Banking Quiz for IBPS | SBI – 305

Banking Quiz for IBPS | SBI – 305

1.What is an Indian Depository Receipt ?
a) A deposit account with a Public Sector Bank
b) A depository account with any of Depositories in India
c) An instrument in the form of depository receipt created by an Indian depository against
underlying equity shares of the issuing company
d) None of these

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Answer c) An instrument in the form of depository receipt created by an Indian depository against
underlying equity shares of the issuing company
An IDR is an instrument denominated in Indian Rupees in the form of a depository receipt created by a Domestic Depository (custodian of securities registered with the Securities and Exchange Board of India) against the underlying equity of issuing company to enable foreign companies to raise funds from the Indian .

2.Which is included in Capital budget ?
a) Income received from public borrowings
b) Income received from tax-sources
c) Income received from non-tax sources
d) All of the above

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Answer a) Income received from public borrowings

3.Banking which involves mobilizing large part of the deposits in risk free assets such as government securities is called _______.
a) Overseas Banking
b) Narrow Banking
c) Offshore Banking
d) None of these

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Answer b) Narrow Banking
Narrow Banking involves mobilizing the large part of the deposits in Risk Free assets such as Government Securities.

4.Which of the following in India formulates the fiscal policy?
a) Finance Commission
b) RBI
c) Ministry of Finance
d) None of these

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Answer c) Ministry of Finance
In India, Fiscal Policy is formulated by the Ministry of Finance.Traditionally, fiscal policy is concerned with the determination of state income and expenditure policy. But with the passage of time, the importance of fiscal policy has been increasing continuously for attaining rapid economic growth.

5.Which of the following measures is not taken by government to control inflation ?
a) It increases the rate of taxes
b) It increases cash reserve ratio
c) It increases the imports
d) None of these

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Answer b) It increases cash reserve ratio
Cash reserve ratio is a part of RBI’s monetary policy and all other are the steps taken by government in its fiscal policy

6.’Growth with Stability’ was the aim of which of the following Five Year Plans ?
a) Second Plan
b) Third Plan
c) Fourth Plan
d) None of these

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Answer c) Fourth Plan
The period of fourth plan was 1969 to 1974.There were two principal objectives of this plan – ‘Growth with Stability’ and ‘Progressive Achievement of Self-Reliance’. It aimed at a 5.5 percent average growth rate of the national income and also the provision of the national minimum for the weaker sections of the society (called ‘Garibi Hatao’ or ‘Growth with Justice’). However, another Indo-Pak war in 1971-72 created a financial crunch for the plan.

7.A banking system in which a big bank has a number of branches in different parts of the country is known as ___.
a) Branch Banking
b) Unit Banking
c) Mixed Banking
d) None of these

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Answer a) Branch Banking

8.ESOP means –
a) Employee stock option play
b) Employee shair object plan
c) Employee stock ownership plan
d) None of these

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Answer c) Employee stock ownership plan
An employee stock ownership plan (ESOP) gives workers ownership interest in the company, at times with upfront costs. ESOPs are qualified in the sense that the sponsoring company, the selling shareholder and participants receive various tax benefits.

9.A banking system where all operations are confined to a single office is known as _____.
a) Unit Banking
b) Group Banking
c) Chain Banking
d) None of these

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Answer a) Unit Banking
Unit banking refers to a single bank which tender services and operates with out any branches anywhere.

10.Which of the following is not a Financial/Economic term?
a) Marginal Utility
b) Break Even Point
c) Pipette
d) None of these

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Answer c) Pipette
Pipette is related to chemistry.

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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