Banking Financial Awareness Quiz for IBPS / SBI Clerks exams

1. By definition, ‘Banking’ means acceptance of deposits of money from the public for the which purpose?
a) lending and investment
b) purchase buildings
c) purchase lands
d) purchase cinema halls

2. For which type of accounts Mino accounts can be opened with mothers as guardians?
a) savings
b) recurring
c) fixed
d) All the above

3. Which of the following are “Non-voucher generating transactions’ in banks?
a) Issue of pass books/statement of accounts
b) Issue of cheque books
c) Delivery of term deposit receipts/drafts
d) Acceptance of share application forms; Acceptance of clearing cheques Acceptance of bills for collection
e) All the above

4. Which of the following are “Voucher generating transactions’ in banks?
a) Issue of term deposit receipts
b) Acceptance of cheques for locker rent due
c) Issue of travellers cheques
d) issue of gift cheques; Acceptance of individual cheques for transfer credit
e) All the above

5. In terms of which Section of the Negotiable Instruments Act, 1881, the expression public holiday
includes Sunday and any other day declared by the Central Government by notification in the Official Gazette to be a public holiday?
a) Section 25
b) Section 3
c) Section 4
d) Section 15

6. From which date onwards ALFIs shall comply with the Indian Accounting Standards (nd AS) for financial statements for accounting periods?
a) beginning from April 1, 2018 onwards
b) 1.4.2017
c) 1.7.2016
d) 1.8.2016

7. In Pension Schemes, Judicious mix of investment instruments and asset classes like E,C, G ensures minimal impact on the returns on subscribers contributions even if there is a market downturn What is E,C,G?
a) Equity (E)
b) Corporate Bonds (C)
c) Government Securities (G)
d) All the above

8. An account holder who is not only unable to be physically present in the RRB but is also not even able to put his/her thumb impression on the chequel withdrawal form due to certain physical incapacity How to make payment to him in bank?
a) Ask him to go to ATM
b) A mark can be obtained on the cheque withdrawal form which should be identified by two independent witnesses, one of whom should be a responsible bank official
c) Ask him to come to bank by car
d) Not known

9. An account holder who is too ill to sign a cheque cannot be physically present in the RRB to withdraw money from his bank account but can put his/her thumb impression on the cheque/withdrawal form. In this case which of the following is correct?
a) Ask him to write
b) Ask him to read
c) Wherever thumb or toe impression of the sick/old/incapacitated account holder is obtained, it should be identified by two independent witnesses known to the RRB, one of whom should be a responsible bank official.
d) Not of these

10. Customer Service Committee of the Board in a bank could address which of the following?
a) formulation of a Comprehensive Deposit Policy
b) issues such as the treatment of death of a depositor for operations of his account
c) product approval process with a view to suitability and appropriateness
d) annual survey of depositor satisfaction tri-enniel audit of such services
e) All the above

11. All cheque forms should be printed in Hindi and English. The customer may, however, write cheques in which language?
a) English
b) Hindi
c) in the language concerned regional language
d) All the above

12. What is ‘Sachet’
a) A bag
b) a website from which the members of public would be able to obtain information regarding entities that are allowed to accept deposits, lodge complaints and also share information regarding illegal acceptance of deposits by unscrupulous entities
c) Album
d) Account

13. Who are eligible for ‘on tap’ Licensing of Universal Banks in the Private Sector?
a) Resident individuals and professionals having 10 years of experience in banking and finance at a senior level are also eligible to promote universal banks;
b) Large industrial houses are excluded as eligible entities but are permitted to invest in the banks up to 10 per cent;
c) Non-Operative Financial Holding Company (NOFHC) has been made non-mandatory in case of promoters being individuals or standalone promoting/converting entities who/ which do not have other group entities
d) All the above

14. Government of India, in consultation with Reserve Bank of India, has extended the non-competitive bidding facility in Treasury Bills to the individuals. What is the minimum of investment amount for this purpose?
a) Rs 1,000/-
b) Rs. 10,000 and in multiples of Rs 10,000 there of
c) Rs.2,000/
d) Rs 3,000

15. Government of India has accepted Saka Samvat as National Calendar with effect from which date?
a) 15.8.1947
b) 22 March 1957
c) 26.1.1950
d) 1.4.1935

16. All Government of India statutory orders, notifications, Acts of Parliament, etc. bear both the dates i.e., Saka Samvat as well as Gregorian Calendar, Gregorian Calendar starts from which month?
a) March
b) April
c) January
d) July

