Banking & Finance Awareness Mock Test 1

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CGL 2016
SBI Clerk Main 2016 : Banking & Finance

Awareness Mock Test 1
By SenDhil - June 22, 2016
Hello Aspirants
With the SBI Clerk Main Exam 2016 coming the way, we have prepared a set of 100
questions from Banking/Finance/Economy section which are expected and important for
the exam. The questions are important for all upcoming exams.
Static Banking/Finance/Economy (1-50)
Current Banking/Finance/Economy (51-100)
SBI Clerk Main 2016 : Banking & Finance Awareness Mock Test 2 Live
Mock Test on Union & Railway Budget 2016 2017
_____________________________________________________________________
Results
52 of 100 questions answered correctly
Your time: 00:31:44
You have reached 52 of 100 points, (52%)
Average
score
Your score
26.56%
52%
Categories
Current B&F Awareness
50%
Static B&F Awareness
54%
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Answered
Review
1. Question
1 points
Category: Static B&F Awareness

Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest
(SARFAESI) Act came into force in the year
1.
2008
2.
2005
3.
2002
4.
1998
5.
1990
Incorrect
Explanation:
SARFAESI (Securitisation and Reconstruction of Financial Assets and Enforcement of Security
Interest) Act, 2002 is an act which came in 2002 to allow banks and other financial institutions
to recover their non-performing assets without the intervention of the Court.
2. Question
1 points

Which of the following is the purpose of introducing Know Your Customer norms by the banks?
1.
Identifying people who do not pay Income Tax
2.
To bring more and more people under the banking net
3.
To ensure that the money deposited in banks has come from genuine sources
4.
All of the above
5.
None of the Above
Incorrect
Explanation:
Know your customer(KYC) is an important step developed globally to prevent identity theft,
financial fraud, money laundering and terrorist financing.
3. Question
1 points

ALM in Banking/Finance sector stands for _________
1.
Asynchronous Liquidity Management
2.
Asset Liability Manufacturing
3.
Asset Liability Management
4.
Anti-Liability Management
5.
None of these
Correct
Explanation:
Asset Liability Management (ALM) can be defined as a mechanism to address the risk faced by
a bank due to a mismatch between assets and liabilities either due to liquidity or changes in
interest rates.
4. Question
1 points

It is a particular system of banking, in which a bank places its funds in risk free assets with
maturity period matching its liabilitys maturity timing and maintains liquidity at the time of
demand payment and their funds have no chance of becoming an NPA.
1.
Narrow Banking
2.
Merchant Banking
3.
Universal Banking
4.
Virtual Banking
5.
None of these
Correct
Explanation:
Narrow banking is a proposed type of bank called a narrow bank also called a safe bank.
Narrow banking would restrict banks to holding liquid and safe government bonds. Loans would
be made by other financial intermediaries.
5. Question
1 points

When the repayment of a loan starts after certain period of its disbursement, that period is called
________.
1.
Esoteric
2.
Foreclosure
3.
Diffusion
4.
Moratorium
5.
None of these
Incorrect
Explanation:
It is a period of time in which there is a suspension of a specific activity until future events
warrant a removal of the suspension or issues regarding the activity have been resolved. In
bankruptcy law, a legally binding halt of the right to collect debt. For example, if a company is
going through rough times it might have a moratorium on advertising spending. In other words,
to cut costs, it wont spend any money on advertising.
6. Question
Which of the following techniques, Indian currency notes do not use?
1.
Security threads
2.
Optically variable ink
3.
Micro lettering
4.
Intaglio printing
5.
All of the above are used.
Correct
1 points
7. Question
1 points

CRR and SLR are related to
1.
Capital Market
2.
Commodities Market
3.
Money Market
4.
All of these
5.
None of these
Correct
Explanation:
Banks has to keep a certain percentage of its total deposits with RBI as cash reserves that is
CRR. Amount of liquid assets such as precious metals(Gold) or other approved securities, that
a financial institution must maintain as reserves other than the cash is SLR.
8. Question
1 points

Which among the following are often described as Double Financial Repression for Banks in India?
1.
Priority Sector Loans and Cash Reserve Ratio
2.
Priority Sector Loans and Statutory Liquidity Ratio
3.
Cash Reserve Ratio and Statutory Liquidity Ratio
4.
Statutory Liquidity Ratio and Margin Requirements
5.
None of these
Incorrect
Explanation:
Priority Sector lending in India has been made a salient feature of the banking in India mainly
due to the social and economic objectives that underlie PSL. However, banks are also required
to keep certain amount to maintain Statutory Liquidity Ratio (SLR) and from the remaining
disposable amount, 40 per cent is dedicated for the priority sector. Thus, large fraction of
banks resources causes the so called Double Repression on the banking system.
9. Question
1 points

What is the loan limit for education under Priority Sector Lending (PSL) for studying in India and
abroad respectively?
1.
Rs. 20 lakh, Rs. 10 Lakh
2.
3.
4.
5.
None of these
Correct
Explanation:
Under Priority Sector Lending (PSL), the loans and advances granted to only individuals for
educational purposes up to Rs.10 lakh for studies in India and Rs. 20 lakh for studies abroad.
10. Question
1 points

Which of the following is not the feature of Demand Draft?
1.
It is drawn by a bank upon its own branch or another bank.
2.
It is payable on demand and it cannot be made payable to bearer.
3.
Payment of a demand draft cannot be stopped or countermanded. Due to this reason,
the payment is demanded through a bank Draft.

