XII BANKING ONE MARK QUESTIONS FROM BOARD AND SAMPLE

PAPERS
1 For obtaining which among the following does a customer not
require a bank account ?
(A) Loan (B) Cheque (C) Banker’s Cheque (D) Credit Card

2 The banking service in which the customer can conduct banking

activities like managing savings and checking accounts, applying for
loans, etc. over the Internet is called :
(A) Online Banking (B) Offline Banking
(C) Internet Banking (D) Computer Banking

3 Clearing house sends the cheque to the payer’s bank for_______.

(A) depositing (B) paying (C) collection (D) clearing

4 (v) Name the policy related to direct taxes and government spending.
(A) Monetary Policy (B) Banking Policy
(C) Financing Policy (D) Fiscal Policy

5 Name the book which is maintained as the book of original entry in

accounting.
(A) Ledger (B) Journal (C) Passbook (D) Cheque Book

6 Which mode of funds transfer takes the longest time to transfer

money to the payee ?
(A) Cheque (B) NEFT (C) RTGS (D) ECS

7 Mobile wallets provide which kind of services to the society ?

(A) Sending and receiving money (B) Making payment to merchants
(C) Online purchases (D) Online sales

8 Interest collected by the bank on a loan is _______ for the bank.

(A) expense (B) income (C) profit (D) loss

9 Debit and credit ____________ are in different colours for easy

identification and processing.

10 In India, introduction of using image of the payment instrument for

 clearing is known as ____________.
(A) Cheque transaction (B) Cheque clearing
(C) Cheque settlement (D) Cheque processing

11 In case the SLR ratio is increased by the RBI, inflation will _____.
(A) Increase (B) Decrease
(C) Have no impact (D) Have slight change

12 Who is responsible to hold periodical meetings of all staff members

to discuss the bank’s performance with the higher authorities ?
(A) Manager (B) Cashier (C) Agent (D) Teller

13 For paying which among the following will a bank standing order be
suitable ?
(A) Telephone bill (B) Electricity bill
(C) Grocery bill (D) Mortgage repayment

14 The invader creates a false context which misleads you in making an

unsuitable security-appropriate decision. This is called :
(A) Phishing (B) Spoofing(C) Skimming(D) Fishing

15 Bank operations are segregated into ____________ areas.

(A) two (B) three (C) four (D) five

16 When the fixed loan comes nearer to its maturity, the interest
amount on the loan ___________.
(A) increases (B) decreases
(C) remains same (D) depends on the market

17 This type of guarantee gives an assurance that the goods ordered

would be delivered as agreed.
(A) Financial guarantee (B) Deferred payment guarantee
(C) Guarantee for warranty obligation (D)Bid bond guarantee

Minimum interest rate of a Bank below which it cannot lend, except

in cases allowed by RBI is known as?
a) Bank Rate b) Prime Lending Rate c) Repo Rate d) Base Rate
 Currently, which bank has the highest ATMs network?
a) ICICI Bank b) SBI Bank c) HDFC Bank d) Central Bank

Banks prepare audited P&L and Balance sheet

a) Quarterly b) Semi Annually c) Yearly d) monthly

21 How many hours do the ATMs work in a day ?

(A) 8 (B) 12 (C) 16 (D) 24

22 _________ office carries out the transaction processing for the

bank.
(A) Front (B) Central (C) Back (D) Both (A) and (B)

23 The standard rate at which RBI is prepared to buy or rediscount bills

of exchange or other eligible commercial paper from other banks is
called :
(A) Bank Rate (B) Repo Rate (C) SLR D) Interest Rate

24 A contract of ___________ is a contract to perform the promise or

discharge the liability of a third person in case of his default.
(A) guarantee (B) warranty (C) payment (D) Both (B) and (C)

25 The ___________ cabin has to be as far away as possible from the

entry/exit points of the bank.
(A) Manager (B) Vault (C) Cashier (D) Both (A) and (B)

26 A drew a three month dated bill which was drawn upon B for ₹ 3,600
on 1 July, 2023. The maturity date of the bill will be :
(A) 1st October (B) 2nd October (C) 3rd October (D) 4th October

27 Minimum Reserve System principle refers to ___________.

(A) Currency note issue
(B) Reserve levels to be maintained by the banks
(C) Minimum Reserve Ratio
(D) RBI reserve levels to be maintained

28 Pay-in-slips are used in banks for _____________ money.

(A) withdrawing (B) depositing (C) transferring (D) Both (A) and ©
29 Assertion : Commission or income earned on selling other
revenue for many banks.
Reason : Banks started selling life insurance products on behalf
of insurance companies.
(a) Assertion is correct, but Reason is wrong.
(b) Both Assertion and Reason are correct.
(c) Both Assertion and Reason are wrong.
(d) Assertion is wrong, but Reason is correct.

