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Banking Practice Questions

Banking Practice Questions has sections on History of Banking in India & World, Structure of Banking in India and the Types of Banking in India. Banks have been providing financial services to their Indian customers for over a century now. In the Banking Practice Questions section, we will test all these concepts and recap the ones that we have already seen!

Banking Practice Questions

A banking system is referred to as a system that provides cash management and other financial services.

History of Banking in India

Q1: Which of the following banks can be included in the Scheduled Commercial Banking System of India?

A) Private Sector Banks               B) Regional Rural Banks (R R B)              C) The Foreign Banks in India              D) All of the above                E) None of the above

Q2: Which of the Public Sector Bank’s emblem figures a dog and the words ‘faithful friendly’ in it?

A) State Bank Of India                    B) Central Bank of India               C) Syndicate Bank                   D) Punjab National Bank                E) Oriental Bank of India              F) I D B I Bank

Q3: In India, the first bank of limited liabilities managed by Indians and founded in 1881 was?

A) Oudh Commercial Bank                     B) Punjab and Sindh Bank                C) Hindustan Commercial Bank             D) The Reserve Bank of the Imperial flag               E) Punjab National Bank

Q4: When was the second phase of nationalisation done?

A) 23rd April, 1978              B) 15th April, 1980                  C) 27th July, 1991                D) 23rd June, 1979           E) None of the above

Q5: Who will act as the banker to the Governor of India?

A) State Bank of India          B) N A B A R D                C) The Finance Minister of India             D) Reserve Bank of India (R B I)     E) None of these

Q6: The headquarters of the Reserve Bank of India is located in which of the following cities?

A) Kolkata                  B) Chennai                 C) Delhi                  D) Mumbai               E) Allahabad

Q7: Who regulates the money circulation in India?

A) The Reserve Bank of India (R B I)                 B) State Bank of India

C) N A B A R D                                                        D) Commercial Banks                 E) None of the above

Q8: Which bank came into existence in the year 1921 when three banks namely, Bank of Bengal (1806), Bank of Bombay (1840) and Bank of Madras (1843) were reorganised and amalgamated to form a single banking entity?

A) Punjab National Bank                    B) Imperial Bank of India                         C) State Bank of India                D) Reserve Bank of India (R B I)                  E) None of the above

Find Your Answers Here

Q1: A), Q2: C), Q3: ), Q4: B), Q5: D), Q6: D), Q7: A), Q8: B)

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Structure of Banking in India

Q1: R B I has directed banks that the exercise of verification of asser classification and income recognition should be done as part of the audit work by the branch and statutory Auditors effective from the year ending.    [Bank P O 2010]

A) 31st March, 1993                   B) 31st March, 1994                   C) 31st March, 1995                  D) 31st March, 1996                    E) None of the above

Q2: Which of the following is not a function of the R B I?        [Bank P. O. 2010]

A) Maintaining Forex                            B) Deciding Banks Rate, C R R and S L R from time to time.

C) Opening Savings Accounts for general public.

D) Currenncy Management.                         E) None of these

Q3: Consider the following statements:

I. Bank Rate Policy.                  II. Open Market Operations.

III. Devaluation of the Rupee.

Which of the above are called fiscal measures?

A) Only II                  B) Both I and II             C) Both I and III                D) Only III         E) None of these

Find Your Answers Here

Q1: B), Q2: C), Q3: D)

Banking Systems in India

Q1: Under Section 19 of the Reserve Bank of India Act, 1934, the R B I has been prohibited from?      [ I B P S   B. O. 2010]

A) Making loans or advances.                                                 B) Drawing or accepting bills payable otherwise.

C) allowing interest on deposits or current accounts.       D) All of the above                 E) None of the above.

Q2: Rupee coins are the legal tender in India under the provisions of?               [I B P S P O 2011]

A) Reserve Bank of India Act, 1934                    B) Negotiable Instruments Act, 1881

C) Banking Regulation Act, 1949                        D) Indian Coinage Act, 1906

E) None of the above

Q3: In India, the system of decimal coinage was introduced on?              [Bank P O 2010]

A) 15th August, 1947                   B) 26th January, 1950                     C) Ist April, 1957                  D) All of these              E) None of the above

Q4: Bank rate policy, open market operations, variable reserve requirements and statutory liquidity requirements employed by the Reserve Bank as measures of credit control are classified as?                [I B P S    P O 2011]

A) Quantitative methods                 B) Qualitative methods                  C) All of the these          D) None of these

Q5: Reserve Repo is a tool used by the R B I to?                  [I B P S     P O 2010]

A) Inject liquidity                         B) absorb liquidity                  C) increase the liquidity with banking system                     D) to keep the liquidity at one level                  E) None of the above

Q6: What is the Repo Rate?                   [ I B P S     P O 2010]

A) It is a rate at which the R B I sells government securities to banks.

B) It is a rate at which R B I buys government securities from banks.

C) It is a rate at which the R B I allows small loans in the market.

D) It is a rate which is offered by Banks to their most valued customers or prime customers.

E) None of the above

Find Your Answers Here

Q1: D), Q2: D), Q3: C), Q4: A), Q5: B), Q6: B)

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