Dear Aspirants,
Welcome to Mentor for Bank Exams. One
section that can help you bagging graceful marks in these examinations is
General Awareness, that comprises of numerous sections like Banking Awareness, Static
GK, and Current Affairs. Here is the General Awareness Quiz to help you practice with the best
of latest pattern questions for the upcoming SBI PO 2019, SBI Clerk, IBPS PO,
IBPS Clerk and other bank and Insurance Exams.
1. What is the share of ‘Sponsor Bank’ in the ownership of Regional Rural
Banks?
a) 50%
b) 10%
c) 15%
d) 35%
e) 49%
Answer: D)
Explanation:
Regional Rural Banks (RRBs) also
known as Gramin banks, are Indian scheduled banks (Government banks) operating
at regional level in different States of India. The Regional Rural Banks were
owned by the Central Government, the State Government and the Sponsor Bank (Any
commercial bank can sponsor the regional rural banks) who held shares in the
ratios as follows Central Government – 50%, State Government – 15% and Sponsor
Banks – 35%.
2. Small Finance Banks in India were established on the recommendations
of _____Committee.
a) Nachiket Mor
b) Usha Thorat
c) Urjit Patel
d) Raghuram Rajan
e) Uday Kotak
Answer: A)
Explanation:
Small Finance Banks were set up on
the recommendations of Nachiket Mor Committee to support small businesses.
3. Recently RBI has sent show cause letters to several banks for not
fixing the gaps in their SWIFT systems. What does “T” denote in the acronym
SWIFT?
a) Transfer
b) Tariff
c) Telecommunication
d) Trust
e) Transaction
Answer: C)
Explanation:
The Society for Worldwide Interbank
Financial Telecommunication (SWIFT) provides a network that enables financial institutions
worldwide to send and receive information about financial transactions in a
secure, standardized and reliable environment. Headquarters of SWIFT is located
in La, Hulpe, Belgium.
4. As per RBI guidelines, banks are advised to issue only CTS-2010
standard cheques to their customers. What is the full form of CTS?
a) Customer Transfer Service
b) Cheque Truncation System
c) Cheque Transfer System
d) Counter Transfer Service
e) Cheque Tribunal System
Answer: B)
Explanation:
The Cheque Truncation System (CTS) is
a process of stopping flow of physical cheque in which an electronic image of
the instrument is presented when it comes for clearing.
5. The Monetary Policy Committee (MPC) of India is a committee that is
responsible for fixing the benchmark interest rate in India. MPC should meet at
least __ times a year.
a) 2
b) 4
c) 3
d) 8
e) 10
Answer: B)
Explanation:
The Monetary Policy Committee of
India is a committee of the Reserve Bank of India that is responsible for
fixing the benchmark interest rate in India. The meetings of the Monetary
Policy Committee are held at least 4 times a year and it publishes its
decisions after each such meeting.
Read Also: General Awareness Questions || 05 – 02 –2019
6. Term “Capital Adequacy Ratio (CAR)” has been in news recently. It is
the ratio of which two entities?
a) Banks risk in relation to its
capital
b) Bank Capital in relation to its
expenditure
c) Bank capital in relation to its
NPAs
d) Bank capital in relation to its
risks
e) Bank NPAs in relation to its
capital
Answer: D)
Explanation:
Capital Adequacy Ratio (CAR) is the
ratio of a bank’s capital in relation to its risk weighted assets and current
liabilities. It is decided by central banks and bank regulators to prevent
commercial banks from taking excess leverage and becoming insolvent in the
process.
7. ‘Bancassurance’ term has been in news in recent times. What do you
understand by it?
a) Selling Government securities
through banks
b) Buying Treasury bills by banks
c) Selling Masala bonds by banks
d) Selling Insurance product through
banks
e) Transferring Equities to Insurance
companies
Answer: D)
Explanation:
Bancassurance means selling insurance
product through banks. Banks and insurance company come up in a partnership
wherein the bank sells the tied insurance company's insurance products to its
clients.
