Sunday, August 4, 2013

IBPS BANK EXAMINATIONS – BANKING AWARENESS – PRACTICE TEST-002



002
 
01.  When does Reserve Bank of India issue annual policy statement?
a)    January; b) April; c) July; d) October; e) None of the above

02.  Which of the following has been renamed as “Annual Policy Statement” by the Reserve Bank of India?
a)    Busy season banking policy; b) slack season banking policy; c) monetary and credit policy; d) annual statistical report;
e) none of the above
03.  When does RBI review its annual policy statement?
a)    July; b) October; c) January; d) all the above; e) None of the above

04.  Which is the monitoring and reviewing authority regarding fair practices code as per recent annual policy statement of Reserve Bank of India?
a)    Banking codes and standards Board of India; b) Banking Ombudsman; c) Institute for development in banking technology; d) debt recovery tribunal; e) none of the above

05.  Which committee has recommended introduction of smart card?
a) Rangarajan committee; b) Saraf committee; c) Nayak committee; d) Pannirselvan committee; e) None of the above

06.  Which committee had formulated consultative profile in connection with electronic funds transfer?
a)    A.K. Purwar committee; b) Y V Reddy committee; c) K S Shere committee; d) S. A. Dave committee; e) none of the above

07.  The process of transformation of physical shares, commercial paper or certificate of deposit into electronic form is called as:
a)    Electronic clearing service; b) electronic securitization; c) truncation; d) dematerialisation; e) none of the above

08.  Providing banking services to a customer without his entrance in the bank’s branch is called as:
a)    Virtual banking; b) relationship banking; c) universal banking; d) mobile banking; e) none of the above

09.  Where is the headquarters of “Society for worldwide Interbank Financial Telecommunication – SWIFT”?
a)    New York; b) Los Angels; c) Brussels; d) Hague; e) None of the above

10.  Where has National Financial Switch of IDRBT established?
a)    Mumbai; b) New Delhi; c) Hyderabad; d) Bangalore; e) None of the above

11.  Cheque truncation means:
a)    Tearing a cheque into two or more pieces; b) sending the photostat copy of a cheque in collection; c) using the electronic image of a cheque; d) keeping the Photostat copy of a cheque with collecting bank before sending the original cheque to the drawee branch; e) none of the above

12.  What do you mean by universal banking?
a)    Provision of all financial services in one country; b) provision of all financial services in one bank; c) provision of all financial services at a branch; d) provision of all financial services at any of the counters of a branch of a bank; e) none of the above

13.  Corporate governance is a system
a)    By which a company is directed and controlled; b) in which Board of directors is responsible for conduct of a company; c) both the above; d) governing corporate companies by the government; e) none of the above

14.  Whose interest is kept in mind in a good corporate governance system?
a)    Shareholders of the company; b) stakeholders of the company; c) employees of the company; d) all the above; e) none of the above

15.  What do you mean by risk?
a)    Loss; b) depreciation of capital; c) decrease in profitability; d) possible loss that depends upon occurrence and non occurrence of an incident; e) none of the above

16.  The employees of the bank went on strike and when it comes to risk what do you mean by this?
a)    Operational risk; b) employee risk; c) credit risk; d) market risk; e) systemic risk


17.  Basel II accord is mostly concerned with:
a)    Central vigilance commission; b) non performing assets; c) capital adequacy ratio; d) foreign direct investment; e) none of the above

18.  A bank is unable to pay its short term deposits because the bank’s funds are blocked in long term investment. The risk derived in this case is known is:
a)    Market risk; b) operational risk; c) liquidity risk; d) interest rate risk; e) none of the above

19.  A bank recently introduced a new deposit scheme which was not popular amongst the public and what do you mean by the risk associated with this?
a)    Operations risk; b) credit risk; c) liquidity risk; d) market risk; e) none of the above

20.  The Assets Liabilities committee in a bank makes the assessment of:
a)    Liquidity risk; b) credit risk; c) operations risk; d) all the above; e) none of the above

21.  A debtor makes default in repayment of a bank loan and which type of risk is this for a lending bank?
a)    Liquidity risk; b) operational risk; c) interest rate risk; d) credit risk; e) none of the above

22.  Which type of risk arises before a bank that trades in government securities?
a)    Liquidity risk; b) market risk; c) credit risk; d) trade risk; e) none of the above

23.  Which of the following options best defines the risk?
a)    Loss occurred due to happening of an event
b)    Loss occurred due to non happening of an event
c)     Risk arised due to uncertainty
d)    Probability of loss due to uncertainty
e)    None of the above

24.  Which of the following is not included in three pillars of BASEL capital accord?
a)    Minimum capital requirement; b) supervisory review; c) market discipline; d) core banking solution; e) none of the above

25.  When  ICICI Limited merged with ICICI bank?
a)    1st August, 2000; b) 1st August 2001; c) 1st August, 2002; d) 1st August, 2003; e) none of the above

26.  Bank of Madura Limited was merged with:
a)    ICICI bank limited; b) UTI bank limited; c) HDFC bank limited; d) IDBI bank’ e) none of the above

27.  Which bank has changed its name to AXIS bank limited?
a)    Centurion bank; b) Times bank; c) Bank of Punjab Limited; d) Bank of Karad; e) UTI bank limited

28.  Bank of Cochin was merged with:
a)    Punjab National Bank; b) Bank of Baroda; c) State Bank of India; d) Canara Bank; e) United Commercial bank

29.  Times Bank Limited was merged with:
a)    HDFC Bank; b) Bank of India; c) Punjab National Bank; d) Central Bank of India; e) none of the above

30.  What do you mean by horizontal merger?
a)    Merger of two or more companies that manufacture homogenous products;
b)    Merger of two or more companies that manufacture heterogonous products;
c)     Merger of a principal company with its subsidiary company
d)    All the above
e)    None of the above


ANSWERS:


 TEST NO: 002

1-B
2-C
3-D
4-A
5-B
6-C
7-D
8-A
9-B
10-C
11-C
12-B
13-C
14-D
15-D
16-A
17-C
18-C
19-D
20-A
21-D
22-B
23-D
24-D
25-C
26-A
27-E
28-C
29-A
30-A







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