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Banking Awareness Quiz for RBI Grade B : Part - 1

Published on Thursday, August 25, 2016
1. Which of the following statements is true?
1. Banks can accept neither demand nor time deposits from public.
2. Banks can accept only demand deposits from public.
3. Banks can accept only time deposits from public
4. Banks can accept both demand and time deposits from public
5. Banks can accept demand and time deposits only from government

2. Which of the following financial institution is the sole authority to issue and manage currency in India?
1. State Bank of India (SBI)
2. A nationalized bank 
3. A cooperative Bank
4. Reserve Bank of India (RBI)
5. None of the above

3. Interest payable on savings bank accounts is regulated by ______________.
1. State Bank of India (SBI)
2. State Governments
3. Central Government
4. Reserve Bank of India (RBI)
5. Finance Minister

4. The usual deposit accounts of banks are
1. current accounts, electricity accounts and insurance premium accounts
2. current accounts post office savings bank accounts and term deposit accounts
3. loan accounts, savings bank accounts and term deposit accounts
4. current accounts, savings bank accounts and term deposit accounts
5. current bill accounts and term deposit accounts

5. Fixed deposits and recurring deposits are __________.
1. Cannot be repayable
2. repayable on demand
3. repayable after an agreed period
4. repayable after death of depositors
5. repayable on demand or after an agreed period as per bank's choice

6. Cheques can be issued respect of which of the following accounts?
1. Savings bank accounts and current accounts
2. both savings bank accounts and fixed deposit accounts
3. both savings bank accounts and cash accounts only
4. both savings bank accounts and loan accounts
5. both current accounts and loan accounts

7. Which of the following is correct statement?
1. interest rate savings deposits are the same as current deposits
2. Interest is paid on current accounts at a higher rate than term deposit accounts
3. The rate of interest on current accounts and savings account are the same
4. No interest is paid on my deposit by the bank
5. Normally no interest is paid on current deposit accounts

8. Which of the following is a definition of Mortgage?
1. It's security on movable property for a loan given by a bank
2. It's concession on immovable property for a loan given by a Bank
3. It's security on immovable property for a loan given by a bank
4. It's facility on immovable property for a deposit received by a bank

9. Which of the following is known as cross selling by banks?
(i) Sale of debit card to a credit card holder.
(ii) Sale of Insurance policy to a depositor.
(iii) Insurance of cash against cheque presented by a third party.
(iv) Offer to the existing bank customers, some additional banking products, with a view to expend banking business
1. Both (A) and (B)
2. Both (B) and (C)
3. Both (A) and (D)
4. Both (A) and (C)
5. All (A), (B), (C) and (D)

10. Financial inclusion or inclusive financing means the provision of
1. the delivery of financial services at affordable costs to sections of disadvantaged and low- income segments of society
2. ration at affordable cost to persons not yet given the same
3. house at affordable cost to persons not yet given the same 
4. food at affordable cost to persons not yet given the same   
5. education at affordable cost to persons not yet given the same 

11. Which of the following is/are the goal(s) of financial inclusion as defined by the United Nations?
1. access at a reasonable cost for all households to a full range of financial services, including savings or deposit services, payment and transfer services, credit and insurance;
2. sound and safe institutions governed by clear regulation and industry performance standards;
3. financial and institutional sustainability, to ensure continuity and certainty of investment;
4. competition to ensure choice and affordability for clients;
5. All the above

12. When a cheque returns unpaid by a bank is called ___________.
1. Payment of the cheque
2. drawing of the cheque
3. canceling of the cheque
4. dishonour of the cheque
5. taking of the cheque

13. NEFT stands for
1. National Efficient Fund Transfer system
2. National Electronic Funds Transfer system
3. National Efficient Fund transfer solution
4. Non Effective Finance transfer system
5. National Electronic Foreign Transfer system

14. Upper limit prescribed for Real-time gross settlement (RTGS) transaction is
1. Rs. 10 lac
2. Rs. 20 lacs
3. Rs. 30 lacs
4. Rs. 40 lacs
5. No upper limit is prescribed

15. Distribution of insurance products and insurance policies by banks as corporate agents is known as
1. General Insurance
2. Property Insurance
3. Bancassurance
4. Insurance Banking
Deposit Insurance

16. In order to attract more foreign exchange the government of India decided to allow foreign investment in LLP firms. LLP here stands for __________.
1. Labour Law Promotion
2. Low Labour Partnership
3. Limited Loan Partnership
4. Limited Liability Partnership
5. Long - term Liability Partnership

17. Interest on Savings banks account is now calculated by banks on
1. minimum balance during the month
2. minimum balance from 1st to last day of the month
3. minimum balance from 15th to last day of the month
4. maximum balance during the month
5. daily product baisi

18. Which of the following body is the largest shareholder (in percentage shareholding) of a nationalized bank?
1. Government of India
2. Life Insurance Corporation of India (LICI)
3. National Bank for Agriculture and Rural Development (NABARD)
4. Reserve Bank of India (RBI)
5. Indian Bankers' Association (IBA)

19. What happens when the rate of inflation increases?
1. purchasing power of money increases
2. purchasing power of money decreases
3. value of money increases
4. value of money decreases
5. purchasing power of money remains unaffected

20. A Centralized database with online connectivity to branches interest as well as ATM- network which has been adopted by almost all major banks of our country is known as
1. Investment Banking
2. Mobile Banking
3. Core Banking
4. Interest Banking
5. Social Banking

Download Banking Awareness Guide here

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