Dear readers, 

We are presenting you a Banking Awareness quiz, which will be helpful in your upcoming exams. So please give the correct answers in comment section, we will publish the answers soon.

1. Which of the following is NOT a source of
funds of a commercial bank?

(1) Capital                                 

(2)
Borrowing from RBI

(3) Call
money borrowings               

(4) Deposits
                            

(5) Cash
Reserves with RBI

2. The term ‘Smart Money’ refers to ______.

(1) Foreign Currency           

(2) Internet Banking  

(3) Internet Banking            

(4) US Dollars  

(5) Credit Cards 

3. Bad advances of a Bank are called:

(1) Bad debt  
                                          

(2) Book debt  

(3) Non Performing Asset

(4) Out of order accounts  

(5) Overdrawn accounts  

4. An ECS transaction gets bounced and you are
unable to recover your money from your customer. Under which Act criminal
action can be initiated?

(1) Indian Penal Code 

(2) Negotiable Instruments Act  

(3) Criminal Procedure Code                           

(4) Payment and Settlements Act  

(5) Indian Contract Act  

5. Mr. Sunil Kumar had filed a complaint with
Banking Ombudsman but is not satisfied with the decision. What is the next
option before him for getting his matter resolved?

(1) Write to the CMD of the bank

(2) File an appeal before the Finance
Minister  

(3) File an appeal before the Banking
Ombudsman again

(4) File an appeal before the Dy. Governor of
RBI 

(5) Simply close the matter as going to court
involves time and money  

6. As per the provisions of section 138 of
Negotiable Instruments Act. 1881, payee of a cheque may initiate criminal
action, if the cheque is returned for the reason

(1) Refer to drawer

(2) payment stopped by the drawer  

(3) Post-dated                         

(4) Insufficient funds  

(5) 
None of these

7. Which of the following instruments cannot be
transferred from one person to another by Endorsement?

(1) Fixed Deposit Receipt  

(2) Cheque  

(3) Bill of Exchange              

(4) Promissory Note  

(5) None of these  

8. RBI was established
in 1935 pursuant to the recommendations of:

(1) The Hilton Young Commission

(2) India Rural
Credit Survey Committee  

(3) Gorawala
Committee                   

(4) Talwar
Committee  

(5) None of
these 

9. A scheduled bank is
one, the name of which is included in the second scheduled of RBI Act, 1934.
Such a bank should have a paid up Capital and Reserves of an aggregate value of
not less than: 

(1) Rs 1 lakh             

(2)  Rs  5
lakh  

(3) Rs  10 lakh  
      

(4) Rs  100 lakh  

(5) None of
these 

10. Crossing’ applies to
which of the following instruments?

(1) Cheques                              

(2) Bills 

(3) Promissory Notes          

(4) Hundies

(5) Fixed Deposit
receipts 

Answers:

Qs 1 (1)     Qs 2 (5)     Qs 3 (3)     Qs 4 (1)   
Qs 5 (4)

Qs 6 (4)    Qs 7 (1)    
Qs 8 (1)     Qs 9 (2)    Qs 10 (1)

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