4.
Demand Draft is valid for 3 months
5.
None
Incorrect
11. Question
1 points

Reserve Bank Staff College which is set up to train the needs of RBI officers is located at
1.
Bengaluru
2.
New Delhi
3.
Chennai
4.
Hyderabad
5.
Nagpur
Incorrect
12. Question
1 points

As per the latest amendment made to the Indian Coinage Act, Government of India can mint the
Coin up to the value of Rs
1.
1000
2.
500
3.
250
4.
150
5.
100
Correct
13. Question
1 points

Teaser loan means
1.
Interest not collected at all
2.
Interest collected at more rates at the beginning and less during the later times.
3.
Interest collected at less rate of inters at the beginning and less during the later times
4.
Interest collected at more rates at the beginning and never collect rate of interest later
times.
5.
Interest collected at less rate of interest at the beginning and more during the
later times.
Incorrect
Explanation:
An adjustable-rate mortgage loan in which the borrower pays a very low initial interest rate,
which increases after a few years. Teaser loans try to entice borrowers by offering an artificially
low rate and small down payments, claiming that borrowers should be able to refinance before
the increases occur.
14. Question
1 points

To get rid of the disadvantages of Paper Currency, Plastic currency mooted. Which is the first
country to mint Plastic money?
1.
India
2.
New Zealand
3.
China
4.
Spain
5.
Australia
Correct
Explanation:
The polymer notes were first introduced in Australia to safeguard against counterfeiting of
currency. Besides Australia, other countries which have introduced plastic notes include New
Zealand, Papua New Guinea, Romania, Bermuda, Brunei and Vietnam.
15. Question
1 points

Recently an Australian academic and entrepreneur, Craig Wright identified himself as the bitcoin
creator. Earlier it was said to be generated by whom?
1.
John Shepherd-Barron
2.
Satoshi Nakamoto
3.
William Sukamo
4.
John Kapson
5.
Thomas Bit
Correct
Explanation:
Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto, who published
the invention in 2008 and released it as open-source software in 2009. The system is peer-topeer and transactions take place between users directly, without an intermediary.
16. Question
1 points

In the savings account, Nominees age can be
1.
up to10 years only
2.
above 8 years only
3.
up to 60 years only
4.
any age
5.
must be major in that State
Correct
Explanation:
Nomination is a facility that enables a deposit account holder(s) (individual or sole proprietor)
or safe deposit locker holder(s) to nominate an individual, who can claim the proceeds of the
deposit account(s) or contents of the safe deposit locker(s), post the demise of the original
depositor(s) or locker holder(s).
17. Question
1 points

When any asset ceases to generate income for the bank, it is called
1.
Zero Asset
2.
Profitable Asset
3.
Non-Performing Asset
4.
Performing Asset
5.
None of these
Correct
Explanation:
A non performing asset (NPA) is a loan or advance for which the principal or interest payment
remained overdue for a period of 90 days.
18. Question
1 points

National Housing Bank was set up on 9th July of which year?
1.
2005
2.
2014
3.
1991
4.
1988
5.
2000
Incorrect
Explanation:
National Housing Bank (NHB) was set up on July 9, 1988 under the National Housing Bank Act,
1987.The Head Office of NHB is at New Delhi. NHB is wholly owned by Reserve Bank of India
19. Question
1 points

Which of the following certainly is an effort in the direction of Financial Inclusion?
1.
Internet Banking
2.
Anywhere Banking
3.
No-frills Account
4.
Foreign Currency Accounts
5.
All of these
Incorrect
Explanation:
This account aims at providing normal banking services to all citizens of the country. The basic
savings account replaces the earlier no-frills account, which came with nil or minimum
charges and was meant for the low-income group.
20. Question
1 points

Which of the following facilities is not available in the Basic Savings Bank Deposit Account
(BSBDA)?
1.
deposit amount
2.
withdrawing of cash
3.
ATM Card
4.
withdrawal form facility
5.
All of above are available
Correct
Explanation:
A BSBDA account is Basic Savings Bank Deposit Account which can be opened with simplified
KYC document and also with nil balance.
Is like a Savings account with some modifications in it. A person having BSBDA in a bank
cannot have a Savings Account in the same bank. But he can have other accounts such as
fixed deposit and recurring deposit accounts.
21. Question
1 points

Name the committee who headed the panel that recommended the formation of Payments
Bank in the country?
1.
Vijay Kumar
2.
Urjit Patel
3.
Nachiket Mor
4.
Narasimahan
5.
None of these
Incorrect
Explanation:
Payment Banks are banks which will reach their customers mainly through mobile phones
rather than traditional bank branches. They can be thought of as mobile wallets.
22. Question
1 points

Which of the following are intangible assets?
1.
Preliminary Expenses
2.
Losses which cannot be reduced from share capital
3.
Patents, copyright, goodwill
4.
All of above
5.
None of above.
Incorrect
Explanation:
An intangible asset is an asset that is not physical in nature. Corporate intellectual property
(items such as patents, trademarks, copyrights, business methodologies), goodwill and brand
recognition are all common intangible assets in todays marketplace.
23. Question
1 points

Which of the following insurance company acts as reinsurer?
1.
Oriental Insurance Company
2.
General Insurance Company
3.
New India Insurance
4.
Life Insurance Corporation of India
5.
SBI General Insurance
Incorrect
Explanation:
GIC of India (GIC Re) is the sole reinsurance company in the Indian insurance market with over
four decades of experience. GIC Re has its registered office and headquarters in Mumbai.
Reinsurance occurs when multiple insurance companies share risk by purchasing insurance
policies from other insurers to limit the total loss the original insurer would experience in case of
disaster.
24. Question
United Bank of India of India is headquartered at
1.
Mumbai
2.
Kolkata
3.
Delhi
4.
Chennai
5.
Bengaluru
Incorrect
Explanation:
United Bank of India (UBI) is an Indian government-owned financial services company
headquartered in Kolkata, West Bengal, India.
1 points
25. Question
1 points

In India, the commercial banks are required to provide_______%of their ANBC (Adjusted Net
Bank Credit) to priority sector.
1.
15
2.
25
3.
35
4.
40
5.
20
Correct
Explanation:
It is the net bank credit plus investments made by banks in non-SLR bonds held in the held-tomaturity category or credit equivalent amount of off-balance-sheet exposure, whichever is
higher.
26. Question
1 points

