Banking Awareness – SBI Associates PO Level

Published on Thursday, November 27, 2014
SBI Associates PO is the back-door entry to SBI, and thus equally important. The banking section is one where questions from moderate-difficult level are asked.

Today I have compiled 21 question – mainly of the difficult level – to help you test where you stand with your preparation.

Use this as an alarm – if you get less than 10 correct – you need to work harder!

With that … 21 questions coming up!

1. A money deposited at a bank that cannot be withdrawn for a preset fixed period of time is known as a :

(a) Term Deposit
(b) Checking Account
(c) Saving Bank Deposit
(d) No frills Account
(e) Current Deposit

2. Financial messaging network which exchanges messages between banks and financial institutions is:

(c) NEFT
(d) SFMS

3. The term ‘smart money’ refers to:

(a) Foreign Currency
(b) Internet Banking
(c) ATM withdrawal
(d) Traveller’s Cheque
(e) Credit Cards

4. Which of the following is a retail banking product :

(a) Home Loans
(b) Working Capital Finance
(c) Corporate Term Loans
(d) Infrastructure Financing
(e) Export Credit

5. Technological advancement in the recent times has given a new dimension to banks – mainly to which one of the aspects?

(a) New age financial derivatives
(b) Service Delivery Mechanism
(c) Any time banking
(d) Any type banking
(e) Multi level marketing

6. What is the maximum deposit amount insured by DICGC?

(a) Rs. 2,00,000 per depositor
(b) Rs. 2,00,000 per depositor across all banks
(c) Rs. 1,00,000 per depositor per bank
(d) Rs. 1,00,000 per depositor across all banks
(e) None of the above

Note: DICGC cover is Rs. 1,00,000 per customer (for both insurance and principal)/per bank, across all the bank’s branches.

7. The minimum paid-up capital requirement at present for new private bank in India is?

(a) Rs. 200 crores
(b) Rs. 250 crores
(c) Rs. 100 crores
(d) Rs. 150 crores
(e) Rs 300 crores

8. How many RRB’s are working in the economy?

(a) 196
(b) 64
(c) 216
(d) 125
(e) 96

9. What is moral suasion?

(a)  a term describing the corrupt practices of banks
(b) a term describing bank’s conservative practices
(c) persuasion of banks to adhere to RBI’s desires
(d) conduct or behavious or bank officers which is immoral or bad
(e) None of the above

10. The first public sector bank which in India which obtained license for Internet Banking from the RBI is:

(a) OBC
(b) PNB
(c) BOB
(d) IDBI
(e) SBI

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11. Which of the following is true about a Vostro account?

(a) it is an account maintained by a foreign bank with a bank in India in Indian Rupee
(b) it is an account maintained by an Indian Bank with a bank in foreign country in foreign currency
(c) it is an account maintained by a branch of an Indian bank with a foreign bank in foreign curency
(d) it is an account maintained by a foreign bank’s branch with an Indian bank in foreign currency
(e) None of the above

12. Which of the following was set up to maintain a database on individual’s credit record?

(c) ICRA
(e) IDRA

13. Which part of UTI is under government control?

(a) UTI - MF
(b) UTI - II
(c) UTI - I
(d) UTI - I and II
(e) UTI MF and UTI I

14. Which of the following is not a Tier I capital?

(a) Paid up capital
(b) Statutory Reserves
(c) Revaluation Reserves
(d) Investment Fluctuation Reserves
(e) None of these.

15. The terms, ‘Entry Load’ and ‘Exit Load’ is used in context of:

(a) Mutual Funds
(b) Real Estate
(c) Corporate Finance
(d) Housing Loans
(e) Health Insurance

16. The following institutions are eligible for re-finance facilities from IDBI:

(a) RRBs
(b) State Financial Corporations and State Industrial Development Corporations
(c) Commercial Banks
(d) All the above
(e) None of the given options

17. Banknet and SWIFT for transmission of messages were commissioned in the year:

(a) 1997
(b) 1991
(c) 1995
(d) 1994
(e) 1993

18. Capital Market is:

(a) Short Term Funds
(b) Medium and Long Term Funds
(c) Money Market
(d) All the above
(e) None of the above

19. Credit cards are usually valid for how many years?

(a) 5 years
(b) 1-2 years
(c) 10 years
(d) unlimited time
(e) None of the options

20. The Inter Bank messaging part of SFMS is usedful for applications like

(a) EFT
(b) RTGS
(c) CFMS
(d) DVPS
(e) All the above

& one extra …

21. Section 21 of the Banking Regulation Act, 1949 – empowers RBI to:

(a) control advances by banking companies
(b) inspect banking companies
(c) appoint CM and MD of a banking company
(d) regulate CRR/SLR
(e) None of the above


That was a good exercise wasn’t it?

Now if you got atleast 12-13 correct – with this difficulty level – then I’d say you’re getting there to ace-ing the writtens and cracking the interviews!

All the very best.

Stay focused.

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ramandeep singh

Hey I am Ramandeep Singh. I am determined to help students preparing for RBI, SEBI, NABARD and IBPS exams. Do you want me to help you ?

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