01.

Which of the following cannot be called as a debt instrument as referred in the financial
transactions?
a)Certificateofdepositb)Bondsc)Stocksd)Commercialpaperse)Debentures

02.WheneverRBIdoessomeopenmarketoperationtransactions,actuallyitwishestoregulatewhich
ofthefollowing?
a)Inflationb)Liquidityineconomyc)Borrowingpowersofthebanksd)Flowofforeigndirectinvestments
e)Noneoftheabove

03.Ineconomics,itisgenerallybelievedthatthemainobjectiveofapublicsectorfinancialcompany
likebankisto:
e)Employmoreandmorepeopleb)Maximizethetotalprofitsc)Maximizetotalproductiond)Providefinancialservicesto
thepeopleofthenationofitsoriginacrossthecountrye)Sellthegoodsatsubsidizedrates

04.Inacompanybytheuseofpricesensitivecorporateinformationaboutthecompany,peoplecloser
tothecompanytrytoadoptthetechnologytomakegainsorcoverlossesinsharemarketdealingsand
suchprocessisknownas:
a)Insidertradingb)Futuretradingc)Foreigntradingd)Stocktradinge)Noneofthese

05.WhatismeantbyReporate?
a)WhenabankisinneedofcashitcanitcandiscountbillsofexchangeandavailloanfacilitiesfromReserveBankofIndia.
b)Whenabankhasexcesscash,theybuysecuritiesfromRBIagainstcashontheconditionthattheyresellthesecuritiesto
RBIonaprefixeddayandprice
c)ItisrateatwhichRBIallowstemporaryloanfacilitiestocommercialbanksagainstgovernmentsecuritieson
theconditionthatthebankwillrepurchasethesecuritieswithinashortperiod.
d)Itisaratewhichisofferedbybankstotheirmostvaluedcustomersorprimecustomerse)Noneofthese

06.BharatNirmandoesnotcoverwhichofthefollowingareas?
a)Ruralemploymentb)Ruralhousingc)Ruralwatersupplyd)Irrigationfacilitiese)Itcoversalltheaboveareas

07.WhichofthefollowingcommitteehasgivenitsrecommendationsonFinancialinclusions?
a)RakeshMohancommitteeb)Rangarajancommitteec)Sinhacommitteed)Gadgilcommitteed)Noneofthese

08.Theactualreturnofaninvestorisreducedsometimeswhenthepricesofthecommoditiesgoupall
ofasuddenandinfinancialsectorthistypeofphenomenonisknownas
a)Probabilityriskb)Marketriskc)Inflationriskd)Creditriske)Noneofthese

09.Anindustrywhichisfightinghardtoincreaseitsmarketshareinexistingmarket(withnewpopular
products)isknownas:
a)Marketvendorb)Marketoperatorc)Marketleaderd)Marketfollowere)Marketchallenger

10.Whichofthefollowingproductslaunchedbymostofthebankshelpfarmersingettinginstantcredit
forvariousagriculturalpurposes?
a)Kisancreditcardb)Personalloanc)Businessloand)ATMcarde)Noneofthese

11.Whichofthefollowingproductsofabankisspecificallydesignedtoprovidefinancialhelptochildren
intheirhigherstudiesinIndiaorinaforeigncountry?
a)Personalloanb)Corporateloanc)Housingloand)Educationalloane)Mortgageloan

12. Which of the following policies of the financial sectors is basically designed to transferring local
financialassetsintoforeignassetsfreelyandatmarketdeterminedexchangerates?
a)Capitalaccountconvertibilityb)Financialdeficitmanagementc)Minimumsupportpriced)Restrictivetradepractices
e)Noneofthese

13.AcustomeriswillingtopurchasesomeUSdollarsinthecountry.He/sheshouldgoto:
a) Public Debt Division of the RBI only b) American Express Bank only c) RBI or any branch of a bank which is
authorizedforconductingsuchbusinessd)MinistryofForeignaffairse)Noneofthese

