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Banking Awareness MCQs, Banking Awareness

Banking/Financial Awareness for Canara/SBI & Other Banking Exams

1. What is an Indian Depository Receipt?

(a) A deposit account with a public Sector Bank
(b) A depository account with any of the Depositories India
(c) An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company
(d) An instrument in the form of deposit receipt issued by Indian depositories
(e) None of these

2. What is Call Money?

(a) Money borrowed or lent for a day or overnight
(b) Money borrowed for more than one day but up to 3 days
(c) Money borrowed for more than one day but up to 7 days
(d) Money borrowed for more than one day but up to 14 days
(e) None of these

3. Many a time we read a term ‘SEPA’ in financial newspapers. What is the full form of the term?

(a) Single Exchange Processing Agency
(b) Single Euro Payments Area
(c) Single Electronic Processing Agency
(d) Super Electronic Purchase Agency
(e) None of these

4. Which of the following is a correct statement?

(a) Normally no interest is paid on current deposit accounts.
(b) Interest is paid on current accounts at the same rate as term deposit accounts.
(c) The rate of interest on current account and savings account are the same.
(d) No interest is paid on any deposit by the bank.
(e) Savings deposits are the same as current deposits.

5. A bank without any branch network that offers its services remotely through online banking, telephone/mobile banking and interbank ATM network alliances is known as

(a) Universal Banking
(b) Indirect Bank
(c) Door Step Bank
(d) A Direct Bank
(e) Unit Banking

6. The main function of IMF is to

(a) give financial investment loans to devoloping countries
(b) act as a private sector lending arm of the World Bank
(c) help of solve balance of payment problems of member countries
(d) arrange international deposits from banks
(e) None of the above

7. Which of the following cannot be called as a value added service offered by a bank?
(a) Special accounts for poor sections of society
(b) Accident insurance cover
(c) Instant credit of outstation cheques
(d) Free cheque books
(e) All of these

8. Travellers cheque is
(a) a supplementary credit card
(b) a cheque issued by a bank or finance institution which functions as capital
(c) a certificate issued by a bank or finance institution in lieu of cash
(d) a cheque issued by a bank or finance institution which functions as a bond
(e) a prepaid instrument issued by a bank or finance institution which can be substitute of cash

9. When a bank dishonors a cheque.
(a) it is called settlement of the cheque
(b) it is called withdrawing of the cheque
(c) it is called nullifying of the cheque
(d) it is called truncating of the cheque
(e) it is called return of the cheque unpaid

10. ‘Nomination’ for a Deposit account in the bank means
(a) mandate given by the close relative(s) of the depositor, to settle the death claim in case of death of the depositor
(b) mandate decided by the bank to settle the death claim of its depositor
(c) mandate of the depositor in favour of one or more persons, to claim the amount on death of the depositor
(d) mandate of the depositor in favour of a close relative who can claim the amount on death of the depositor
(e) court order instructing the banks to settle the death claim of its depositor

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