Banking Awareness for Upcoming Exams Set 41

Important Banking Awareness Questions for SBI PO and Upcoming bank exams like NIACL Assistant, NICL AO, IBPS PO, IBPS RRB, etc. As questions from Banking Awareness is asked in all banks and insurance exams it is important to know some banking terms and concepts.

  1. The portion of Net Demand and Time Liability that the bank has to maintain with RBI is called ____
    A) SLR
    B) CRR
    C) Repo
    D) Reverse Repo
    View Answer
    Option B
  2. A ________ is the duration in the loan term when the borrower doesn’t have to pay any repayment or EMI.
    A) Re-phrasing
    B) Waiver
    C) moratorium period
    D) Interest phrasing
    View Answer
    Option C
    Explanation
    : moratorium period
  3. Which of the following deposit is most liquid?
    A) Term Deposit
    B) Recurring Deposit
    C) Deposit in Savings Account
    D) All are equally liquid
    View Answer
    Option C
    Explanation
    : As the money in Savings account can be withdrawn anytime easily, so it is most liquid among the given options.
  4. Which of the following is not a money market instrument?
    A) T-bills
    B) Commercial Papers
    C) Certificate of Deposit
    D) Equity shares
    View Answer
    Option D
  5. Interest free deposit is allowed in _____
    A) Savings Account
    B) Current Account
    C) Term Deposit Account
    D) Both A and B
    View Answer
    Option B
    Explanation
    : Banks cannot accept interest free deposits other than in current account.
  6. How is the computation of interest on savings bank deposits done by scheduled commercial banks?
    A) yearly basis
    B) quarterly basis
    C) monthly basis
    D) daily basis
    View Answer
    Option D
    Explanation
    : With effect from April 1, 2010 payment of interest on savings bank accounts by scheduled commercial banks would be calculated on a daily product basis.
  7. What is the minimum period for which scheduled commercial banks can pay interest on term deposits?
    A) montly basis
    B) quarterly basis
    C) semi-annually basis
    D) yearly basis
    View Answer
    Option B
    Explanation
    : Interest on term deposits is payable at quarterly or longer rests. (Only for SCB)
  8. Banks are permitted to offer differential rates of interest on NRE term deposits of _____ and above.
    A) Rs 5 lakh
    B) Rs 10 lakh
    C) Rs 15 lakh
    D) Rs 20 lakh
    View Answer
    Option C
  9. What interest is paid under the deposit made under the PMGKDS 2016?
    A) 2%
    B) 4%
    C) Same as Repo Rate
    D) No Interest
    View Answer
    Option D
    Explanation
    : No interest shall be paid for deposits made in the Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016
  10. The deposits made under the PMGKDS 2016 is held in the ________ Account maintained with Reserve Bank of India.
    A) Bond Ledger Accounts
    B) Saving Account
    C) Money Restriction Account
    D) Special Deposit Account
    View Answer
    Option A
    Explanation
    : Bond Ledger Accounts (BLA)

 

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6 Thoughts to “Banking Awareness for Upcoming Exams Set 41”

  1. Nazriya @ SBI PO

    ty 7/10

  2. •?((¯°·._.• ąʍβɨЌą •._.·°¯))؟•

    thanku sir :))

  3. COLD BLOOD

    ty boss:)

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