2. Imperial Bank was formed in ________ by the amalgamation of three presidency banks – the
Bank of Bengal, the Bank of Bombay, and the Bank of Madras:
Correct : A. 1921
3. The Regional Rural Banks were set up in the year
Correct : B. 1975
4. 14 of the major private sector banks in India were nationalized in the year:
Correct : A. 1969
5. The 2nd nationalization of six private banks was made in the year:
Correct : D. 1980
6. In which year was the Banking Regulation Act passed?
Correct : A. 1949
7. The card by which you cannot buy a product is:
Correct : B. ATM card
8. Each Regional Rural Bank is sponsored by:
Correct : B. a public sector bank
9. The first Indian bank known as “The bank of Hindustan” was started in
Correct : A. 1770
10. Usually, in public sector banks, government holdings are more than
Correct : B. 50%
11. Regional Rural Banks (RRB‟s) were established in
Correct : C. 1975
12. ___________is a central bank of a country. It acts as a leader of the money market.
Correct : B. RBI
13. Non-schedule Bank have a paid up capital and reserves of aggregate value of less than
Correct : D. 5 lakhs.
14. Internet Banking is also known as
Correct : C. both a and b
15. Bank classifications according to law are
Correct : D. Both (b) and (c)
16. The first public bank was
Correct : D. Bank of Venice
17. Modern Banking in India originated during the
Correct : B. 18th Century
18. The largest and oldest bank still in existence is the
Correct : C. State Bank of India
19. In 1969 how many large banks of India does the government nationalized?
Correct : A. 14
20. The previous name of S.B.I which existed during the British rule was
Correct : C. Bank of Bombay
21. NABARD stands for
Correct : A. National Bank for Agriculture and Rural Development
22. Public sector bank is a bank where the central government owned more than
Correct : B. 50% shares
23. Which one of this is a private sector bank
Correct : D. Induslnd Bank
24. Which one of this is not a function of Mobile Banking
Correct : B. Cash Withdrawal
25. NABARD was set up in the year
Correct : B. 1982
26. RRB was set up in the year
Correct : C. 1975
27. Cooperative Banks in India have a
Correct : B. three-tier system
28. ATM can be used for
Correct : D. all of above
29. Coins are issued by
Correct : D. Government of India
30. Internet Banking refers to
Correct : A. operation of account through internet
31. Who can open bank account?
Correct : D. all of above
32. The first Indian bank is known as
Correct : A. Bank of Hindustan
33. The first Indian bank known as „The Bank of Hindustan‟ was set up in
Correct : D. 1770
34. Imperial Bank of India was nationalised in _______.
Correct : B. 1955
35. What is Scheduled Bank in India?
Correct : C. It is included in the 11 Schedule of Reserve Bank of India Act.
36. Which is the largest private sector bank in India
Correct : A. HDFC Bank
37. The type of card that can be issued by the government to the farmers to meet their
cultivation needs and non-farm requirement is
Correct : A. Kisan Credit Card
38. Which is the largest public sector bank in India
Correct : A. State Bank of India
39. If the account of a customer shows a credit balance, the banker will be:
Correct : B. Debtor
40. Overdraft facilities are allowed in
Correct : C. Current account
41. The purpose of the crop loan is to facilitate the agriculturists to carry on:
Correct : C. Seasonal agricultural operations
42. Industrial banks are specialised financial institutions established by government to:
Correct : C. Meet long term finance requirements of industries
43. Which of the following is known as a Savings Bank Account opened with a
commercial bank with zero balance or very minimal balance?
Correct : B. No-frills account
44. Deposits mobilised by the banks are utilised for:
i. loans and advances
ii. investment in government and other approved securities in fulfilment of liquidity stipulation
iii. investment in commercial paper, shares, debentures up to stipulated ceilings
Correct : C. All the above
45. A banker is obliged to keep the affairs of his customer secret except under special circumstances such as:
Correct : C. Where disclosure is made with the consent of the customer
46. Right of lien is the right of a creditor
Correct : B. To retain in his possession goods and securities and not the right to sell
47. Overdraft facilities are allowed in
Correct : A. current a/c only
48. A kind of deposit where depositor is required to deposit a fixed amount at regular intervalfor a specific period is
Correct : D. recurring deposit
49. When a banks make an advance to lump sum, the whole of which is withdrawn in cashimmediately by the borrowers who undertakes to repaid it in installments, it is called
