Reasoning / Banking Awareness Model Questions for IBPS / SBI Clerks Exams

1.Ways and means advances (WM-A) of the Central Govt. are payable within a period of:
a) 10 days
b) 15 days
c) 20 days
d) 14 days
e) 31 days

2.Which of the following features of Certificate of Deposit (CD) is correct?
1) CD is a negotiable market instrument
2) CD is issued in demat form or as a usance promissory note
3) CD is issued at a discount to face value
a) 1, 2 and 3
b) 1 and 2 only
c) 2 and 3 only
d) 1 and 3 only
e) None of the above

3.The minimum and maximum amount of Multiple Commercial Paper should be:
a) Rs. 1 lakh and Rs. 1 lakh
b) Rs. 1 lakh and Rs. 5 lakh
c) Rs. 5 lakh and Rs. 5 lakh
d) Rs. 5 lakh and No multiple
e) Rs. 3 lakh and Rs. 3 lakh

4.In case of a credit card if a complainant does not get satisfactory response from the bank within a maximum period of __ days from the date of his lodging the complaint, he will have the option to approach the office of the concerned Banking Ombudsman for redressal of his grievance/s.
a) 10
b) 15
c) 30
d) 60
e) 55

5.What is the amount for which the Marginal Standing Facility (MSF) can be availed by banks from RBI?
a) Minimum Rs. 1 crore and multiple of Rs. 50 lakh
b) Minimum Rs. 1 crore and multiple of Rs. 1 crore
c) Minimum Rs. 5 crore and multiple of Rs. 1 crore
d) Minimum Rs. 5 crore and multiple of Rs. 5 crore
e) Minimum of Rs. 2 crore and multiples thereof

6.Under the Marginal Standing Facility (MSF), what is the time period for which the facility can be generally availed from RBI?
a) 10 days and 12 days on Friday
b) 7 days and 9 days on Friday
c) It is an overnight credit facility
d) RBI discretion
e) Only two working days

7.What is the maximum ceiling on Foreign Direct Investment (FDI)for investment in the equity of private banks in India?
a) 25%
b) 26%
c) 49%
d) 51%
e) 74%

8.Which of the following is a prominent feature of the cheque?
a) Negotiability
b) Transferability
c) Unconditional
d) a, b & c
e) Only a & b

9.Which of the following banks has announced the deployment of" Software Robotics" in over 200 business processes across various functions?
a) Axis Bank
b) HDFC Bank
c) ICICI Bank
d) Kotak Mahindra Bank
e) IDBI Bank

10.Discount And Finance House of India Ltd (DFHI) does not deal in:
a) Commercial Bills
b) Certificate of Deposit
c) Fixed Deposits 
d) Call Money
e) None of the above

11.The leader of the Indian Money market is:
a) State Bank of India
b) Lead Bank
c) Reserve Bank of India
d) Planning Commission
e) SEBI

12.The minimum paid up equity capital for small finance banks shall be:
a) Rs. 100 cr
b) Rs. 200 cr
c) Rs. 300 cr
d) Rs. 500 cr
e) Rs. 400 cr

13.Payment Banks are allowed to accept which of the following type of deposits?
a) Recurring Deposits
b) Fixed Deposits
c) Demand Deposits
d) Flexi Deposits
e) All of the above

14.The small finance banks will extend __ of its Adjusted Net Bank Credit to the sectors eligible for classification as priority sector lending by RBI:
a) 32%
b) 40%
c) 60%
d) 75%
e) 25%

15.The minimum paid-up equity capital for Payments Banks shall be:
a) Rs. 100 cr
b) Rs. 200 cr
c) Rs. 300 cr
d) Rs. 500 cr
e) Rs. 400 cr

16.Bharatiya Reserve Bank Note Mudran Limited has it's Banknote press at:
a) Mysore
b) Dewas
c) Nasik
d) Noida
e) Hyderabad

17.There are several direct and indirect instruments that are used in the formulation and implementation of monetary policy. RBI's framework is based on a:
a) Qualitative approach
b) Selective approach
c) Multiple indicator approach
d) Quantitative approach
e) Only a & b