Which of the following started the first Mutual Fund in India?
1.
SBI Mutual Fund
2.
Kotak Pioneer Mutual Fund
3.
Indian Bank Mutual Fund
4.
Unit Trust of India
5.
None of the above
Correct
Explanation:
The first introduction of a mutual fund in India occurred in 1963, when the Government of India
launched Unit Trust of India (UTI).
Much later, in 1987, SBI Mutual Fund became the first non-UTI mutual fund in India.
27. Question
1 points

When did State Bank of Saurashtra merged with its parent bank, the State bank of India?
1.
2008
2.
2009
3.
2010
4.
2011
5.
2012
Correct
Explanation:
Now, the five associate banks and BMB have also proposed to merge with SBI.
28. Question
1 points

FIMMDA stands for:
1.
Foreign Exchange Markets and Derivative Markets
2.
Fixed Income Markets Money Markets and Derivatives Markets
3.
Fixed Income Markets and Derivatives Markets
4.
None of the above
5.
None of these
Incorrect
Explanation:
FIMMDA is an association of Scheduled Commercial Banks, Public Financial Institutions, Primary
Dealers and Insurance Companies. FIMMDA is a voluntary market body for the bond, money
and derivatives markets.
29. Question
1 points

In capital markets, the term arbitrage is used in reference to the
1.
purchase of securities to cover the sale
2.
sale of securities to reduce the loss on purchase
3.
concomitant sale and purchase of securities to make profits from price
4.
variation in different markets
5.
None of these
Correct
Explanation:
the simultaneous buying and selling of securities, currency, or commodities in different markets
or in derivative forms in order to take advantage of differing prices for the same asset.
30. Question
1 points

___________ illustrates the financial position of a bank at a given point of time.
1.
Balance sheet
2.
Cash flow statement
3.
Income statement
4.
Audit
5.
None of these
Incorrect
Explanation:
The balance sheet is among the main financial statements used in financial accounting. Keep in
mind these main concepts: The balance sheet is like a snapshot of a companys financial
position, The balance sheet is comprised of two main sections:- Asset and Liability & Equity,
The Balance sheet must always balance: the Asset section must always equal the Liability +
Equity section.
31. Question
1 points

What is true regarding transaction through Account Number with the help of Immediate Payment
Service (IMPS)?
1.
In any case, a maximum of Rs 2 lakhs can be transferred per transaction
2.
The maximum amount transferred is as per the Third Party Transfer limit.
3.
There is no limit for transacting through IMPS
4.
Both A and B
5.
In any case, a maximum of Rs 1 lakhs can be transferred per transaction
Incorrect
32. Question
1 points

Masala Bonds launched by International Finance Corporation (IFC) are
1.
Yuan-denominated bonds
2.
Rupee-denominated bonds
3.
Uridashi Bonds
4.
Dollar form of Rupee-denominated bonds
5.
All of the above
Incorrect
Explanation:
Masala bonds are the rupee-denominated bonds which can be issued by the Indian entities to
raise money from overseas markets. By rupee-denominated bonds, it means that the money
borrowed will be in Indian rupees and not any foreign currency.
33. Question
1 points

Standard and Poor (S&P) headquartered at
1.
Beijing
2.
New York
3.
London
4.
Paris
5.
Washington D.C.
Correct
Explanation:
Standard & Poors Financial Services LLC (S&P) is an American financial services company. It is
a division of McGraw Hill Financial that publishes financial research and analysis on stocks and
bonds.
34. Question
1 points

Sugam is a scheme launched for
1.
Small tax payers
2.
Pensioners getting old age pension
3.
Big corporate houses
4.
Getting all sorts of permission
5.
None of these
Incorrect
Explanation:
The scheme (Flexible Deposit Scheme) offers dual advantage of high rates of interest along
with the facility of part withdrawal in case of need. The amount remaining with the Bank
continues to earn interest at contracted rates without loss of interest on total deposit.
35. Question
1 points

Open market operations of RBI refer to buying and selling of:
1.
Commercial bills
2.
Foreign exchange
3.
Gold
4.
Government bonds
5.
None of these
Correct
Explanation:
A government bond is a bond issued by a national government, generally with a promise to pay
periodic interest payments and to repay the face value on the maturity date. Government
bonds are usually denominated in the countrys own currency.
36. Question
1 points

Which of the following is an international forum to discuss and implement supervisory norms in all
the banks of the world?
1.
Basel Committee
2.
UN charter on commercial laws
3.
World trade organization
4.
International Board of banks and finance
5.
None of these
Correct
Explanation:
The Basel Committee on Banking Supervision (BCBS) is a committee of banking supervisory
authorities that was established by the central bank governors of the Group of Ten countries in
1975. It provides a forum for regular cooperation on banking supervisory matters.
37. Question
1 points

Which of the following pairs is not correctly matched?
1.
SEBI Security Market regulatory body
2.
RBI Banking regulatory authority
3.
SBI Commercial bank
4.
IFC World bank
5.
All are correct
Correct
38. Question
1 points

Which of the following appoints Banking ombudsman?
1.
State Government
2.
Union government
3.
RBI
4.
SBI
5.
The individual bank
Correct
Explanation:
The Banking Ombudsman is appointed by the Reserve Bank of India to redress customer
complaints against deficiency in certain banking services. The Banking Ombudsman Scheme
enables an inexpensive forum to bank customers for resolution of complaints relating to certain
services rendered by banks.
39. Question
1 points

R stands for _______ in CDR.
1.
Ratio
2.
Restructuring
3.
Reserve
4.
Regulation
5.
Recycle
Incorrect
Explanation:
Corporate Debt Restructuring (CDR) mechanism is a mechanism under which financial
institutions and banks come together to restructure the debt of companies facing financial
difficulties due to internal or external factors, in order to provide timely support to such
companies.
40. Question
1 points