17. ‘Cyber Security Preparedness’ (CSP) has five Commandments for safety in banking. What are they?
a) Thou shall know your customer
b) Thou shall know your employee.
c) Thou shall keep your IT systems up-to-date and free of all risky
d) Thou shall provide for maximum IT Governance &Thou shall ensure continued Cyber Security Awareness
e) All the above

18. Remittance of funds by way of demand drafts mail transfers telegraphic transfers or any other mode and issue of travellers cheques for value of Rs. 50,000/- and above cannot be effected by which method
a) against cash payment
b) by cheque
c) any instrument
d) None of these

19. The Reserve Bank of India (RBD has set up a committee to look at the various facets of household finance’ in India and to benchmark India’s position vis-à-vis both the peer countries and advanced countries. Who is the Chairman of this committee?
a) Dr Tarun Ramadorai. Professor of Financial Economics, University of Oxford
b) Usha Thorat
c) S S Mundra
d) R Gandhi

20. Which of the following All-India Term Lending and Refinancing Institutions (AIFIs), shall follow the Indian Accounting Standards as notified under the Companies (Indian Accounting Standards) Rules, 2015?
a) Exim Bank
b) NABARD
c) NHB
d) SIDBI
e) All the above

21. In the abbreviation FVTPL, the letter F stands for what?
a) First
b) Fair (FVTPL: Fair Value Through Profit or Loss)
c) Free
d) Face

22. An instrument written in Hindi having date as per Saka Samvat calendar is a valid instrument or not?
a) Yes It is valid
b) No. It is not valid
c) Not known
d) Doubtful

23. How interest should be paid on domestic term deposit, repayable in less that three months or where the terminal quarter is incomplete?
a) Interest is not be paid
b) interest should be paid proportionately for the actual number of days reckoning the year at 365 days
c) Not known
d) Doubtful

24. NRE deposits should be held jointly with non-residents only. With whom NRO accounts may be held by non-residents jointly?
a) foreigners
b) residents
c) Minors only
d) Children’s

25. For opening of a bank account of a person who has lost both his hands and could not sign the cheque withdrawal form. How to help him in a bank?
a) Not possible to open bank account
b) Ask him to RBI
c) There must be physical contact between the person who is to sign and the signature can be by means of a mark. This mark can be placed by the person in any manner. It could be the toe impression, as suggested.
d) Not known

26. Remittance of funds by way of demand drafts/mail transfers/ telegraphic transfers or any other mode and issue of travellers cheques for value of Rs. 50,000 and above is effected only by which method?
a) by debit to the customer’s account
b) against cheques
c) other instruments tendered by the purchaser
d) All the above

27. What is NPS-Swavalamban?
a) It is a pension product to ensure a monthly income after the retirement age has been attainted.
b) SHG
c) NGO
d) Bank

28. Who can subscribe to NPS-Swavalamban?
a) Should be between 18 60 years of age as on the date of submission of his/her application by Aggregator
b) Should comply with the KYC process carried out by an Aggregator
c) Subscriber should not covered under social security scheme like Employees’ Provident Fund
and Miscellaneous Provision Act, The Coal Mines Provident Fund and Miscellaneous Provision Act etc
d) All the above

29. How to issue a Duplicate demand draft, in lieu of lost draft, up to and including Rs.5,000/- may be issued to the purchaser?
a) on the basis of adequate indemnity and without insistence on seeking non-payment advice from drawee office irrespective of the legal position obtaining in this regard
b) Cannot be issued
c) Not known
d) Ask him to deposit another Rs.5,000/-

30. It is understood that sometimes the customers opening joint accounts are dissuaded from exercising the nomination facility and in which mandate?
a) with “Either or Survivor” mandate
b) without Either or Survivor” mandate
c) Both (a) and (b)
d) Not known

31. Whenever an account is transferred from one branch to another branch, which of the following should be transferred under the advice to the customer?
a) balance of the account
b) the relative account opening form
c) specimen signatures, standing instructions, etc.
d) the master sheets wherever obtained
e)All the above

32. In terms of which section of the Negotiable Instruments Act, 1881, the expression “public holiday
includes Sunday and any other day declared by the Central Government by notification in the official Gazette to be a public holiday?
a) Section 25
b) Section 3
c) Section 4
d) None