14.WhichofthefollowingisnotasocialassistanceprogramlaunchedbytheGovernmentofIndia?
e)Nationaloldagepensionschemeb)Annapurnaschemec)Nationalfamilybenefitschemed)IndiraGandhiNational
DisabilityPensionSchemee)Allaresocialassistanceprograms

15.ManytimesweseeinnewspapersthatsomeprojectsarelaunchedbytheGovernmentauthorities
onPPPbasis.WhatisthefullformofPPP?
a)PreferentialPaymentPlanb)PublicPrivatepartnershipc)Partialpaymentprojectd)Popularprivateproject
e)Publicprivateplan

TheratioofthecashreservesthatthebanksarerequiredtokeepwithRBIisknownas:
a)Liquidityratiob)Statutoryliquidityratioc)CashReserveRatiod)Netdemandandtimeliabilitiese)Noneofthese

17.Theavailabilityofcashandothercashlikemarketableinstrumentsthatareusefulinpurchasesand
investmentsarecommonlyknownas:
a)Cashcrunchb)Liquidityc)Creditd)Marketabilitye)Noneofthese

18.Which of the following schemes launched by the Government of India provides a guaranteed 100
daysemploymenttoruralemploymentseekersinIndia?
a) Bharat Nirman b) Swarnajayanthi Grameen Rozgar Yojana c) Mahatma Gandhi National Rural Employment
Guaranteeactd)NationalFoodforWorkProgrammee)Noneofthese

19.TheReserveBankofIndiakeepsonmodifiyingvariousrates/ratiostokeeptheflowofliquidityin
the market in a balanced manner and which of the following rates/ratios/indexes is not directly
controlledbytheRBI?
a)Cashreserveratiob)Bankratec)Reporated)Reversereporatee)Wholesalepriceindex

20. Many banks have adopted/launched Core Banking Solutions and what do you mean by core
bankingsolutions?
a)Amarketingstrategyadoptedbythebanksb)Anewtypeofautomatedtellermachinesusefulforruralpopulation c) A
deliverychannelforquickandfastdeliveryd)Anewproductlaunchedtohelpseniorcitizensonlyastheyarenotableto
visitthebranches/ATMsfrequentlye)Noneofthese

21.Whichofthefollowingtermsarenotusedinbankingsector?
a)Statutoryliquidityratiob)Nonperformingassetc)Creditratingd)Fixede)REPO

22.Bankingsectorcomesunderwhichofthefollowingsectors?
a)Agriculturesectorb)Servicesectorc)Manufacturingsectord)Industrialsectore)Noneofthese

23.Anaccountinwhichtradingofsharesintheirelectronicformisdoneisknownas:
a)Demataccountb)NREaccountc)NROaccountd)FCNRaccounte)RFCaccount

24.Whichofthefollowingprogrammes/schemesoftheGovernmentofIndiaisnotdirectlyrelatedwith
agricultureactivities?
a) Drought Prone areas programme b) Promotion of integrated pest management c) Integrated wastelands development
programmed)Annapurnaschemee)DesertDevelopmentprogramme

25.Findtheoddmanoutfromthefollowinggroups?
a)ICICIBank,CanaraBank,CentralBankofIndia,PunjabNationalBank,IndianBank
b)CanaraBank,StateBankofIndia,LakshmiVilasBank,KarurVysyaBank,UnitedBankofIndia
c)BankofIndia,CorporationBank,IndianBank,IDBIBank,Axisbank
d)BankofMaharashtra,Barclaysbank,OrientalBankofCommerce,IndianBank,IDBIbank
e)UnionBankofIndia,BankofIndia,AndhraBank,DenaBank,IndianBank

26.Whichamongthefollowingistherecentlyopenedprivatesectorbankinthecountry?
a)ICICIbankb)HDFCbankc)AXISBankd)KotakMahindraBanke)Yesbank

