Banking General Awareness Banking Regulation System of India Question Bank

done Previous Years Questions - Credit Functions of Banks Total Questions - 40

• question_answer1)
  As reported in some major financial newspapers, many times it is said that "Other Income" boosts the profit of a bank to a substantial level. What is this other income for a bank? [Pick up the option(s) which are the part(s) of this other income. [OBC 2008]

  (1) Commission for selling insurance policies

  (2) Fee for providing various services (like ATM/Extra cheque etc)

  (3) Interest on advances and loans

  A)
   Only (1)                      done clear
  B)
   Only (2) done clear
  C)
   Both (2) & (3)             done clear
  D)
   Only (3) done clear
  E)
   All (1), (2) & (3) done clear
  View Solution play_arrow

• question_answer2)
  Which of the following schemes has been launched specifically for helping Senior Citizens to avail loan by mortgage of their residential property?              [OBC 2008]
  A)
   English Mortgage Scheme done clear
  B)
   Senior Capital Loan Scheme done clear
  C)
   Reverse Mortgage Loan Scheme done clear
  D)
   DEMAT Account Scheme done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer3)
  As published in the newspapers, the RBI has issued certain guidelines to be followed by the Recovery Agents appointed by the banks. In addition to this, the Indian Bank Association (IBA) has to formulate a special training course for them. Why do RBI and IBA have to come into picture for such an issue which is the responsibility of the banks?                      [OBC 2008]

  (1) RBI and Govt were getting many complaints from the public about the misbehaviour of Recovery Agents.

  (2) Govt of India is paying much emphasis on providing banking service to the poor section of the society. News about ill - treatment by agents or suicides due to inability to pay back loans create a negative picture. RBI does not want this to happen.

  (3) Despite banks' efforts to recover loans' many people still do not wish to repay their loans, intentionally.

   Recovery agents will help banks to get their money back by all possible means.
  A)
   Only (1)                      done clear
  B)
   Only (2) done clear
  C)
   Both (1) & (2) done clear
  D)
   Only (3) done clear
  E)
   All (1), (2) & (3) done clear
  View Solution play_arrow

• question_answer4)
  Banks these days have launched a new scheme product known as "Reverse Mortgage". The scheme is designed keeping which of the following groups of society in consideration?                     [BOM 2008]
  A)
   Youngsters who have just started earning done clear
  B)
   Defence personnel whose life is always at high risk done clear
  C)
   Senior citizens done clear
  D)
   Women who do not have independent source of income done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer5)
  When more than one bank is allowing credit facilities to one party in coordination with each other under a formal arrangement, the arrangement is generally known as [BOB 2008]
  A)
   Participation   done clear
  B)
   Consortium done clear
  C)
   Syndication                done clear
  D)
   Multiple banking done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer6)
  Which of the following correctly describes what sub-prime lending is?            [IOB 2008]

  (1) Lending to the people who cannot return the loans.

  (2) Lending to the people who are high- value customers of the banks.

  (3) Lending to those who are not a regular customer of a bank.

  A)
   Only (1) done clear
  B)
   Only (2) done clear
  C)
   Only (3) done clear
  D)
   All (1), (2) & (3) done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer7)
  The Govt of India recently provided an amount of Rs. 65,300 cr to about 3.6 cr farmers in India. What was the purpose of the distribution of this much amount to the farmers?                 [Andhara Bank 2009]
  A)
   To enable them to purchase tractors and other hitech agricultural machines done clear
  B)
   This was given to them as a debt waiver and relief package. done clear
  C)
   To provide them fertilisers and advanced high- yielding seeds for the next harvesting season done clear
  D)
   To help them avail Internet services and update their knowledge about the farming techniques and adopt new methods of the same done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer8)
  As we all know, Govt of India is giving much emphasis these days on the development of Small and Medium Enterprises (SMEs). Which of the following statements reflects the importance of the SME sector in the India economy?                                 [RBI 2009]

  (1) The Govt is following a policy of keeping some items reserved for SMEs only. Hence a good number of items for local consumption come from these alone.

  (2) The main advantages of SMEs are reduction of regional imbalances, low investment, greater operational flexibility and low production cost. This helps in good control over prices of such items in local markets.

  (3) A very large number of people are employed in this sector and this sector is the second largest employer in India, after agriculture.