30 There is a banking system which makes banking convenient by

changing the status of a branch to , facilitating speedy and effective
banking at all times. Name the banking system.
(a) RTGS (b) NEFT (c) Electronic Fund Transfer (d) Core Banking

31 Debit the receiver and credit the giver applies to :

(a) Personal Account (b) Real Account
(c) Nominal Account (d) Both (a) and (b)

32 E-banking does not include :

(a) EFT (b) ATM (c) RTGS (d) Safety of valuables

33 A/An __________ means an investment vehicle that pools the

money of a large group of investors and purchases a variety of
securities to achieve a specific investment objective.
(a) Sinking Fund (b) Investment Fund
(c) Mutual Fund (d) Provision Fund

34 Currency chest branches should have __________ armed guards

throughout the day and night to ensure round the clock safety.
(a) Two (b) Three (c) One (d) Four

35 Interest paid by the bank on a loan is __________.

(a) Income (b) Expense (c) Liability (d) Asset

36 A bank locker can be leased to any __________.

(a) Firm (b) Adult (c) Person (d) Account holder
37 Which mode of fund transfer takes the longest time to transfer
money to the payee/beneficiary ?
(a) Cheque (b) NEFT (c) RTGS (d) ECS

38 The CBS is based on __________-oriented architecture.

(a) Retail (b) Service (c) Consumer (d) Customer

39 In India, Bank balance Sheet form format is decided by

a) World Bank b) Bank for International Settlement (BIS)
c) RBI d) Indian Companies Act

40 Which office of the bank is known as Sweat shop ?

(a) Front (b) Middle (c) Back (d) Central

41 Which of the following is the qualitative instrument of credit

control ?
(a) Open market operation (b) CRR (c) Direct action (d) SLR

42 _______ is one of the most commonly used forms of cyber attack.

(a) Phishing (b) Fishing (c) Spoofing (d) Skimming

43 ____ benefit of e-banking helps in environmental conservation.

(a) Recycle waste paper (b) Distribute bank printed statements
(c) Reduce use of paper (d) Denial of providing passbook

44 The full form of DSA is :

(a) Direct Selling Agent (b) District Selling Agent
(c) Departmental Selling Agent (d) Divisional Selling Agent

45 When the fixed loan comes near to its maturity, the interest amount
on the loan __________.
(a) Increases (b) Decreases (c) Remains same d) Depends on market

46 ) Export-Import Bank of India (EXIM Bank) was set up in _____.

(a) 1982 (b) 1983 (c) 1992 (d) 1993

47 In banking parlance, NPA stands for __________.

(a) Non-Performing Assets (b) Not Performing Assets
 (c) Never Performing Assets (d) Near Performing Assets

48 Section ______ defines bailment in the Indian Contract Act.

(A) 148 (B) 184 (C) 124 (D) 142

49 In RTGS, maximum limit for amount transfer is ____________.

(A) < 2,00,000 B) < 50,000 (C) < 10,00,000 (D) No limit

50 Select correct flow of accounting entries :

(A) Trading A/c Profit and Loss A/c Balance Sheet
(B) Profit and Loss A/c Trading A/c Balance Sheet
(C) Balance Sheet Trading A/c Profit and Loss A/c
(D) Trading A/c Balance Sheet Profit and Loss A/c

51 Reconciliation of all entries in the branch is done by the __office.

(A) Back (B) Front (C) Regional (D) Head

52 TAN is ____________.
(A) Transaction Authentication No. (B) Transaction Account N0.
(C) Temporary Account Number (D) Transaction Application No.

53 In which year was EXIM Bank set up ?

(A) 1982 (B) 1980 (C) 1981 (D) 1983

54 Functions of Middle Office include ______ compliance.

(A) Statutory (B) Regulatory (C) Legal (D) Developmental

55 Interest and dividend earned is recorded in this financial

statement of a bank :
(A) Profit and Loss A/c (B) Balance Sheet
(C) Cash Flow Statement (D) Both (B) and (C)

56 There are __________ legs in the Repo Transaction Process.

(A) 4 (B) 3 (C) 2 (D) 5

57 Loss is a negative ___________.

(A) return (B) expense (C) liability D) capital

58 Details on the front of a typical debit card include :

 i. Issuing Bank Logo ii. EMV chip iii. Hologram iv. Magnetic strip
v. CVV
Choose the correct alternative :
(A) i, ii, iii, iv (B) i, ii, iii, iv, v (C) i, ii, iii, v (D) i, ii, iii

