Banking Awareness Practice Paper for Upcoming Bank and Competitive Exams

Banking Awareness Practice Paper

1) For Open Marketing Operations, one of the measures taken by RBI in order to control credit expansion in the economy involves which of the following operations ? 

1. Sale or purchase of short term and long term Govt, securities
2. Issuance of different kind of bonds
3. Auction of Gold
4. To prevail upon the banks through persuasion to control credit.
5. None of these

2) What is "Reinsurance" ?

1. It is a form of insurance policy issued by banks only
2. It is a form of insurance policy issued by a Govt, owned Insurance companies.
3. It is a insurance policy issued by IRDA
4. It is a form of insurance taken by one insurance company from another insurance compnay
5. It is a form of loan against insurance policy.

3) What does "Factoring" Services provided by the banks refer to ?

1. Getting professional support for recovery of receivables
2. Companies offering help, for recovery of bad debts
3. Acquiring bad debts by a company at a discount
4. Selling account receivables at a discount
5. None of these

4) Which is the latest recovery channel made available to the banks for speedy recovery of NPA's backed by security ?

1. Special Bench of the Supreme Court of India
2. Action under SARFAESI Act
3. Action under Bankers Book Evidence Act
4. Action under Sec, 138 of Negotiable Instruments Act.
5. Foreign Exchange Management Act

5) What does BPLR stands for ?

1. Basic Priority Lending Rate
2. Below Poverty Line Register
3. Benchmark Prime Lending Rate
4. Base Primary Lending Rate
5. None of these

6) Which one of the following is NOT an instrument of credit control ?

1. Raising and lowering of interest rates
2. Raising and lowering of Discount Rates
3. Targets for priority sector loans
4. Raising and lowering of CRR & SLR
5. Raising the minimum supports price of agricultural produce

7) Which of the following bodies/agencies decides the distribution of tax income between Central & States Governments in India ?

1. Planning Commission 
2. Central Law Commission
3. Reserve Bank of India
4. Finance Commission
5. Administrative Reforms Commission

8) Banks report the information about the credit available by their clients to Credit Reference Agencies on a _____________

1. Weekly basis
2. Fortnightly basis
3. Monthly basis
4. Quarterly basis
5. Half yearly basis

9) Which of the following terms refers to conducting the affairs of an organization in such a manner that gives fair deal to all the stake holders ?

1. Corporate Finance
2. Carbon Credit
3. Law of Limitation
4. Corporate Social Responsibility
5. Corporate Governance

10) Which of the following organizations, provides credit history of the borrowers ?

1. CIBIL
2. SEBI
3. RBI
4. IBA
5. CRISIL

11) Who among the following is vested with the duty of accepting and giving delivery of securities for purchase or sale transactions in various schemes of a Mutual Funds ?

1. Asset Management Company 
2. Director
3. Trustee
4. Registrar & Transfer Agents
5. Custodian

12) Loans of very small amount riots exceeding Rs. 50,000 ?- per borrower granted by financial institutions are recognized by which of the following names ?

1. Micro Credit
2. Loan under RMEGP scheme
3. Weaker Section Loans
4. DRI Loan
5. Personal Loans

13) Which one of the following agencies/ companies, is established by banks and financial institutions for the specific purpose of dealing in sale/purchase of distressed Assets ?

1. ARCIL
2. SHCIL
3. SEBI
4. IDBI
5. SIDBI

14) From time to time which among the following bodies publishes the "Exchange Control Manual " in India conforming to FEMA Regulations?

1. Foreign Trade Promotion Board
2. Ministry of Commerce
3. Reserve of Commerce
4. Reserve Bank of India
5. SEBI
6. Ministry of Finance

15) If RBI publishes in its report that Indian Forex Reserves are comfortable for 15 months, which of the following statement gives a clear picture of Forex Reserves ?

1. Indian can stop import of foreign goods after 15 months.
2. India has sufficient foreign exchange to take care of balance of payment for a period of 15 months
3. India can stop exports as it has enough foreign exchange to last up to next 15 months
4. India cannot import any goods from overseas market after 15 months as no foreign exchange reserve will be available.
5. Foreign Travellers will get foreign currency only after 15 months

For More Banking Awareness Practice Papers Check Below Links:

• Banking Awareness Practice Set 1
• Banking Awareness Practice Set 2
• Banking Awareness Practice Set 3
• Banking Awareness Practice Set 4
• Banking Awareness Practice Set 5