  A)
   Only (1) done clear
  B)
   Only (2) done clear
  C)
   Only (3) done clear
  D)
   All (1), (2) & (3) done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer9)
  As we have noticed, many banks are now entering into Insurance business. Why are Banks entering into this sector, particularly when many insurance companies are already there in India?        [RBI 2009]

  (1) By providing insurance products, banks are earning additional revenue in terms of fee/commission.

  (2) Banks with their huge customer base are leveraging on their existing relationship to convert customers into policyholders.

  (3) With increase of health-related problems, everybody wants an insurance cover, no matter how big or small it is. Banks are coming up with many attractive offers, which are also affordable.

  A)
   Only (1) done clear
  B)
   Only (2) done clear
  C)
   Only (3) done clear
  D)
   All (1), (2) & (3) done clear
  E)
   Only (1) & (2) done clear
  View Solution play_arrow

• question_answer10)
  One of the key factors that provide impetus to strong growth is Interest Rates. How do interest rates contribute to the growth of economy, particularly when these are lowered down?               [RBI 2009]

  (1) It gives corporations the opportunity to prepay high-cost debts and replace them with fresh funds raised at lower rates.

  (2) Banks use this opportunity to maximize profits on their treasury operations and these excess profits are used to clean their Balance Sheets by making higher provisions for NPAs or sticky loans.

  (3) The Govt also gets benefited as it can borrow funds from open market at low interest rates and bridge its fiscal deficit.

  A)
   Only (1) done clear
  B)
   Only (2) done clear
  C)
   Only (3) done clear
  D)
   All (1), (2) & (3) done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer11)
  'Sub Prime Lending' is a term applied to the loans made to     [Punjab & Sindh 2011]
  A)
   those borrowers who do not have a good credit history. done clear
  B)
   those who wish to take loan against the mortgage of tangible assets. done clear
  C)
   those who have a good credit history and are known to bank since 10 years. done clear
  D)
   those borrowers who are most preferred customers of the Bank. done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer12)
  Which of the following schemes is launched specifically for helping senior citizens to avail loan by mortgage of their residential property?      Indian Overseas Bank 2011]
  A)
   English Mortgage Scheme done clear
  B)
   Senior Capital loan Scheme done clear
  C)
   Reverse Mortgage Loan scheme done clear
  D)
   Senior Citizen Personal Loan scheme done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer13)
  Bancassurance is [Corporation Bank 2011]
  A)
   an insurance scheme to insure bank deposits done clear
  B)
   an insurance scheme exclusively for the employees of banks done clear
  C)
   a composite financial service offering both banking and insurance products done clear
  D)
   a bank deposit scheme exclusively for employees of insurance companies done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer14)
  Which of the following types of accounts are known as 'Demat Accounts'?  [IBPS 2011]
  A)
   Accounts which are Zero Balance Accounts done clear
  B)
   Accounts which are opened to facilitate repayment of a loan taken from the bank. No other business can be conducted from there. done clear
  C)
   Accounts in which shares of various companies are traded in electronic form done clear
  D)
   Accounts which are operated through internet banking facility done clear
  E)
   None to these done clear
  View Solution play_arrow

• question_answer15)
  The arrangement under which banks sell insurance products acting as the agents of the respective companies is called the [IBPS 2013]
  A)
   Insurance joint venture done clear
  B)
   Bancassurance Model done clear
  C)
   Hybrid Insurance Model done clear
  D)
   Insurance Broking done clear
  E)
   Integrated Model done clear
  View Solution play_arrow

• question_answer16)
  Which one of the following is not a 'Money Market Instrument'?         [IBPS 2012]
  A)
   Treasury Bills done clear
  B)
   Commercial Paper done clear
  C)
   Certificate of Deposit done clear
  D)
   Equity Shares done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer17)
  Which one of the following is a retail banking product?                       [IBPS 2012]
  A)
   Home Loans done clear
  B)
   Working capital finance done clear
  C)
   Corporate term loans done clear
  D)
   Infrastructure financing done clear
  E)
   Export Credit done clear
  View Solution play_arrow