59 Which of the following is not a Core Banking Solution (CBS) ?

(A) Internet Banking (B) Phone Banking
(C) NEFT (D) Rural Banking

60 Bank Vault is also known as ___________.

(A) Hidden Room (B) Strong Room
(C) Back Room (D) Middle Room

61 BPLR system was introduced in the year _________.

(A) 2003 (B) 2004 (C) 2005 (D) 2006

62 Banks take charge of goods, articles, securities as ________.

(A) Bailee (B) Trustee (C) Agent (D) Principal

63 CPU has ________ units.

(A) 2 (B) 3 (C) 4 (D) 6

64 From branch security set-up point of view, ________ inches of

opening of branch entrance should be permitted.
(A) 18 (B) 20 (C) 24 (D) 30

65 ___________ is the maximum capital up to which the bank is

empowered to raise by its ____________.
(A) Authorised Capital, Articles of Association
(B) Subscribed Capital, Articles of Association
(C) Authorised Capital, Memorandum of Association
(D) Subscribed Capital, Memorandum of Association

66 Which of the following value payment system(s) is/are

electronic-based system ?
i. Inter Bank Clearing ii. High Value Clearing
iii. G-Sec Clearing
 Choose the correct alternative :
(A) i only (B) ii and iii (C) i and iii (D) i and ii

67 For security purpose of bank vault, ___________ custodian(s) of

__________ key locking mechanism should be there.
(A) 2, dual (B) 3, triplicate (C) 1, main (D) Both (B) and (C)

68 In case of deflation, the purchasing power per unit of money will

___________ .
(A) decrease (B) increase (C) not change (D) decrease or increase

69 ____________ is a list of all Heads of accounts that have some

outstanding balances.
(A) Main Day Book (B) Balance Sheet
(C) Trial Balance (D) Profit and Loss A/c

70 AML stands for ______________.

(a) Anti-Money Laundering (b) Anti-Monetary Laundering
(c) Anti-Mobility Laundering (d) All Money Laundering

71 Assertion : Bank Manager represents the Bank as far as the

customers are concerned.
Reason : He is entirely responsible for smooth conduct of the
branch affairs.
(a) Assertion is correct, but Reason is wrong.
(b) Both Assertion and Reason are correct.
(c) Both Assertion and Reason are wrong.
(d) Assertion is wrong, but Reason is correct.

72 In case of short-term loans, interest rate is _______ than interest

rate for long-term loans.
(a) Lower (b) Higher (c) Same (d) Both (a) and (c)

73 From the following Minimum Reserve System principle refers to__

(a) Currency notes issue
(b) Reserve levels to be maintained by the banks
(c) Minimum reserve ratio
 (d) RBI reserve level to be maintained

74 In case of balanced Balance Sheet, the total liabilities should be

__________ the assets.
(a) Equal to (b) More than (c) Less than (d) Both (b) and (c)

75 ___________ is prepared as at/on a particular date.

(a) Balance Sheet (b) Profit and Loss Account
(c) Trading Account (d) Profit and Loss Appropriation Account

76 ECS stands for _____________.

(a) Electronic Clearing Service (b) Electric Clear Scheme
(c) Electricity Clearance Scheme (d) Electronically Clear Scheme

77 Who is responsible to hold periodical meetings of all staff members

(a) Manager (b) Cashier (c) Deputy Manager (d) Auditor

78 The rate at which RBI lends short-term funds to the bank is known
as _________.
(a) Bank Rate (b) CRR (c) Repo Rate (d) SLR

79 A/An _______ is a letter from a bank guaranteeing

payment to a seller will be received on time and for the correct
amount.
(a) Invoice (b) Letter of Credit (c) Bill of Lading (d) Bill of Exchange

80 Data validation is made by the _____and ______ procedures.

(a) Error detection, Error correction
(b) Error correction, Error detection
(c) Error commission, Error correction
(d) Error detection, Error formulation

81 Name the person who is incharge of a local branch of a bank.

(a) Cashier (b) Manager (c) Chief Manager (d) General Manager

82 Name the reward or incentive paid to depositors for postponing their

other expenditures and keeping money in their bank account.
(a) Interest (b) Discount (c) Commission (d) Rebate
83 What is the policy related to direct taxes and government spending
referred to as ?
(a) Credit policy (b) Monetary policy
(c) Fiscal policy (d) Government policy