8. FCNR (B) or Foreign Currency Non-Resident (Bank) account is a which
type account?
a) Saving Account
b) Current Account
c) Fixed Deposits Account
d) Trading Account
e) None of these
Answer: C)
Explanation:
FCNR (B) or Foreign Currency
Non-Resident (Bank) Account is a type of term or fixed deposits (it is not a
savings account). Hence, they are also known as FCNR (B) Deposits. Only
Non-Resident individuals (NRIs) or a Person of Indian Origin (PIO) are eligible
to open a Foreign Currency Non Resident (Bank) Account with a bank.
9. Which of the following is considered one of the key indicators of
banks’ health?
a) MSF
b) Repo Rate
c) CAR
d) MCLR
e) None of these
Answer: C)
Explanation:
Banks are required to maintain a
minimum capital, in terms of capital-to-risky asset ratio (CRAR) and common
equity tier (CET)-1, to ensure they do not lend all the money they receive as
deposits and keep a buffer to meet future risks. Capital adequacy ratio of
banks is considered to be one of the key indicators of banks’ health.
10. Commercial Paper (CP) is an unsecured money market instrument issued
in the form of a promissory note. In which year was it was introduced in India?
a) 1989
b) 2009
c) 2003
d) 1995
e) 1990
Answer: E)
Explanation:
Commercial Paper (CP) is an unsecured
money market instrument issued in the form of a promissory note. It was
introduced in India in 1990 with a view to enabling highly rated corporate
borrowers to diversify their sources of short-term borrowings and to provide an
additional instrument to investors. Subsequently, primary dealers and all-India
financial institutions were also permitted to issue CP to enable them to meet
their short-term funding requirements for their operations.
11. What is the housing loan limit under priority sector lending for
metropolitan centres?
a) Rs. 35 lakhs
b) Rs. 50 lakhs
c) Rs. 20 lakhs
d) Rs. 25 lakhs
e) Rs. 40 lakhs
Answer: A)
Explanation:
Loans to individuals up to Rs. 35
lakhs in metropolitan centres (with population of ten lakh and above) and loans
up to Rs. 25 lakhs in other centres for purchase/construction of a dwelling
unit per family, are eligible to be considered as priority sector provided the
overall cost of the dwelling unit in the metropolitan centre and at other
centres does not exceed Rs. 45 lakhs and Rs. 3 lakhs, respectively. Housing
loans to banks’ own employees are not eligible for classification under
priority sector.
12. What is the impact of “Cash Reserve Ratio (CRR)” reduction on
liquidity creation in the economy?
a) Liquidity decreases
b) No impact
c) Liquidity increases
d) Alternatively increases and
decreases
e) None of these
Answer: C)
Explanation:
Cash Reserve Ratio (CRR) is the ratio
of deposits banks must maintain. If CRR is decreased, banks have more money to
lend and it increases credit creation in the economy. When the RBI feels that
the money supply is increasing and causing an upward pressure on inflation, the
RBI has the option of increasing the CRR thereby reducing the deposits
available with banks to make loans and hence reducing the money supply and
inflation.
13. Recently RBI has issued operational guidelines for ‘Interoperability’
among PPIs. What is the full form of ‘PPIs’ used in the field of banking?
a) Purchase Product Instruments
b) Product Payment Installments
c) Prepaid Payment Instruments
d) Product Purchase Interoperability
e) Payment Product Initiative
Answer: C)
Explanation:
PPIs are payment instruments that
facilitate purchase of goods and services, including financial services,
remittance facilities, etc., against the value stored on such instruments.
14. What percentage of NDTL (Net Demand & Time Liabilities) can be
used by banks to borrow through MSF?
a) 0.50%
b) 0.75%
c) 1.25%
d) 1%
e) 1.50%
Answer: D)
Explanation:
To use MSF facility, all the
scheduled banks under RBI can avail money in emergency situations up to 1% of
their NDTL (net demand and time liabilities) or SLR securities.
15. What is the dimension of newly released Rs. 50 currency note?
a) 73 mm X 147 mm
b) 77 mm X 156 mm
c) 66 mm X 135 mm
d) 58 mm X 127 mm
e) 72 mm X 147 mm
Answer: C)
Explanation:
The new version of Rs. 50 note has a
depiction of Hampi with Chariot on the reverse, depicting the country’s
cultural heritage. The base colour of the note is Fluorescent Blue. The
dimensions of the banknote are measured at 66 mm x 135 mm.
