Banking Awareness – 2020 for IBPS, RBI, SBI, NABARD and other Bank Examinations
Welcome to GKToday’s Banking Awareness Section. This section shows 100 random questions from GKToday’s Banking Awareness MCQs.
A chapterwise course of all the 925 questions divided into 88 Chapters in Banking Awareness is Available in
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51. What do we call an unconditional order to pay a certain amount on an agreed date?
[A] Promissory note
[B] Bill of exchange
[C] Money order
[D] None of the above
Show Answer
Correct Answer: B [Bill of exchange]
Notes:
The bill of exchange contains an unconditional order to pay a certain amount on an agreed date while the promissory note contains an unconditional promise to pay a certain sum of money on a certain date.
52. Under which act the banks, which are desirous of operating as BBPOUs, need to get the approval?
[A] Banking & Regulation Act 1949
[B] RBI Act 1934
[C] Payments & settlement System Act ,2007
[D] None of the above
Show Answer
Correct Answer: C [Payments & settlement System Act ,2007]
Notes:
Banks which are desirous of operating as BBPOUs would need to obtain one time approval from the RBI under the Payments & settlement System Act ,2007.
53. On which architecture is UPI built upon?
[A] IMPS
[B] NEFT
[C] RBI
[D] None of the above
Show Answer
Correct Answer: A [IMPS]
Notes:
UPI is built on the IMPS architecture. Immediate Payment Service (IMPS) is an instant payment inter-bank electronic funds transfer system in India.
54. Which of the following is the main component of Foreign exchange reserves?
[A] Gold
[B] Loans
[C] Domestic currency
[D] Foreign currency assets
Show Answer
Correct Answer: D [Foreign currency assets]
55. Which of the following about money supply measure adopted in 1977 is correct?
[A] M2= M1 +demand deposits with post offices
[B] M3= M1 +term deposits with banks
[C] M4=M3+total deposits with post offices
[D] All the above
Show Answer
Correct Answer: C [M4=M3+total deposits with post offices]
Notes:
Money supply is defined as the total quantity of money circulating in the economy at a particular time. There are three measures of money supply M1, M2, and M3.
56. Which of the following is the placement of funds in an account with a bank?
[A] Bank deposit
[B] Foreign currency
[C] Loan
[D] All of the above
Show Answer
Correct Answer: A [Bank deposit]
Notes:
Bank deposits refer to this liability rather than to the actual funds that have been deposited. When someone opens a bank account and makes a cash deposit, he surrenders legal title to the cash, and it becomes an asset of the bank.
57. What is the number of digits in IFSC Code?
Show Answer
Correct Answer: A [11]
Notes:
IFSC is short for Indian Financial System Code and represents the 11 digit character that you can usually see on your bank’s cheque leaves.
58. The savings bank account that does not operate for more than 24 months, then the acount is called?
[A] dormant account
[B] demat account
[C] inoperative account
[D] inactive amount
Show Answer
Correct Answer: A [dormant account]
Notes:
A dormant account has had no activity for a long period of time, other than posting interest. A statute of limitations usually does not apply to dormant accounts, meaning that funds can be claimed by the owner or beneficiary at any time.
59. Which of the following provides a unified “Kisan Card” issued by banks across the country under Kisan Credit Card, enabling farmers to transact business on ATMs and POS terminals?
[A] RuPay Card
[B] Maestro Card
[C] Forex Card
[D] None of The Above
Show Answer
Correct Answer: A [RuPay Card]
Notes:
RuPay is an Indian card scheme conceived and launched by the National Payments Corporation of India on 26 March 2012. It was created to fulfil the Reserve Bank of India’s desire to have a domestic, open, multilateral system of payments in India.
60. Loans to poor people by banks have many limitations including lack of security and high operating cost. So to help them which type of finance system developed?
[A] Ponzi schemes
[B] Micro Finance System
[C] Money Laundering Schemes
[D] Money tampering finance
Show Answer
Correct Answer: B [Micro Finance System]
Notes:
Micro-finance systems, hardware and services related to microfinance – providing credit and loans, normally very small amounts, to low income communities.