84 On which date are the final accounts of the banks in India

prepared ?
(a) 31st March (b) 31st December (c) 30th September (d) 1st January

85 Which mode of Funds transfer takes the longest time to transfer

money to the payee?
a. Cheque b. NEFT c. RTGS d. ECS

86 _________is the name of the process of converting black money to

white money.
a. Foreign exchange b. Laundering
c. Money laundering d. Demonetization

87 The ____ cabin has to be as far away as possible from the entry /
exist point of bank.
a. Tellers’ b. Manager c. Keeper d. Agent

88 Phishing is _____________.
(a) an electronic instrument for fishing (b) related to cyber crime
(c) one of the latest forms of wishing somebody (d) catching fishes
89 Assertion : A bank locker can be leased to any adult, firm or
association.
Reason : Storing too much jewellery and valuables in the house
at times becomes a security issue.
(a) Assertion is correct, but Reason is wrong.
(b) Both Assertion and Reason are correct.
(c) Both Assertion and Reason are wrong.
(d) Assertion is wrong, but Reason is correct.
90 The standard rate at which RBI is prepared to buy or rediscount
Bills of Exchange or other eligible commercial papers from other
 banks is called :
(a) Bank Rate (b) Prime Lending Rate (c) Repo Rate (d) Base Rate
91 There is no minimum transaction limit in
(a) RTGS (b) NEFT (c) Digital Pay (d) Both (a) and (b)
92 ___________ office manages the IT resources for the bank.
(a) Front (b) Middle (c) Back (d) Side
93 CBS is based on ____________ architecture.
(a) Service-oriented (b) Market-oriented
(c) Customer-oriented (d) Campaign-oriented
94 Mr. A wants to send < 5 lakh to his wife at a distant place. Which is
the fastest mode of payment that he should choose ?
(a) Demand Draft (b) Cheque (c) RTGS (d) NEFT
95 In case of floating rate loan, borrower will benefit if the
a. Interest rate remains constant
b. Interest rate in the future is higher
c. Interest rate in the future is lower
d. Interest rate has no bearing
96 Which of the following is a role typically not performed by the
Central Bank?
a. Setting the official short-term interest rate b. Establish tax policies
c. Controlling Money Supply d. Acting as banker to the government
97 Interest collected by the Bank on a loan is ______ for the Bank.
a. Income b. Expense c. Liability d. Asset
98 Nomination of bank locker once done can
a. Not be cancelled b. Be cancelled
c. Not be changed d. Can be changed
99 Refers to banking where the transaction or the activities of banking is
carried out through the internet.
a. E-banking b. E-delivery c. e-tickets d. e-commerce
100 Utility payment made in advance is ___ for the Bank
a. Asset b. Liability c. Income d. Expense
101 In banking parlance, ‘NPA’ stands for ______.
a. Non-Performing Asset b. Net Producing Asset
c. Net Performing Asset d. Not Promoting Asset
102 Which the following of guarantee gives an assurance that the task will
be completed as agreed?
a. Financial Guarantee b. Bid bond Guarantee
c. Guarantee for Warranty Obligation d. Performance Guarantee
103 Credit card limit is
a) Revolving loan limit b) Installment loan limit
c) cash credit limit d) overdraft limit
104 The invader creates a misleading context which false you in making
an unsuitable security- appropriate decision.
a) Phishing b) Spoofing c) Skimming d) Fishing
105 Which policy is related to direct taxes and government spending
refers to?
a) Credit Policy b) Monetary Policy
c) Fiscal Policy d) Government Policy
106 State the full form of GAAP.
a) Generally Accepted Accounting Principles
b) Generally Accrual Accounting Principles
c) Generally Accepted According Principles
d) Generally Accepted Accounting Prime
107 . The document containing the guarantee of a bank to honor drafts
drawn on it by an exporter is
a) Letter of Hypothecation b) Letter of credit
c) Bill of Lading d) Bill of exchange
108 ____is a secure space specially constructed with RCC on all sides.
