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Take the test now to further enhance your preparation.
Directions (Q. 1-15) : Read the following passage carefully and answer the questions given below it.
Certain , words/phrases have been printed in bold to help you locate themwhile answering some of the
questions.
It was in the offing. With shortages mounting across the board for water as they are for energy, it was
only inevitable that the Central government would be stirred into starting a Bureau of Water Efficiency
(BWE), much like the Bureau of Energy Efficiency (BEE) that was launched some years ago.
Early reports suggest that the draft norms for various sectors consuming water will be created by the
BWE soon. The alarm bells have been ringing for some years now. Water availability per capita in India
has fallen from about 5 million litres in the 1950s to 1.3 million litres in 2010-that's a staggering 75 per
cent drop in 50 years. Nearly 60 percent of India's aquifers have slumped to critical levels injust the last
15 years. Thanks to the rate at which borewells are being plunged in every city with no law to ban such
extraction, groundwater tables have depleted alarmingly.
The BEE's efforts in the last seven years have only been cosmetic. The bureau has looked at efficiency
rating systems for white goods in the domestic sector and has not paid attention to the massive
consumption of energy in metals manufacture, paper and textiles. These sectors are very intense in both
energy and water consumption. But very little attention has been paid to the water and energy used per
tonne of steel or cement or aluminium that we buy, and without significant changes in these areas, the
overall situation is unlikely to change.
Use of water is inextricably interlinked with energy. One does not exist without the other. The BWE
should steer clear of the early mistakes of BEE-of focusing on the 'softer targets' in the domestic sector.
Nearly 80 per cent of fresh water is used by agriculture, with industry coming a close second. The
domestic sector's consumption of fresh water is in single digit. So, the BWE's priority should be to look
at measures that will get farmers and industrialists to follow good practices in water use. Waterresources have to be made, by law, an indivisible national asset. The protection and withdrawal of this
resource as well as its sustainable development are of general importance and, therefore, in the public
interest. This will mean that individuals and organisations may own land but not water or the other
resources that lie below the first 20 metres of the surface of those lands. Drilling of borewells into such
'national assets' wiil have to be banned, or at the very least they must be regulated. What would be
more sensible for the new water bureau to do would be to look at some of the low-hanging fruits that
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can be plucked, and pretty quickly, with laws that can emanate from the Centre, without the risk of
either dilution or inaction from state administrations. The other tactical approach that the BWE can
adopt is to devise a policy that addresses the serious water challenge in industry segments across a
swathe of companies: this will be easier-than taking on the more disparate domestic sector which hurts
the water crisis less than industry. Implementing a law is more feasible when the concentration is dense
and identifiable. Industry offers this advantage more than the domestic or the commercial sector of
hotels and offices.
As for agriculture, though the country's water requirement is as high as 80 per cent, the growing of
water within the loop in agriculture de-risks the challenge of any perceived deficit. Rice and wheat,
sugarcane are crops that need water-logging, which ensures groundwater restoration. Surface water
evaporation doesn't amount to any more than 7-8 per cent and only strengthens precipitation and
rainfall. Agriculture and water need is not quite as much a threat as industry and domestic sectors that
account for the rest of the 20 per cent.
The primary challenge in industry and the building sector is that no conscious legal measures have been
enacted that stipulate 'growing your own water' with measures that will 'put all water in a loop' in any
residential or commercial building. This involves treating all used water to a grade that it can be
'upcycled' for use in flush tanks and for gardens across all our cities with the polluter owning the
responsibility for treating and for reuse. The drop in fresh water demand can be dramatic with such
upcyole, reuse and recycle of treated water. Water by itself, in industry and the domestic sector, is not
as much a challenge as pollution of water. Not enough measures exist yet to ensure that such polluters
shift the water back for reuse. If legislation can ensure that water is treated and reused for specificpurposes within industry as well as in the domestic sector, this will make all the difference to the crisis
on fresh water.
So is the case in industry, especially in sectors like textiles, aluminium and steel. Agriculture offers us the
amusing irony of the educated urbanites dependent on cereals iike rice and wheat that consume 4000
litres of water for every kilogramme, while the farmer lives on the more nutritious millets that consume
less than half the quantity. Sugarcane consumes as much as 12,000 litres of water for a kilo of cane that
you buy!
