Questions on Banking General Knowledge

Topicwise Questions - Banking and RBI related Questions

1. Which of the following public sector banks has the largest number of branches in foreign countries?

  1. Bank of India
  2. Bank of Baroda
  3. Punjab National Bank
  4. Corporation Bank

2. The only merger of two public sector banks took place between -

  1. Bank of India and New Bank of India
  2. Punjab National Bank and New Bank of India
  3. Allahabad Bank and United Bank of India
  4. Punjab National Bank and Bank of Rajasthan

3. Which of the following banks was inaugurated by Mahatma Gandhi in 1919?

  1. Bank of Maharashtra
  2. Bank of Baroda
  3. State Bank of Saurashtra
  4. Union Bank of India

4. After State Bank of India, which of the following banks has the largest number of offices?

  1. Punjab National Bank
  2. Bank of India
  3. Andhra Bank
  4. Canara Bank

5. Which of the following rates are reviewed by the RBI at the time of periodical review of the policy?

  1. Bank rate
  2. Repo rate
  3. Savings bank rate
  1. Only 1
  2. Only 2
  3. Both 1 and 2
  4. All the three

6. What are teaser loan rates charged by banks?

  1. Rate of interest which is competitively changed in relation to other banks
  2. Floating rate of interest charged by banks
  3. Low rate of interest in the initial period which goes up subsequently
  4. Higher rate of interest in the initial period which goes down subsequently

7. Which of the following terms is used in banking field?

  1. Interest rate swap
  2. Input devices
  3. Sedimentary
  4. Zero Hour

8. Expand the term EMI as used in banking/finance sector?

  1. Easy Monthly Instalment
  2. Equal Monthly Investment
  3. Equated Monthly Instalment
  4. Equated Mortgage Investment

9. Bank rate is decided by which of the following?

  1. Reserve Bank of India
  2. Government Of India
  3. State Bank of India
  4. Securities and Exchange Board of India

10. With which of following types of loans are teaser rates related?

  1. Home loans
  2. Personal loans
  3. Auto loans
  4. Reverse mortgage loans

11. What does M in M-Banking Facility being offered by banks to their customers, stand for?

  1. Money
  2. Marginal
  3. Message
  4. Mobile Phone

12. Which of the following is/are true about the Sub-Prime Crisis?

  1. It is a mortgage crisis referring to credit default by the borrowers.
  2. Sub-Prime borrowers were those borrowers who were rated low and were high risk borrowers.
  3. This crisis originated because of negligence in credit rating of the borrowers.
  1. Only 1
  2. Only 2
  3. Only 3
  4. All 1, 2, and 3

13. Match the following mergers of banks

List IList II
A. Centurion Bank of Punjab1. ICICI Bank
B. Bank of Rajasthan2. Punjab National Bank
C. Global Trust Bank3. HDFC Bank
D. Nedungadi Bank4. Oriental Bank of Commerce

  1. A - 4; B - 1; C - 2; D - 3
  2. A - 3; B - 4; C - 1; D - 2
  3. A - 2; B - 1; C - 4; D - 3
  4. A - 3; B - 1; C - 4; D - 2

14. At which of the following cities is the Head Office of Reserve Bank of India located?

  1. Mumbai
  2. New Delhi
  3. Kolkata
  4. Dehradun

15. The reserves held by Commercial Banks over and above the statutory minimum, with the RBI are called

  1. Cash reserves
  2. Deposit reserves
  3. Excess reserves
  4. Momentary reserves

16. In which year was the Imperial Bank of India rechristened as State Bank of India?

  1. 1955
  2. 1957
  3. 1962
  4. 1965

17. Banking in India is controlled by :

  1. Reserve Bank of India
  2. Union Finance Commission
  3. Union Ministry of Finance
  4. Union Ministry of Commerce

18. The Imperial Bank of India, after its nationalization came to be known as

  1. Reserve Bank of India
  2. State Bank of India
  3. United Bank of India
  4. Indian Overseas Bank

19. Regional Rural Banks are sponsored by

  1. Nationalised Commercial Bank
  2. Reserve Bank of India
  3. State Bank of India
  4. Government of India

20. Which is the country’s third largest private sector lender whose name has been officially changed to the Axis Bank ltd. ?

  1. HDFC Bank
  2. Lord Krishna Bank
  3. Centurion Bank
  4. UTI Bank

21.In which year was the Reserve Bank of India established ?

  1. 1935
  2. 1947
  3. 1949
  4. 1952

22. Expand the term LIBOR as used in financial banking sectors?

  1. Local Indian Bank Offered Rate
  2. London-India Bureau Of Regulations
  3. Liberal International Bank Official Ratio
  4. London Inter Bank Offered Rate

23. Which of the following is the apex institution which handles refinance for agriculture and rural development in India?

  1. RBI
  2. SIDBI
  3. NABARD
  4. SEBI

24. Regional Rural Banks were established in the year –

  1. 1969
  2. 1972
  3. 1973
  4. 1975

25. Which of the following is not the function of the Reserve Bank of India ?

  1. Acting as banker to the Government
  2. Keeping of Foreign Exchange Reserve
  3. Issuing of one rupee notes and coins
  4. Regulating credit in the country

26. With which of the following is SARFAESI Act 2002 related?

  1. Recovery of bad loans
  2. Regulation of Foreign Exchange
  3. Fixation of interest rates
  4. Acquisition of small banks

27. ATMs that are owned and managed by non-banking entities are known as -

  1. Red Label ATMs
  2. White Label ATMs
  3. Green Label ATMs
  4. Blue Label ATMs

28. In which denomination were India's first bimetallic coins issued in the year 2009?

  1. Rs. 100
  2. Rs. 5
  3. Rs. 10
  4. Re. 1

29. The share of State Govt in the capital of Regional Rural Bank is –

  1. 50%
  2. 35%
  3. 25%
  4. 15%

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