IBPS Clerk Mains: Banking Awareness

1. Foreign Currency Convertible Bonds (FCCBs) and Foreign Currency Exchangeable Bonds (FCEBs) are governed by

a) FDI guidelines

b) FII guidelines

c) External Commercial Borrowings (ECB) guidelines

d) FEMA act 

e) RBI guidelines

2. Prepayment charges are exempted for

a) Housing Loans

b) Education Loans

c) Agr. Loans

d) Corporate Loans

e) a, b & c

3. Minimum and Maximum period of Certificate of Deposits

a) 15 days &1 year

b) 30 days &1 year

c) 7 days &1 year

d) 7 days & no limit

e) None

4. Maximum SLR to be maintained by banks is:

a) 50% of Net Demand and Time Liabilities (NDTL)

b) 40% Net Demand and Time Liabilities (NDTL)

c) 30% Net Demand and Time Liabilities (NDTL)

d) 60% Net Demand and Time Liabilities (NDTL)

e) None of the above

5. Which of the following statement is not correct with regard to RTGS?

a) Meant for Two lakh & above remittances only

b) Remittance should be through account transfer only

c) Maximum charges should not be more than 50 per remittance

d) Charges to be collected from the Beneficiary only

e) None of the above

6. Fiscal Policy refers to:

a) Balance of Payments

b) Govt. taxes, expenditure and borrowings

c) Govt. borrowings from Equity Market

d) Sale and purchase of securities by RBI

e) None

7. Which of the following statements are true

1. Banks are required to maintain a portion of their Net Demand and Time Liabilities (NDTL) as cash reserves (CRR) with the Reserve Bank

2. CRR does not earn any interest to Banks

3. Banks have to adhere to a requirement of 95 per cent of CRR daily (including on Saturdays) and 100 per cent on a fortnightly basis

a) 1 and 2 are correct

b) 2 and 3 are correct

c) 1 and 3 are correct

d) All are correct

e) a & b correct

8. What is the Maximum deposit in PPF in a Financial Year:

a) Rs.1,50,000

b) Rs 2,00,000

c) Rs 2,50,000

d) Rs 3,00,000

e) Rs 5,00,000

9. There are several direct and indirect instruments that are used in the formulation and implementation of monetary policy. RBI's framework is based on a:

a) Qualitative approach

b) Selective approach

c) Multiple indicator approach

d) Quantitative approach

e) None of the above

10. During 2015 ING Vysya Bank was merged with which bank resulting in formation of India’s fourth largest private bank?

a) Axis Bank

b) Kotak Mahindra Bank

c) Yes Bank

d) IndusInd Bank

e) None of the above

11. Arbitrage is

a) Buying and selling in two MARKETS simultaneously

b) A rate of interest

c) A Fee

d) Arbitrage is a dispute

e) None of these

12. The rate of which discounting the bills of first class banks is done by RBI is called:

a) Bank Rate

b) Prime Lending Rate

c) Loan Rate

d) Discounting Rate

e) Reverse Repo Rate

13. Exchange risk in case of foreign currency Non Resident (Banks) scheme (FCNB) is borne by:

a) RBI

b) Depositor

c) Govt. of India

d) Concerned Bank

e) None of these

14. To increase investment in infrastructure, ______is proposed to be encouraged. These funds will

raise resources and, through takeout finance, credit enhancement and other innovative means, provide long-term low-cost debt for infrastructure projects

a) Infrastructure Equity Funds

b) Infrastructure Debt Funds (IDF).

c) Infrastructure Mutual Fund

d) Infrastructure Benefit Fund

e) None of the above

15. Which of the following statement is not correct with regard to Tax Saver Scheme of Banks?

a) Tax exemption is available for the deposit amount under section 80C of IT Act

b) Period of deposit is allowed up to 5 Years

c) TDS is applicable, if interest payment is above Rs.10000/- in a financial year

d) Maximum amount of deposit allowed is Rs. 5 lakhs

e) c & d

Answers:

1) c

2) e

3) c

4) b

5) d

6) b

7) d

8) a

9) c

10) b

11) a

12) a

13) d

14) b

15) d