Banking Awareness Quiz

Banking Awareness Quiz – Set 300: This post contains Banking Awareness Quiz for Banking and Insurance exams like IBPS PO/Clerk, SBI PO/Clerk, RBI Assistant/ GRADE B, NABARD, RRB PO/Clerk, NIACL, NICL and LIC AAO/Assistant etc. These Banking Awareness sets will guide you in all upcoming banking and insurance exams.

1. Repo Rate is the rate at which
   A) RBI lends money to the commercial banks
   B) RBI borrows money from the commercial banks
   C) RBI lends money to the capital market
   D) RBI borrows money from he capital market
   
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   Option A
   Explanation: Repo Rate is the rate at which RBI lends money to commercial banks.
2. When RBI announced on increase in Cash Reserve Ratio (CRR) then what does it mean?
   A) The union Government will have less money to lend
   B) The RBI will have less money to lend
   C) The commercial bank will have less money to lend
   D) All of the above
   
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   Option C
   Explanation: When RBI announced on increase in Cash Reserve Ratio (CRR) then it means that the commercial bank will have less money to lend.
3. An indirect instrument of monetary policy is _____.
   A) Bank Rate
   B) Repo Rate
   C) Open Market Operation
   D) None
   
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   Option C
   Explanation: An indirect instrument of monetary policy is Open Market Operation.
4. The primary purpose of the RBI monetary policy is to maintain:
   A) wealth
   B) exchange rate
   C) growth
   D) price stabiltiy
   
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   Option D
   Explanation: The primary purpose of the RBI monetary policy is to maintain Price stability while keeping in mind the objective of growth.
5. Which of the following terms indicates a mechanism used by commercial banks for providing credit to the government?
   A) Cash Credit Ratio
   B) Debt Service Obligation
   C) Liquidity Adjustment Facility
   D) Statutory Liquidity Ratio
   
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   Option D
   Explanation: commercial banks provide long term credit to the government by investing their funds in government securities and short-term finance by purchasing treasury bills. This is known as SLR.
6. SEBI was established in ______.
   A) 2006
   B) 1974
   C) 1948
   D) 1992
   
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   Option D
   Explanation: SEBI was established in 1992.
7. Which of the following is a Nationalized Bank in India?
   A) ICICI Bank
   B) Axis Bank
   C) State Bank of India
   D) Yes Bank
   
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   Option C
   Explanation: The major nationalized banks in India are State Bank of Indai, Punjab National Bank, Bank of Baroda, Canara bank , Union Bank of India and so on.
8. Which among the following sponsors Regional Rural Banks?
   A) Reserve Bank of India
   B) Foreign Banks
   C) National Commercial Bank
   D) Co-operative Banks
   
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   Option C
   Explanation: Any commercial bank, PSU or private bank
9. Which was the first bank to introduce the ATM?
   A) SBI Bank
   B) HSBC Bank
   C) ICICI Bank
   D) Axis Bank
   
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   Option B
   Explanation: HSBC Bankwas the first bank to introduce the ATM.
10. Where was first Indicash inaugurated?
    A) Bihar
    B) Maharashtra
    C) Madhya Pradesh
    D) Uttar Pradesh
    
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    Option B
    Explanation: The first Indicash was introduced at Chandrapada which is a rural village in Thane, Maharashtra.

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