Demat Accounts are
1.
Accounts in which shares of various companies are traded in electronic form
2.
Accounts which are operated through internet banking facility
3.
Accounts which are opened to facilitate repayment of a loan taken from the bank.
4.
Zero Balance Accounts
5.
None of these
Correct
Explanation:
Shares and securities are held in dematerialised form in demat account. It is mandatory to have
a demat account to carry out a transaction in stock exchange. Once an account is opened, you
can buy shares by visiting a broker personally or online. To open a demat account, you need to
get in touch with a registered depository participant (DP). It is just like a bank or broker.
41. Question
1 points

CHIPS stands for
1.
Central House Interbank Payment System
2.
Clearing House Interbank Payment System
3.
Clearing House International Payment System
4.
Clearing House Interbank Priority System
5.
None of these
Correct
Explanation:
It is an electronic system for making international payments in dollars and for changing money
from one currency to another
42. Question
1 points

Rate at which the domestic currency can be converted into foreign currency and vice-versa is
known as _______.
1.
External Value
2.
Exchange Rate
3.
Spot Rate
4.
Interest Rate
5.
None of these
Correct
Explanation:
An exchange rate represents the relative price of two currencies. For example, the dollareuro
exchange rate implies the relative price of the euro in terms of dollars. If the dollareuro
exchange rate is $0.95, it means that you need $0.95 to buy 1. Therefore, the exchange rate
states how many units of one currency you need to buy one unit of another currency.
43. Question
1 points

A Committee on Banking Supervision which provides a forum for regular cooperation on banking
supervisory matters and to enhance understanding of key supervisory issues and improve the
quality of banking supervision worldwide.
1.
BIS
2.
BASEL
3.
European Banking Supervisors
4.
AIIB
5.
None of these
Correct
Explanation:
BASEL is a set of international banking regulations put forth by the Basel Committee on Bank
Supervision, which set out the minimum capital requirements of financial institutions with the
goal of minimizing credit risk.
44. Question
1 points

Which of the following is the name of the bank founded by the winner of the Nobel Peace Prize
2006 Mr. Muhammad Yunus?
1.
Bank for the poor
2.
Swadeshi bank
3.
Rashtriya bank
4.
Grameen bank
5.
None of these
Correct
Explanation:
The Grameen Bank is a Nobel Peace Prize-winning microfinance organization and community
development bank founded in Bangladesh. It makes small loans to the impoverished without
requiring collateral.
45. Question
1 points

The bank rate, a monetary policy tool means:
1.
Rate of interest charged by commercial banks from borrowers
2.
Rate of interest which commercial banks discounted bills of their borrowers
3.
Rate of interest allowed by commercial banks on their deposits
4.
Rate at which RBI purchases or rediscounts bill of exchange of commercial banks
5.
None of these
Incorrect
Explanation:
Bank Rate is the rate at which central bank of the country (in India it is RBI) allows finance to
commercial banks. Bank Rate is a tool, which central bank uses for short-term purposes. Any
upward revision in Bank Rate by central bank is an indication that banks should also increase
deposit rates as well as Base Rate / Benchmark Prime Lending Rate. Thus any revision in the
Bank rate indicates that it is likely that interest rates on your deposits are likely to either go up
or go down, and it can also indicate an increase or decrease in your EMI.
46. Question
1 points

Rate of interest on savings account is determined by:
1.
The rate of return on the capital invested
2.
Central Government
3.
Liquidity preferences
4.
Commercial Banks
5.
RBI
Correct
Explanation:
The bank on which your savings account is there has the right to determine the rate of interest
on deposits of savings account. RBI and the govt. do not interfere.
47. Question
1 points

Which of the following is/are the advantages of Goods and Services (GST) Bill?
1.
Simple uniform tax structure
2.
It can increase tax revenue for government
3.
It can boost export
4.
All of the above
5.
None of above
Incorrect
Explanation:
It proposes a national value added tax to be implemented in India from June 2016. It would be
a comprehensive indirect tax on manufacture, sale and consumption of goods and services
throughout India, to replace tax levied by the central and state govts.
48. Question
1 points

Who carry out open market operations?
1.
SEBI
2.
SIDBI
3.
RBI
4.
NABARD
5.
None of these
Incorrect
Explanation:
RBI carries out open market operations. Open market operation is in which a country will
conduct trade with outside regions.
49. Question
1 points

Expand LIBOR?
1.
London Interbank Offered Rate
2.
London Interbank Official Rate
3.
London Interbank Offered Ratio
4.
London International Bank Offered Rate
5.
None of these
Correct
Explanation:
It is the average of interest rates estimated by each of the leading banks in London that it
would be charged were it to borrow from other banks.
50. Question
1 points

Which of the following is not meant for the purpose of investment?
1.
Mutual funds
2.
Infrastructure funds
3.
National Saving certificate
4.
Letter of credit
5.
None of these
Incorrect
Explanation:
It is a document issued by a third party that guarantees payment for goods/services when the
seller provides acceptable documentation and are issued by banks or other financial institutions.
51. Question
1 points
Category: Current B&F Awareness

Indias largest private sector lender ICICI has launched a programme specifically for its women
employees. Name the programme
1.
Ease@work
2.
Work_at_home
3.
iWork@home
4.
Work@ease
5.
None of these
Correct
Explanation:
ICICI Bank has launched iWork@home, an initiative that allows women employees to work
from home for up to a year.
This initiative allows women employees to have access to their required operating systems in a
safe and secure manner, creating a seamless office-like environment.
52. Question
1 points

Recently, union government has approved the Mau-Tarighat railway line project. The railway line
will be constructed in
1.
Arunachal Pradesh
2.
Uttar Pradesh
3.
Telangana
4.
Bihar
5.
Punjab
Incorrect
Explanation:
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi,
has given its approval for a new broad gauge line between Mau Station of North Eastern
Railway and Tarighat Terminal station of East Central Railway. The total length of this new
broad gauge line will be 51 kilometers.
The estimated cost of the project is Rs.1765.92 crore and expected completion cost is
Rs.2109.07 crore with 5 percent escalation per annum.
53. Question
1 points

