Some Important Questions On Banking For IBPS PO Aspirants Set 1

1.  On the recommendation of which committee was NABARD established?

(a)    Shivraman    (b) Rangarajan
(c)    Malegam      (d) Vijay Kelkar

2.  ‘Swabhiman’, the financial inclusion scheme, comes under the purview of which ministry?
(a) Ministry of Commerce  (b) Ministry of Home Affairs
(c) Ministry of Finance      (d) Ministry of External Affairs

3.  RBI was established on ___________.
(a) April 1, 1925     (b) April 1, 1935
(c) April 1, 1945     (d) April 1, 1955    

4.  The one-rupee note bears the signature of____________.
(a) RBI Governor           (b) Deputy Governor
(c) Finance Secretary     (d) Finance Minister

5.  Which among the following does the RBI not decide?
(a) CAR     (b) CRR    (c) Base Rate     (d) Bank Rate 

6.  What does ‘T’ in RTGS stand for?
(a) Transaction    (b) Transfer    (c) Tax    (d) Time

7.  In banking, IFSC code stands for_________________.
(a) International Format System Code 
(b) Indian Function System Code
(c) International Forex System Code
(d) Indian Financial System Code

8.  If a customer does not get a satisfactory response to his grievance from the bank within _____ days, then he can approach the Banking Ombudsman.
(a) 60    (b) 90    (c) 30    (d) 15  

9.  Which of the following organizations is the Mutual Fund Market regulator?
(a) AMFI     (b) SEBI    (c) CIBIL    (d) CRISIL 

10.   Which of the following statements is incorrect regarding RTGS system?
(a) The transactions take place in real time
(b) The system operates on DNS (Deferred Net Settlement) basis
(c) The minimum amount that can be remitted is Rs. 2 lakh
(d) Service charges for RTGS transactions vary from one bank to another

11. Banks have recently launched a service through which money can be transferred using mobile phones. This service is known as
(a) MMTF (Mobile Money Transfer Facility)
(b) MTMT (Mobile To Mobile Transfer)
(c) IMPS (Inter Bank Mobile Payment Service)
(d) IBMPS (Internet Banking Mobile Payment Service)

12. Which among the following is at times mentioned as a kind of Direct Debit Facility?
(a) ECS    (b) RTGS    (c) IMPS    (d) UTR   

13. The discounting rate at which RBI borrows government securities from commercial banks is known as
(a) Repo Rate        (b) Reverse Repo
(c) Deposit Rate     (d) Base Rate         

14. Which among the following is an instrument of monetary policy used by the RBI?
(a) Base Rate    (b) PLR    (c) CRR    (d) BPLR

15.  Which among the following statements is incorrect in the context of IMPS?
(a) It’s a mobile-to-mobile fund transfer facility
(b) For this facility we need a GPS-enabled mobile phone
(c) Both the sender and the receiver must have an account in the same bank
(d) Both the customers must have an MMID (Mobile Money Identifier Number) number

16. ________is the organization that maintains the borrower’s history in India.
(a) CRISIL    (b) CIBIL    (c) CARE    (d) RBI 

17.  RBI has directed commercial banks to resolve ATM transaction-related complaints within seven working days. If a commercial bank is unable to do so then it has to pay Rs.________per day as compensation.
(a) 50     (b) 100     (c) 200     (d) 225 

18. RTGS as well as NEFT uses
(a) UTR Number    (b) MICR    (c) IFSC    (d) DNS

19. Which of the following statement is incorrect about SEBI?
(a) SEBI is a capital market regulator
(b) SEBI is the mutual fund regulator
(c) SEBI also regulates the credit rating agencies in India
(d) None of them is wrong

20. What does liquidity mean?
(a) It means how cash is converted into gold
(b) It means how cheaply and quickly an asset is converted into cash
(c) It means how cash is converted into SDR (Special Drawing Rights)
(d) It means how uncertain the money market conditions are


Answer

1. (a) NABARD (National Bank for Agriculture and Rural Development) was established in 1982 on the recommendation of Shivraman Committee.
2. (c) Ministry of Finance.
3. (b) RBI was established on 1st of April 1935.
4. (c) Finance secretary.
5. (c) Base rate is decided by commercial banks, not the RBI.
6. (d) RTGS-Real Time Gross Settlement system is a funds transfer systems where transfer of money or securities takes place from one bank to another on a “real time”. (Real time means within fraction of seconds.)
7. (d) Indian Financial System Code.
8. (c) 30 days.
9. (b) SEBI is also known as Capital regulator or Mutual funds regulator or Market regulator. SEBI is also created investors protection fund and SEBI is the only organization which regulate the credit rating agencies in India such as CRISIL and CIBIL.
10. (b) NEFT-National Electronic Fund Transfer. This is a method used for transferring funds across banks in a secure manner. It usually takes 1-2 working days for the transfer to happen. NEFT is an electronic fund transfer system that operates on a Deferred Net Settlement (DNS) basis which settles transactions in batches. RTGS does not works on DNS.
11. (c) IMPS-Interbank Mobile Payment Service is an instant interbank electronic fund transfer service through mobile phones. Both the customers must have MMID (Mobile Money Identifier Number). 
12. (a) ECS: Electronic Clearing Service.
13. (a) Also called Repurchase Rate, the rate at which the RBI lends money to the banks or in other words we can say that Repo rate is the discounting rate at which central bank borrows government securities from commercial bank. Repo means repurchase agreement between RBI & commercial bank.
14. (c) CRR (Cash Reserve Ratio)
15. (b) We don’t need any GPS enabled cell phone for IMPS.
16. (b) CIBIL: Credit Information Bureau of India Limited. CIBIL is India’s first credit information bureau. Whenever a person apply for new Loans or Credit Card to a Financial Institution, they generate the CIBIL report of the said person or concern to judge the credit worthiness of the person and also to verify existing track record. CIBIL actually maintains the borrower’s history.
17. (b) Rs 100 per day.
18. (c) IFSC: Indian Financial System Code.
19. (d) None of them is wrong.
20. (b) It refers to how quickly and cheaply an asset can be converted into cash. Money (in the form of cash) is the most liquid asset.

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