 a) Managers Cabin b) Cash Counter
c) Vault d) Clerks Cabin
109 EMI on a fixed rate loan remains _____ during the tenor of the loan
a) Fixed b) Changing c) Increases d) Decreases
110 ________is the commission paid by Mutual Funds Company to
agent in the first year.
a) Trail commission b) Upfront Commission
c) Accrued Commission d) Unaccrued Commission
111 Banker Lockers are not used for keeing _____
a) Cash b) Jewellery c) stock certificates d) Home Deeds
112 Upon detection of a counterfeit note at the cash counter of Bank
branch, bank will
a) Returns the note to the customer
b) Exchange with a genuine Note
c) Deposit in Account
d) Impound the Note and issue receipt
113 When the fixed loan comes near to its maturity, the interest amount
on the loan _____
a) Increases b) Decrease c) Remains same d) Depends on market
114 The standard rate at which RBI is prepared to buy or rediscount bills
of exchange or other eligible commercial paper from other Banks is
called.
a) Bank Rate b) Prime Lending Rate c) Repo Rate d) Base Rate
115 Generally, an asset that has remained below standard for up to 12
months is known as
a) Sub-standard asset b) Doubtful Asset c) Loss Asset d) Standard Asset
116 Which mode of Funds transfer takes longest time to transfer money
to the payee?
a. Cheque b. NEFT c. RTGS d. ECS 1 ii
117 _________is the name of process of converting black money to
white money. a. Foreign exchange b. Laundering c. Money
laundering d. Demonetization
118 The ____ cabin has to be as far away as possible from the entry /
exist point of bank
. a. Tellers’ b. Manager c. Keeper d. Agent
119 In case of floating rate loan, borrower will benefit if the
a. Interest rate remains constant b. Interest rate in the future is
higher
c. Interest rate in the future is lower d. Interest rate has no bearing
120 Which of the following is a role typically not performed by the
Central Bank?
a. Setting the official short-term interest rate
b. Establish tax policies
c. Controlling Money Supply
d. Acting as banker to the government
121 Interest collected by the Bank on a loan is ______ for the Bank. a.
Income b. Expense c. Liability d. Asset
122 Nomination of bank locker once done can a. Not be cancelled b. Be
cancelled c. Not be changed d. Can be changed
123 ________ Refers to banking where the transaction or the activities
of banking is carried out through internet.
a. e-banking b. e-delivery c. e-tickets d. E-commerce
124 Utility payment made in advance is ___ for the Bank
a. Asset b. Liability c. Income d. Expense
125 In banking parlance, ‘NPA’ stands for ______.
a. Non-Performing Asset b. Net Producing Asset
c. Net Performing Asset d. Not Promoting Asset
126 This type of guarantee gives an assurance that the task will be
completed as agreed.
a. Financial Guarantee b. Bid bond Guarantee
c. Guarantee for Warranty Obligation d. Performance Guarantee
127 The validity period of a demand draft is
(a) One month (b) Two Months (c) Three months (d) Six Months
128 The invader creates a misleading context which false you in making
an unsuitable security- appropriate decision.
a) Phishing b) Spoofing c) Skimming d) Fishing
129 Which policy is related to direct taxes and government spending
refers to?
a) Credit Policy b) Monetary Policy
c) Fiscal Policy d) Government Policy
130 State the full form of GAAP.
a) Generally Accepted Accounting Principles
b) Generally Accrual Accounting Principles
c) Generally Accepted According Principles
d) Generally Accepted Accounting Prime
131 The document containing the guarantee of a bank to honor drafts
drawn on it by an exporter is
a) Letter of Hypothecation b) Letter of credit
c) Bill of Lading d) Bill of exchange
132 ______is a secure space specially constructed with RCC on all sides.
a) Managers Cabin b) Cash Counter c) Vault d) Clerks Cabin
133 Minimum Reserve System’ principle refers to
a) Currency Notes issue