Recently, a Central Public Sector Undertaking (CPSU) named Hospital Services Consultancy
Corporation (HSCC) has been given the status of Miniratna Company. Who is the CMD of HSCC?
1.
Gyanesh Pandey
2.
Sumekh Gupta
3.
Gaurang Chawla
4.
Rahul Tiwari
5.
None of these
Incorrect
Explanation:
Union Health and Family Welfare Minister JP Nadda on 1 February 2016 awarded the certificate
of Miniratna Category-I status to Hospital Services Consultancy Corporation (I) Ltd (HSCC).
The honour was awarded to its CMD Gyanesh Pandey at Nirman Bhawan in New Delhi.
It got the status for its consistency in excellent performance in top and bottom-line growth
along with its turnover, particularly for the last five years.
54. Question
1 points

The India Post has tied up with which of the following IT companies to set up the India Post
Payments bank?
1.
Larsen & Turbo
2.
Wipro
3.
Infosys
4.
Deloitte
5.
TCS
Incorrect
Explanation:
India Post Picked Deloitte as Consultant for Payments Bank to advise it on setting up a
payments bank and an agreement between the two would be signed. The PIB has already
approved the Rs 800-crore proposal of India Post
55. Question
1 points

V.O. Chidambaranar Port bagged National Award for excellence in Cost Management for the year
2015 from the Institute of Cost Accountants of India. The port is situated in the state
1.
Kerala
2.
Tamil Nadu
3.
Telangana
4.
Madhya Pradesh
5.
West Bengal
Correct
Explanation:
Tuticorin based V.O. Chidambaranar Port also second-largest port in Tamilnadu has bagged
National Award for Excellence in Cost Management for the year 2015 from The Institute of
Cost Accountants of India under the category of Public Service Sector- Small.
56. Question
1 points

Which state approved 5% interest subsidy for flood hit traders in April, 2016?
1.
Andhra Pradesh
2.
Tamil Nadu
3.
Jammu and Kashmir
4.
Haryana
5.
Tripura
Incorrect
Explanation:
Interest subsidy will have a cap of Rs 5 lakhs per unit for a period of 4 years, i.e. up to 31 dec
2020.
57. Question
1 points

Which of the following financial institution announced the investment of 2.5 billion US dollars over
5 years in education of adolescent girls?
1.
BRICS Bank
2.
World bank
3.
Peoples Bank of China
4.
Asian Development bank
5.
International Monetary Fund
Correct
58. Question
1 points

India obtained 37th position in the Intellectual Property Index 2016. Who topped the list?
1.
Germany
2.
China
3.
The USA
4.
Sweden
5.
Russia
Incorrect
Explanation:
India was ranked 37 out of 38 countries, with only Venezuela scoring lower, in the U.S.
Chamber of Commerce-International Intellectual Property Index.
59. Question
1 points

Indian Railways appointed which of the following as its consultant to discover advertising
potential of train and stations?
1.
Eixil Group
2.
Deloitte Consulting India Private Limited
3.
Bain & Company India Private Limited
4.
Ernest and Young
5.
Pan India Consultant Pvt Ltd
Incorrect
Explanation:
Indian Railways has appointed Ernst & Young (EY) as consultant to identify and leverage on
advertising potential of its assets across India.
60. Question
1 points

Who won the India Handloom tag?
1.
Viva and Diva Cotton Saree
2.
Chettinad Cotton Saree
3.
Vatika Fabrics
4.
Prafful Sarees
5.
None of these
Incorrect
Explanation:
The Chettinad cotton saree, which inherited the intricacies of now out-of-vogue and over a
century-oldKandangi pure silk sarees, has won the India Handloom tag for its unique designs
and identity.
61. Question
1 points

According to a report named Digital Dividends India saved 1 billion US dollars annually by using
Aadhar. The report was published by
1.
Asian Development Bank
2.
IMF
3.
World Bank
4.
SAARC Development Fund
5.
Federal Reserve
Incorrect
62. Question
1 points

Who has been awarded with 2016 Harvard Business School Alumni Achievement Award?
1.
Ratan Tata
2.
Sunil Bharti Mittal
3.
Anupam Kher
4.
Cyrus Mistry
5.
None of these
Correct
Explanation:
This years recipients are Mary Callahan, CEO of J.P. Morgan Asset Management; Alan F. Horn,
chairman of the Walt Disney Studios; W. James McNerney Jr., retired chairman of The Boeing
Company; Sunil B. Mittal, founder and chairman of Bharti Enterprises; and Thomas J. Tierney,
former worldwide managing director of Bain & Company and chairman and cofounder of The
Bridgespan Group
63. Question
1 points

Which of the following companies signed MoU with Iran to set up smelter plant in Chabahar?
1.
Hindalco Industries Limited
2.
Indian Aluminium Co Limited
3.
National Aluminium Company Limited (NALCO)
4.
Banco Aluminium Limited
5.
None of these
Incorrect
Explanation:
The MoU was signed to explore the possibility of setting up smelter- cum-gas based power
plant on joint venture in Iran for the proposed smelter plant in Chabahar Free Trade Zone.
64. Question
1 points

Name the company which has launched its new fraud solution called Hunter Fraud Score that
will help banking and insurance companies increase their efficiency in fraud detection in April
2016?
1.
Fareportal India Pvt Ltd.
2.
Experian India
3.
JP Morgan Chase
4.
Phenom India
5.
Mirus Solutions
Correct
Explanation:
Experian is already playing an active role in fraud detection in India by running the Experian
Fraud Bureau. Now launched its Hunter Fraud Score, a new scoring mechanism that measures
the probability of fraud in a credit application across banking and insurance industries.
65. Question
1 points