A listing of such correlations of water used by every product that we use in our daily lives will make
much better sense than any elaborate rating system from the newly formed BWE. Such sensitising with
concerted awareness campaigns that the new Bureau drives will impact the urban consumer more than
all the research findings that experts can present. What is important for us is to understand the life-cycle
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impact in a way that we see the connect between a product that we use and the resources it utilises up
to the point where we bring the visible connect to destruction of natural resources of our ecosystems.
1. How, according to the author, can the bureau sensitise the urban consumer about careful utilisation
of water?
(1) By encouraging them to consume more rice instead of millets daily and, thereby, reduce the amount
of water consumption
(2) By providing them more insight into the water consumption cycle of the textile, aluminium and steel
industries
(3) By making them aware ofthe linkages between water consumption for daily activities and the
resource utilization and subsequent ecological destruction associated with it
(4) By publishing research findings of experts in popular media whereby people gain awareness on the
impact of water misuse
(5) By conducting elaborate drives which notify the urban population about the penalties levied on
misuse of water resources
2. Why, according to the author, is the water consumption for agricultural activities the least risky?
(1) The proportion of water consumed for agricultural activities is much less as compared to that
consumed for domestic and industrial purposes.
(2) Most farmers are aware of the popular methods of water conservation and hence do not allow
wastage of water.
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(3) Water is fairly recycled through groundwater restoration due to water-logging and surface water
evaporation.
(4) Farmers in India mostly cultivate crops that require less amount of water.
(5) None of these
3. Which of the following is possibly the most appropriate , title for the passage?
(1) Water Challenges in the New Millennium
(2) The Bureau of Water Efficiency vs the Bureau of Energy Efficiency
(3) Unchecked Urban Consumption of Water
(4) Challenges of the Agricultural Sector and Water Resources
(5) The Route to Conservation of Water Resources
4. What does 'low-hanging fruits that can be plucked, and pretty quickly' mean in the context of the
passage?
(1) The bureau should employ the cheapest methods possible to effectively control the current situation
of improper usage of water resources.
(2) The bureau should target the industrial sector as well as the domestic sector to reduce water
wastage.
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(3) The bureau should target the agricultural sector only for producing quick results in reducing wastage
of water.
(4) The bureau should ensure that all the state officials concerned with the measures are actively
involved.
(5) The bureau should start with adopting measures which are simple to execute and produce
immediate results in reducing water wastage.
5. Which of the following, according to the author, is/are the indicationls of a water crisis?
(A) Many agrarian areas in the country are facing a drought-like situation.
(B) Almost three-fifths of the naturally available water has been reduced to a very critical level in a
relatively short span of time.
(C) There has been a significant drop in the availability of water over the past fifty years.
(1) Only (B)
(2) Only (A) and (C)
(3) Only (C)
(4) Only (B) and (C)
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(5) All (A), (B) and (C)
BANKING AWARENESS
GENERAL AWARENESS WITH SPECIAL REFERENCE TO BANKING INDUSTRY
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Friday, 8 June 2012
BANKING AWARENESS PRACTICE MCQs
1. When Government of India was approved SBISBS Merger ?(A) In August 2007
(B) In August 2009
(C) In March 2011
(D) In July 2011
See Answer:(A)
2. When RBI made compulsory to the Basel II norms for Banks ?(A) March 31, 2007(B) March 31, 2008
(C) March 31, 2010
(D) March 31, 2011
See Answer:(B)
3. Which bill passed for reducing the minimum level of government's shareholding in equity of
SBI from 55 per cent to 51 per cent ?(A) SBI (Amendment) Bill 2009
(B) SBI (Amendment) Bill 2010
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(C) RBI (Amendment) Bill 2012
(D) None of these
See Answer:(B)
4. The Reverse Repo rate as announced by RBI on April 17, 2012 stand at —
(A) 7•0% (B) 9•0% (C) 8•0%
(D) 8•5%
See Answer:(A)
5. The new president of ASSOCHAM for the year 2012-13 is —
(A) Dilip Modi
(B) R. V. Kanoria(C) Raj Kumar Dhoot
(D) N. L. Kidwai
See Answer:(C)
6. The saving-investment gap during 2010-11 has been estimated at —
(A) 2•8% of GDP
(B) 3•0% of GDP (C) 3•2% of GDP
(D) 3•8% of GDP
See Answer:(A)
7. The pace of credit growth for Private Sector banks increased to 11•7 per cent during—
(A) 2010 -11
(B) 2009 -10(C) 2012 -13
(D) 2008 -10
See Answer:(B)
8. According to RBI, bank loan registered a growth of 21•38 per cent in—
(A) 2010-11(B) 2009-10
(C) 2010-12
(D) 2011-12
See Answer:(A)
