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Banking Awareness Questions IBPS Clerk PO
Q 1. Closed economy is an economy in which ……………
- The deficit financing takes place
- Only exports takes place
- Neither exports nor imports takes place
- The money supply is full
- 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 ………
- Proportional Fiduciary System
- Fixed Fiduciary System
- Minimum Reserve System
- Minimum Fiduciary System
- 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.
- A and B
- only C
- only B
- A and C
- 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 ?
- Planning commission
- Finance ministry
- RBI
- SEBI
- 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 ?
- New York
- Mumbai
- Tokyo
- Hong Kong
- None of these
Ans 5. (2) Mumbai
Q 6. Cash Deposit Ratio means
- The percentage of total cash money received as deposits by banks
- The percentage of cash in hand balance with central bank to the aggregate deposits
- The percentage of cash in hand with amount of loan given to customer
- The percentage of assets to liabilities of bank
- None of these
Ans 6. (2)
Q 7. Which of the following sets of sources of revenue belongs to the Union Government alone ?
- Gift Tax, Holding Tax
- Sales Tax, Income Tax
- Customs Duties, Corporation Tax
- Wealth Tax, Land Revenue
- 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
- Backed by the government treasury .
- Convertible into the other types of saving deposits
- Stable in value
- Quickly & easily Marketable
- None of these
Ans 8. (3)
Q 9. Legal Tender Money is
- Accepted only by the Government
- Accepted by the people and the Government as per the law
- Not accepted for business purposes by the law
- Not accepted by the government
- None of these
Ans 9. (2) Legal Tender Money is a type of money protected by law.
Q 10. Bank rate refers to the .
- Interest rate at which Commercial Banks accept deposits from the public.
- Rate at which Central Bank rediscounts bills of exchange of Commercial Banks.
- Prime Lending Rate of Commercial Banks
- Interest rate at which Commercial Banks lend to the customers
- 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.
- A and B
- Only C
- A, B and C
- A and C
- 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 -
- Mutilated cheque
- Crossed cheque
- Stale cheque
- Post-dated cheque
- 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 ?
- Agriculture
- Small Scale Industries
- Export
- Weaker Section
- None of these
Ans 13. (3) Export
Q 14. Which of the following is the least liquid asset ?
- Money
- Shares
- Machinery
- Special deposits
- 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 ?
- Foreign-currency assets, Special Drawing Rights (SDRs) and Loans from foreign countries.
- Foreign-currency assets, Gold holdings of RBI and Special Drawing Rights (SDRs)
- Foreign-currency assets, Loans from the World Bank and Special Drawing Rights (SDRs)
- Foreign-currency assets, Gold holdings of RBI and Loans from the World Bank.
- 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.