Recently an Indian bank launched next generation features on its app iMobile which will enable
customers to instantly pay taxes and book railway tickets within the app. Name the bank.
1.
Federal Bank
2.
Punjab National Bank
3.
Kotak Mahindra Bank
4.
ICICI Bank
5.
Bandhan Bank
Correct
Explanation:
New features will enable customers to instantly pay taxes and book railway tickets within the
app. iMobile users will also be able to purchase travel & motor insurance as well as buy mutual
funds from 19 asset management companies.
66. Question
1 points

Recently which bank launched countrys first Aadhar based ATM?
1.
Yes Bank
2.
DCB Bank
3.
ICICI Bank
4.
RBL Bank
5.
RBS Bank
Correct
Explanation:
The ATM will allow to transact using biometric details only. So its a cardless and pin less ATM.
The user can key-in the 12-digit Aadhaar number or swipe the card at an automated teller
machine (ATM) to start a transaction, but at the stage of confirming the identity, it requires
biometric details rather than the PIN.
67. Question
1 points

Which committee submitted its report on Insolvency and Bankruptcy Code 2015?
1.
Anand Sharma
2.
Bhupender Yadav
3.
Naresh Gujral
4.
Praful Patel
5.
None of these
Correct
Explanation:
Officials from the ministries of finance and corporate affairs briefed a Parliamentary panel on the
Insolvency and Bankruptcy Code, 2015, which seeks to provide an easy exit option for
insolvent and sick firms.
68. Question
1 points

India and the International Monetary Fund (IMF) on 12 March 2016 signed an agreement to set
up a SARTTAC for training officials in dealing with macro-economic and financial issues. What is
SARTTAC?
1.
South Asia Regional Training and Technical Association Center
2.
South Asian Regional Testing and Technical Assistance Center
3.
South Asia Regional Training and Technical Assistance Center
4.
South Asia Regional Training and Testing Assistance Center
5.
South Asian Rational Training and Technical Assistance Center
Incorrect
Explanation:
A memorandum of understanding (MoU) to set up the centre was signed by Finance Minister
Arun Jaitley and IMF Managing Director Christine Lagarde in New Delhi in the presence of Prime
Minister Narendra Modi.
69. Question
1 points

Recetly, the World Bank approved how much amount as loan to support rooftop solar
programme in India?
1.
$750 m
2.
$500 m
3.
$525 m
4.
$625 m
5.
$620 m
Correct
Explanation:
The board of World Bank has approved a $625 million loan to support the central
governments programme to generate electricity from rooftop solar power plants.
The board also approved a co-financing loan of $120 million on concessional terms and a $5
million grant from the Climate Investment Funds Clean Technology Fund
70. Question
1 points

Petroleum and Natural Gas Minister Dharmendra Pradhan inked with MoU with Bangladesh
Petroleum Corporation to set up a LPG import terminal in which port?
1.
Paradip Port in India
2.
Chittagong Port in Bangladesh
3.
Kandla Port in India
4.
Dhaka Port in Bangladesh
5.
None of these
Correct
Explanation :
Focus on laying a Chittagong-Tripura Pipeline through that country for supplying part of the
imported LPG to Indias North East Region and Supplying diesel from Numaligarh Refinery to
Parbatipur in Bangladesh
71. Question
1 points

Which sector shows high record in capital expenditure of Rs. 94,000 crore to boost the economy
by its contribution?
1.
Power
2.
Railways
3.
Airport
4.
Mine
5.
None of these
Correct
Explanation :
Railways have finished the financial year 2015-16 with a record high capital expenditure of Rs.
94,000 crore, an increase of Rs. 37,000 crore over the previous fiscal.
72. Question
1 points

Which State government has launched a scheme named Green Passage for Orphan students to
promote higher studies for the students?
1.
Bihar
2.
Gujarat
3.
Odisha
4.
Uttar Pradesh
5.
Rajasthan
Correct
Explanation:
The Odisha government has coined a special scheme named Green Passage for orphan
students. This proposed scheme will function under the Higher Education Department.
73. Question
1 points

Which is the Indias ranking in the IMD World Competitiveness Scoreboard, 2016 on the behalf of
Worlds most competitive economy?
1.
23
2.
45
3.
41
4.
31
5.
29
Incorrect
Explanation:
Hong Kong takes the place of US by the Worlds most competitive economy. The top places of
Countries: Switzerland, Singapore, Sweden, Denmark, Ireland, the Netherlands, Norway and
Canada.
74. Question
1 points

Union Government decided to form how many coastal police stations in the Coastal states of
the country with jurisdiction over Exclusive Economic Zone?
1.
2.
3.
10
4.
5.
12
Incorrect
Explanation:
Union government cleared decks for formation of 10 coastal police stations in the coastal
states of the country with jurisdiction over Exclusive Economic Zone.
75. Question
1 points

Which city hosted North East-ASEAN Business Summit 2016 at the City Convention Centre?
1.
Lucknow
2.
Imphal
3.
Kolkata
4.
Dispur
5.
Gangtok
Correct
Explanation:
The summit has been organized by the Manipur Department of Commerce and Industries in
collaboration with Indian Chamber of Commerce and International Chamber for Service
Industry.
76. Question
1 points

Which private sector bank has started a campaign on social media, Twitter to allow the
applicants to sell themselves to become an employee of the bank?
1.
HDFC bank
2.
Yes Bank
3.
DCB Bank
4.
IDFC Bank
5.
Bandhan Bank
Incorrect
Explanation:
IDFC Bank is now making applying for a new job as simple as sending out a tweet. The
countrys newest private sector lender has just rolled out the first-of-its-kind Twitter campaign,
#IDFCTwitterResume, where you can sell yourself in 140 characters and land a job in the
bargain.
Job openings will be posted on Linkedin, Twitter & Facebook and the campaign will continue till
May 24. Post this date, job seekers can continue to post resumes using the same hash tag.
77. Question
1 points