• question_answer18)
  Banks in India are required to maintain a portion of their demand and time liabilities with the Reserve Bank of India. This portion is called ________.            [SBI Bank 2013]
  A)
   Statutory Liquidity Ratio done clear
  B)
   Cash Reserve Ratio done clear
  C)
   Bank Deposit done clear
  D)
   Reserve Repo done clear
  E)
   Government Securities done clear
  View Solution play_arrow

• question_answer19)
  Interest below which a bank is not expected to lend to customers is known as _______. [SBI Bank 2013]
  A)
   Deposit Rate done clear
  B)
   Base Rate done clear
  C)
   Prime Lending Rate done clear
  D)
   Bank Rate done clear
  E)
   Discount Rate done clear
  View Solution play_arrow

• question_answer20)
  In banking business/ when the borrowers avail a Term Loan, initially they are given a repayment holiday and this is referred as ________.          [SBI Bank 2013]
  A)
   Subsidy                       done clear
  B)
   Interest Waiver done clear
  C)
   Re-phasing                 done clear
  D)
   Interest concession done clear
  E)
   Moratorium done clear
  View Solution play_arrow

• question_answer21)
  The arrangement under which banks sell insurance products acting as the agents of the respective companies is called the  [IBPS Bank 2013]
  A)
   Insurance joint venture done clear
  B)
   Bancassurance Model done clear
  C)
   Hybrid Insurance Model done clear
  D)
   Insurance Broking done clear
  E)
   Integrated Model done clear
  View Solution play_arrow

• question_answer22)
  As reported in some major financial newspapers, many times it is said that "Other Income" boosts the profit of a bank to a substantial level. What is this other income for a bank? Pick up the option(s) which are the part(s) of this other income.  [RBI Assistant 2015]

  (1) Commission for selling insurance policies

  (2) Fee for providing various services (like ATM/Extra cheque etc)

  (3) Interest on advances and loans

  A)
   Only (1) done clear
  B)
   Only (2) done clear
  C)
   Both (1) & (2)             done clear
  D)
   Only (3) done clear
  E)
   All (1), (2) & (3) done clear
  View Solution play_arrow

• question_answer23)
  As per the reports published in the newspapers, the banks, particularly public sector banks, are tying up with various rating agencies for providing a qualitative assessment of the credit needs of the borrowers. Which amongst the following is/are such credit rating agencies in India? [RBI Assistant 2015]

  (1) CARE

  (2) CRISIL

  (3) ULIP

  A)
   Only (1)                      done clear
  B)
   Only (2) done clear
  C)
   (1) & (2) only  done clear
  D)
   Only (3) done clear
  E)
   All (1), (2) & (3) done clear
  View Solution play_arrow

• question_answer24)
  The concept of 'Micro Credit' essentially concentrates on                   [IBPS 2013]
  A)
   consumption smoothening as and when needed done clear
  B)
   providing safe place to hold savings done clear
  C)
   accepting deposits done clear
  D)
   provision of credit to the poor done clear
  E)
   facility to transfer money done clear
  View Solution play_arrow

• question_answer25)
  Cheque truncation can be done by? [IBPS 2014]
  A)
   Using MICR data done clear
  B)
   Sending cheque by speed post done clear
  C)
   Using image processing done clear
  D)
   Both [a] & [b] done clear
  E)
   None of the above done clear
  View Solution play_arrow

• question_answer26)
  Banks with higher proportion of demand deposits will have I              [SBI 2014]
  A)
   Low cost money at its disposal done clear
  B)
   Low interest money at its disposal done clear
  C)
   Higher number of current and savings accounts done clear
  D)
   High amount of liquid money done clear
  E)
   All of the above done clear
  View Solution play_arrow

• question_answer27)
  Bad advances of a bank are called [IBPS Main 2015]
  A)
   standard accounts done clear
  B)
   book debt done clear
  C)
   non-performing assets done clear
  D)
   out of order account done clear
  E)
   overdrawn accounts done clear
  View Solution play_arrow

• question_answer28)
  In the Balance of Payment (BOP), the transfer of payment is included in which of the following? [SBI Main 2015]
  A)
   Current Account done clear
  B)
   Capital Account done clear
  C)
   Savings Accounts under Govt. Schemes done clear
  D)
   Official Reserve Accounts done clear
  E)
   All of them done clear
  View Solution play_arrow

