Top 1000+ Solved Banking Awareness MCQ Questions Answer
Q. Which type of risk arises before a bank that trades in government securities?
a. Liquidity risk
b. Market risk
c. Credit risk
d. Trade risk
e. None of the above
Q. Times bank limit merged with
a. HDFC bank
b. Bank of India
c. PNB Bank
d. Central Bank of India
e. None of these
Q. In the financial sector there are many companies who are providing banking like activities though they are not recognized as banks. How is this particular type of activity known as?
a. Informal banking
b. Indigenous banking
c. Shadow banking
d. Development banking
e. None of these
Q. Currently banks claim that they have achieved 100% CBS. What are they referring to?
a. It means all their branches are technology driven with core banking solutions
b. It suggests complete banking services
c. It is an indication of customized banking services
d. None of the above
e. All of these
Q. You might have heard of 'a bank run'. What does it mean?
a. Identifies those banks which are performing very well
b. Banks which are promoting marathon sports events
c. When people rush to withdraw funds from their bank accounts
d. When banks do door to door publicity campaigns
e. None of these
Q. Which of the following is a stipulation underthe Basel III norms?
a. The total minimum capital adequacy ratio to be 9%
b. Banks to maintain an overall minimum capital adequacy ratio of 11.5%
c. Banks to reach the minimum capital adequacy ratio of 11.5% by 31st March, 2018
d. Banks to maintain a capital adequacy ratio of 10% by 2013
e. None of these
Q. A demand draft issued by one bank branch on another branch is legally—
a. Cheque
b. Promissory note
c. Delivery order
d. Supply bill
e. None of these
Q. What would a lender examine to judge whether a business can be given a funding facility?
a. The financial statements
b. The credit history
c. The business risk
d. All the above
e. None of these
Q. An asset reconstruction company looks for business from banks. What do you understand from this statement?
a. These companies assist banks in getting potential clients for big ticket loans
b. Banks identify potential borrowers for infrastructure lending by these companies
c. Banks sell their bad debts to these companies
d. Asset reconstruction companies buy bad debts at a discount from banks
e. None of these
Q. Banks fix separate cash limit and overallspending limit for each credit card. What is the disadvantage in withdrawing cash on credit cards?
a. Cash withdrawn means the credit balance is reduced
b. An amount is charged by the bank as cash withdrawal fees
c. Cash withdrawal fees together with tax is charged to the card holder
d. Less time is given for payment as compared to other debits for purchases
e. None of these
Q. Which of the following terms appropriately explains the role of banks in an economy?
a. Financial conglomerate
b. Holding companies
c. Financial intermediaries
d. Indigenous banking
e. None of these
Q. What is a Repo Rate?
a. It is a rate at which RBI sell government securities to banks
b. It is a rate at which banks borrow rupees from RBI
c. It is a rate at which RBI allows small loans in the market
d. It is a rate which is offered by Banks to their most valued customers or prime customers
e. None of these
Q. Whenever RBI does some Open Market Operation Transaction, actually it wishes to regulate which of the following?
a. Inflation only
b. liquidity in economy
c. Borrowing powers of the banks
d. Flow of Foreign Direct Investments
e. None of these
Q. The maximum amount of the total Revenue earned by the government of India comes from:
a. Income Tax
b. Customs Duty
c. Excise Duty
d. Value Added Tax
e. Corporate Tax
Q. Which was the first Indian Bank to introduce credit card?
a. State Bank of India
b. Central Bank of India
c. Union Bank of India
d. ICICI
e. None of these