Banking Awareness Quiz for SBI PO


Dear Readers,
Welcome to Mentor for Bank Exams. Here I am presenting questions some important questions on Banking Awareness which are most important for upcoming bank exams like SBI PO, IBPS PO, IBPS RRB and other bank exams. Kindly make use of these!!!

1. Which of the following statements is/are TRUE about a Banknote?
A) A banknote is a promissory note.
B) It is payable to bearer on demand
C) Banknotes are legal tender money
D) China first came up with the paper currency.
a) A and B
b) B and D
c) Only B
d) B, C and D
e) All of these
2. “ASBA” is a term used in which of the following sectors?
a) Aviation
b) Real Estate
c) Insurance
d) Capital Markets
e) None of these
3. Which of the following nationalised banks had been merged as per the recommendations of the Narasimham Committee?
a) New Bank of India and Bank of India
b) Central Bank of India and Cooperation Bank
c) Parur Bank of India and Bank of India
d) Punjab National Bank and New Bank of India
e) None of these
4. The last date for BASEL-III compliance is
a) March 31, 2020
b) March 31, 2018
c) March 31, 2019
d) March 31, 2017
e) None of these
5. RBI sometimes devaluates its currency primarily to promote –
a) Import and reduce export
b) Export and reduce import
c) Both import and Export
d) Outflow of foreign exchange
e) None of these
6. IFSC codes are useful in banks for the purpose of _______
a) Fund transfer
b) cheque clearance
c) making purchases
d) All except c
e) None of these
7. Consider the following statements regarding NABKISAN and choose the wrong one –
a) NABKISAN Finance Limited was incorporated on 14.02.2000
b) NKFL is a subsidiary of NABARD
c) It is notified as a Non-Banking Finance Company by RBI
d) The NABKISAN Finance limited presently operates in 6 states.
e) NABKISAN Finance Limited is governed by an independent Board of Directors.
8. What is Cheque Truncation?
a) The manual clearing of cheques
b) The clearing of cheques on the basis of electronic cheques
c) The cancellation of cheques
d) It is dishonouring of a cheque if the amount written on it in figures does match with that written in words
e) None of these
9. Which of the following deals in export insurance?
a) ECGC
b) SEBI
c) SIDBI
d) RBI
e) None of these
10. Which of the following is an example of NBFC?
a) M&M Financial
b) Indiabulls
c) Edelweiss Capital
d) JM Financial
e) All the above

Answers:
1)e   2)d   3)d   4)c   5)b   6)d   7)a   8)b   9)a   10)e

Explanations:

3. D) As per the recommendations of the Narasimhan Committee, Punjab National Bank and New Bank of India had been merged
6. D) It is an 11 character code assigned by RBI to identify every bank branch uniquely.
7. A) NABKISAN Finance Limited formerly Agri Development Finance (Tamil Nadu) Limited was incorporated under the Companies Act, 1956 on 14.02.1997
8. B) Cheque truncation is a system of cheque clearing and settlement between banks based on electronic data/imagesor both without physical exchange of instruments.