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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61. The employees pension plan in which the employees contribute a portion of earning into the fund is classified as?
[A] cash balance plans
[B] early retirement window
[C] deferred profit sharing plan
[D] savings and thrift plan
Show Answer
Correct Answer: D [savings and thrift plan]
Notes:
The Thrift Savings Plan (TSP) is a tax-deferred retirement savings and investment plan that offers Federal employees the same type of savings and tax benefits that many private corporations offer their employees under 401(k) plans.
62. What is the basic aim of Lead Bank Scheme?
[A] big banks should try to open offices in each district
[B] there should be stiff competition among the various nationalized banks
[C] individual banks should adopt particular districts for intensive development
[D] all the banks should make intensive efforts to mobilize deposits
Show Answer
Correct Answer: C [individual banks should adopt particular districts for intensive development ]
Notes:
The basic aim of Lead Bank Scheme is that there should be stiff competition among the various nationalized banks and big banks should try to open offices in each district.
63. Lead bank scheme was initiated by which of the following?
[A] KP Group
[B] Gadgil Study Group
[C] Ghosh committee
[D] Bhagwati committee
Show Answer
Correct Answer: B [Gadgil Study Group ]
Notes:
Lead Bank Scheme (LBS) was introduced in 1969 based on the recommendations of the Gadgil Committee.
64. Which of the following committee s recommended the setting up of ATM?
[A] Rangarajan committee
[B] Shere committee
[C] Saraf committee
[D] Narasimhan committee
Show Answer
Correct Answer: A [Rangarajan committee]
Notes:
Automated Teller Machine (ATM) is an electronic machine operated by a customer himself to deposit or withdraws cash. In India, Dr. C Rangarajan Committee was recommended the establishment of ATMs.
65. Which of the following products provide an opportunity to build up saving through regular monthly deposits of fixed sum over a period of time?
[A] Fixed Deposit Account
[B] Savings Bank Account
[C] Recurring Deposit Account
[D] Current Account
Show Answer
Correct Answer: C [Recurring Deposit Account]
Notes:
Recurring Deposit is a special kind of Term Deposit offered by banks in India which help people with regular incomes to deposit a fixed amount every month into their Recurring Deposit.
66. What is Bancassurance?
[A] an insurance scheme to insure bank deposits
[B] an insurance scheme exclusively for the employees of banks
[C] a composite financial service offering both bank and insurance products
[D] a bank deposit scheme exclusively for employees of insurance companies
Show Answer
Correct Answer: C [a composite financial service offering both bank and insurance products]
Notes:
Bancassurance is a relationship between a bank and an insurance company that is aimed at offering insurance products or insurance benefits to the bank’s customers.
67. In Negotiable Instruments Act, the Bill of Exchange is covered under which section?
[A] Section 4
[B] Section 6
[C] Section 13
[D] Section 5
Show Answer
Correct Answer: D [Section 5]
Notes:
Section 5 of the Negotiable Instruments Act, 1881 defines bills of exchange. Bills of exchange are negotiable instruments which demand money from debtors within a stipulated period of time.
68. According Negotiable Instruments Act, what is a Promissory Note?
[A] A document written and Signed by the payer/maker
[B] Containing an unconditional undertaking
[C] To pay a certain sum of money only to a specific person or the bearer
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
A promissory note is a financial instrument that contains a written promise by one party (the note’s issuer or maker) to pay another party (the note’s payee) a definite sum of money, either on demand or at a specified future date.
69. Which of the following means ‘indorsement in blank’ of an instrumentnder section 16 of the Negotiable Instrument Act?
[A] where the indorser does not write anything on the instrument
[B] where the indorser writes his name only on the instrument
[C] where the indorser writes the name of the person who is directed to pay
[D] none of the above
Show Answer
Correct Answer: B [where the indorser writes his name only on the instrument]
Notes:
Along with name & Sign, if indorser adds a direction to pay the amount mentioned in the instrument to, or the order of, a specified person, the indorsement is said to be ‘in full’, and the person so specified is called the ‘indorsee’ of the instrument.
70. Banking Ombudsman may award compensation to the complainant for mental agony and harassment upto how much amount?
[A] 1 lakh
[B] 2 lakh
[C] 3 lakh
[D] 5 lakh
Show Answer
Correct Answer: A [1 lakh]
Notes:
Banking Ombudsman may award compensation not exceeding Rs. 1 lakh to the complainant for mental agony and harassment.
