Banking Quiz for IBPS | SBI – 294

Banking Quiz for IBPS | SBI – 294

1.The Difference between Gross Domestic product and Net Domestic product is
a) Net Indirect Tax (Indirect Tax Subsidy)
b) Consumption of fixed Capital
c) Net Capital Formation
d) None of these

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Answer c) Net Capital Formation
The net domestic product (NDP) equals the gross domestic product (GDP) minus depreciation on a country’s capital goods. Net domestic product accounts for capital that has been consumed over the year in the form of housing, vehicle, or machinery deterioration.

2.Where is the headquarter of Asian Development Bank (ADB) located?
a) Manila
b) Singapore
c) China
d) None of these

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Answer a) Manila
The headquarters of the bank is at 6 ADB Avenue, Mandaluyong, Metro Manila, Philippines, and it has 31 field offices in Asia and the Pacific and representative offices in Washington, Frankfurt, Tokyo and Sydney.

3. Travellers Cheque is__________.
a) A certificate issued by a bank or finance institution in lieu of cash
b) A cheque issued by a bank or finance institution which functions as a bond
c) A prepaid instrument issued by a bank or financial institutions which can be substitute of cash
d) None of these

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Answer c) A prepaid instrument issued by a bank or financial institutions which can be substitute of cash

A traveler’s cheque[a] is a medium of exchange that can be used in place of hard currency.They were generally used by people on vacation in foreign countries instead of cash, as many businesses used to accept traveler’s cheques as currency.

4.What is the objective of introduction of ‘Marginal Standing Facility’by RBI?
a) To contain volatility in the overnight inter-bank rates
b) To contain volatility in MIBOR
c) To contain volatility in LIBOR
d) None of these

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Answer a) To contain volatility in the overnight inter-bank rates
Marginal Standing Facility is a liquidity support arrangement provided by RBI to commercial banks if the latter doesn’t have the required eligible securities above the SLR limit. The MSF was introduced by the RBI in its monetary policy for 2011-12 after successfully test firing it from December 2010 onwards.

5.In which of the following accounts, operation by cheques is permitted?
a) Savings bank accounts and floating loan accounts
b) Savings bank accounts and cash accounts
c) Savings banks accounts and current accounts
d) None of these

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Answer c) Savings banks accounts and current accounts

6. The primary function of a central co-operative bank is to –
a) a) mobilize the resources in the district for financing its members to the maximum extent possible
b) to channelize the flow of funds from the co-
operative banks
c) Either a) or b)
d) Both a & b

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Answer d) Both a & b

7.The main foreign exchange reserves in the country are: –
a) Foreign Currency assets
b) Gold Stock
c) Special Drawing Rights
d) All of the above

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Answer d) All of the above
Foreign exchange reserves are assets held on reserve by a central bank in foreign currencies, which can include bonds, treasury bills and other government securities. Most foreign exchange reserves are held in U.S. dollars, with China being the largest foreign currency reserve holder in the world.

8.Which of the following Acts has specially been enacted to help banks deal with bad loans?
a) SARFAESI Act
b) Companies Act
c) Offshore Banking Act
d) None of these

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Answer a) SARFAESI Act

9.What does FSDC stand for?
a) Financial Security and Development Council
b) Financial Stability and Development Council
c) Fiscal Security and Development Council
d) None of these

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Answer b) Financial Stability and Development Council
Financial Stability and Development Council (FSDC) is an apex-level body constituted by the government of India.

10.Which of the following fall under the qualitative method of credit control adopted by the Reserve bank of India?
a) Selective credit control
b) Moral suasion
c) Credit authorization scheme
d) All the above

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Answer d) All the above

About the author

Richa

Richa Gupta is a Banking Aspirant. Her dream is to become a PO in Government Bank. Aptitude and Reasoning are her strong zones. Richa is a hard working person who loves to share the knowledge she acquired to other Aspirants.

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