Banking and Financial Awareness for SBI / IBPS Exams

1. The definition of the priority sector was first formalised in 1972 by?

 Planning Commission

 National Development Council

 Reserve Bank of India

 Ministry of Finance, Government of India

2. Liquidity ratio is fixed by the Reserve Bank of India under the powers conferred on it by?2. Liquidity ratio is fixed by the Reserve Bank of India under the powers conferred on it by?

 Reserve Bank of India Act, 1934

 Companies Act, 1956

 Banking Regulation Act, 1949

 Special Powers given by the Union Ministry of Finance

3. The largest number of commercial banks’offices are located in?

 Karnataka

 Maharashtra

 Tamil Nadu

 Uttar Pradesh

4. Which of the following is not a member of the World Bank Group?

 International Bank of Reconstruction and Development

 International Development Association

 Bank of International Settlement

 International Finance Corporation

5. Every bank wishing to commence banking business in India is required to obtain a licence from?

 Government of India, Ministry of Finance

 Government of India, Company Law Board

 Reserve Bank of India

 Registrar of Companies

6. Export Credit Packing Advance sanctioned to SSI exporters are covered under the credit guarantee scheme of ______?

 DICGC

 ECGC

 DRI

 GIC

7. The advantages of securitization for a Bank is?

 It provides liquidity to the issuing Bank

 The Bank capital does not get blocked

 Securitisation proceeds can be used for fresh lending

 All of the above

8. A Bank may prefer to invest in corporate Bonds because?

 Bond is more liquid Asset

 Bond has an easy exit

 Bond can be sold at discount

 All of the above

9. Example of the product line of a Bank is?

 Car loan

 Personal loan

 Home loan

 Above all

10. First share market in India was established in?

 Delhi

 Kolkata

 Mumbai

 Chennai

Answers:

1. c
2. c
3. d
4. c
5. c
6. b
7. d
8. d
9. d
10. c