27.Mortgagerelatestowhichtypeofloanamongthefollowing?
a)Housingloanb)Educationalloanc)Carloand)Goldloane)Personalloan

28.Fourteenbankswerenationalizedinthecountryduringthefirststageon:
a)19.07.1970b)19.07.1969c)19.07.1971d)18.07.1969e)15.07.1969

29.ThesponsorshipbetweenStategovernment,centralgovernmentandsponsorbankisintheratioof
inrespectofRegionalRuralBanksinthecountry:
a)155035b)503515c)351550d)355015e)153550

30.Whenitcomestoprovidinglockerfacilitytothecustomerofanybank,therelationshipbetweenthe
customerandbankeristhatof:
a)Debtorandcreditorb)Bailorandbaileec)Lesseeandlessord)Lessorandlesseee)Agentandprincipal

002

IBPSBANKEXAMINATIONSBANKINGAWARENESSPRACTICETEST

01.WhendoesReserveBankofIndiaissuesannualpolicystatement?
b)Januaryb)Aprilc)Julyd)Octobere)Noneoftheabove

02. Which of the following has been renamed as Annual Policy Statement by the Reserve Bank of
India?
a)Busyseasonbankingpolicyb)Slackseasonbankingpolicyc)Monetaryandcreditpolicyd)Annualstatisticalreporte)
Noneoftheabove

03.WhendoesRBIreviewitsannualpolicystatement?
a)Julyb)Octoberc)Januaryd)Alltheabovee)Noneoftheabove

04.Whichisthemonitoringandreviewingauthorityregardingfairpracticescodeasperrecentannual
policystatementofReserveBankofIndia?
b) Banking codes and standards Board of India b) Banking Ombudsman c) Institute for development in banking
technologyd)debtrecoverytribunale)noneoftheabove

05.Whichcommitteehasrecommendedintroductionofsmartcard?
a)Rangarajancommitteeb)Sarafcommitteec)Nayakcommitteed)Pannirselvancommitteee)Noneoftheabove

06.Whichcommitteehadformulatedconsultativeprofileinconnectionwithelectronicfundstransfer?
a)A.K.Purwarcommitteeb)YVReddycommitteec)KSSherecommitteed)S.A.Davecommitteee)noneoftheabove

07. The process of transformation of physical shares, commercial paper or certificate of deposit into
electronicformiscalledas:
a)Electronicclearingserviceb)Electronicsecuritizationc)Sharetruncationd)Dematerialisatione)Noneoftheabove

08.Providingbankingservicestoacustomerwithouthisentranceinsidethebanksbranchiscalledas:
a)Virtualbankingb)relationshipbankingc)universalbankingd)mobilebankinge)noneoftheabove

09. Where is the headquarters of Society for worldwide Interbank Financial Telecommunication
SWIFTsituated?

a)NewYorkb)LosAngelsc)Brusselsd)Haguee)Noneoftheabove

10.WherehasNationalFinancialSwitchofIDRBTestablished?
a)Mumbaib)NewDelhic)Hyderabadd)Bangaloree)Noneoftheabove

11.Chequetruncationmeans:
a)Tearingachequeintotwoormorepiecesb)Sendingthephotostatcopyofachequeincollectionc)Usingtheelectronic
imageofachequed)KeepingthePhotostatcopyofachequewithcollectingbankbeforesendingtheoriginalchequetothe
draweebranche)Noneoftheabove

12.Whatdoyoumeanbyuniversalbanking?
a)Provisionofallfinancialservicesinonecountryb)Provisionofallfinancialservicesinonebankc)Provisionofall
financialservicesatabranchd)Provisionofallfinancialservicesatanyofthecountersofabranchofabanke)Noneofthe
above

13.Corporategovernanceisasystem
a) By which a company is directed and controlled b)In which Board of directors are responsible for managing the business
affairsofacompanyc)Boththeaboved)Governingcorporatecompaniesbythegovernmente)Noneoftheabove

