Previous years Bank PO Questions: Banking Awareness Set 5


Previous years Bank PO Questions: We are regularly providing you free study material for Bank PO and bank clerk exams. Here is a series of banking awareness questions taken from previous years Bank PO Question Papers.

1. The most powerful tool used by the Reserve Bank of India to control inflation is to
1) Raise interest rates           
2) Reduce interest rates
3) Raise currency supply      
4) Reduce currency supply
5) Raise interest rates and reduce currency supply

2.’Sub Prime lending,’ which was the root cause for global meltdown in banks during 2008, means
1) Bank finance for non-productive activities
2) Making loans to people who may have difficulty maintaining the repayment schedule
3) Bank finance in violation of the directives of the central bank
4) Bank finance to factious entities
5) Bank finance which do not qualify for the best market interest rates

3. Crossing of cheque makes them
1) Invalid document
2) Ineligible to endorse to a person other than the payee
3) Remain the same in all respect; it is only a practice
4) Eligible for payment through account only
5) Ineligible to get payment

4. NEFT and RTGS in banking terminology speak of
1) Various deposit products
2) Various loan products
3) Electronic payment products within a bank
4) Electronic fund transfer from bank to bank
5) Cheque truncation process

5. The headquarters of the World Bank is located in
1) London           
2) Paris         
3) New York
4) Tokyo             
5) Washington DC

6. The ownership of public sector banks rests
1) Wholly with the Government of India
2) Jointly with the Government of India State Bank of India
3) Wholly with the shareholders from public
4) Jointly with the Government of India and Reserve Bank of India
5) Jointly with the Government of India and   the shareholders from the public

7. Non-Performing assets are the assets which have stopped giving
1) Losses to a bank
2) Capital to a bank
3) Income to a bank
4) Income and expenses to a bank
5) Expenses to a bank

8. Which of the following banks in India has maximum number of branches and ATMs in India?
1) IDBI Bank
2) Bank of India
3) Punjab National bank
4) ICICI Bank
5) State Bank of India

9. EFT stands for
1) Effective Funds Transfer
2) Efficient Funds Transfer
3) Easy Funds Transfer
4) Electronic Funds Transfer
5) Electric Funds Transfer

10. If a cheque is postdated, the bank on which it is drawn
1) Will not honor the cheque before the date of the cheque
2) Has to honor the cheque before the date of the cheque
3) Has the option to honor the cheque before the date of the cheque or not
4) Has to refer to RBI (to honor the cheque before the date of the cheque
5) Has to refer to the court to honor the cheque before the date of the cheque

ANSWERS:
1)5         2)2         3)4          4)4      5)5     
6)5         7)3         8)5          9)4      10)1



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