Banking Awareness Quiz 2016 – Set 1

Hello and welcome to ExamPundit. Here is the very first set of Banking Awareness Quiz for the 2016 Bank Exams.

1. Who can invest in
Commercial Papers?
1) Individuals
2) Banking companies
3) Corporate bodies registered or incorporated in India and
unincorporated bodies, Non-Resident Indians (NRIs) and Foreign Institutional
Investors (FIIs)
4) All of the above
5) None of these
2. What does the term
“run on a bank” denote in banking industry?
1) Accruing high profit by a bank
2) Large-scale financial irregularities in a bank
3) Loss of confidence of depositors in a bank
4) Major structural changes in a bank
5) None of the above is correct
3. The Banking
Regulation Act, 1949 does not at all apply to
1) Nationalised banks
2) State Bank of India and its subsidiaries
3) Foreign banks having branches in India
4) Primary agricultural credit societies and co-operative and
land mortgage banks
5) None of these
4. Services of
Business Correspondents can be engaged by
(A) Scheduled Commercial Banks
(B) Regional Rural Banks
(C) Local Area Banks
1) Only (A)
2) Only (A) and (B)
3) Only (B) and (C)
4) Only (A) and (C)
5) All (A), (B) and (C)
5. When the Reserve
Bank of India (RBI) acts as a banker to the government, what does it do?
1) RBI keeps bank accounts of the government.
2) RBI carries out government transactions.
3) RBI advises the government on all financial and monetary
4) All the above
5) None of the above
6. Services offered
by the Reserve Bank of India (RBI) to government departments include all the

following, except
1) payment of salaries and pensions
2) distributing RBI bonds to government departments
3) direct and indirect tax collections
4) remittance facilities
5) None of the above
7. Which of the
following cannot be classified as Merit Goods?
1) Education
2) Infrastructure
3) Housing
4) Consumer durable goods
5) Healthcare
8. What is the
financial assistance or loan of
₹10,000 by a bank to small
borrowers called?
1) Business finance
2) Government finance
3) Micro finance
4) Small finance
5) KYC finance
9. A bill of exchange
in which a bank orders its branch or another bank, as the case may be, to pay a

specified amount to a specified person,
is called
1) Cheque
2) Bank draft
3) Promissory note
4) Postal order
5) Commercial paper
10. The insurance
ombudsman is to be allowed to deal with the grievances of individual consumers

involving claims higher than which of the
following amount permitted at present?
1) ₹5
2) ₹10
3) ₹15
4) ₹20
5) ₹25

Click Here for the SET 2 >>


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