India claims a loan of $250 million from the BRICSs New Development Bank to which bank for a
renewable Energy project?
1.
State Bank of India
2.
Canara Bank
3.
Reserve Bank of India
4.
ICICI Bank
5.
Incorrect
Explanation:
The New Development Bank, the latest multilateral funding institution in the financial world, has
sanctioned a $250-million loan for India to fund its ambitious scheme on new and renewable
energy.
President of BRICS NDB Indian banker K.V. Kamath
78. Question
1 points

From which date, guidelines to change the method for calculating base rate based on the
marginal cost of funds came into effect?
1.
May 1, 2016
2.
April 1, 2016
3.
February 1, 2016
4.
June 1, 2016
5.
March 1, 2016
Correct
79. Question
1 points

Which state owned bank has become the top mobiliser under Gold Monetisation Scheme,
launched by Modi government?
1.
Bank of Baroda
2.
State Bank of India
3.
4.
Central Bank of India
5.
Bank of India
Correct
Explanation:
The bank has mobilised 1,311 kg of gold since the launch of the scheme in November 2015.
The bank has mobilised substantial gold deposit under Short Gold Bank Term Deposit (STGBD)
for three years from one of the leading trusts of India Tirumula Tirupati Devasthanam,
Tirpuati (TTD).
80. Question
1 points

Which country and India have resolved a decades-old border issue through a land swap
agreement that started with a physical exchange of enclaves on July 31, 2015, to continue in
phases between that date and June 30, 2016?
1.
Bangladesh
2.
Pakistan
3.
China
4.
Sri Lanka
5.
Nepal
Incorrect
81. Question
1 points

As announced by World Bank, India can maintain how much growth rate per cent in 2016-17?
1.
7.6%
2.
7.4%
3.
8.2%
4.
7.9%
5.
6.9%
Correct
82. Question
1 points

Payments bank of the postal department will have how much corpus at the beginning?
1.
Rs 900 crore
2.
Rs 600 crore
3.
Rs 1000 crore
4.
Rs 800 crore
5.
Rs 700 crore
Correct
Explanation:
The payments bank of the department will be functional by March 2017. It is one of the 11
applicants which got in principle approval to set up payments bank in the country.
83. Question
1 points

Which of the following states announced its Agri Business Policy 2016?
1.
Haryana
2.
Uttar Pradesh
3.
Punjab
4.
Kerala
5.
Gujarat
Correct
Explanation:
The State Government of Gujarat announced officially its Agri Business Policy in order
promotes food processing and agriculture waste management during the festival of 2016 Krishi
Mahotsav.
84. Question
1 points

Which of the following entities is deciding to get converted to green bank?
1.
Indian Energy Exchange Ltd
2.
Indian Renewable Energy Development Agency
3.
Department of Posts
4.
Bureau of Energy Efficiency
5.
Idea Payments Bank Limited
Correct
Explanation:
IREDA might be converted to a Green Bank without undergoing any altercation in its basic
structure to enable it access to funds from foreign banks that are not currently supporting solar
and wind projects.
A green bank is a public or quasi-public financing institution that provides low-cost, long-term
financing support to clean, low-carbon projects by leveraging public funds through the use of
various financial mechanisms to attract private investment so that each public dollar supports
multiple dollars of private investment.
85. Question
1 points

Which of the following was declared as Best Company Promoting Sports (Private sector) in the
country at the National Sports Awards 2015?
1.
Kotak Mahindra Bank
2.
Yes Bank
3.
Axis Bank
4.
HDFC Bank
5.
None of these
Incorrect
Explanation:
In the same awards, Lalita Babar was named Sportsperson of the Year in India Sports Awards.
86. Question
1 points

Which online financial marketplace, has launched a new One Loan Two Homes program to help
the flood-affected citizens of Chennai?
1.
Bankbazaar.com
2.
Bloomberg
3.
policybazaar.com
4.
Both A and C
5.
None of these
Incorrect
Explanation:
Under this scheme, the company will contribute Rs.1000 to Habitat for Humanity India on
every home loan disbursed between 1 Jan 31 Mar, 2016.
The money thus collected would be donated to Habitat for Humanity non-profit organisation
that builds homes and provides housing-related services to low-income, marginalized families
across India to build disaster-resilient homes for people affected by the floods.
87. Question
1 points

India Post has opened exclusive counters at the business post centres in Gurgaon and Faridabad
for_______ India sellers.
1.
Snapdeal
2.
Amazon
3.
eBay
4.
Flipkart
5.
None of these
Incorrect
Explanation:
The services offered by India Post to eBay sellers for domestic and international post will
include registered and speed post for international dispatch while ordinary, book and registered
post services will be available for domestic dispatch.
Navin Mistry, head, retail exports and lifestyle sategory, eBay India.
88. Question
1 points

The second edition of Gyan Sangam, a retreat of chiefs of public sector financial institutions is
likely to be held on March 4 and 5, to brainstorm various issues including bad loans and social
sector schemes implementation. The venue for this event is ________.
1.
Kolkata
2.
Mumbai
3.
Gurgaon
4.
Delhi
5.
Jaipur
Incorrect
Explanation:
The first Gyan Sangam was held last year in Pune where Prime Minister Narendra Modi
addressed heads of PSU banks and insurers and financial sector regulator promising no
interference from any government functionary in the matter of their commercial decisions.
Two focus areas of the new government such as financial inclusion and direct benefit transfer
scheme.
Deposits in accounts opened under the PMJDY programme have crossed the Rs 30,000 crore
mark.
As many as 20.38 crore bank accounts were opened under the PMJDY as on January 20.
Progress with regard to Atal Pension Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana
(PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) would also be reviewed.
89. Question
1 points

Name the newly appointed MD of State Bank of Travancore.
1.
PN Naidu
2.
Naresh Sharma
3.
NK Chari
4.
CR Sasikumar
5.
Ravi Verma
Correct
Explanation:
CR Sasikumar assumed the charge of Managing Director of State Bank of Travancore (SBT),
one of the associate banks of State Bank of India (SBI), on June 1.
90. Question
1 points

