Banking Knowledge MCQ For IBPS PO, Clerk

Banking Knowledge Quiz For IBPS PO, Clerk

You must solve the Banking And Financial Awareness MCQ/ Quiz  from  Achiever's Rule on daily basis. This mock practice set of banking and Financial knowledge is prepared as per the latest trend. The Banking Knowledge must help you to crack the upcoming IBPS, RBI, SBI Exams. 

Q1.Who would be the new Chairman of State Bank of India ?

A]Raghuvir Kumar
B]Rajnish Kumar
C]Gaurav Patel
D]Krishna Mehta
E]Balgopal Sharma

Q2.Which of the following banks has/have provided $100 Million loan to India to improve the power transmission network ?
A]AIIB
B]ADB
C]World Bank
D]Both A and B
E]Both A and C

Q3.The IFSC of which of the following has bagged the 10th position in the Global Financial Center's Index ?
A]Seol
B]Abu Dhabi
C]GIFT City
D]Beijing
E]None of these

Q4.What is/are the material difference between the bonds and debentures ?
A]The debentures are transferable on the registration.
B]The bonds are the negotiable instrument that is governed by the law of Contract.
C]The debentures are governed by the relevant provisions of the company law.
D]All of these
E]None of these

Q5.Which of the following denotes the "Bridge Loan" ?
A]It is the loan which is granted to the Public Works Department for the construction of bridge over big rivers.
B]It is interim finance by the bank pending disbursement of the term loan by the financial institutions.
C]It is the loan granted for the building of bridges that has been World Bank.
D]It is a product aimed to finance the construction companies for the construction of the bridge.
E]None of these

Q6.Which of the interest rates are not determined by the RBI and left to discretion of the concerned bank ?
A]The ceiling rates on the FCNR/NRE deposit accounts
B]The DRI advances
C]The ceiling rates on the export credit facilities
D]Savings Bank deposit
E]None of these

Q7.Which of the liabilities is not taken as the part of the Time and Demand Liabilities for the purpose of CRR ?
A]Recurring deposits
B]Fixed Deposits
C]Saving bank account
D]Paid-up capital
E]None of these

Q8.Who introduced the concept of fiscal deficit in the Indian Economy ?
A]V. K Rao
B]Amartya Sen
C]Madhu Dandavate
D]S Chakrabarty
E]None of them

Q9.Which statement is true about the Scheduled Bank ?
A]It includes in 2nd schedule of RBI Act 1934.
B]It incorporates under the Banking Companies Act 1956.
C]It functions under the provisions of the Banking Regulation Act 1949.
D]It authorises to do Banking functions.
E]None of these

Q10.Which is not the quantitative credit control measure of Reserve Bank of India ?
A]Statutory liquidity ratio
B]Bank Rate
C]Statutory cash reserve requirement
D]Moral Suasion
E]None of these

Q11.The Government borrows money from which of the following in case of deficit financing ?
A]Public
B]Capitalists
C]RBI
D]IMF
E]None of these

Q12.In which year CSO was established ?
A]1957
B]1952
C]1951
D]1954
E]None of these

Q13.Primary Deficit can be obtained by subtracting which of the following from fiscal deficit ?
A]Depreciation
B]Borrowings
C]Revenue Deficit
D]Interest Payment
E]None of these

Q14."A Premier Public Sector Bank" is the tagline of which bank ?
A]IDBI Bank
B]Corporation Bank
C]Vijaya Bank
D]Dena Bank
E]None of these

Q15.In which year the Indian Bank was established ?
A]1905
B]1906
C]1904
D]1908
E]1907

Answer with Explanation

Explanation 1. Rajnish Kumar would be the new Chairman of State Bank of India for three years. He would replace Arundhuti Bhattacharya. He joined SBI as a Probationary Officer in 1980.

Explanation 2. China led AIIB(Asian Infrastructure Investment Bank) and ADB (Asian Development Bank) have provided $100 Million loan to India to improve the power transmission network. It would also expand the use of solar and wind energy.

Explanation 3. The IFSC of which of GIFT City has bagged the 10th position in the Global Financial Center's Index. The IFSCs of New York and London have topped the list.

Explanation 4. The material difference between the bonds and debentures are following. The debentures are transferrable on the registration. The bonds are the negotiable instrument that is governed by the law of Contract. The debentures are governed by the relevant provisions of the company law.

Explanation 5. The "Bridge Loan" is interim finance by the bank pending disbursement of the term loan by the financial institutions. It is the short-term loan that is used until the person or company secures the permanent financing or eliminates the existing obligation.

Explanation 6. The ceiling rates on the export credit facilities are not determined by the RBI and left to discretion of the concerned bank.

Explanation 7. Paid up Capital is not taken as the part of the Time and Demand Liabilities for the purpose of CRR. It is the total amount of shareholder capital which has been paid by Shareholders in full.

Explanation 8. S Chakrabarty introduced the concept of fiscal deficit in the Indian Economy. The fiscal deficit occurs when the government's total expenditure exceeds the revenue that it generates, excluding money from the borrowings.

Explanation 9. The Scheduled Bank includes in 2nd schedule of RBI Act 1934.

Explanation 10. Moral Suasion is a qualitative credit control measure of the Reserve Bank of India. It is not the quantitative credit control measure of Reserve Bank of India.

Explanation 11. The Government borrows money from Reserve Bank of India (RBI) in case of deficit financing.

Explanation 12. The CSO was established in the year of 1951. CSO stands for Central Statistics Office.

Explanation 13. Primary Deficit can be obtained by subtracting Interest Payment from fiscal deficit.

Explanation 14. "A Premier Public Sector Bank" is the tagline of Corporation Bank. The Bank was established in the year of 1906.

Explanation 15. The Indian Bank was established in 1907. The head quarter of this bank is situated in Chennai.