Objective Type Questions in Banking

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1. The largest revenue in India is obtained from
__________
(A) Railways(B) Excise Duty(C) Sales Tax(D) Direct Taxes
Ans : (B)
 

2. The tax levied by Central Government and collected by
State Governmentis ________
(A) Stamp Duty(B) Excise Duty
(C) Income Tax(D) Gift Tax
Ans : (A)
 

3. What is the major share in revenue of State
Governments?
(A) Stamp Duty(B) Excise Duty
(C) Sales Tax(D) Income Tax
Ans : (C)

4.The tax levied by Local Governments i.e. Municipal
Corporations andmunicipalities is ____________
(A) Income Tax(B) Wealth Tax
(C) House Tax(D) Gift Tax
Ans : (C)

5. The tax collected by the State Governments and given
to local bodies is __________
(A) Income Tax(B) Wealth Tax
(C) House Tax(D) Professional Tax
Ans : (D)
6. The period for Call Money is ________ (A) 10 to 15days
(B) 1 to 14 Days
(C) 15 to 30 Days(D) One Month
Ans : (B)
7. Who regulates the money circulation in India?
(A) State Bank of India(B) Reserve Bank of India(C)
NABARD(D) Commercial Banks
Ans : (B)
8. Which of the following is not an organized sector in
India?
(A) Nationalised Banks
(B) Regional Rural Banks
(C) Cooperative Banks
(D) Chits and Money lenders
Ans : (D)
9. Who will settle the grievances of customers of banks?
(A) Reserve Bank of India
(B) State Bank of India
(C) Local Courts
(D) Ombuds Men
Ans : (D)
10. Who introduced the Banking Ombudsmen Scheme?
(A) ARBI(B) SBI(C) Ministry of Finance(D NABARD
Ans : (A)
11. When was OMBUDS MEN SCHEME first introduced?
(A) November 2006(B) October 1981(C) June 1995(D)
January 1998
Ans : (C)
12. Which was the firth Bank corporated by the Indians?
(1881)
(A) Imperial Bank of India(B) State Bank of India(C)
Avadh Commercial Bank(D) Reserve Bank of India
Ans : (C)
13. When was the Avadh Commercial Bank established?
(A) 1881(B) 1894(C) 1898(D) 1899Ans : (A) 14. When was
Reserve Bank of India established?
(A) 1920 b)1925(C) 1935(D) 1948
Ans : (C)
15. When was Reserve Bank of India Nationalised?
(A) 1947(B) 1948(C) 1949(D) 1950
Ans : (C)
16. When was Indian Banking Act come into force?
(A) 1948(B) 1949(C) 1950(D) 1951
Ans : (B)
17. Imperial Banks were amalgamated and changed as
_________
(A) Reserve Bank of India(B) Tata Bank of India(C)
Subsidiary Banks(D) Union Bank of India
Ans : (B)
18. When was Imperial Bank was Changed as State Bank
of India?
(A) January 1st 1935(B) Feb 26 1947(C) July 1st 1955(D)
July 1st 1959
Ans : (C)
19. How many banks were first nationalised?
(A) 10(B) 12(C) 14(D) 16
Ans : (C)
20. When was the second phase of nationalisation done?
(A) 9th July 1969(B) 10th July 1968(C) 16th August
1985(D) 15th April, 1980
Ans : (D)
21. How many banks were in second phase of
nationalisation?
(A) 4(B) 5(C) 6(D) 7
Ans : (C)
22. Who will act as the banker to the Government of
India?
(A) State Bank of India(B) Reserve Bank of India(C)
NABARD(D) Nationalised Banks
Ans : (B)
23. Where is the Head Quarter of Reserve Bank of India?
(A) Mumbai(B) Delhi(C) Kolkotta(D) Ahmedabad
Ans : (A)
24. Who was first governor of Reserve Bank of India?
(A) K. A. Narasimham(B) V. K. Malhotra(C) A. K. Vadia
(D) A. B. A Smith
Ans : (D)
25. When was Lead Bank Scheme introduced?
(A) 1967(B) 1968(C) 1969(D) 1974
Ans : (C)
26. What is CRR?
a) Cash Reserve Ratiob) Current Ratio Ratec) Review
Reportd) Credit Rating Recorde) None of these
Ans: (a)
27. Interest rates being charged by Banks in India has
shown ------- trendin recent year
a) Fallingb) Risingc) Stabled) Volatilee) None of these
Ans: (a)
28. The first development financial institution in India that
has gotmerged with a bank is
a) IDBIb) ICICIc) IDFCd) UTIe) None of these
And: (b)
29. Which of the following NBFC converted itself into a
commercial Bank?
a) Tata Financeb) Reliance Capital Trustc) Birla Mutuald)
Kotak Mahindrae) None of these