9. As per RBI, bank deposits growth stood at....... in 2010-11.
(A) 12%
(B) 13%(C) 15•84%
(D) 14•13%
See Answer:(C)
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10. RBI has projected growth of 17% in bank deposits for the entire financial year —
(A) 2011-12
(B) 2010-11(C) 2011-13
(D) 2012-13
See Answer:(A)
11. RBI has projected credit growth of...........for the financial year 2011-12.
(A) 19%
(B) 18%(C) 21%
(D) 8%
See Answer:(A)
12. At present (As on 30 June, 2011), the authorized capital of SBI is —
(A) 1500 crore
(B) 5000 crore(C) 16000 crore
(D) None of these
See Answer:(B)
13. For a scheduled bank the paid up capital and collected funds of bank should not be less
than —
(A) Rs. 5 lakh(B) Rs. 6 lakh
(C) Rs. 1 crore
(D) Rs. 5 crore
See Answer:(A)
14. Which Act is fully applicable to all commercial banks ?
(A) Companies Act, 1956(B) Partnership Act, 1932
(C) Banking Regulation Act, 1949
(D) Sale of Goods Act, 1930
See Answer:(C)
15. As on 31st March, 2010 how many RRBs were recapitalized with total funding support of
Rs. 1795•97 crore by Government of India ?(A) 96
(B) 98
(C) 27
(D) 15
See Answer:(C)
16. The share of long-term debt in India's total external debt at the end of September, 2011stands at —
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(A) 72%
(B) 78%
(C) 80%(D) 82%
See Answer:(B)
17. Which is/are mutual fund ?(A) HDFC Top 200
(B) HDFC Equity Fund
(C) IDFC Small and Mid Cap(D) All of these
See Answer:(D)
18. The external debt to GDP ratio at the end of September 2011 in India Stands at — (A) 16•6%
(B) 17•8%
(C) 17•0% (D) 18•4%
See Answer:(B)
19. What is the corpus of RIDF-XVIII ?(A) Rs. 20,000 crore
(B) Rs. 18000 crore
(C) Rs. 16000 crore(D) Rs. 14000 crore
See Answer:(A)
20. RIDF XVIII is related to..........year.(A) 2010-11
(B) 2009-10
(C) 2012-13(D) 2011-12
See Answer:(C)
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BANKING AWARENESS MCQs
1. For the development of the banking facilities in the rural areas the Imperial Bank of India was partially nationalised on —
(A) June 1, 1940
(B) June 1, 1942(C) July 1, 1955
(D) July 1, 1949
Answer: July 1, 1955
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2. The Imperial Bank of India was named as the —
