BFS QUESTION BANK 2024-25

Multiple choice questions:

I. Choose the correct answer
1. Bank of Madras was founded in _______.
a) 1913b) 1917c) 1843d) 1881
2. In which year was the Banking Regulation Act passed?
a) 1949b) 1955c) 1959d) 1969
3. Imperial Bank of India was nationalized in _______.
a) 1949b) 1955c) 1959d) 1969
4. Who introduced the banking Ombudsmen scheme _____
a) RBI b) SBI c) Ministry of Financed) NABARD
5. When was banking Ombudsmen scheme first introduced __________
a) November 2006b) October 1981c) June 1995d) January 1998
6. How many banks got nationalized in second phase of nationalization?
a) 4b) 5c) 6d)7
7.Under the MSME Credit Guarantee Scheme, Loans up to _______ are given
without collateral.

Rs. 1 crore b) Rs. 2 crores c) Rs. 3 crores d) Rs. 4 crores

8.Which of the following banks are not permitted by RBI to provide loans?
a) Commercial banks b) Development banks c) Payment banks d) None of the
above
9.Which Bank was previously known the Imperial Bank of India
A)SBI b)BOI c)RBI d) IDBI
10.Which of the following is not a function / power of Reserve Bank of India?
a) To assume the responsibility of meeting directly or indirectly all
reasonable demands for accommodation
b) To hold cash reserves of the commercial banks and make available
financial accommodation to them
c)To assume responsibility of all banking operations of the government
d)To assume the responsibility of statistical analysis of data related to macro
economy of India
11.RBI takes certain steps to curb the menace of Inflation. In this context, which
among the following will not help RBI in controlling the inflation in the country?
a) An increase in the Bank Rate b) An increase in the Reserve Ratio
Requirements c)A purchase of securities in the open market
d)Increasing the Repo Rate

12.Which among the following statement gives the most correct definition of
“Lender of Last Resort”?
a) If a person or firm which is eligible to get a loan, does not get it from any
commercial bank, may approach to Reserve Bank of India for loan.
b) If the state governments are in crisis and need money for short term, they
can approach RBI for this purpose
c)If a commercial bank is in crisis, it may place its reasonable demand for
accommodation to Reserve Bank of India
 13.Which of the following is not a constituent all Indian financial system ( )
a) Financial institutions b Financial markets financial control financial services
14.NABARD was established in the year
a)1956 b)1976 c)1987 d)1982
15.Which is the apex institution to provide credit facility to agriculture and rural
development
a)NABARD b)SBI c)RBI d)NCBI
16.NABARD full form is
a)National bank for agriculture and rural development b) National bank for
agriculture and regional development c) National bank for agriculture and recent
developments d)none of the above
17. SIDBI was established in the year
a)1990 b)1976 c)1987 d)1982
18.The first five RRB’s were established in the year
a)1975 b)1976 c)1987 d)1982
19.who recommended the establishment of RRB’s
a)Indira Gandhi b)Rajiv Gandhi c)Mahatma Gandhi d)None of the above
20.RRB provide------credit
a)rural b)industrial c)urban d)none of the above
21. A banker can refuse payment on cheques even if there are sufficient funds,
when which of the following is issued:
a. Attachment order b. Garnishee order c. Return order d. a and b
22.RRB full form
a)Regional rural bank b) Regional recent bank c)Rural Regional bank d)none
of the above
23)SIDBI stands for
a)Small industries development bank of India b) state industries development bank
of India c) state investment development bank of India d)none of the above
24.Right of appropriation includes
(a)Appropriation by debtor (b) Appropriation by creditor(c) Appropriation by law
(d) All of the above.
25. General relationship between banker and customer includes
(a) Trustee& Beneficiary (b) Bailer &bailee (c) agent & principal (d) All of
the above.
26. The banking regulation act was passed in
(a)1948 (b)1954 (c)1949 (d)1962
27.Under dishonoring of cheques N/S refers to
(a)No effects (b) Endorsement not clear (c) not sufficient funds (d) drawer
deceased.
28.The CBT made quoting of PAN/GIR number compulsory with effect from
(a)nov 1,1998 (b) nov 1,2000 (c) dec5,2002 (d)oct 7,1995
29.The scheme of deposit insurance was introduced in India from
(a) 1960 (b) 1970(c) 1962 (d) 1982.
30. Combining of Accounts of customers is usually resorted to
(a) One A/c shows debit balance and other shows credit balance
(b) Both the accounts showing debit balance (c) both the accounts showing
credit balance d) One account is time barred and other is not.
31.Technology Commencement in Banking happened in
a)1970 b)1960 c)1980 d)1990
32. E-channels includes
a)Internet b) SMS Banking c) ATM d) All of the above
33.IVR means
a)Interactive Voice response b) internet voice response c)Intergrated voice
response d) internal voice response
34. Mobile Banking Includes
a) SMS Banking b) WAP Banking c) STK (Sim Toolkit) Banking d)All of
the above
35. After 25 years when was the ATM installed again
a)1947 b)1957 c)1967 d)1977
36. The idea of PIN stored in the card was initiated in the year --------
a)1955 b)1965 c)1985 d)1975
37. The credit card agreement list includes
a) Credit card fees b) Grace period c) How to handle a lost card d) All of the
above
38. RTGS means
a) Real time group sending b) Real time gross settlement c) ready time
gross settlement d) ready transfer grouping scheme
39. Internet banking refers to
A)Banking using internet b) opening account using internet c) both of the
above d) none of the above
40. Credit cards are cards which are also known as
a)Plastic cards b) money card c) card money d) none of the above
41. Bancassurance was started in the year
a)2000 b)2002 c)1995 d)2003
42. Electronic fund transfer means
a) Transfer of funds from one bank A/C to another
b) Transfer of bulk Amount c)Transfer of funds from one a/c to another
within the same bank d)transfer of funds across the branches of one bank

FILL IN THE BLANKS

1. _____________ will settle the grievances of bank.
2. ____________ were banks were nationalized during second phase of
nationalization.
3. Banking ombudsmen has been constituted under _____________ Act.
4. RBI was started as a share holder organization in ________ ,
5. RBI was nationalized _______ .
6.Banking Operations confined to a single office is called ------------------

7.________ was the first governor of RBI.

8.________ was the first Indian Governor of RBI.
9. RBI regulates ________ through Open Market Operation Transactions.
10_________ regulate monetary policy.
11.The Reserve Bank of India was established on _______.
12.There are _____ Deputy Governors in RBI.
13.NABARD is apex institution for granting__________finance
 14..RRBs grant finance to __________areas.
15..SIDBI grant finance to _____scale industries.
16..RRBs are sponsored by_______
17..SIDBI provides finance at ___level.
18.Overdraft facility is available to ---------------------- A/c holders.
19.For partnership firms account will always be opened in the name of------------------
-------.
20. A cheque becomes stale in case it is not presented within _____ months of its
issue
21Under sec 12 of contract act the person with an unsound mind will be referred as -
---------------
22.Safe deposit locker comer under ____________________function of commercial
bank.
23. A customer has been defined in ------------------------.
24. For ___________type of account there is no interest earned by the depositor. 19.
25.KYC stands for_________
26. A banker can exercise general lien in respect of --------------------.
27.AS part of debtor creditor relationship between banker and customer, the banker
is --------------for the customers.
28. If the Debtor fails to pay the debt to the creditor, the latter may approach the
court for issuance of -----------------on the banker of the debtor.
29. PAN card is required for the transactions above --------------------
______ is the newly appointed governor of RBI.

30. Two types of lien are ----------------- and -----------------