Insurance Plan

7. Which of the following is not a part of the scheduled banking structure in India? 
(A) Moneylenders (B) Public Sector Banks (C) Private Sector Banks 
(D) Regional Rural Banks (E) State Co-operative Banks 

8. The rate of interest on Savings Bank Account is stipulated by– 
(A) The concerned bank (B) RBI (C) Indian Banks Association 
(D) Government of India (E) Banking Codes and Standards Board of India 

9. Many times we read a term, CBS used in banking operation. What is the full form of the letter ‘C in the term ‘CBS’ ? 
(A) Core (B) Credit (C) Continuous 
(D) Complete (E) None of these 

10. Many a time we read a term ‘PPP’ in financial dailies/magazines. What is the full form of the same as used in financial world? 
(A) Public Per Capita Power (B) Per Capita Potential Purchases (C) Purchasing Power Parity 
(D) Present Purchasing Power (E) None of these 

11. In India, the interest rate on savings accounts in all the nationalized commercial banks is fixed by–  
(A) Union Ministry of Finance (B) Union Finance Commission 
(C) Indian Banks’ Association (D) None of the above 

12. Fiscal policy in India is formulated by–  
(A) the Reserve Bank of India (B) the Planning Commission 
(C) the Finance Ministry (D) the Securities and Exchange Board of India 

13. Many times we read about SHGs in financial newspapers. What is the full form of the term?  
(A) Small Help Groups (B) Self Help Groups (C) Small Hope in Crowns 
(D) Self Hope Groups (E) None of these 

14. Which of the following agencies/organizations in India maintains the Micro. Finance Development and Equity Fund ?  
(A) Confederation of Industries in India (CII) (B) Indian Bank’s Association (IBA), 
(C) Small Industries Development Bank of India (SIDBI) (D) Reserve Bank of India (RBI) 
(E) National Bank for Agriculture and Rural Development (NABARD) 

15. Many times we read about ‘Hawala’ transactions in newspapers. Hawala in India is prohibited under the provision of which of the following Acts?  
(A) Fiscal Responsibility and Budget Management Act (B) Banking Regulation Act 
(C) Financial Action Task Force Act (D) Foreign Exchange Management Act 
(E) None of these 

16. Which of the following terms is NOT used in Economics? 
(A) Balance of Payment (B) Call Money (C) National Debt 
(D) Elasticity of Demand (E) Boyle’s Law 

17. What is the full form of ‘NBFC’ as used in the Financial Sector?  
(A) New Banking Finance Company (B) National Banking and Finance Corporation 
(C) New Business Finance and Credit (D) Non Business Fund Company 
(E) None of the above 

18. A major Public Sector Bank raised interest rates on loans by 25 basis points - was news in some major financial newspapers recently. This means bank has raised interest by 25 basis points of.  
(A) Savings Bank Interest Rate (B) Base Lending Rate (C) Repo Rates 
(D) Present Rates on Deposits (E) Discounted Rates of Interest 

19. What does the letter ‘L’ denote in term ‘LAF’ as referred every now and then in relation to monetary policy of the RBI?  
(A) Liquidity (B) Liability (C) Leveraged 
(D) Longitudinal (E) Linear 

20. Banks and other financial institutions in India are required to maintain a certain amount of liquid assets like cash, precious metals and other short term securities as a reserve all the time. In Banking World this is knows as.  
(A) CRR (B) Fixed Asset (C) SLR 
(D) PLR (E) None of these 

21. If PAN details are not provided, the TDS is deducted at which of the following rates? 
(A) 10% (B) 20% (C) 10% for senior citizens and 20% for others 
(D) 10% plus 10% surcharge (E) None of these 

22. Lending to Micro Finance Institutions by Bank considered as finance to–  
(A) Non Priority Sector (B) Priority Sector (C) Commercial Sector 
(D) Agriculture Sector (E) None of these 

23. Maximum FDI in Private Banks in India is allowed up to the limit of–  
(A) 25% (B) 51% (C) 49% 
(D) 70% (E) None of these 

24. Which one of the following will setup sore banking infrastructure for rural banks?  
(A) RBI (B) NABARD (C) SIDBI 
(D) IBA (E) None of these 

25. The letter ‘F’ denotes which of the following in the term IFRS.  
(A) Formative (B) Formal (C) Functional 
(D) Fiscal (E) Financial 