Correct : B. loan
50. The Kisan credit card (KCC) is valid for normally a period of _____years subject to annual review
Correct : C. 8 years
51. Credit for the purchase of Farm equipment & machinery for agriculture operations
Correct : B. Farm mechanization
52. Which type of deposits gives highest rate of interest?
Correct : B. Fixed deposit
53. Which bank deals with short-term credit
Correct : B. Commercial B
54. Which one of the following is the most important relationship between banker & customer?
Correct : A. Debtor & Creditor
55. Which one of this is not a function of commercial bank?
Correct : B. Real Estate Development
56. Maximum amount of interest can be procured from
Correct : D. Fixed Deposit A/c
57. There is no interest on deposit in this type of account
Correct : A. Current A/c
58. IDBI stand for
Correct : D. Industrial Development Bank of India
59. When a customer Deposits money with a bank, the customer becomes a
Correct : B. Lender
60. When the customer borrows money from the bank, the bank becomes the
Correct : C. Creditor
61. Overdraft facility can be enjoyed in which account
Correct : D. Current A/c Deposit
62. Overdraft withdrawal is a
Correct : A. Short term loan
63. A kind of deposit where depositor is required to deposit a fixed amount at regular interval for a specific period is
Correct : D. fixed deposit
64. What types of deposits earn higher interest rate?
Correct : C. Fixed deposit
65. In recurring deposits,
Correct : D. all the above
66. Interest on saving deposits is paid
Correct : C. half yearly
67. The banker customer relationship in credit card payment is
Correct : B. debtor-creditor
68. The credit policy of bank does not consists of?
Correct : D. advertising of loan products
69. The relationship between RBI and the Bank maintaining the currency chest is that of?
Correct : B. principle and agent
70. ------ is the rate at which the central bank rediscounts the bills of commercial banks
Correct : A. Bank Rate Policy
71. ___________is a kind of deposit where depositor is required to deposit a fixed amount of money every month for a specific period of time
Correct : B. Recurring deposit
72. When a customer deposits money with a bank, the customer becomes a lender and the bank become a__________
Correct : C. Borrower
73. Different types of advances are
Correct : C. Both (i) and (ii)
74. Overdraft facilities are allowed in
Correct : A. Current account only
75. The primary relationship between a banker and customer starts from the time
Correct : B. when customer opens account
76. Which of the following are the special relationship of banker and customer:
Correct : D. All of these
77. ______________ is the right of a person to retain the property of another person in his possession untill the debt from that owner of that property is repaid
Correct : A. Lien
78. The right of set-off customers account can be exercised only by a
Correct : A. Creditors
79. The Governor of the Reserve Bank of India currently is:
Correct : C. Shaktikanta Das
80. The main objective of the Reserve Bank of India is:
Correct : C. maintain price stability
81. Two types of Commercial banks have been stipulated by Section_______ of the Reserve Bank of India Act, 1934:
Correct : C. 42(6)(a)
82. Quantitative measure for credit control by the RBI includes:
Correct : C. Cash Reserve Ratio
83. There are three parties to a bank draft:
Correct : A. The drawer bank branch, The drawee bank branch, The payee
84. The legal obligation to honour cheques is subject to:
Correct : C. The cheque being drawn by the depositor
85. When the cash reserve ratio (CRR) is increased by the RBI, it will:
Correct : B. Decrease the supply of money in the economy
86. Agency services rendered by a bank to its customers as their agent include:
Correct : B. Act as executors of wills
87. Currency notes of Rupee 1 and its subsidiary coins are issued by the
Correct : C. Ministry of Finance, Government of India
88. 14th Major commercial banks were nationalized in 19th July
Correct : B. 1969
89. _________is an instrument which is used for transfer of funds
Correct : B. Demand draft
90. ___________are the banks whose main objectives is to provide financial assistance to economically weaker sections of the society.
Correct : A. Co-operative B
91. The RBI commenced its operation from 1st April
Correct : C. 1935
92. Which bank has given the instructions to the commercial banks regarding the
immediate credit of outstation cheque?
Correct : A. RBI
93. Payment of cheque can be stopped by
Correct : C. Drawer of cheque
94. Bank draft is issued by
Correct : D. All of the above
95. A Central Bank is the sole authority for
Correct : A. Printing and Issuing currency note
96. The head of the Reserve Bank of India is called
Correct : C. Governor
97. One of the main aim of a Central Bank is to control inflation, what does „inflation‟ mean?
Correct : D. Rising Price
98. What is bank rate?
Correct : B. Rate at which a Central Bank lends money to commercial banks
99. Commercial Bank as the name suggest is a bank functioning for
Correct : C. Profit motive
100. Commercial Banks make money available to public by