Banking Awareness Quiz for Banking Exams

1. As reported in various newspapers, the Reserve Bank of India is planning to allow more and more banks to function as “Local Area Banks”. This will help RBI in the implementation of which of the following of its plans/drives?

(A) Financial Inclusion

(B) Rural Banking

(C) Mobile and e-Banking

• 1) Only (A)
• 2) Only (B)
• 3) Only (C)
• 4) Only (A) and (B)
• 5) None of these

2. What is the full form of the term ‘NPA’ as used in banking environment?

• 1) Not Profitable Assets
• 2) New Potential Accounts
• 3) Non Performing Assets
• 4) Net Performing Assets
• 5) None of these

3. As per recent reports, many countries are planning to introduce “Tobin Tax”, the idea of which was given by a Nobel Prize winner economist James Tobin in 1978. Tobin Tax, if implemented, will be levied on which of the following?

• 1) On the interest income of corporates earned through; major investments
• 2) All cash transactions
• 3) Services availed specifically by an elite group of people
• 4) Foreign exchange transactions
• 5) None of these

4. Some banks which were not able to meet their priority sector lending targets are now allowed to do so by purchasing Priority Sector Lending Certificates (PSLC). Which of the following agencies/organizations is/are authorized to issue these certificates?

(A) Micro finance Institutions

(B) Non Banking Finance Companies

(C) NABARD

• 1) Only (A)
• 2) Only (B)
• 3) Only (A) and (B)
• 4) All (A), (B) and (C)
• 5) None of these

5. Which of the following countries has decided that from October 2018 no cheques should be issued or honoured there, and all the payments should be made and accepted in electronic form only?

• 1) USA
• 2) Russia
• 3) United Kingdom
• 4) Australia
• 5) None of these

6. In commodity exchanges in India, Index Futures are not permitted, as some of the provisions of the FCRA do not allow the same. What is the full form of FCRA?

• 1) Foreign Commodities Regulation Act
• 2) Forward Commodities Repurchasing Act
• 3) Forward Contracts Regulation Act
• 4) Financial Contracts Reformation Act
• 5) None of these

7. As per the findings of the World Bank, which of the following recent developments in rural areas has doubled the income of rural households, raised literacy rate by 10% and appreciated land prices by up to 80%?

• 1) Relief packages to the farmers
• 2) Construction of all-weather roads
• 3) Recharging of water bodies
• 4) Rainwater harvesting
• 5) None of these

8. Cryogenic Engines are used in which of the following areas of technology?

• 1) Atomic Energy
• 2) Food Technology
• 3) Oceanography
• 4) Space Research
• 5) None of these

9. Which of the following initiatives has/have been taken by the Govt of India to boost the development of agriculture?

(A) Accelerated Irrigation Benefit Programme

(B) Fertiliser Subsidy Scheme

(C) Public Distribution System (PDS)

• 1) Only (A)
• 2) Only (B)
• 3) Only (C)
• 4) Only (A) and (B)
• 5) All (A), (B) and (C)

10. As per the news published in various financial newspapers, the RBI is reworking the road map on Capital Account Convertibility. If this is done, who amongst the following would be able to invest in foreign projects or acquire assets outside India without any restrictions?

(A) Public Sector Banks

(B) Companies which are registered in India

(C) Govt of India

(D) Any individual

• 1) Only (A)
• 2) Only (B)
• 3) Only (C)
• 4) All (A), (B), (C) and (D)
• 5) None of these

Answers –

1. 1
2. 3
3. 4
4. 2
5. 3
6. 3
7. 1
8. 4
9. 4
10. 2