b) Reserve levels to be maintained by the Banks
c) Minimum reserve ratio d) RBI reserve level to be maintained
134 ________is the commission paid by Mutual Funds Company to
agent in the first year.
a) Trail commission b) Upfront Commission
c) Accrued Commission d) Unaccrued Commission
135 Banker Lockers are not used for keeing _____ a) Cash b) Jewellery
c) stock certificates d) Home Deeds
136 CBS is a step towards enhancing customer convenience through
_________and _______banking. a) Anywhere, Anytime b) Not
everywhere, Anytime c) Anywhere, Not every time d) Central, LocaL
137 Upon detection of a counterfeit note at the cash counter of Bank
branch, bank will
a) Returns the note to the customer b) Exchange with a genuine Note
c) Deposit in Account d) Impound the Note and issue receipt
138 When the fixed loan comes near to its maturity, the interest amount
on the loan _____
a) Increases b) Decrease c) Remains same d) Depends on market
139 The standard rate at which RBI is prepared to buy or rediscount bills
of exchange or other eligible commercial paper from other Banks is
called.
a) Bank Rate b) Prime Lending Rate c) Repo Rate d) Base Rate
140 Generally, an asset that has remained below standard for up to 12
months is known as
a) Sub-standard asset b) Doubtful Asset c) Loss Asset d) Standard Asset
141 The document containing the guarantee of a bank to honor drafts
drawn on it by an exporter is
a) Letter of Hypothecation b) Letter of credit
c) Bill of Lading d) Bill of exchange
142 In case of ECS Credit, there is ___ debit and ____ credit.
a) Multiple, one b) Two, multiple c) Multiple, two d) One, multiple
143 Assertion: Commission or income earned on selling other companies
products is emerging as a
new source of revenue for many banks.
Reason: Banks just earns commission by selling the insurance
policies.
a) Assertion is correct but reason is wrong
b) Both assertion and reason is correct
c) Both assertion and reason are wrong
d) Assertion is wrong but reason is correct
144 A company purchases a machine on credit basis with terms of
payment being 6 equal instalments.
This is an example of which type of guarantee
a) Bid bond guarantee b) Payment Guarantee
c) Deferred Payment Guarantee d) Advance payment Guarantee
145 A Bank Guarantee is______credit facility.
a) Fund b) Non- fund c) Commission d) Non Fee based
146 Banks charges ___ for the issuance of Demand Draft.
a) Fee b) Interest c) Commission d) Brokerage
147 If there are wrong signatures on the Bank Draft, the_____ is liable.
a) Customer b) Receiving party c) Bank d) Person issuing the draft
148 When a customer gives a sealed box to the bank for safe keeping, the
customer became the _____, and the bank becomes the_____.
a) Lesser, Lessee b) Pledger, Pledgee
c) Bailor, Bailee d) Debtor, creditor
149 The bank will, in no way, be responsible / liable for the contents kept
in the locker by the hirer as
a) the banks do know what is kept in the lockers
b) the keys are kept with customers
c) bank and customer holds bailor & bailee relationship
d) the banks do not know what is kept in the lockers
Why are pay-in-slips used in Banks?
 a) To deposit cash or cheques into the Bank account of the account
holder
b) To withdraw cash or cheques into the Bank account of the account
hold
c) To deposit content in your locker
d) To withdraw fixed deposit amount
150 Bank has implemented _______for online payments for purchases
as precaution while doing
online banking.
a) OPT b) OIC c) OTP d) OEP
151 Which among the following is the security issue related to mobile
banking?
a) Location-aware applications are considered to be invasion of
privacy
b) Increasing number of fraudulent websites
c) Fake emails purporting to be sent from banks
d) Use of Trojan Horse programs to capture user ids and password
152 ________is one of the most commonly used forms of cyber-attack.
a) Phishing b) Fishing c) Spoofing d) Skimming

