General Awareness Questions for Bank Exams - 1

General Awareness Questions for Bank Exams

1.       Which of the following statements is true?
(a) Banks cannot accept demand and time deposits from public
(b) Banks can accept only demand deposits from public
(c) Banks can accept only time deposits from public
(d) Banks can accept both demand and time deposits from public 
(e) Banks can accept demand and time deposits only from government
Ans: (d)

2.       Which of the following is the correct statement?
(a) State Bank of India is the sole authority to issue and manage currency in India
(b) A nationalized bank is the sole authority to issue and manage currency in India
(c) A cooperative bank is the sole authority to issue and manage currency in India
(d) RBl is the sole authority to issue and manage currency in India
(e) None of the above
Ans: (d)

3.       Interest payable on savings bank account is
(a) not regulated by RBI
(b) regulated by State Governments
(c) regulated by Central Government
(d) regulated by RBI 

(e) regulated by Finance Minister

Ans: (d)

4.       The usual deposit accounts of banks are
(a) current accounts, electricity accounts and insurance premium accounts
(b) current accounts post office savings bank accounts and term deposit accounts
(c) loan accounts, savings bank accounts and term deposit accounts
(d) current accounts, savings bank accounts and term deposit accounts
(e) current bill accounts and term deposit accounts
Ans: (d)

5.       Fixed deposits and recurring deposits are
(a) repayable after an agreed period
(b) repayable on demand
(c) not repayable
(d) repayable after death of depositors
(e) repayable on demand or after an agreed period as per bank’s choice
Ans: (a)

6.       Accounts are allowed to be operated by cheques in respect of
(a) both savings bank accounts and fixed deposit accounts
(b) savings bank accounts and current accounts
(c) both savings bank accounts and loan accounts
(d) both savings bank accounts and cash accounts only
(e) both Current accounts and fixed deposit accounts

Ans: (b)

7.       Which of the following is a correct statement?
(a) Normally no interest is paid on current deposit accounts
(b) Interest is paid on current accounts at the same rate as term deposit accounts
(c) The rate of interest on current account and savings account are the same
(d) No interest is paid on any deposit by the bank
(e) Savings deposits are the same as current deposits
Ans: (a)

8.       Mortgage is a
(a) security on movable property for a loan given by a bank
(b) security on immovable property for a loan given by a bank
(c) concession on immovable property for a loan given by a bank
(d) facility on immovable property for a loan given by a bank
(e) security on immovable property for a deposit received by a bank
Ans: (b)

9.       Which of the following is known as cross selling by banks?
(a) Sale of a debit card to a credit card holder.
(b) Sale of Insurance policy to a depositor.
(c) Insurance of cash against cheque presented by a third party.
(1) Only (a)         (2) Only (b)         (3) Only (c)          (4) Both (a) and (c)         

(5) All  the three (a), (b) and (c)

Ans: (5)

10.   Financial inclusion means provision of
(a) financial services namely, payments, remittances, savings, loans and insurance at affordable cost to persons not yet given the same
(b) ration at affordable cost to persons not yet given the same
(c) house at affordable cost to persons not yet given the same
(d) food at affordable cost to persons not yet given the same
(e) education at affordable cost to persons not yet given the same

Ans: (a)

11.    When a bank returns a cheque unpaid, it is called
(a) payment of the cheque
(b) drawing of the cheque
(c) canceling of the cheque
(d) dishonour of the cheque
(e) taking of the cheque
Ans: (d)

12.   NEFT means
(a) National Electronic Funds Transfer system
(b) Negotiated Efficient Fund Transfer system
(c) National Efficient Fund Transfer solution
(d) Non Effective Fund Transfer system
(e) Negotiated Electronic Foreign Transfer system

            Ans: (a)

13.   Upper limit prescribed for RTGS transaction is
(a) Rs. 1 lac          (b) Rs. 2 lacs       (c) Rs. 5 lacs        (d) Rs. 50 lacs     (e) No upper limit is prescribed

Ans: (e)

14.   Distribution of insurance products and insurance policies by banks as corporate agents is known as
(a) General Insurance    (b) Non-life Insurance   (c) Bancassurance            (d) Insurance Banking    (e) Deposit Insurance
Ans: (c)

15.   In order to attract more foreign exchange the Government of India decided to allow foreign investment in LLP firms. What is full form of ‘LLP’ as used in this reference?
(a) Local Labour Promotion
(b) Low Labour Projects
(c) Limited Loan Partnership
(d) Longer Liability Partnership
(e) Limited Liability Partnership
Ans: (e)

16.   Interest on Saving bank account is now calculated by banks on
(a) minimum balance during the month
(b) minimum balance from 7th to last day of the month
(c) minimum balance from 10th to last day of the month
(d) maximum balance during the month
(e) daily product basis
Ans: (e)

17.   Largest shareholder (in percentage shareholding) of a nationalized bank is
(a) RBI                   (b) NABARD       (c) LICI                  (d) Government of India              (e) IBA

           Ans: (d)

18.   When the rate of inflation increases
(a) purchasing power of money increases
(b) purchasing power of money decreases
(c) value of money increases
(d) purchasing power of money remains unaffected
(e) amount of money in circulation decreases
Ans: (b)

19.   A centralized database with online connectivity to branches, internet as  well as ATM-network that has been adopted by almost all major banks of our country is known as
(a) Investment Banking                                 (b) core Banking
(c) Mobile Banking          (d) National Banking                       (e) Specialized Banking

            Ans: (b)

20.   The Unit Trust of India came into existence in
(a) 1960                (b) 1962                (c) 1964                (d) 1966                (e) 1968

Ans: (c)