Banking General Knowledge Questions and Answers Pdf - 4

 Question: 1

Life Insurance Corporation (LIC) is an example of

(A) Development Bank

(B) Investment Bank

(C) Commercial Bank

(D) Co-operative Bank

View Answer

Ans: B

Investment Bank

Question: 2

Green banking means

(A) Financing of environmental friendly projects by banks

(B) Development of forestry by banks

(C) Financing of irrigation projects by banks

(D) None of the above

View Answer

Ans: A

Financing of environmental friendly projects by banks

Question: 3

Bad loans in banking terminology are generally known as

(A) BPOs

(B) NPAs

(C) Prime Asset

(D) Prime Loans

View Answer

Ans: B

NPAs

Question: 4

Which of the following organizations is NOT associated with the financial banking sector in India?

(A) ISRO

(B) BSE

(C) NABARD

(D) ECGC

View Answer

Ans: A

ISRO

Question: 5

The central Banking functions in India are performed by the

(A) Punjab National Bank

(B) Reserve Bank of India

(C) Central Bank of India

(D) State Bank of India

View Answer

Ans: B

Reserve Bank of India

Question: 6

Insurance service provided by various banks is commonly known as

(A) Investment Banking

(B) Portfolio Management

(C) Banc assurance

(D) Merchant Banking

View Answer

Ans: C

Banc assurance

Question: 7

Who is the present RBI Governor?

(A) Shaktikanta Das

(B) Urjit R. Patel

(C) Raghuram Rajan

(D) D Subbarao

View Answer

Ans: A

Shaktikanta Das

Question: 8

Where are the headquarters of Asian Development Bank (ADB)?

(A) Hongkong

(B) Singapore

(C) Manila

(D) Tokyo

View Answer

Ans: C

Manila

Question: 9

The ARDC (Agricultural Refinance and Development Corporation) is now a branch of the

(A) IDBI

(B) RBI

(C) SIDBI

(D) NABARD 

View Answer

Ans: D

NABARD 

Question: 10

What is a Debit Card?

(A) It is a card which carried prepaid balance

(B) It is a card which can be used for withdrawing cash or making payment even in the absence of any balance in the account 

(C) It is a card which can be used for withdrawing cash or making payment if there is balance in the account

(D) It is a card issued by Rating Agency

View Answer

Ans: C

It is a card which can be used for withdrawing cash or making payment if there is balance in the account

Question: 11

Which of the following is NOT a bank or finance company?

(A) HSBE

(B) Lufthansa

(C) BNP Paribas

(D) Barclays

View Answer

Ans: B

Lufthansa

Question: 12

Which among the following is an asset for a Commercial Bank?

(A) Borrowing from RBI

(B) Deposit of public

(C) Demand deposits of Industries

(D) Credit to farmers

View Answer

Ans: A

Borrowing from RBI

Question: 13

Which amongst the following organisations make major credit policies for the Regional Rural Banks (RRBs)?

(A) World Bank

(B) NABARD

(C) Asian Development Bank

(D) State Bank of India

View Answer

Ans: B

NABARD

Question: 14

Rate of interest is determined by

(A) Liquidity Preference

(B) Commercial Banks

(C) Central Government

(D) The rate of return on the capital invested

View Answer

Ans: B

Commercial Banks

Question: 15

According to the World Bank Report India is a

(A) Low Income Country

(B) Developing Country

(C) Rich Country

(D) Development Country

View Answer

Ans: A

Low Income Country

Question: 16

The bank rate means

(A) Rate at which RBI purchases or rediscounts bill of exchange of commercial banks

(B) Rate of interest allowed by commercial banks on their deposits

(C) Rate of interest at which commercial banks discounted bills of their borrowers

(D) Rate of interest charged by commercial banks from borrowers

View Answer

Ans: A

Rate at which RBI purchases or rediscounts bill of exchange of commercial banks

Question: 17

What is the major source of revenue for the commercial banks?

(A) Fixed deposits

(B) Revenue from the share market

(C) The difference between what is charged from borrowers and what is paid to depositors

(D) None of the above

View Answer

Ans: C

The difference between what is charged from borrowers and what is paid to depositors

Question: 18

The bank rate is the rate at which

(A) The RBI lend to the public

(B) A bank lends to the public

(C) The Government of India lends to other countries

(D) The RBI gives credit to the commercial banks

View Answer

Ans: D

The RBI gives credit to the commercial banks

Question: 19

Which of the following is NOT a banking related terms?

(A) Overdraft

(B) SME Finance

(C) Equinox

(D) Drawing power

View Answer

Ans: C

Equinox

Question: 20

Bank Rate is the rate

(A) The rate at which banks lend to the Industrial Financial Institutions

(B) At which Reserve Bank of India lends money to commercial Banks

(C) At which banks lend money to the depositors

(D) None of the above

View Answer

Ans: B

At which Reserve Bank of India lends money to commercial Banks