153 ______ is not a paper based ways of transferring money?

a) Cheques b) Pay order c) ECS Credit d) Withdrawal slip
154 Assertion: The customer is no more the customer a particular
branch.
Reason: CBS is networking of branches, which enables customers to
operate their accounts from a
branch on CBS network.
a) Assertion is correct but reason is wrong
b) Both assertion and reason is correct
c) Both assertion and reason are wrong
d) Assertion is wrong but reason is correct
155 In case a transaction fails at an ATM and the account is also debited,
the customer should lodge a complaint with the card issuing bank at
the earliest. As per the RBI instructions banks have been
mandated to resolve customer complaints by re-crediting the
customer’s account within ______from the date of complaint.
a) 7 working days b) 15 working days
c) 21 working days d) 1 Month

156 Choose the correct order of SMS payment process

1. The cost of the purchase is added to the monthly phone bill
2. The provider clears the transaction between the purchaser and the
vendor.
3. With the SMS payment system purchasers send a text message to
pay for an item or service.
4. This text message is sent to mobile payment providers.
a) 4,3,2,1 b) 1,2,3,4 c) 3,4,2,1 d) 2,4,1,3
157 Front office is responsible to take care of following functions except
a) Sign up new customers for the bank.
b) Customer interaction and order booking
c) Focus on risk management and policies
d) Multitude of channel of interaction
158 RTGS as well as NEFT uses
a) UTR Number b) MICR c) IFSC d) DNS
160 Bank Operations is segregated into ___ areas.
a) Two b) Three c) Four d) Five
161 The Branch Manager (BM) is not directly involved in matters of the
front office customer service As he is not interested in this concern
a) Unless there is some issue which is beyond the level of the front
line staff.
b) As he is not concerned in this matter
c) Unless he is directed by higher authorities
162 Which office of the Bank is known as the SWEAT shop?
a) Front Office b) Middle Office c) Back Office d) Central office
163 The Branch Manager of bank is responsible to perform functions except
a) Conduct periodical meetings of all staff members
b) To ensure that the ambience in the branch premises is very pleasant
c) Loan proposals beyond his sanctioning powers
d) He may arrange for ‘mass contact’ programs
164 Officers holding keys to the Drill door of the vault are called vault _
a) Operator b) Custodian c) Guard d) Manager
165 In ___, RBI relaxed its policy for opening of new bank branches.
a) Sept,2012 b) Oct,2012 c) Sept,2013 d) Oct,2013
166 Ramesh visits his bank to transfer ₹50000 electronically into his
wife’s account. At the bank he fills up the RTGS form and presents it
along with the necessary cash to the bank employee at the counter for
immediate action. But to his surprise, the bank employee informs
him that in case, he cannot avail RTGS facility. But there is an
alternative electronic bank transfer method available to him. Bank
official also enquired about the urgency of transferring money to his
wife’s account and suggested some paper based transfer of fund to
other account.
Why do you think the bank refused to transfer funds on behalf of
Ramesh through RTGS facility?
a) Banking hours were closed
b) He was not eligible to avail the required facility
c) ₹50000 is less amount to transfer
d) Minimum balance to transfer is ₹ 100000
167 Which of the following services is not available through mobile banking?
a) Mini-statements and checking of account history
b) Alerts on account activity or passing of set thresholds
c) Withdrawal of cash
d) Monitoring of term deposits
168 Rahul is a professional working in a software development company
located at Hyderabad. He has a saving bank account with the SBI
bank but he has not opted for e-banking but his mobile
number is registered with his bank account. His family members are
residing in Delhi. Rahul’s father asked him to send ₹ 10,000 at the
earliest. His father has a saving bank account with PNB. what mode
is available to him to transfer money at such a quick notice.
a) ECS b) E-banking c) ATM d) NEFT
169 In banking, IFSC code stands for_________________.
a) International Format System Code
b) Indian Function System Code
c) International Forex System Code
d) Indian Financial System Code
170 Bank Lockers are not used for keeping _____
a) Property Deeds b) Cash c) Jewelry d) stock certificates
171 _______is the government official online money transfer App from
savings bank account?
a) Paytm b) PhonePe c) BHIM d) Google pay
172 A cheque becomes stale after expiry of how many months from the
date of the cheque?
a) 3 months b) 6 months c) 9 months d) 12 months
173 Which is the safest cheque from the receiver point of view?
a) Account Payee cheque b) Bearer Cheque
c) Crossed Cheque d) Demand Draft
174 What is maximum limit for an NEFT transfer per transaction?
a) No Limit b) 1 lakh c) 2 lakhs d) 3 lakhs
175 Which is the fastest mode of payment?
a) Credit card b) RTGS c) NEFT d) Cheque
176 ATM stands for
 a) Any Time Money b) Automated Teller Machine
c) Automobile Trending Machine d) None of the above
177 Which part of the Bank is known as the revenue generator?
a) Front Office b) Middle Office
c) Back Office d) None of the above
178 In absence of RBI branch in a particular city, which Bank acts as the
clearing house?
a) PNB b) ICICI Bank c) SBI d) Canara Bank
179 When a fixed deposit matures, Bank credits _____ to the account.
a) Interest only b) Principal only
c) Neither Principal nor Interest d) Principal plus Interest
180 Loan given by the Bank is shown as ______________.
a) Income b) Expense c) Liability d) Asset
181 Balance sheet is also known as _________ statement.
a) Income b) Expense c) Financial Position d) Creative
182 In case of floating rate loan,Borrowerwill benefit if the ______
a) Interest rate remains constant
b) Interest rate in the future is higher
c) Interest rate in the future is lower
d) Interest rate has no bearing
183 The standard rate at which RBI is prepared to buy or rediscount bills
of exchange or other eligible commercial paper from other Banks:
a) Bank Rate b) Prime Lending Rate c) Repo Rate d) Base Rate
184 Which of the following is safer for RBI when lending to Banks?
a) Loan Transaction b) Loan against collateral
c) Repo /Reverse Repo transaction
d) Cash / Stock Lending & Borrowing
185 In case of floating rate loan, Borrower will benefit if the ______
a) Interest rate remains constant
 b) Interest rate in the future is higher
c) Interest rate in the future is lower
d) Interest rate has no bearing
186 In absence of RBI branch in a particular city, which Bank acts as the
clearing house
a) SBI b) HDFC Bank c) Dena Bank d) Canara Bank
Radha is a college student. She wants to start her own banking
business. From where will she obtain a bank business license ?
(a) RBI (b) SBI (c) FICCI (d) IRDA
187 ___________ cannot steal login information.
(A) Thief (B) Trojan Horse (C) Keylogger (D) Cross-site scripting

1 How does inflation affect the market interest rate ?

2 State any one duty of a bailor

3 What is the minimum interest rate of a bank called below which it

cannot lend, except in cases allowed by the RBI ?

