Banking Awareness MCQ Set-4

June 14, 2014

1.Interest payable on savings bank accounts is?

a) De-regulated by RBI 

b) Regulated by State Governments

c) Regulated by Central Govt

d) Regulated by RBI 

e) Regulated by Finance Minister


2.The usual deposit accounts of banks are? 

a) Current accounts, electricity accounts and insurance premium accounts.

b) Current accounts, post office savings, bank accounts and term deposit accounts.

c) Loan accounts, savings bank accounts and term deposit accounts.

d) Current accounts, savings bank accounts and term deposit accounts.

e) Current bill accounts and term deposit accounts.


3.Fixed deposits and recurring deposits are?

a) Repayable after an agreed period 

b) Repayable on demand 

c) Not repayable 

d) Repayable after death of depositors

e) Repayable on demand or after an agreed period as per bank's choice


4.Accounts are allowed to be operated by cheques in respect of? 

a) Both savings bank accounts and fixed deposit accounts.

b) Savings bank accounts and current accounts.

c) Both savings bank accounts and loan accounts.

d) Both savings bank accounts and cash accounts only.

e) Both current accounts and fixed deposit accounts.


5.Which of the following is correct statement?

a)No interest is paid on current deposit accounts.

b)Interest is paid on current accounts at the same rate as term deposit accounts.

c) The rate of interest on current accounts and savings accounts are the same. 

d) No interest is paid on any deposit by the bank.

e) Savings deposits are the same as current deposits.


6.Banking services delivered to a customer by means of a computer control system that does not directly involve banks branch is called? 

a) Universal banking 

b) Virtual banking 

c) Narrow banking 

d) Brick & Mortal banking 

e) None 


7.Financial inclusion means provision of ?

a) Financial services namely payments, remittances,savings, loans and insurance at affordable cost to persons not yet given the bank

b) Ration at affordable cost to persons not yet given the same

c) House at affordable cost to persons not yet given the same

d) Food at affordable cost to persons not yet given the same

e) Education at affordable cost to persons not yet given the same


8. When a bank returns a cheque unpaid, it is called?a) Payment of the cheque

b) Drawing of the cheque

c) Canceling of the cheque

d) Dishonour of the cheque 

e) Taking of the cheque


9.Who is the Chairman of the committee constituted by RBI to study issues and concerns in the Micro Finance Institutions (MFI) Sector?

a) YH Malegam 

b) Dr. KC Chakraborty

c) C. Rangrajan 

d) M. Damodaran 

e) Usha Thorat


10.Which of the following types of accounts are known as 'Demat Accounts'?

a) Accounts which are Zero Balance 

b) Accounts which are opened to facilitate repayment of a loan taken from the bank. No other business can be conducted from there

c) Accounts in which shares of various companies are traded in electronic form

d) Accounts which are operated through internet banking facility 

e) None of the above


11.NEFT means?

a) National Electronic Funds Transfer 

b) Negotiated Efficient Fund Transfer system

c) National Efficient Fund Transfer solution 

d) Non Effective Fund Transfer system

e) Negotiated Electronic Foreign Transfer system.


12.Distribution of insurance products and insurance policies by banks as corporate agents is known as?

a) General insurance 

b) Non life insurance 

c) Bancassurance

d) Insurance Banking 

e) Deposit Insurance


13.In respect of partnership business, LLP stands for:

a) Local Labour Promotion 

b) Low Labour Projects 

c) Limited Loan Partnership 

d) Longer Liability Partnership 

e) Limited Liability Partnership


14.What is a stale cheque?

a) A cheque issued without drawer's signature.

b) A cheque with only signature of the drawer.

c) A cheque which has completed 3 months from the date of its issue.

d) Any one of the above.

e) None


15.Interest on savings bank account is now calculated by banks on?

a) Minimum balance during the month 

b) Minimum balance from 7th to last day of the month

c) Minimum balance from 10th to last day of the month

d) Maximum balance during the month 

e) Daily product basis


16.Largest shareholder (in percentage shareholding) of a Nationalized bank is ?

a) RBI 

b) NABARD 

c) LIC 

d) Govt of India 

e) IBA


17. By increasing repo rate, the economy may observe the following effects ______

a) Rate of interest on loans and advances will be costlier. 

b) Industrial output would be affected to an extent.

c) Banks will increase rate of interest on deposits. 

d) Industry houses may borrow money from foreign countries. 

e) All of these.


18. Increased interest rates, as is existing in the economy at present  will_______

a) Lead to reduction in borrowings 

b) Lead to lower GDP growth.

c) Mean higher cost of raw materials

d) Mean lower cost of raw materials. 

e) Mean higher wage bill.


19. Which of the following schemes is launched to provide pension to people in unorganized sectors in India?

a) Swabhiman 

b) Jeevan Dhara 

c) Jeevan Kalyan 

d) ASHA 

e) Swalamban


20. A cheque returned for insufficiency of funds. Payee will have right to notice and approach court of law for justice under section 138 of which act?

a) Indian Penal Code 

b) Negotiable Instrument Act 

c) Criminal Procedure Code

d) Payment and Settlement Act 

e) Indian Contract Act


21. Mr. Rajendra had filled a complaint with Banking Ombudsman but is not satisfied with the decision. What is the next option before him for getting his matter resolved?

a) Write to the CMD of the Bank.

b) File an appeal before the Finance Minister.

c) File an appeal before the Banking Ombudsman again. 

d) File an appeal before the Dy. Governor RBI. 

e) Simply close the matter as going to court involves time and money.


22. Which of the following is an example of Financial assets?

a) National Saving Certificate 

b) Infrastructure Bonds 

c) Indira Vikas Patra 

d) Krishi Vikas Patra 

e) All of these


23. Bank branches which can undertake foreign exchange business directly are known as:

a) Authorized dealers 

b) Foreign dealers 

c) Overseas branches 

d) Approved dealers 

e) Exchange branches


24. Insurance cover for bank deposits in our country is provided by ____

a) SBI 

b) Govt of India 

c) GIC 

d) LIC 

e) DICGC


25. The Financial Literacy does not include which of the following?

a) How to invest the funds

b) How to use the limited funds carefully

c) How to minimize the risks 

d) How to reinvest the money earned

e) None of these



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