(A) Reserve Bank of India
(B) State Bank of India(C) Union Bank of India
(D) Bank of India
Answer: State Bank of India
3. Which is/are not an associated bank of SBI ?
(A) The State Bank of Hyderabad
(B) The Union Bank of India(C) The State Bank of Bikaner and Jaipur
(D) The State Bank of Mysore
Answer: The Union Bank of India
4. In order to have more control over the banks, 14 large commercial banks whose reserves were
more than Rs. 50 crore each were nationalized on —
(A) 19th July, 1969(B) 19th July, 1970
(C) 19th July, 1971
(D) 19th July, 1972
Answer: 19th July, 1969
5. Which is not a nationalised bank ?
(A) Bank of India(B) Canara Bank
(C) AXIS Bank
(D) Vijaya Bank
Answer: AXIS Bank
6. When the Government of India merged the New Bank of India with Punjab National Bank ?
(A) Sept. 4, 1993(B) July 1, 1990
(C) July 1, 1993
(D) March 1, 1993
Answer: Sept. 4, 1993
7. Which is the Central Bank of India ?
(A) The Central Bank of India(B) The State Bank of India
(C) The Reserve Bank of India
(D) The Union Bank of India
Answer: The Reserve Bank of India
8. The RBI was established in —
(A) 1935(B) 1940
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(C) 1947
(D) 1949
Answer: 1935
9. When RBI was set up, the Capital of the Bank was —
(A) 500 crore(B) 50 crore(C) 15 crore
(D) 5 crore
Answer: 5 crore
10. The general administration and direction of RBI is managed by a Central Board of Directors
consisting of –
(A) 20 members(B) 15 members
(C) 5 members
(D) 25 membersAnswer: 20 members
11. RBI released Rs. 1000 currency note for circulation on —
(A) October 1, 1970(B) July 1, 1980
(C) October 9, 2000
(D) October 3, 2011
Answer: October 9, 2000
12. Which of the following instruments cannot be presented for payment in a clearing house ?
(A) Demand draft(B) Dividends
(C) Fixed deposit receipt
(D) All of the above
Answer: Fixed deposit receipt
13. The Security Printing Press at Hyderabad was established in — (A) 1982
(B) 1983
(C) 1980
(D) 1950
Answer: 1982
14. ‘‘Swabhiman’’ Scheme is related—
(A) Rich Customers of the Bank (B) RRBs
(C) To provide basic banking services to bankless villages
(D) None of the above
Answer: To provide basic banking services to bankless villages
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15. When RBI has decided to circulate ‘Plastic Currency Notes’ in the market ?
(A) July 1, 1999(B) July 1, 2010
(C) July 1, 2011
(D) Sept. 1, 2011Answer: July 1, 2010
16. Which is the measures of credit control ?
(A) Quantitative credit control(B) Qualitative credit control
(C) Budgetary control
(D) Both (A) and (B)
Answer: Both (A) and (B)
17. NPAs stands for —
(A) Net Present Value(B) Non Preforming Assets
(C) Net Pure Assets
(D) Net Permanent Assets
Answer: Non Preforming Assets
18. When was introduced the Differential Rate of Interest (DRI) ?
(A) In 1972(B) In 1990
(C) In 2009
(D) In 2011
Answer: In 1972
19. When was addopted, New strategy for Rural Lending : Service Area Approach ?
(A) April 1, 1989(B) March 1, 2007
(C) April 1, 2010
(D) April 1, 2011
Answer: April 1, 1989
20. As on June 30, 2010, Which Indian Bank has the maximum number of offices in abroad ?
(A) Bank of India(B) SBI
(C) Bank of Baroda
(D) None of these
Answer: SBIPosted by BANKING AWARENESS at Friday, June 08, 2012 0 comments
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Banking Terms
AIDB- All India Development Bank
ATM- Automated Teller Machine is a machine uses a computer that verifi es your accountinformation and PIN (Personal Identification Number) and will dispense or deposit funds per your request)Annuity- Fixed amount of cash to be received every year for a specified period of
time
Asset/Liability Risk- A risk that current obligations/ liabilities cannot be met with current
assets.
Assets- Things that one owns which have value in financial terms.
Banking Cash Transaction Tax (BCTT) - BCTT is a small tax on cash withdrawal from bank
exceeding a particular amount in a single day
Bank Credit – Bank Credit includes Term Loans, Cash Credit, Overdrafts, Bills purchased &discounted, Bank Guarantees, Letters of Guarantee, Letters of credit.
Bank Debits - Sum of the value of all cheques and other instruments charged against thedeposited funds of a bank’s customer.
Bank Rate - Interest rate paid by major banks if they borrow from RBI, the Central Bank of thecountry.
Bank Statement - A periodic record of a customer’s account that is issued at regular intervals,
showing all transactions recorded for the period in question
Basis Point- Basis Point is one-hundredth of one percentage point (i.e. 0.01%), normally used
for indicating spreads or cost of finance.
Balance of Payment (BoP) – BoP is a statement showing the country’s trade and financial
transactions (all economic transactions), in terms of net outstanding receivable or payable from
other countries, with the rest of the world for a period of time
BR Act - Banking Regulation Act
Cash reserve Ratio (CRR) - CRR is the amount of funds that the banks have to keep with the
RBI. If the central bank decides to increase the CRR, the available amount with the banks comes
down
CAD- current account deficit
Capital Adequacy Ratio (CAR) – CRR is a ratio of total capital divided by risk-weighted assets
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and risk-weighted off-balance sheet items.
Cash Credit (CC) - An arrangement whereby the bank gives a short-term loan against the self-liquidating security
Certificate of Deposit (CD) - CD is a negotiable instrument issued by a bank evidencing timedeposit
Cheque - A written order on a bank instrument for payment of a certain amount of money.
