Banking Awareness Questions IBPS Clerk Exam Set 19

Banking Awareness Questions IBPS Clerk Exam Set 19

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Banking Awareness Questions IBPS Clerk Exam - Banking Awareness Quiz Questions Answers are providing for all banking exams and interviews in 2017 - 2018. These are some important Banking Awareness Questions and Answers pdf download free providing by our Banking Expert Team is useful for all banking exams and It is specially designed according to the Syllabus of RRB, IBPS/SBI PO, and Clerk VII 2017-2018.
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Banking Awareness Questions IBPS Clerk PO

Q 1. Closed economy is an economy in which ……………
  1. The deficit financing takes place
  2. Only exports takes place
  3. Neither exports nor imports takes place
  4. The money supply is full
  5. None of these
Ans 1. (3) An economy that does not interact with any other economy

Q 2. The type of note issue system followed in India is ………
  1. Proportional Fiduciary System
  2. Fixed Fiduciary System
  3. Minimum Reserve System
  4. Minimum Fiduciary System
  5. None of these
Ans 2. (2)

Q 3. Consider the following statements regarding loan syndication and state which among those are true?
  • (A) More than one debtors applying for a loan to one creditor.
  • (B) More than one creditors coming together to provide single loan.
  • (C) More than one creditors coming together to provide multiple loans.
  1. A and B
  2. only C
  3. only B
  4. A and C
  5. None of these
Ans 3. (3) More than one creditors coming together to provide single loan.

Q 4. Who formulates the Monetary policy in India ?
  1. Planning commission
  2. Finance ministry
  3. RBI
  4. SEBI
  5. None of these
Ans 4. (3) Formulation of the Monetary policy is the sole responsibility of the central bank of the country.

Q 5. The 'Dolex' Indicator is related to which of the following Financial Markets ?
  1. New York
  2. Mumbai
  3. Tokyo
  4. Hong Kong
  5. None of these
Ans 5. (2) Mumbai 

Q 6. Cash Deposit Ratio means
  1. The percentage of total cash money received as deposits by banks
  2. The percentage of cash in hand balance with central bank to the aggregate deposits
  3. The percentage of cash in hand with amount of loan given to customer
  4. The percentage of assets to liabilities of bank
  5. None of these
Ans 6. (2)

Q 7. Which of the following sets of sources of revenue belongs to the Union Government alone ?
  1. Gift Tax, Holding Tax
  2. Sales Tax, Income Tax
  3. Customs Duties, Corporation Tax
  4. Wealth Tax, Land Revenue
  5. None of these
Ans 7. (3) Customs Duty and Corporation Tax belongs to the union government alone.

Q 8. Government securities are considered liquid because they are
  1. Backed by the government treasury .
  2. Convertible into the other types of saving deposits
  3. Stable in value
  4. Quickly & easily Marketable
  5. None of these
Ans 8. (3)

Q 9. Legal Tender Money is
  1. Accepted only by the Government
  2. Accepted by the people and the Government as per the law
  3. Not accepted for business purposes by the law
  4. Not accepted by the government
  5. None of these
Ans 9. (2) Legal Tender Money is a type of money protected by law.

Q 10. Bank rate refers to the .
  1. Interest rate at which Commercial Banks accept deposits from the public.
  2. Rate at which Central Bank rediscounts bills of exchange of Commercial Banks.
  3. Prime Lending Rate of Commercial Banks
  4. Interest rate at which Commercial Banks lend to the customers
  5. None of these
Ans 10. (2) Bank rate refers to the rate at which Central Bank rediscount bills of exchange of Commercial Banks.

Q 11. Which of the following represents priority sector lending by commercial banks in India ?
  • (A) Lending to heavy industries.
  • (B) Lending to foreign companies.
  • (C) Lending to agriculture, small scale industries and the weaker sections of the society.
  1. A and B
  2. Only C
  3. A, B and C
  4. A and C
  5. None of these
Ans 11. (2) Lending to agriculture, small scale industries and the weaker sections of the society comes under priority sector lending of commercial banks in India.

Q 12. Cheque which is more than three months old is a -
  1. Mutilated cheque
  2. Crossed cheque
  3. Stale cheque
  4. Post-dated cheque
  5. None of these
Ans 12. (3)

Q 13. Which one of the following is not a priority sector lending by Commercial Banks in India at present ?
  1. Agriculture
  2. Small Scale Industries
  3. Export
  4. Weaker Section
  5. None of these
Ans 13. (3) Export

Q 14. Which of the following is the least liquid asset ?
  1. Money
  2. Shares
  3. Machinery
  4. Special deposits
  5. None of these
Ans 14. (3) Machinery is the least liquid asset.

Q 15. Which one of the following groups of items is included in India's foreign exchange reserves ?
  1. Foreign-currency assets, Special Drawing Rights (SDRs) and Loans from foreign countries.
  2. Foreign-currency assets, Gold holdings of RBI and Special Drawing Rights (SDRs)
  3. Foreign-currency assets, Loans from the World Bank and Special Drawing Rights (SDRs)
  4. Foreign-currency assets, Gold holdings of RBI and Loans from the World Bank.
  5. None of these
Ans 15. (2) Foreign Exchange reserves includes the following components-
1- Gold
2- Special Drawing Rights (SDRs)
3- Foreign - currency assets 4- Reserve Tranche with I.M.F.