RBI brought Braille Features for New ________ Rupee Bank Notes.
1.
100 & 500
2.
500 & 1000
3.
50 & 100
4.
100 & 1000
5.
None of these
Correct
Explanation:
The visually impaired have been struggling with notes of various denominations, as there is no
other means for them to count money besides the varied sizes of the currency. To overcome
this, the Reserve Bank will issue Rs 500 and Rs 1,000 bank notes with additional features to aid
the visually impaired in identification.
91. Question
1 points

Which bank is going to set up its biggest technology hub in Hyderabad?
1.
Kolkatta
2.
Bengaluru
3.
Hyderabad
4.
DBS Bank
5.
Mumbai
Correct
Explanation:
Singaporean lender DBS Bank is creating its biggest technology hub outside of headquarters, in
Hyderabad where the company plans to have over 1,500 headcount.
92. Question
1 points

From which date, guidelines to change the method for calculating base rate based on the
marginal cost of funds came into effect?
1.
May 1, 2016
2.
April 1, 2016
3.
February 1, 2016
4.
June 1, 2016
5.
March 1, 2016
Correct
Explanation:
All rupee loans sanctioned and credit limits renewed w.e.f. April 1, 2016 will be priced with
reference to the Marginal Cost of Funds based Lending Rate (MCLR) which will be the internal
benchmark for such purposes.
93. Question
1 points

Which bank has been selected by the Tea Board as the new settlement bank for pan-India eauction from sale number 25, which falls on the third week of next month?
1.
Syndicate Bank
2.
State Bank of India
3.
United Bank of India
4.
Bank of India
5.
Bank of Baroda
Incorrect
Explanation:
IndusInd Bank, which has been the settlement bank for e-auction for the Rs 17,000 crore tea
industry, is set to lose the status and Rs 8,000 crore business in the process.
94. Question
1 points

RBIs which deputy governor/s is going to get retired on July 7 this year?
1.
Urjit Patel
2.
SS Mundra
3.
R Gandhi
4.
HR Khan
5.
All of the above
Incorrect
Explanation:
Khan is due to retire on July 7 as he turns 62. For his replacement, interview is to be conducted
by a panel headed by Cabinet Secretary Pradeep Kumar Sinha.
Urjit Patel had got a 3 yr extension in Jan this year.
95. Question
1 points

Industry body Internet and Mobile Association of India (IAMAI) has appointed whom as IAMAI
payments banks group chairman?
1.
Pradeep Bhide
2.
Suresh Sethi
3.
Aditya Birla
4.
Vijay Shekhar Sharma
5.
Dilip Shanghvi
Incorrect
Explanation:
Vijay Shekhar Sharma is the founder of Paytm. Vodafone India business head (M-Pesa) Suresh
Sethi, will be the vice-chairman of the group.
Up to now, 6 of the 10 entities who have been granted approval for payments bank in the
country have joined IAMAI.
96. Question
1 points

State run banks, led by SBI, decided to freeze lending to which state government in April this
year?
1.
Punjab
2.
Madhya Pradesh
3.
Uttar Pradesh
4.
Rajasthan
5.
West Bengal
Incorrect
Explanation:
The bankers unanimously decided that they will not lend to Punjab unless the issue of missing
foodgrain is resolved.
97. Question
1 points

In which of the following financial institution, did MUDRA Bank invest Rs 50 crore in securitization
deal?
1.
Aadarsha Welfare Society
2.
Annapurna Financial Services
3.
Janalakshmi Financial Services
4.
SKS Microfinance
5.
Share Microfin Limited
Correct
Explanation:
This marks MUDRAs first-ever participation in a capital market deal as the MSME (micro, small
and medium enterprises)
MUDRA Bank has been the outcome of governments initiative to increase lending towards
small businesses.
Janalakshmi is a financial institution servicing the microfinance needs of Urban India, with a
market-oriented focus.
98. Question
1 points

Name the mobile app started by SBI to stop the debit card details whereby the customer can
activate or deactivate its debit card by just sending an SMS?
1.
SBI Debit
2.
SBI SMS
3.
SBI Quick
4.
SBI Flip
5.
SBI Deact
Incorrect
Explanation:
SBI Quick, a mobile APP, provides a range of services and works on the condition that the
SMS/missed call should come from the mobile number registered with the bank.
99. Question
1 points

The BRICS New Development Bank approved its first credit of loans to India in the field of
1.
Housing Projects
2.
Renewable Energy
3.
Rural Inclusive Growth Project
4.
Solar Power Generation
5.
Urban Water Supply Project
Correct
Explanation:
BRICS New Development Bank (NDB) has offered $250m in loans to the Canara Bank in India
to fund the development of renewable energy
100. Question
1 points

Recently RBI signed MOU with which bank for information exchange on banking supervision?
1.
Central Bank of Brazil
2.
Peoples bank of China
3.
Bank of Bangladesh
4.
Bank of Israel
5.
None of these
Incorrect
Explanation:
With this, the RBI has signed 32 such MoUs, one Letter for Supervisory Co-operation and one
Statement of Co-operation
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Identifying people who do not pay Income Tax

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All of the above

None of the Above

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Asynchronous Liquidity Management

Asset Liability Manufacturing

Asset Liability Management

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Optically variable ink

All of the above are used.

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Cash Reserve Ratio and Statutory Liquidity Ratio

Statutory Liquidity Ratio and Margin Requirements

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Rs. 20 lakh, Rs. 25 Lakh

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It is drawn by a bank upon its own branch or another bank.

It is payable on demand and it cannot be made payable to bearer.

Payment of a demand draft cannot be stopped or countermanded. Due to this reason,

the payment is demanded through a bank Draft.

Demand Draft is valid for 3 months

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Interest not collected at all

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up to10 years only

above 8 years only

must be major in that State

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withdrawal form facility

All of above are available

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Losses which cannot be reduced from share capital

Patents, copyright, goodwill

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General Insurance Company

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