C-D ratio- Credit- Deposit Ratio
Corporate Banking - Banking services for large firms
CRAR - Capital to Risk-Weighted Assets Ratio
Credit Crunch - Fall in supply of credit even though there is sufficient demand for it
Cross default - Two loan agreements connected by a clause that allows one lender to recall the
loan if the borrower defaults with another, and vice versa.
Deposit: A check or cash that is put into your bank account.
Endorse: To sign the back of your check before cashing or depositing it, as proof that you arethe person the check was written out to.
Equitable mortgage - Mortgage under which one still owns the property which is security for
the mortgage. The owner can occupy or live in the property
Exchange Rate - The rate at which one currency may be exchanged for another
FRNs - Floating Rate Notes
Fixed assets - Assets such as land, buildings, machinery or property used in operating a businessthat will not be consumed or converted into cash during the current accounting period
Fixed Rate - A predetermined rate of interest applied to the principal of a loan or credit
agreement
IFSC Code - Indian Financial System Code or IFSC code is an eleven character code assigned
by RBI to identify every bank branches uniquely, that are participating in NEFT system in India
Liquidation – Liquidation is divestment of all the assets of a firm so that the firm ceases to exist
Liquidity- The extent to which or the ease with which an asset may quickly be converted intocash with the least administrative and other costs
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Letter of Credit (LC) - A formal document issued by a bank on behalf of a customer, stating the
conditions under which the bank will honour the commitments of the customer
Line of Credit - pre-approved credit facility (usually for one year) enabling a bank customer to
borrow up to the specified maximum amount at any time during the relevant period of time.
MICR- Magnetic Ink Character Recognition or MICR is the bottom line on all checks. It is
printed using a special font.
Monthly Statement: statement received by customers at the end of the month about the
account’s activity (what went in and what came out) from the previous month.
NEFT- national electronic funds transfer
Non Performing Assets (NPA) - When due payments in credit facilities remain overdue above a
specified period, then such credit facilities are classified as NPA.
NBFCs- Non-banking Finance Companies
NHB- National Housing Bank
Overdraw: To write a check for more money than what is present in the account. Usually there
is a fee (known as NSF/non-sufficient funds)
Principal- Principal is the amount of debt that must be repaid. Also means a person who deals in
securities on his own account and not as a broker
Prime Lending Rate (PLR) - The rate of interest charged on loans by banks to their most
creditworthy customers
PSB - Public Sector Bank
Repo rate- the rate at which the RBI lends money to banks
Reverse repo rate- Reverse Repo rate is the rate at which the RBI borrows money from
commercial banks
SCBs - Scheduled Commercial Banks
Statutory Liquidity Ratio- SLR is Statutory Liquidity Ratio. It’s the percentage of Demand and
Time Maturities that banks need to have in any or combination of the following forms:i) Cash
ii) Gold valued at a price not exceeding the current market price,
iii) Unencumbered approved securities (G Secs or Gilts come under this) valued at a price asspecified by the RBI from time to time
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Standby Letter of Credit - A guarantee issued by a bank, on behalf of a buyer that protects the
seller against non-payment for goods shipped to the buyer
Securitization - Securitization is a process of transformation of a bank loan into tradable
securitiesSelective Credit Control (SCC) - Control of credit flow to borrowers dealing in some essentialcommodities to discourage hoarding and black-marketing
Tier 1 Capital - Refers to core capital consisting of Capital, Statutory Reserves, Revenue andother reserves, Capital Reserves (excluding Revaluation Reserves) and unallocated surplus/
profit but excluding accumulated losses, investments in subsidiaries and other intangible assets
Tier 2 Capital - Comprises Property Revaluation Reserves, Undisclosed Reserves, HybridCapital, Subordinated Term Debt and General Provisions. This is Supplementary Capital.
