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Banking/Financial Awareness for Canara, SBI & other Bank Exams

1. Which of the following organisations is known as the market regulator in India?

(a) IBA

(b) SEBI

(c) AMFI

(d) NSDL

(e) None of these

2. The Reserve Bank of India keeps on changing various ratios/rates frequently. Why is this done?

(1) To keep inflation under control
(2) To ensure that Indian Rupee does not lose its market value
(3) To ensure that banks do not earn huge profits at the cost of public money.

(a) Only (1)

(b) Only (2)

(c) Only (3)

(d) All (1), (2) & (3)

(e) None of these

3. Many times we read a term “Hot Money” in newspapers. What is/are the characteristics of Hot money?

(1) The term is used for fresh currency notes issued by the RBI.
(2) It is the fund which flows in the market to take advantage of high interest rates.
(3) It is the fund which is thrown in the market to create imbalance in the stock markets.

(a) Only (1)

(b) Only (2)

(c) Only (3)

(d) All (1), (2) & (3)

(e) None of these

4. The bank rate means

(a) Rate of interest charged by commercial banks from borrowers
(b) Rate of interest at which commercial banks discounted bills of their borrowers
(c) Rate of interest allowed by commercial banks on their deposits
(d) Rate at which RBI purchases or rediscounts bills of exchange of commercial banks
(e) None of these

5. A customer wishes to purchase some US dollars in India. He/she should go to

(a) Public Debt Division of the RBI only
(b) American Express Bank Only
(c) RBI or any branch of a bank which is authorized for such business
(d) Ministry of Foreign Affairs
(e) None of these

6. What is the full form of ‘ULIP’, the term which was in the news recently?

(a) Universal Life & Investment Plan
(b) Unit Loan & Insurance Plan
(c) Universal Loan & Investment Plan
(d) Uniformly Loaded Investment Plan
(e) Unit Linked Insurance Plan

7. The rate of interest on Savings Bank Account is stipulated by

(a) The concerned bank
(b) RBI
(c) Indian Banks Association
(d) Government of India
(e) Banking Codes and Standards Board of India

8. Which of the following is the Central Bank of USA?

(a) Federation of Banks, USA
(b) Citigroup, USA
(c) Bank of America
(d) Central Bank of USA
(e) Federal Reserve

9. Bank rate policy, open market operations, variable reserve requirements and statutory liquidity requirements employed by Reserve Bank as measures of credit control are classified as

(a) quantitative methods
(b) qualitative methods
(c) Both of the above
(d) All of the above
(e) None of the above

10. The Holidays for the Banks are declared as per _________.

(a) Reserve Bank Act
(b) Banking Regulation Act
(c) Negotiable Instruments Act
(d) Securities and Exchange Board of IndiaAct
(e) Companies Act

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