Banking Quiz For IBPS PO and Clerk 2017

Banking Quiz For IBPS PO and Clerk 2017

You should solve the Banking And Financial Awareness MCQ/ Quiz  from  Achiever's Rule on daily basis. The Banking Knowledge are very important to qualify for the upcoming IBPS, RBI, SBI Exams. Download the available PDFs.

Q1.Which of the following refers to the credit available at the low rate of interest ?

A]Fiat Money
B]Hot money
C]Token Money
D]Cheap Money
E]None of these

Q2.Which of the following is the Apex Bank of the country USA ?
A]Central Bank of USA
B]Federal Reserve
C]Bank of America
D]Citi Bank
E]HSBC

Q3.Who is the MD and CEO of Tamilnad Mercantile Bank ?
A]Murugan Swamy
B]Natarajan K
C]K V Rama Moorthy
D]Vijay Kumaran
E]None of them

Q4.The contribution of Sponsor Banks in case of RRBs(Regional Rural Bank) is which of the following ?
A]25%
B]50%
C]15%
D]35%
E]None of these

Q5.What is the nature of convertibility of Indian Economy ?
A]Convertibility at current account
B]Convertibility at capital account
C]Convertibility at trade account
D]Free Convertible
E]None of these

Q6.Which is not a part of World Bank Group ?
A]Multi-lateral Investment Guarantee Agency
B]International Finance Corporation
C]International Development Association
D]Asian Development Bank
E]None of these

Q7.LERMS stands for which of the following ?
A]Linguistic Exchange Reserve Management Scenario
B]Long Elimination Reserve Management System
C]Liberalized Exchange Rate Management System
D]Liberalized Extended Related Management Stock
E]None of these

Q8.What do you mean by Stagflation?
A]High deflation in the periods of high unemployment
B]Deflation in periods of the stagnant employment
C]High inflation in periods of the full employment
D]High inflation in periods of high unemployment
E]None of these

Q9.The basic objective of the the Monetary Policy of RBI is which of the following ?
A]Controlling deficit of the budget
B]Controlling cost & availability of money
C]Controlling public expenditure
D]Controlling deficit in the balance of payment
E]None of these

Q10.To control inflation which of the following measures is not taken by Government ?
A]It increases the imports
B]It increases the public debt
C]It increases cash reserve ratio
D]It increases the rate of taxes
E]None of these

Q11.To which of the following the "Ways and Means" advances are provided by Reserve Bank of India ?
A]Central Government
B]State Government
C]NITI Aayog
D]Only A and B
E]None of these

Q12.Who provides finance to the Rural Infrastructure Development fund (RIDF) ?
A]NABARD
B]RBI
C]Selected PSU Banks
D]Ministry of Rural Development
E]None of these

Q13.Which of the following is not related to banking/finance ?
A]Coupon
B]Call option
C]Stock Splits
D]Ablation
E]None of these

Q14.Which of the following has/have launched GST Advantage ?
A]Muthoot Finance
B]Airtel Business
C]Clear Tax
D]Only A and C
E]All of these

Q15.Exide Life Insurance has tied up with which of the following banks ?
A]Andhra Bank
B]Punjab and Maharashtra Co-operative Bank
C]Axis Bank
D]ICICI Bank
E]None of these

Answer with Explanation

Explanation 1. Cheap Money refers to the credit available at the low rate of interest. It is borrowers-friendly, but not good for the investors.

Explanation 2. Federal Reserve is the Apex Bank of the country USA. It was created in the year of 1913 according to the Federal Reserve Act.

Explanation 3. KV Rama Moorthy is the MD and CEO of Tamilnad Mercantile Bank. He was the Executive Director of UBI and also had served Bank of Baroda as ED.

Explanation 4. The contribution of Sponsor Banks in case of RRBs(Regional Rural Bank) is 35%, contribution of State Govt. is 15% and 50% contribution is given by the Central Govt.

Explanation 5. Convertibility at current account is the nature of convertibility of Indian Economy. It is the feature of the financial regime of a nation which centers on ability for conducting transactions of local financial assets into foreign one freely or at the exchange rates determined by country.

Explanation 6. Asian Development Bank is not a part of World Bank Group. It is the regional development bank which was established on 1966. The headquarter is situated in Philippines.

Explanation 7. LERMS stands for ]Liberalized Exchange Rate Management System. Under it, the exporters of services and goods and the recipients of remittances from the abroad can sell bulk of the foreign exchange receipts at the determined rates of market.

Explanation 8. Stagflation is high inflation in periods of high unemployment. It refers to a condition of much slow economic growth and high unemployment relatively.

Explanation 9. The basic objective of the the Monetary Policy of RBI is Controlling deficit in the balance of payment.

Explanation 10. Government does not increase cash reserve ratio to control inflation.

Explanation 11. The "Ways and Means" advances are provided by Reserve Bank of India to Central Government and State Government. It is the mechanism used by RBI under the credit policy.

Explanation 12. NABARD(National Bank for Agriculture and Rural Development) provides finance to the Rural Infrastructure Development fund (RIDF). It is the apex development financial institution of India.

Explanation 13. Ablation is not related to banking or finance. It is the process of transferring heat by removing material through melting or other erosive processes.

Explanation 14. Airtel Business and Clear Tax have launched GST Advantage. It is a solution designed to enable small businesses and start-ups to file their GST returns securely and accurately.

Explanation 15. Exide Life Insurance has tied up with Punjab and Maharashtra Co-operative Bank. It would offer protection and savings products to the customers of that bank.