Withdrawal: To take money out of your bank account. To make a withdrawal is the opposite of
making a depositPosted by BANKING AWARENESS at Friday, May 25, 2012 0 comments
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BANKING AWARENESS PRACTICE QUESTIONS
1. First Governor of RBI was –
a) Hilton Young b) Paul Samuelson
c) C.D.Deskmukh
d) O.A Smith
Ans. d) O.A Smith
2. At the time of nationalization who was the Governor of RBI- a) O.A Smith b) J.B Taylor
c) C.D. Deshmukh
d) K.C.Neogy
Ans. c) C.D. Deshmukh
3. The RBI was nationalized in the year – a)1949
b)1956c)1959
d)1947
Ans. a)1949
4. The general superintendence and director of the bank is entrusted to central board of
directors of – a)10 members
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b) 20 members
c) 25 members
d)30 members
Ans. b) 20 members
5. Paper currencies of our country are issued by RBI under – a) Section- 22 of the RBI act -1934 b) Section- 24 of the RBI act -1934
c) Section- 28 of the RBI act -1934
d) None of these
Ans. a) Section- 22 of the RBI act -1934
6. One rupee currency notes bear the signature of -
a) PM b) President of India
c) Governor of RBI
d) Finance Secretary of IndiaAns. d) Finance Secretary of India
7. Ten rupees notes bear the signature of – a) President b) Finance Minister
c) Secretary of Ministry of finance
d) Governor of RBI
Ans. d) Governor of RBI
8. Which of the following is the banker of the banks – a) IDBI b) SBI
c) RBI
d)UTI
Ans. c) RBI
9. In which of the following banks one can’t open a personal account – a) Co-Operative Banks
b) Commercial banks
c) Regional Rural Banks
d) RBI
Ans. d) RBI
10. Which of the following banks is the banker to the government – a) SBI b) SEBI
c) RBI
d) IRDA
Ans. c) RBI
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11. Which of the followings are the function of RBI – a) Regulation of currency and flowing of credit system b) Maintaining exchange values of rupee
c) Formulating monetary policy of India
d) All of theseAns. d) All of these
12. Credit rationing in India is done by – a) SBI b) LIC
c) UTI
d) RBI
Ans. d) RBI
13. The first bank of India was –
a) Bank of Hindusthan b) Imperial Bank
c) Bank of Bengal
d) Oudh Commercial Bank
Ans. a) Bank of Hindusthan
14. The first Indian fully liability and managed bank was – a) PNB b) Traders Bank
c) SBI
d) 0 Presidency Bank of India
Ans. a) PNB
15. The rates at which the RBI extends credit to the commercial bank is called – a) Bank Rate b) Reverse Repo Rate
c)Interest Rate
d) None of these
Ans. a) Bank Rate
16. In which of the following is not the any element of monetary policy of RBI – a) Bank rate b) Open Market Operation
c) Public Expenditure
d) All of these
Ans. c) Public Expenditure
17. 100 rupees note bears the signature of – a) Governor of RBI b) PM
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c) Finance Secretary of India
d) Chairman of Finance Commission
Ans. a) Governor of RBI
18. Which of the following is the last lender of the last resort of commercial bank-
a) SBI b) Union Govt.c) RBI
d) UTI
Ans. c) RBI
19. The RBI is agent of central government and of all state government except – a) Bihar
b) Goac) Jammu and Kashmir
d) Mizoram
Ans. c) Jammu and Kashmir
20. Controller of credit of commercial banks in our country is – a) RBI
b)SEBIc) ICI
d)UTI
Ans. a) RBI
21. The Banking Concept in India was first developed by – a) British
b) Frenchc) Indian
d) None of these
Ans. a) British
22. The rate at which RBI gives short term credit to the commercial banks against
government securities with buy back provision is called – a) Bank Rate
b) Repo Rate
c) Reverse repo rate
d) Interest rate
Ans. b) Repo Rate
23. The rate at which RBI takes loans from commercial banks is called – a) Repo Rate b) Reverse Repo Rate
c) Bank Rate
d) Interest Rate
Ans. b) Reverse Repo Rate
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24. At present the Reverse Repo Rate of RBI is (As of 25th Nov) – a) 8.25 b) 7.25
c) 7.50
d)8.50Ans. d)8.50
25. Bank rate of RBI is also known as – a) Interest Rate b) Discount Rate
c) fed rate
d) bid rate
Ans. b) Discount Rate
26. Which of the following is not the any element of quantitative credit control policy of
RBI – a) CRR
b) SLR
c) Selective credit control
d) open market operation.
