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Banking Awareness Questions for Bank Exams

1. Cash Management Bills will have the generic character of which Bills?
a) Finance
b) Treasury
c) Cash
d) Stick
e) None of these

2. In the abbreviation IBJA, the letter B stands for what ?(IBJA)
a) Billion
b) Bullion (India Bullion and Jewellers Association Ltd.)
c) Best
d) Bull
e) British

3. Auctions of T-Bills are conducted under which scheme the using “Multiple Price Auction” method?
a) Market Stabilisation Scheme (MSS)
b) BHIM
c) MNREGS
d) NRHM
e) None of these

4. Banking Ombudsman for the State of Chhattisgarh is opened at which of the following place?
a) Reserve Bank of India, Raipur
b) Nagpur
c) Chotanagpur
d) Ranchi
e) Gadchiroli

5. As a Banker to Banks, the Reserve Bank also acts as the ‘lender of the last resort’. Which help RBI will give?
a) It can come to the rescue of a bank that is solvent but faces temporary liquidity problems by supplying it with much needed liquidity when no one else is willing to extend credit to that bank
b) Appoints managers
c) Appoints liquidators
d) Engages lawyers
e) None of these

6. Banks are required to maintain a portion of their demand and time liabilities as what with the Reserve Bank of India?
a) Gold reserves
b) Cash reserves
c) Food grains
d) Diamonds
e) None of these

7. A person gets interest at savings bank rate on credit balance in KCC account ? In the abbreviation, KCC, the letter K stands for what?
a) Kisan ( KCC : Kisan Credit Scheme)
b) Knowledge
c) Kind
d) King
e) None of these

8. What is the interest rate EPFO deposits/ contributions for 2016-17 ?
a) 8.65%
b) 9%
c) 9.25%
d) 10%
e) None of these

9. The Lead Bank Scheme, envisages assignment of lead roles to individual banks (both in public sector and private sector) for the districts allotted to them. When Lead Bank Scheme was introduced?
a) 1966
b) Towards the end of 1969
c) 1972
d) 1975
e) 1980

10. In the unique LPG ID number, has how many digits are ?
a) 17 digits
b) 4
c) 6
d) 12
e) 10

11. What kind of facilities does the Bank provide to Self Help Groups?
a) The Bank provides both Term Loans and Cash Credit limits to SHGs.
b) Education loans
c) Foreign tours loans
d) Foreign exchange
e) None of these

12. “After reaching a historic low in January 2017, CPI inflation in February 2017 edged up, as expected. However, in all probability, inflation will significantly undershoot the 5 per cent target set for Q4 of 2016-17.” CPI inflation excluding food and fuel remained sticky, especially services. In the abbreviation CPI, the letter I stands for what?
a) Index (CPI : Consumer Price Index)
b) Inflation
c) Interest
d) Instalment
e) None of these

13. The manufacturing PMI and the Reserve Bank surveys also point to better sentiments on both the domestic and external demand. In the abbreviation PMI, the letter P sands for what ?
a) Purpose
b) Purchasing (PMI: manufacturing purchasing managers’ index)
c) Previous
d) Percent
e) Previous

14. Core inflation (CPI inflation excluding food and fuel) continues to be sticky, and its persistence poses upside risks for meeting the medium-term inflation target of _____ per cent within a band of +/- 2 per cent
a) 4
b) 5
c) 6
d) 7
e) None of these

15. Industrial output, measured by the index of industrial production (IIP), recovered in January, 2017 from a contraction in the previous month.In the calculation of IIP, which of the following sectors performance is taken into account?
a) Capital goods production
b) Consumer non-durables
c) Manufacturing
d) Mining and quarrying
e) All the above

16. Jilani Committee recommendations & Ghosh Committee recommendations are relating to which of the following in banks?
a) Demonetisation
b) Frauds and malpractices in banks
c) Agricultural loans
d) Industrial loans
e) Housing loans

17. Dr.Viral Acharya is _______ RBI
a) Dy. Governor
b) General Manager
c) Executive Director
d) Member, Governing Council
e) None of these

18. What is ‘IPO Grading’?
a) Exmn., marks
b) IPO grading is the grade assigned by a Credit Rating Agency (CRAs) registered with SEBI, to the initial public offering (IPO) of equity shares or any other security which may be converted into or exchanged with equity shares at a later date
c) Agricultural market rate
d) Quality of Seeds
e) None of these

19. What is Initial public offer (IPO)?
a) When an unlisted company makes either a fresh issue of shares or convertible securities or offers its existing shares or convertible securities for sale or both for the first time to the public, it is called an IPO.
b) This paves way for listing and trading of the issuer’s shares or convertible securities on the Stock Exchanges
c) Both (a) & (b)
d) Offer of Profit
e) None of these

20. What FPO? Give details.
a) Further public offer (FPO) or Follow on offer
b) When an already listed Page 3 of 32 company makes either a fresh issue of shares or convertible securities to the public or an offer for sale to the public, it is called a FPO
c) Both (a) & (b)
d) Bonus declaration
e) None of these

21. What is ‘Bonus issue’? (It is a term relating to stock market)
a) When an issuer makes an issue of shares to its existing shareholders without any consideration based on the number of shares already held by them as on a record date it is called a bonus issue.
b) The shares are issued out of the Company’s free reserve or share premium account in a particular ratio to the number of securities held on a record date.
c) Both (a) & (b)
d) Employees demand bonus
e) None of these

22. How many types of ‘Private placement’ of shares are there?
a) Preferential allotment
b) Qualified institutions placement (QIP)
c) Institutional Placement Programme (IPP)
d) All the above
e) None of these

23. What is an ‘offer document’? (a term relating to stock market)
a) ‘Offer document’ is a document which contains all the relevant information about the company, promoters, projects, financial details, objects of raising the money, terms of the issue, etc and is used for inviting subscription to the issue being made by the issuer.
b) ‘Offer Document’ is called “Prospectus” in case of a public issue and “Letter of Offer” in case of a rights issue.
c) ‘Offer Document’ is called “Letter of Offer” in case of a rights issue
d) All the above
e) None of these

24. What is ‘Red herring prospectus’?
a) Red herring prospectus is an offer document used in case of a book built public issue.
b) It contains all the relevant details except that of price or number of shares being offered.
c) It is filed with Registrar of Companies (RoC) before the issue opens
d) All the above
e) None of these

25. When the issuer at the outset decides the issue price of company’s shares and mentions it in the Offer Document, it is commonly known as what?
a) Fixed Price Issue
b) Cumulative Price Issue
c) Market price issue
d) Benchmark price issue
e) None of these

26. ‘Data for Banking Service Price Index’ is collected by whom?
a) RBI
b) CSO
c) NSSO
d) CRISIL
e) None of these

27. What is Book Building?
a) Book building is a process of price discovery.
b) The issuer discloses a price band or floor price before opening of the issue of the securities offered.
c) On the basis of the demands received at various price levels within the price band specified by the issuer, Book Running Lead Manager (BRLM) in close consultation with the issuer arrives at a price at which the security offered by the issuer, can be issued
d) All the above
e) None of these

Banking Awareness Questions for Bank Exams

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