26. Which of the following terms is used in the field of banking ?  
(A) Accounts (B) Entropy (C) Plank’s Law 
(D) Plasma (E) Viscosity 

27. Which one among the following is not an institution of Indian Money Market?  
(A) Reserve Bank of India (B) Bill Brokers 
(C) Merchant Bankers (D) Non-Banking Financial Intermediaries 

28. Which one of the following is not a function of the central bank in an economy?  
(A) Dealing with foreign exchange (B) Controlling monetary policy 
(C) Controlling government spending (D) Acting as a banker’s bank

ANSWER : 
1. (E) 2. (A) 3. (E) 4. (A) 5. (A) 6. (E) 7. (A) 8. (B) 9. (A) 10. (C) 
11. (D) 12. (C) 13. (B) 14. (E) 15. (D) 16. (E) 17. (E) 18. (B) 19. (A) 20. (C) 
21. (B) 22. (B) 23. (E) 24. (B) 25. (E) 26. (A) 27. (B) 28. (C) 

Headquarters of Nationalised & Public Sectors Bank in India

1. SBI ----Mumbai
2. State Bank of Bikaner and Jaipur -- Jaipur
3. State Bank of Travancore -- Thiruvananthapuram
4. State Bank of Mysore ---- Bangalore
5. State Bank of Patiala ---- Patiala
6. State Bank of Hyderabad --- Hyderabad
7. Union Bank of India ----- Mumbai
8. Bank of India ----- Mumbai
9. Central Bank of India ----- Mumbai
10. Dena Bank ------ Mumbai
11. IDBI Bank ----- Mumbai
12. Allahabad Bank ----- Kolkata
13. UCO Bank ----- Kolkata
14. United Bank of India ----- Kolkata
15. Punjab National Bank ----- New Delhi
16. Oriental Bank of Commerce ---- New Delhi
17. Punjab and Sind Bank --- New Delhi
18. Bhartiya Mahila Bank --- New Delhi
19. Canara Bank --- Bangalore
20. Vijaya Bank --- Bangalore
21. Indian Bank --- Chennai
22. Indian Overseas Bank--- Chennai
23. Bank of Baroda --- Vadodara
24. Syndicate Bank ---- Manipal(Karnataka)
25. Corporation Bank --- Mangalore
26. Andhra Bank --- Hyderabad
27. Bank of Maharashtra --- Pune

Note: 
i.There are a total of 27 PSBs in India [21 Nationalised banks + 6 State bank group (SBI + 5 associates) ]
ii. At present there are 23 Private Banks functioning in India
iii. At present there are 56 RRBs (Regional Rural Banks ) functioning in India.
iv. At present there are 41 Foreign Banks functioning in India

Banks and Their Tag Lines

1. SBI - With you all the way, Pure Banking Nothing Else, The Nation’s banks on us
2. State Bank of Hyderabad – You can always bank on us.
3. State Bank of Mysore - Working for a better tomorrow
4. State Bank of Patiala – Blending Modernity with Tradition
5. State Bank of Travancore - A long Tradition of Trust
6. Allahabad Bank - A Tradition of Trust
7. Andhra Bank – Where India Banks
8. Bank of Baroda - India’s International Bank
9. Bank of India - Relationship beyond banking
10. Bhartiya Mahila Bank – Empowering Women
11. Bank of Maharashtra - One family one bank
12. Canara Bank – Together We Can
13. Central Bank of India – “Central To you Since 1911”
14. Corporation Bank – A Premier Public Sector Bank
15. Dena Bank - Trusted Family Bank
16. ECGC Bank – You focus on exports. We cover the risks
17. IDBI Bank – Banking For All, “Aao Sochein Bada”
18. Indian Bank – Your Tech- Friendly Bank
19. Indian Overseas Bank – Good people to grow with
20. Punjab National Bank - The name you can bank upon
21. Punjab & Sind Bank – Where service is a way of life
22. Oriental Bank of Commerce – Where every individual is committed
23. UCO Bank – Honours Your Trust
24. Union Bank of India – Good People to Bank with
25. United Bank of India – The Bank that begins with “U”
26. Vijaya Bank - A friend you can bank on
27. Axis Bank – Badhti Ka naam Zindagi
28. ICICI Bank – Hum Hai Na, Khyal Apka
29. HDFC Bank - We understand your world indeed
30. Yes Bank – Experience our Expertise
31. HSBC - The world’s local bank