18.RBI issues licenses to banks andother institutions to act as ___ in the foreign exchange market.
a) primary dealer
b) authorized dealer
c) forex dealer
d) denovo dealer
e) multiple dealer

19.Acompany wants to electronical-ly pay the dividend to large no. ofits shareholders, which include small amounts also, can make such dividends through:
a) Electronic Clearing Services -Debit (ECS-Debit)
b) Electronic Clearing Services -Credit (ECS-Credit)
c) NEFT
d) RTGS
e) IMPS

20.A person wants to open an account which his wife should be able to operate only after his death. What type of account he should open?
a) Former or Survivor
b) Either or Survivor
c) Any one or Survivor
d) Jointly and Severally
e) None of the above

21.Apiculture relates to:
a) Bee-keeping
b) Cultivation of Mushrooms
c) Flower production
d) Vegetable cultivation
e) Silk production

22.Indian FInancial NET work (IN-FINET) is the communication backbone for the Indian Banking and Financial Sector. The INFI-NITE is located at:
a) Mumbai
b) New Delhi
c) Hyderabad
d) Chennai
e) Bangalore

23.Reserve Bank of India is not the regulator for:
a) Commercial Banks
b) Non Banking Finance Companies c) Housing Finance Companies
d) Leading Financial Institutions
e) None of the above

24.When the bank is selling 3rd  party products, which type of risk isinvolved?

a) Reputation Risk

b) Market Risk

c) Forex Risk

d) Credit Risk

e) None of the above

25.A banking system under which the banks are to raise low cost funds and invest such funds in low risk assets such as govt. securities, is known as:

a) Narrow Banking

b) Universal Banking

c) Rural Banking

d) Risk Management Banking Asset 

e) Liability Management Banking

26.An entity established or incorporated outside India which proposes to make investment in India and which is registered as such,in accordance with the SEBI Regulations is called?

a) Indian Depository Receipt

b) Foreign Institutional Investor

c) Foreign Direct Investment

d) Foreign Currency Convertible Bond

e) None of the above

27.The market provides a platform for trading of existing securities and price discovery thereof:

a) Primary Market

b) Secondary Market

c) Money Market

d) Insurance Market

e) None of the above

28.When Reserve Bank injects liquidity in the monetary economy of the country, this is done through which of the following mechanisms?

a) Increase in CRR

b) Repo Rate

c) Increase in SLR

d) Change in Bank Rate

e) Liquidity Adjustment Facility

29.The process in which the electronic holding of share replaces the paper securities:

a) Demutualisation

b) Rematerialisation

c) Electronic shares

d) Dematerialsation

e) None of the above

30.The term "Green-shoe option" is used in relation to:

a) Environment Audit

b) 2ndGreen Revolution

c) Capital mobilized by plantation companies

d) Option to retain that portion of the equity that has been subscribed by the public over and above the issued amount

e) Option to return the amount of capital that has been received in excess of the issued amount

31.Interest rate on a debt security(say Govt. bonds) which is suerpays to holder till maturity:

a) Interest

b) Yield

c) Floating rate

d) Coupon rate

e) None of the above

32.When buying or selling of securities is done by a person having access to privileged information,it is known as? 

a) Secular trading

b) Insider trading

c) Over trading

d) Unauthorized trading

e) None of the above

33.The term "Round tripping" in case of Foreign Direct investmentrelates to:

a) Coming back of domesticmoney as FDI

b) Use of FDI funds out of country

c) Sending back foreign moneyas export

d) a and c

e) None of the above

34.When a company instead of fixi-ng the price of new share, invitesbids and allows the market to fixthe price of the share, the processis called?

a) Private placement

b) Price search  

c) Book-building

d) Initial public Offering

e) Market price fixation

35.Which Public sector bank propo-ses to raise up to Rs. 2,000 croreon private placement basis tomeet Basel III requirements?

a) Bank of Baroda

b) Bank of India

c) Indian Bank

d) Dena Banke) Vijaya Bank

36.When an existing non-profit org-anisation is converted into a for profit company, the process is called?

a) Dematerialization

b) Demutualization

c) Re-materialization

d) Re-rnutualization

e) None of the above