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Banking Awareness Questions and Answers

2 years ago 7.1K Views
Q :  

High powered money is:-

(A) bank's reserves at central bank

(B) all loans and advances of banks

(C) money held by banks

(D) currency held by public and reserves with the central bank.

Correct Answer : A

Q :  

In the context of investment, what are A, AA+, and AAA+?

(A) stock exchange index

(B) credit ratings

(C) market stability index

(D) profit equity index

Correct Answer : B
Explanation :

The difference between an AA+ and AAA credit rating is that a AAA rating is considered the highest credit rating possible, while an AA+ rating is still considered a high-quality credit rating, but slightly lower than AAA.


Q :  

Non-performing assets are those assets that are overdue for a period of more than?

(A) 90 days in interest and/or installment in term loan

(B) 90 days out of order in case of over draft or cash credit, bills purchased and bills discounted.

(C) 2 harvest seasons for advances for cultivation of short duration crops.

(D) all of the above

Correct Answer : D
Explanation :
Reserve Bank of India defines Non Performing Assets in India as any advance or loan that is overdue for more than 90 days.



Q :  

The special importance of banks among financial institutions comes from:-

(A) their large and heavy transactions

(B) their positions as suppliers of money

(C) their power to create money

(D) their influence on the economy

Correct Answer : C
Explanation :

Although banks do many things, their primary role is to take in funds—called deposits—from those with money, pool them, and lend them to those who need funds. Banks are intermediaries between depositors (who lend money to the bank) and borrowers (to whom the bank lends money).


Q :  

Which report is published by World Bank every year?

(A) human development report

(B) world development report

(C) international finance and development report

(D) world trade development report

Correct Answer : B

Q :  

What defines commercial paper?

(A) long term debt issued by private corporations

(B) short term and unsecured promissory notes issued by corporations with very high credit rating standings

(C) savings instrument in which funds must remain on deposit for a specified period

(D) a and c

Correct Answer : B

Q :  

Committee related with the merger of RRbs with their sponsor bank is:-

(A) Khusro committee

(B) khan committee

(C) malegam committee

(D) narsimhan committee

Correct Answer : A

Q :  

For resolving the complaints of customers, ombudsman charges:-

(A) charges Rs. 500

(B) charges Rs. 1000

(C) charge of Rs. 100 deducted from bank account

(D) does not charge any fees

Correct Answer : D
Explanation :

Is there any charge or fee to be paid for filing a complaint with the RBI Ombudsman? No. There is no charge or fee for a customer of the RE for filing or for resolving complaints under the RB-IOS, 2021.


Q :  

Which of the following is not considered a money market instrument?

(A) treasury bills

(B) repurchase agreement

(C) commercial paper

(D) shares and bonds

Correct Answer : C
Explanation :

Equity Shares is not a `Money Market Instrument.


Q :  

largest shareholder of a nationalized bank is:-

(A) RBI

(B) NABARD

(C) Govt. of India

(D) ministry of finance

Correct Answer : C

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