14.Whoseinterestiskeptinmindinagoodcorporategovernancesystem?
a)Shareholdersofthecompanyb)Stakeholdersofthecompanyc)Employeesofthecompanyd)Alltheabovee)Noneof
theabove

15.Whatdoyoumeanbyrisk?
a)Lossb)Depreciationofcapitalc)Decreaseinprofitabilityd)Possiblelossthatdependsuponoccurrenceandnon
occurrenceofanincidente)Noneoftheabove

16.Theemployeesofthebankwentonstrikeandwhenitcomestoriskwhatdoyoumeanbythis?
a)Operationalriskb)Employeeriskc)Creditriskd)Marketriske)Systemicrisk

17.BaselIIaccordismostlyconcernedwith:
a)Centralvigilancecommissionb)Nonperformingassetsc)Capitaladequacyratiod)Foreigndirectinvestmente)None
oftheabove

18.Abankisunabletopayitsshorttermdepositsbecausethebanksfundsareblockedinlongterm
investments.Theriskderivedinthiscaseisknownis:
a)Marketriskb)Operationalriskc)Liquidityriskd)Interestrateriske)Noneoftheabove

19.Abankrecentlyintroducedanewdepositschemewhichwasnotpopularamongstthepublicand
whatdoyoumeanbytheriskassociatedwiththis?
a)Operationsriskb)Creditriskc)Liquidityriskd)Marketriske)Noneoftheabove

20.TheAssetsLiabilitiescommitteeinabankmakestheassessmentof:
a)Liquidityriskb)Creditriskc)Operationsriskd)Alltheabovee)Noneoftheabove

21.Adebtormakesdefaultinrepaymentofabankloanandwhichtypeofriskisthisforalendingbank?
a)Liquidityriskb)Operationalriskc)Interestrateriskd)Creditriske)Noneoftheabove

22.Whichtypeofriskarisesbeforeabankthattradesingovernmentsecurities?
a)Liquidityriskb)Marketriskc)Creditriskd)Traderiske)Noneoftheabove

23.Whichofthefollowingoptionsbestdefinestherisk?
a)Lossoccurredduetohappeningofanevent
b)Lossoccurredduetononhappeningofanevent
c)Riskexperiencedduetouncertainty
d)Probabilityoflossduetouncertainty
e)Noneoftheabove

24.WhichofthefollowingisnotincludedinthreepillarsofBASELcapitalaccord?
a)Minimumcapitalrequirementb)Supervisoryreviewc)Marketdisciplined)Corebankingsolutione)Noneoftheabove

25.WhenICICILimitedmergedwithICICIbank?
a)1 stAugust,2000b)1 stAugust2001c)1 stAugust,2002d)1 stAugust,2003e)noneoftheabove

26.BankofMaduraLimitedmergedwith:
a)ICICIbanklimitedb)UTIbanklimitedc)HDFCbanklimitedd)IDBIbanke)Noneoftheabove

27.WhichbankhaschangeditsnametoAXISbanklimited?
a)Centurionbankb)Timesbankc)BankofPunjabLimitedd)BankofKarade)UTIbanklimited

28.BankofCochinmergedwith:
a)PunjabNationalBankb)BankofBarodac)StateBankofIndiad)CanaraBanke)UnitedCommercialbank

29.TimesBankLimitedmergedwith:
a)HDFCBankb)BankofIndiac)PunjabNationalBankd)CentralBankofIndiae)noneoftheabove

30.Whatdoyoumeanbyhorizontalmerger?
a)Mergeroftwoormorecompaniesthatmanufacturehomogenousproducts
b)Mergeroftwoormorecompaniesthatmanufactureheterogonousproducts
c)Mergerofaprincipalcompanywithitssubsidiarycompany

d)Alltheabove
e)Noneoftheabove