Banking Awareness for Upcoming Exams Set 31

This set contains banking awareness questions for various upcoming exams like SBI PO, IBPS PO, Clerk, NIACL Assistant and various other competitive exams.

1. The process of simultaneous buying and selling of securities or commodities in different markets in order to take advantage of differing prices for the same asset is known as?
   A) Alteration
   B) Amplification
   C) Certification
   D) Arbitrage
   
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   Option D
   Explanation: Arbitrage is basically buying in one market and simultaneously selling in another, profiting from a temporary difference. In the context of the stock market, traders often try to exploit arbitrage opportunities. For example, a trader may buy a stock on a foreign exchange where the price has not yet adjusted for the constantly fluctuating exchange rate.
2. The process of making correction or changes in cheque is known as?
   A) Modification
   B) Alteration
   C) Amendment
   D) Righting
   
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   Option B
3. ________ is networking of branches, which enables Customers to operate their accounts, and avail banking services from any branch of the Bank
   A) CBS
   B) Core
   C) Connectivity
   D) ATM
   
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   Option A
4. Which of the following account is used for buying and selling of shares or stocks?
   A) Demat Account
   B) Trading Account
   C) Materialised Account
   D) Bank Account
   
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   Option B
   Explanation: For buying and selling of shares we need trading account. Demat account is for storage of stocks in digital form.
5. Which of the following is an example of KIOSK banking?
   A) Banks working without brick and mortar branch
   B) Using the shops as a touch-point for basic banking service
   C) Extend the bank timing for extra hours
   D) None of these
   
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   Option B
6. The branch of banks functioning in special economic zones are termed as?
   A) Overseas banking
   B) Offshore banking
   C) Relationship banking
   D) Global banking
   
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   Option B
7. The difference between repo rate and reverse repo rate is known as?
   A) Repo gap
   B) Gap divergence
   C) Interest rate gap
   D) Policy rate corridor
   
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   Option D
   Explanation: This difference is known as policy rate corridor and interest rate corridor. Earlier it was +/- 100 basis point, now it has been reduced to +/- 50 bps.
8. Which of the following is not an example of plastic money?
   A) Debit Card
   B) Credit Card
   C) ATM Card
   D) Virtual Card
   
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   Option D
9. Which among the following is the clearing agency for Government securities in India?
   A) CIBIL
   B) CHS
   C) CCIL
   D) All of these
   
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   Option C
   Explanation: Clearing Corporation of India Limited (CCIL)
10. Which of the following is not fully owned by RBI?
    A) NHB
    B) DICGC
    C) SIDBI
    D) BRBNMPL
    
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    Option C