Banking Awareness MCQ-130

Banking Aptitude Test Bank Exams,LIC ADO,SBI Clerks,IBPS PO mains

Increasing Cash Reserve Ratio from time to time by Reserve Bank of India leads to:

[A] Decrease in deposit
[B] Increasing in deposit
[C] Increase in lendable resources
[D] Decrease in lendable resources.
[E] Any of the above

Which of the following banks is not nationalized in 1969 _____

[A] Central Bank of India
[B] Dena Bank
[C] Canara Bank
[D] Oriental Bank of Commerce
[E] None of these

A financial contract that derives its value from another asset or an index of asset values in known as_________

[A] Insurance policy
[B] Security
[C] Derivative
[D] Share
[E] None of the above

Which bank are Public Sector Banks of India?

[A] More than 50 % stake held by government
[B] 50 % stake held by government
[C] Less than 50 % stake held by government
[D] All of the above
[E] None of the above

What does RBI regulate through Open Market Operation Transactions?

[A] Flow of Foreign Direct Investment
[B] Borrowing powers of the banks
[C] Inflation
[D] Liquidity in economy
[E] None of these

What is the most powerful tool used by the Reserve Bank of India to control inflation?

[A] Raise interest rates
[B] Raise current supply
[C] Reduce current supply
[D] Reduce interest rates
[E] None of these

What is used to manage cash flows in different currencies?

[A] Credit crunch
[B] Arbitrage
[C] Micro credit
[D] Currency swap
[E] None of these

Who pays commission to banks for conducting Government business?

[A] Government of India
[B] State Government
[C] RBI
[D] Central and State Governments
[E] None of the above

One rupee notes and coins are issued by

[A] Reserve bank of India
[B] State Bank of India on behalf of Government of India
[C] RBI
[D] Finance Minister of Central government of India
[E] None of the above

Base Rate is the rate below which no Bank can allow their lending to anyone. Who will fix this ‘Base Rate’ for Banks?

[A] Individuals Banks Board
[B] Ministry of Commerce
[C] Ministry of Finance
[D] RBI
[E] Interest Rate Commission of India

The higher denomination banknotes in Rs. 1,000 ,Rs. 5,000 , Rs. 10,000 were reintroduced by RBI in the year ______

[A] 1948
[B] 2016
[C] 1979
[D] 1954
[E] None of these

Financial inclusion is meant for –

[A] Less privileged persons
[B] Senior citizens
[C] Micro finance institutions
[D] All the above
[E] None of these

The full form of BBPS is

[A] Bill Finger Berger Power Series
[B] Best Business Practice
[C] Bharat Bill Payment Service
[D] Bharat Bill Payment System
[E] Bharat Bill Payment Status

In periods of depression when the Reserve Bank of India (RBI) desires to encourage the banking system to create more credit, what it does?

[A] Permits the Bank Rate to be decided by market forces
[B] Raises the Bank Rate
[C] Reduces the Bank Rate
[D] All of the above
[E] None of the above

On the current account balances maintained by the Regional Rural Banks with them, the commercial banks may

[A] pay interest up to 9 per cent
[B] pay interest at such rates as may be mutually agreed to
[C] pay interest as applicable to savings accounts
[D] waive incidental charges
[E] All of the above