Banking Awareness Quiz With Explanation: Part 17

(1). When a Bank invest money mostly in government bonds and securities, then it is known as
(a) Para Banking
(b) Narrow Banking
(c) Unit Banking
(d) Correspondent Banking

(2). Which of the following is the first Bank in India(established in 1770)?
(a) Bank of Hindustan
(b) Oudh Commercial Bank
(c) Punjab National Bank
(d) Bank of India

(3). Reserve Bank of India was established on the recommendations of
(a) Hunter Commission
(b) Lord Lilingthow Commission
(c) Lord Wavell Commission
(d) Hilton Young Commission

(4). Which of the following is not a Subsidiary the Reserve Bank of India(RBI)?
(a) Deposit Insurance and Credit Guarantee Cooporation(DICGC)
(b) National Agriculture and Rural Development Bank(NABARD)
(c) National Housing Bank(NHB)
(d) All of the Above

(5). 'Corp Kiran' is a loan scheme of
(a) Corporation Bank
(b) Dena Bank
(c) Bank of India
(d) Indian Overseas Bank

(6). Which of the following is the name of IDBI's Mobile App?
(a) Maha Mobile
(b) Star Connect Mobile Banking
(c) Go Mobile
(d) PatMate

(7). What is 'A' stands for in LAF(related to RBI)?
(a) Asset
(b) Adjustment
(c) Audit
(d) Adequacy

(8). State Bank of India was Set up on the recommendations of
(a) A C Shah Committee
(b) Gorwala committee
(c) Abid Hussain Committee
(d) B Sivaraman Committee

(9). In which type of Banking, all the operations are performed from a single branch?
(a) Unit Banking
(b) Islamic Banking
(c) Chain Banking
(d) Para Banking

(10). Which of the following Banks in India represents 'Unit Banking'?
(a) All Small Finance Banks
(b) All Payment Banks
(c) Regional Rural Banks
(d) None of the Above


(1). Answer Key: (b)
This is done to avoid risk in the market. Banks dedicated to such type of banking are also known as Narrow Banks.

(2). Answer Key: (a)
The origin of modern banking started from 1770 in the name of “Bank of Hindustan” by English agency ‘House of Alexander & Co’ in Kolkata however it was closed in 1832. Further in 1786 “General Bank of India” was started and it failed in 1791.

(3). Answer Key: (d)
RBI was established under the recommendations of the“Hilton Young Commission”also known as “Royal Commission On Indian Currency And Finance”.

(4). Answer Key: (d)
Fourth Subsidiary, Bharatiya Reserve Bank Note Mudran Private Limited(BRBNMPL) was set up in 1995.

(5). Answer Key: (a)
Crop kiran is a loan scheme of Corporation Bank.

(6). Answer Key: (c)
Go Mobile was launched by IDBI Bank.

(7). Answer Key: (b)
Liquidity Adjustment Facility (LAF)

(8). Answer Key: (b)
SBI was established on 1st July, 1955 under the recommendations of “Gorwala committee".

(9). Answer Key: (a)
USA is where such type of banking was first introduced. In such a type of banking all the operations are performed from a single branch. A customer having an account in a specified branch has to undergo all banking activities through that branch.

(10). Answer Key: (c)
Regional Rural Banks and Local Area Banks.

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