Ans. c) Selective credit control
27. At present CRR of RBI is – a) 6%
b) 7.5%
c) 8.5%
d) none of these
Ans. a) 6%
28. The limitation of CRR of RBI is – a)3-10 %
b) 3-15%
c) 15-38%d) 10-25%
Ans. b) 3-15%
29. The apex organization of Indian money market is – a)SBI
b) SEBI
c) RBI
d) IRDA
Ans. c) RBI
30. If the cash reserve is lowered by RBI, what will be its effect on credit creation – a) Decrease
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b) Increase
c) No Change
d) None of these
Ans. b) Increase
31. The expansion of money supply of an economy depends on – a) The policy of CRR b) The bank rate policy
c) Open market operation
d) All of these
Ans. d) All of these
32. Among the following who are eligible to benefit from the Mahatma Gandhi National
Rural Employment Guarantee Act? – a) Adult Members of only the scheduled caste and scheduled tribe holders
b) Adult of below poverty line household
c) Adult members of household of all backward communityd) adult members of any rural household
e) None of these
Ans. d) adult members of any rural household
33. Which of the following banks merged with Punjab national banks in 1993 – a) New bank of India
b) Central Bank of Indiac) Imperial Bank of India
d) Common bank of India
Ans. a) New bank of India
34. A currency, the exchange values of which is expected to remain stable due to strong
perf ormance by it’s economy. This currency is – a) Soft Currency b) Hot currency
c) Fiat currency
d) None of these (Hard Currency)
Ans. d) None of these (Hard Currency)
35. The Reserve Bank of India issues under the following note issue method? – a) Proportional Reserve System b) Minimum Reserve System
c) Maximum Reserve System
d) Fixed Fiduciary System
Ans. b) Minimum Reserve System
36. What is a Scheduled Bank? – a) A bank having Rs 10 Crore deposits b) A bank having Rs 100 Crore deposits
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c) A bank having Rs 5 Crore deposits
d) A bank included in the second schedule of RBI act 1934.
Ans. d) A bank included in the second schedule of RBI act 1934.
37. How many languages are used on a Ten Rupee note? –
a) 2 b) 7c) 10
d) 15
e) 16
Ans. d) 15
38. The place where bankers meet and settle their mutual claims and accounts is known as
– a) Treasury
b) Clearing House
c) Dumping Housed) Collection centre
Ans. b) Clearing House
39. The largest Public sector bank in India – a) SBI
b) PNB
c) RBId) ICICI
Ans. a) SBI
40. Which of the following is not the function of RBI – a) Banker’s bank
b) Banker to public
c) custodian of foreign exchanged) Bankers to Govt.
Ans. b) Banker to public
41. Who is responsible for the collection and publication of monetary and financial
information-
a) Finance Commission
b) Finance ministryc) RBI
d) Auditor and Comptroller general of India
Ans. c) RBI
42. Which of the following regulatory authority to oversee the new issues, protect the
investment and investors, promote the development of Capital Market and regulate the
working of Stock Exchange – a) UTI b) IRDA
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c) RBI
d) SEBI
e) None of these
Ans. d) SEBI
43. After a long span of 22 years, RBI released Rs.1000/- currency note for circulation in – a) 2000 b) 2002
c) 2005
d) 2008
Ans. a) 2000
44. Regional Rural banks are working in all states of the country except – a) Sikkim and Goa b) Sikkim and Manipur
c) Manipur and Nagaland
d) Jammu and Kashmir Ans. a) Sikkim and Goa
45. The National Housing Bank is a subsidiary of – a) RBI b) NABARD
c) IDBI
d) UTI
Ans. a) RBI
46. At present the ceiling of Foreign Direct Investment (FDI) in insurance sector in India is
– a) 26%
b) 49%
c) 51%d) 74%
Ans. a) 26%
47. Rs. 25 Paisa was ceased by the Govt of India on – a) 30th june 2011
b) 30th July 2011
c) 1st January 2011d) 1st July 2011
Ans. a) 30th june 2011
48. Initial Public Offering (IPO) is associated with – a) RBI
b) Stock Exchange
c) IRDAd) Indian Postal Service
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Ans. b) Stock Exchange
49. The Basic regulatory authority for mutual funds and stock markets lies with the – a) Government of India
b) Reserve Bank of India
c) Securities and Exchange Board of India (SEBI)d) Stock Exchange
Ans. c) Securities and Exchange Board of India (SEBI)
50. Monetary policy Referes to the policy of – a) Money Lenders
b) Government
c) Commercial Banks
d) RBI
Ans. d) RBI Posted by BANKING AWARENESS at Friday, May 25, 2012 0 comments
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