Banking Awareness Questions and Answers Download PDF

 

Top 60 Banking Awareness Questions and Answers

Question (1) What is the maximum period for which domestic term deposits are normally accepted by banks in our country?

Ans:  10 years.

Question (2) Which agency/organization in India maintains the Micro. Finance Development and Equity Fund?

Ans:  NABARD.

Question (3) Which is a Credit Card Association?

Ans:  Master Card.

Question (4) What is the mean of Bad debts?

Ans:  Amounts owed to a company that are not going to be paid.

Question (5) What is the maximum permissible limit for investment in PDF account in a financial year?

Ans:  Rs. 70,000

Question (6) The letter ‘F’ denotes which word in the term IFRS?

Ans:  Financial.

Question (7) Which loan constitutes the largest percentage of Retail loans in India?

Ans:  Home loans.

Question (8) What is meant by financial inclusion?

Ans:  Making available banking services at an affordable cost.

Question (9) Many times we read the term ‘ECB’ in newspapers. What is the full form of ‘ECB’?

Ans:  External Commercial Borrowing.

Question (10) In our country, till when a cheque remains valid for payment for from the date of issue?

Ans:  3 months.

Question (11) ‘Crossing’ applies to which instrument?

Ans:  Cheques.

Question (12) While investing in mutual funds we come across a term called NAV. What is the meaning of NAV?

Ans:  Net Asset Value.

Question (13) Assume that Reserve Bank of India reduces the Bank Rate by 1%, what will be its impact?

Ans:  More liquidity in the market.

Question (14) Whose signature is found on a 50 rupee currency note in India?

Ans:  Governor, RBI.

Question (15) Which is ‘material alteration’ of a negotiable instrument?

Ans:  Converting an order cheque to bearer cheque.

Question (16) Which asset can be mortgaged?

Ans:  Land and Building.

Question (17) Interest payable on savings bank accounts is regulated by which bank?

Ans:  RBI.

Question (18) Many times we read about SHGs in financial newspapers. What is the full form of the term?

Ans:  Self Help Groups.

Question (19) Which is not an electronic Banking delivery channel?

Ans:  Mobile Vans.

Question (20) The Govt. of India has acquired RBI’s stake in one of the major banks of India. Which that bank?

Ans:  State Bank of India.

Question (21) Credit Cards are known by which another name?

Ans:  Plastic money.

Question (22) Which instrument cannot be transferred from one person to another by endorsement?

Ans:  Fixed Deposit Receipt.

Question (23) What is the full form of ‘FINO’ a term we see frequently in financial newspapers?

Ans:  Financial Inclusion Network and Operations.

Question (24) Lending to Micro Finance Institutions by Bank considered as finance to which sector?

Ans:  Priority Sector.

Question (25) What is money laundering?

Ans:  Conversion of Money which is illegally obtained.

Question (26) If PAN details are not provided, the TDS is deducted at which rate?

Ans:  20%

Question (27) What does the lowering of Bank Rate by the Reserve Bank of India leads to?

Ans:  More liquidity in the market.

Question (28) What is the Expand term of ALM as used in Banking/Finance sector?

Ans:  Asset Liability Management.

Question (29) What is the full form of ‘ULIP’, the term which was in the news recently?

Ans:  Unit Linked Insurance Plan.

Question (30) By which bank is the rate of interest on Savings Bank Account stipulated?

Ans:  RBI.

Question (31) What is the Rate at which the domestic currency can be converted into foreign currency and vice-versa is known as?

Ans:  Exchange rate.

Question (32) By which is insurance cover for bank deposits in our country provided?

Ans:  DICGC.

Question (33) Which is the loan of very small amounts given to low income groups?

Ans:  Micro credit.

Question (34) What is Mortgage?

Ans:  Security on immovable property for a loan given by a bank.

Question (35) Which will setup sore banking infrastructure for rural banks?

Ans:  NABARD.

Question (36) What is the name of cheque when a bank returns unpaid?

Ans:  Dishonor of the cheque.

Question (37) Which is a measure taken by Reserve Bank of India to control inflation in our country?

Ans:  Raising of Repo / Reverse Repo Rate.

Question (38) What type of loan is granted by banks for purchase of white goods?

Ans:  Consumer durables loan.

Question (39) When a banker talks about CDR, what is he talking about?

Ans:  Corporate Debt Restructuring.

Question (40) Fiscal policy in India is formulated by which ministry?

Ans:  The Finance Ministry.

Question (41) Which institution is involved mainly in granting Housing Loans?

Ans:  HDFC.

Question (42) Almost all banks in our country have introduced which facility for granting crop loans to farmers?

Ans:  Kisan Credit Cards.

Question (43) Banks in our country normally publicise that additional interest rate is allowed on retail domestic term deposits of which citizens?

Ans:  Senior citizens.

Question (44) What are fixed deposits and recurring deposits?

Ans:  Repayable on demand.

Question (45) Which is foreign bank having offices/branches in India?

Ans:  Standard Chartered Bank.

Question (46) Basel-II norms are associated with which aspect of the banking industry?

Ans:  Risk management.

Question (47) What is the expand term of FLCC?

Ans:  Financial Literacy and Credit Counseling.

Question (48) Which state became the first state in the country to launch RBI’s e-payment system for commercial tax payers?

Ans:  Karnataka.

Question (49) What is the mean of NEFT?

Ans:  National Electronic Funds Transfer system.

Question (50) Interest on savings bank account is now calculated by banks on which basis?

Ans:  Daily product basis.

Question (51) What does the letter ‘L’ stands for in the term LAF commonly used in financial/economic news?

Ans:  Liquidity.

Question (52) Monetary Policy as an arm of the economic policy is administered by which bank?

Ans:  Reserve Bank of India.

Question (53) Which reserves can act as a liquidity buffer for commercial banks during crisis times?

Ans:  SLR.

Question (54) By whom are Savings’ bank accounts opened?

Ans:  Individuals for savings purposes.

Question (55) For repayment of loan availed from Banks NBFC we come across a term known as EMI What does it stand for?

Ans:  Equated Monthly Installment.

Question (56) Many a times we read in the news paper about CASA deposits of banks. CASA what are deposits?

Ans:  Demand deposits.

Question (57) Credit risk to the bank is high from which of these cards?

Ans:  Credit cards.

Question (58) Why does depreciation of an asset occur?

Ans:  Wear and tear.

Question (59) Which accounts are allowed to be operated by cheques?

Ans:  Savings bank accounts and current accounts.

Question (60) What does the letter ‘L’ denote in term ‘LAF’ as referred every now and then in relation to monetary policy of the RBI?

Ans:  Liquidity.