• question_answer29)
  Basic Savings Bank Deposit Account (BSBDA) is a Zero Balance Savings Account that takes care of your simple banking needs with Free ATM card, monthly statement, and cheque book. How much amount has withdrawal and transfer limit under BSBDA?         [IBPS Main 2016]
  A)
   Rs. 1,00,000 per month done clear
  B)
   Rs. 20,000 per month done clear
  C)
   Rs. 50,000 per year done clear
  D)
   Rs. 10,000 per month done clear
  E)
   No Limit done clear
  View Solution play_arrow

• question_answer30)
  All bank loans, including home loans, taken are now linked to the bank's marginal cost of funds based lending rate (MCLR). MCLR has effective from?                 [IBPS Main 2016]
  A)
   January 1, 2016 done clear
  B)
   September 1, 2015 done clear
  C)
   April 1, 2015 done clear
  D)
   April 1, 2016 done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer31)
  Name the department that was set up by Union Finance Ministry to streamline government borrowings and better cash management with the overall objective of deepening bond markets. [IBPS Main 2016]
  A)
   Debt Management Cell done clear
  B)
   Department of Debt Management done clear
  C)
   Cell for management of debt done clear
  D)
   All of the above done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer32)
  The lock-in period in case of a term deposit means -                         [IBPS Main 2016]
  A)
   Locker service is not available done clear
  B)
   Premature withdrawal is not possible done clear
  C)
   Another account cannot be opened done clear
  D)
   No further investment is possible done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer33)
  Loan and Advances of a bank come under the category of.___.      [IBPS Main 2016]
  A)
   Deposits                      done clear
  B)
   Expenditure done clear
  C)
   Liabilities                    done clear
  D)
   Assets done clear
  E)
   None of the above done clear
  View Solution play_arrow

• question_answer34)
  What does the term 'Call Money' refer to? [IBPS Main 2016]
  A)
   A loan made for a very short period of a few days or a week done clear
  B)
   Student loans to help cover the cost of higher education done clear
  C)
   Loans to allow consumers to buy homes they can't pay for upfront done clear
  D)
   Personal loans for any personal expenses which don't have a designated purpose done clear
  E)
   Loans to veterans and their families done clear
  View Solution play_arrow

• question_answer35)
  Which of the following is not correct regarding the Systemically Important Non- deposit taking NBFCs (NBFC-ND Sis)? [IBPS 2014]
  A)
   They came into being in the wake of the recent global recession done clear
  B)
   NBFCs with assets of Rs. 100 crore and above are being classified as NBFC- ND-Sis done clear
  C)
   Prudential regulations are applicable to them done clear
  D)
   It was created in 2006 done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer36)
  Which of the following is/are correct regarding the functions of the Indian Mortgage Guarantee Corporation? [IBPS 2014]
  A)
   It mitigates risk taken by lenders done clear
  B)
   It provides mortgage guarantees to banks done clear
  C)
   It provides mortgage guarantees to housing finance companies done clear
  D)
   It makes easier for people to get access to   home loans with lower down payment amounts done clear
  E)
   All of the above done clear
  View Solution play_arrow

• question_answer37)
  What is the minimum period for which a fixed deposit can be opened in India? [IBPS 2014]
  A)
   3 days done clear
  B)
   7 days done clear
  C)
   15 days done clear
  D)
   30 days done clear
  E)
   60 days done clear
  View Solution play_arrow

• question_answer38)
  What is the maximum period for which domestic term deposits are normally accepted by banks in our country? [SBI 2014]
  A)
   3 years                        done clear
  B)
   5 years done clear
  C)
   7 years                        done clear
  D)
   10 years done clear
  E)
   12 years done clear
  View Solution play_arrow

• question_answer39)
  These are the reserves that are held by Commercial Banks over and above the statutory minimum with the central bank. [SBI 2014]
  A)
   Excess reserves           done clear
  B)
   Cash reserves done clear
  C)
   Deposit reserves          done clear
  D)
   Momentary reserves done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer40)
  Which of the following is not viewed as a national debt?                             [IBPS 2015]
  A)
   Provident Fund done clear
  B)
   Life Insurance Policies done clear
  C)
   National Saving Certificate done clear
  D)
   Long-term Government Bonds done clear
  E)
   None of these done clear
  View Solution play_arrow