Banking Awareness Questions for SBI PO 2015

1. Which one of the following is not an electronic Banking delivery channel?  
  • (A) Mobile Vans 
  • (B) Mobile Phone Banking 
  • (C) Internet Banking 
  • (D) Tele Banking 
  • (E) ATM 
Ans: (A)

2. Loan of very small amounts given to low income groups is called.  
  • (A) Cash credit 
  • (B) Micro credit 
  • (C) Simple overdraft 
  • (D) No frills loans 
  • (E) Rural credit 
Ans: (B)

3. What does the letter ‘L’ stands for in the term LAF commonly used in financial/economic news?  
  • (A) Liquidity 
  • (B) Least 
  • (C) Liabilities 
  • (D) Long 
  • (E) Liquid 
Ans: (A) 

4. Which one of the following is a Credit Card Association?  
  • (A) India Card 
  • (B) Master Card 
  • (C) SBI Cards 
  • (D) City Bank Cards 
  • (E) BOB Card
Ans: (B) 

5. Credit risk to the bank is high from which of these cards?
  • (A) Debit cards 
  • (B) Credit cards 
  • (C) ATM cards 
  • (D) All the above 
  • (E) None of these 
Ans: (B)  

6. The Rate at which the domestic currency can be converted into foreign currency and vice-versa is known as the.  
  • (A) Exchange rate 
  • (B) MIBOR 
  • (C) Inter bank Call money rate 
  • (D) Base rate 
  • (E) UBOR 
Ans: (A) 

7. Crossing on a cheque can be cancelled by the ________ of the cheque, under his full signature.  
  • (A) payee 
  • (B) drawee 
  • (C) endorser 
  • (D) holder 
  • (E) drawer 
Ans: (E) 

8. Bank branches which can undertake foreign exchange business directly are known as in foreign exchange.  
  • (A) Authorized dealers 
  • (B) Foreign dealers 
  • (C) Overseas branches 
  • (D) Approved dealers 
  • (E) Exchange branches 
Ans: (A) 

9. Insurance cover for bank deposits in our country is provided by.  
  • (A) SBI 
  • (B) Govt. of India 
  • (C) GIC 
  • (D) UCI 
  • (E) DICGC 
Ans: (E) 

10. Depreciation of an asset occurs due to.  
  • (A) Fire in the unit 
  • (B) Theft 
  • (C) Labour Trouble 
  • (D) Wear and tear 
  • (E) None of these 
Ans: (D) 

11. When a banker talks about CDR, what is he talking about?  
  • (A) Corporate Debt Restructuring 
  • (B) Corporate Debt Rollover 
  • (C) Company Debt Rollover 
  • (D) Corporate Deposit Restructuring 
  • (E) Company Deposit Restructuring 
Ans: (A) 

12. Expand the term ALM as used in Banking/Finance sector ?  
  • (A) Asset Liability Management 
  • (B) Asset Liability Maturity 
  • (C) Asset Liability Mismatch 
  • (D) Asset Liability Manpower 
  • (E) Asset Liability Maintenance 
Ans: (A) 

13. Cash Reserve Ratio (CRR) and Statutory’ Liquidity Ratio (SLR) are terms most closely related to which of the following industries/ markets?  
  • (A) Capital Market 
  • (B) Banking industry 
  • (C) Commodities market 
  • (D) Money Market 
  • (E) Mutual fund industry 
Ans: (B) 

14. What is the maximum period for which domestic term deposits are normally accepted by banks in our country?  
  • (A) 3 years 
  • (B) 5 years 
  • (C) 7 years 
  • (D) 10 years 
  • (E) 12 years 
Ans: (D) 

15. Which of the following is NOT a source of funds of a commercial bank?  
  • (A) Capital 
  • (B) Borrowings from RBI 
  • (C) Call money borrowings 
  • (D) Deposits 
  • (E) Cash Reserves with RBI 
Ans: (A)