Banking Awareness Questions Set 88

Banking Awareness Questions for upcoming banks and insurance exams – SBI PO, IBPS PO/Clerk, RRB PO/Clerk, RBI, IPPB, LIC, NICL, UIIC.

  1. Foreign currency which has a tendency of quick migration is called
    A) cold currency
    B) hot currency
    C) liquid currency
    D) none of these
    View Answer
    Option B
    In economics, hot money is the flow of funds (or capital) from one country to another in order to earn a short-term profit on interest rate differences and/or anticipated exchange rate shifts.
  2. Devaluation of currency leads to
    A) increasing domestic prices
    B) no impact on domestic prices
    C) fall in domestic prices
    D) can either increase or decrease
    View Answer
    Option A
    Explanation:
    One has to give higher price for the domestic goods because value of the money diminished in terms of foreign currency.
  3. Customer has been defined in
    A) Banking regulations act
    B) Anti-Money laundering act
    C) RBI act
    D) KYC Guidelines
    View Answer
    Option D
  4. Which of the following is not a part of the credit hierarchy in India?
    A) Scheduled commercial banks
    B) Cooperative banks
    C) Money lenders
    D) All of these
    View Answer
    Option C
    Banks and Financial Institutions which are permitted by RBI ti give loans com under credit hierarchy
  5. What is credit rating used for?
    A) To rate the borrower while giving loans
    B) To rate Bank while taking loans
    C) To rate customer while giving Forex loans
    D) To rate a customer before giving a home loan
    View Answer
    Option A
  6. Which of the following tools is used by RBI for selective credit control?
    A) It advises banks to recall loans against certain commodities
    B) It advises banks against giving loans against certain commodities
    C) It assigns higher risk weighted to certain kinds of loans
    D) None of these
    View Answer
    Option C
  7. Which of the following is correct in the context of over night market?
    A) It is a money market term
    B) It is the shortest term loan
    C) The borrower returns the capital and interest at the start of the next business day under this arrangement
    D) All of these
    View Answer
    Option D
  8. Banks cannot accept interest free deposits other than in
    A) Saving account
    B) Recurring deposit account
    C) Fixed deposit account
    D) Current account
    View Answer
    Option D
    Solution:

  9. For violation of which of the following acts can SEBI punish a company?
    A) Negotiable Instruments Act
    B) Banking Regulation Act
    C) RBI act
    D) All of these
    View Answer
    Option A
  10. To whom does the RBI pay dividends?
    A) Government of India
    B) All state governments
    C) National Payment Corporation of India
    D) both A and B
    View Answer
    Option a

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12 Thoughts to “Banking Awareness Questions Set 88”

  1. balakrushna das

    THANKS AZ

  2. %%%

    mam 3rd ka option “d” hoga na ?

  3. Sneha Dubey

    “customer ” defined under prevention of money laundering Act, 2002

      1. Ravi Upadhyay

        to mam anti money laundering act kun ni hga

  4. Biswajit Debnath

    Maa’m banking awareness ka total 88 set porne se BA ka part RRB PO mains kiliye cove hoyenge kiya?

    1. Aparna

      Hiii
      And also try AC Banking awareness quizzes
      It will definitely help u…
      Have a good day…

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