Ans: (d)
30. Which is the current revision & year of UCPDC?
a) UCPDC 500, 1993b) UCODC 400, 1993c) UCPDC 300,
1973d) None of these
Ans: (a)
31. The rate of which discounting the bills of first class
banks is done byRBI is called
a) Bank Rate b) Prime Lending Ratec) Loan Rated)
Discounting Rate
Ans: (a)
32. Banking ombudsman has been constituted under
which act?
a) Banking Regulation Actb) RBI Actc) SBI Actd) COPRA
Ans: (a)
33. Which finance company has been given banking
licence by RBIrecently? a) Kotak Mahindrab) Ashok
Leyland & Financec) TVS Financed) Tata Finance e) None
of these
Ans: (a)
34. Gilt edged securities refer to
a) Government Securitiesb) Securities issued by
municipal corporationsc) Securities issued by first class
companiesd) None of these
Ans: ( c )
35. A unit of the Unit Trust of India is a a) Shareb)
Debenturec) Negotiable Instrumentd) None of these
Ans: (d)
36. Indian Banks Association (IBA) has a common net
working system forsharing the ATM facilities in Mumbai,
which is known as a) ATM Networkb) Shared Payment
Network Systemc) Cash Networkd) None of these
Ans: (b)
37. Arbitrage is
a) Buying and selling in two markets simultaneously
b) A rate of interest
c) A Fee
d) Arbitrage is a dispute
e) None of these
Ans: (a)
38. E E F C denotes
a) Exchange Earners Foreign Currency Account
b) Importer’s account with Bank
c) Account maintained by a exporter with RBI
d) None of these
Ans: (a)
39. For which of the following currencies is the Indian
rupee quotedagainst 100 units of the foreign currency
a) Deutsche Markb) Poundc) Japanese Yend) US Dollars
Ans: ( c )
40. Exchange risk in case of foreign currency Non
Resident (Banks)scheme (FCNB) is borne by
a) RBIb) Depositorc) Govt. of India
d) Concerned Bank e) None of these
Ans: (d)
41. Consortium Advances refer to
a) Concurrent borrowings
b) Multiple financing
c) Joint Financing by more than one bankd) Financing of
consignment business
e) None of these
Ans: ( c )
42. NABARD refinance for financing Self Help Groups is
to the extent of
a) 25%b) 50%c) 75%d) 100%e) None of these
Ans: (d)
43. The term Allonge refers to
a) The sheets of paper used in writing a deede
b) The stamps affixed on documet
c) A sheet of paper attached to mortgage deed for the
purpose of witness
d) A sheet of papers attached to a negotiable instrument
for the purposeof making endorsement thereof when
there is no space in the instrument
Ans: (d)
44. The provision of Consumer Protection Act, 1986 are
applicable to theservices rendered by the Banks
a) To the customers of the bank only
b) To the customers and the users of services
irrespective of againstconsideration or free services
c) To the customers and any user of Bank’s services
againstconsideration
d) None of these
Ans: ( c )
45. As per section 16 of the Banking Regulation Act, 1949
a person canbe appointed as a director of how many
banking companies
a) Three
b) Two
c) One
d) Four
e) None of these
Ans: ( c )
46. Nayak Committee Recommendations are applicable
for sanction of Fund Based Working Capital Limit upto
a) Rs.25 lacs
b) Rs.1 crores
c) Rs. 2 crores
d) Rs. 5 crores
e) None of these
Ans: (d)
47. Banking ombudsman means
a) Person appointed to recover dues from defaulting
borrowers
b) A person to whom customer can approach for redress
of his grievances
c) A person appointed to settle dispute between
employees andmanagement
d) A person appointed by RBI to oversee the functioning
of Foreign Bankse) None of these
Ans: (b)
48. NGO is the term associated with
a) SHG
b) PMRY
c) SEEUY
d) Agri. Advances
e) None of these
Ans: (a)
49. Full form of SLR
a) Statutory Liquidity Ratio
b) State Level Recovery
c) Sundry Leverage Ratio
d) State Liquidity Reserve
Ans: (a)
50.C.R.A. in banking parlance stands for
a) Credit Rating Association
b) Credit Rating Agency
c) Credit Risk Assessment
d) None of these
Ans: ( c