4 List any two examples of operating expenses

5 EMI stands for ___________

6 What is meant by Voucher ?

7 State the meaning of e-banking.

8 Name the book which is prepared for each day in a bank.

9 Bank rate is a _______ form of credit control.

10 Interest on loan is calculated by the bank on _________ amount.

11 State the full form of GAAP.

12 Write the full form of RD.

13 Bills Payable includes ________ and ________ issued by bank.

14 ________ was the year in which CDSL started its operations.

15 Expand RRF.

16 Expand CAD.

17 Write the formula for calculating simple interest.

18 Expand NABARD

19

20 _________ is the theoretical rate of return of an investment

withno risk of financial loss.

KYC stands for _________________.

Front-end interest calculated is _________ than back-end

interest.

Buying and selling of eligible securities by the central bank in the

Money Market is known as ____________.

Name any one output device of a computer.

24 _________ cost refers to any other use to which the money could
be put, for example lending to others or investing elsewhere.

25 In case of profit for the bank, Liability side will be ________ than
the Asset side.

26 ___________ should be fire resistant as per the standards laid

down by the RBI. State the formula for EMI calculation.

27 State any two items of income of a bank other than interest.

28 State the meaning of the word ‘provision’ under the head

expenditure of Profit and Loss Statement of a Banking Company.

29 Write the full-form of KYC

30 Who is responsible to hold periodical meetings of all staff members

to discuss the bank’s performance with higher authorities?

31 State the name of any one Qualitative instrument of Credit Control

32 State the full form of DSA.

33 State the name of incentive paid to the depositors for postponing

their other expenditures and keeping their money with the bank.

34 Which role does RBI play when it maintains the banking accounts
of all schedule Banks?

35 State the full form WAP

36 Write the full-form of KYC?

37 Who is responsible to hold periodical meetings of all staff members

to discuss the bank’s performance with higher authorities?

40 State the name of any one Qualitative instrument of Credit Control.

41 State the full form of DSA.

42 Name the input device for feeding data in computer

43 State the name of incentive paid to the depositors for postponing

their other expenditures and keep their money with the bank.

44 Which role does RBI play when it maintains the banking accounts
of all schedule Banks?

45 What is meant by clearing process?

46 State the difference between BR and MIBOR.

47 How does ‘length of time’ affect the market interest rate?

48 What is Bank rate?

49 State the full form and meaning of SLR

50 What purpose does ‘Notes to the Accounts’ serves in a Bank’s

balance sheet?

51 What are the contingent liabilities of a bank?

52 Letter of Credit (LC) is irrevocable ___________provided by the

Bank, it safe guards
the interest of both importer and exporter during international
trade.

53 IFSC code has _______ no. of characters. 1

54 ii. Full form of MICR is ______________________. 1

iii. In case of funded credit facility, the money moves out of the
Bank when ________. 1

55 iv. Officers holding keys to the Drill door of the vault are called
vault __________. 1

56 . Full form of SMS is _____________. 1

57 CBS helps in customer convenience through _____ and
_____Banking. 1

58 iii. __________ office manages the risks for the Bank. 1

59 iv. A ______________is a secure space where Money,

Valuables, Records and Documents are stored.

60 In case of overdraft account, interest is charged only on the

__________ balance.

61 . Buying and selling of eligible securities by ____________bank

in the money market
is known as open market operations.

62 In a bank’s accounting, all transactions “debit or credit” are

documented by ______

63 vi. Bills for Collection appears on both the sides of

the______________.

64 What is the full form of OTP? 1

ii. What is the expanded form of DSA? 1

65 The basic function of a bank is to accept ________and give out

loans.

66 __________is the minimum interest rate of a Bank below which

it cannot lend,
except in cases allowed by RBI.

67 the date on which the payment of the bill is due is called due date
and it is
calculated by adding ________to the period of bill called days of
grace.

68 AML stands for ___________________. 1

69 Write the expanded form of IDBI

 70 Upward movement in prices in per annum terms is known as
______. (1)

71 Officers holding keys to the Drill door of the vault are called vault
_____

72 _____ office carries out the transaction processing for the Bank.

73 CBS helps in customer convenience through _____ and _____

Banking. (1)

74 In case of Balanced Balance sheet, the total of Liability should be

_____ to Asset side.

75 CORE stands for ______ ____ ____ _____ environment.

76 Rate of Return is expressed as __ of the original investment.