25 Important Model IBPS Banking Awareness Questions

Looking for some model banking awareness questions for IBPS exams? In IBPS PO/Clerk/RRB exams, there is one section named as 'General Awareness with special reference to Banking Industry'. Many candidates can not qualify in the written or online exams due to the lack of knowledge in banking awareness. This part is very important. You can't ignore this section because in banking recruitment exam like IBPS, SBI, RBI etc. there is sectional cutoff marks. So we have given here 25 most important model banking awareness questions for upcoming IBPS PO/Clerk/RRB online exams.



1. What will happen when rate of investment is high? It -

(a) Reduces the amount of credit creation
(b) Creates better chances for the credit creation
(c) Not affect the amount of credit in any way
(d) Leads to any of the above-mentioned occurrences




2. Which of the following is the largest nationalized bank of India?

(a) Central Bank of India
(b) State Bank of India
(c) Bank of India
(d) Reserve Bank of India




3. Subsidy is granted by-

(a) Government of India
(b) State Government
(c) RBI
(d) SBI





4. Who decides discount rate on certificate of deposits?

(a) RBI
(b) IBA
(c) SBI
(d) None of these





5. What do you mean by Debt Equity Ratio?

(a) Ratio of long-term borrowing to tangible net worth
(b) Ratio of current assets to own tangible net worth
(c) Ratio of fixed assets to tangible net worth
(d) None of the above




6. What are the intangible assets?

(a) Preliminary expenses
(b) Patents, copyright, goodwill
(c) Losses which cannot be reduced from share capital
(d) All the above




 7. What do you mean by Current Ratio?

(a) Ratio of total assets to total liabilities
(b) Earning capacity of unit
(c) Ratio of current assets to current liabilities
(d) None of the above




8. In banking industry, each month's 15th day is known as-

(a) Customer’s Day
(b) Complaints Day
(c) Holiday
(d) None of the above



9. Who fixed Service charges on Foreign Letter of Credit?

(a) IBA
(b) FEDAI
(c) RBI
(d) IBRD



10. When was the Deposit Insurance Credit Guarantee Scheme formed?

(a) July 1, 1975
(b) January 1, 1952
(c) January 1, 1962
(d) January 1, 1991




11. Any check of bankers is valid for (from the date of issuing)-

(a) 3 months
(b) 6 months
(c) 12 months
(d) 24 months



12. What do you mean by Remittance?

(a) Despatch of issuable notes
(b) Despatch of solid notes
(c) Despatch of coins
(d) All the above



13. For conducting Government business, the commission to banks is paid by-

(a) Government of India
(b) State Government
(c) RBI
(d) Central and State Governments



14. In which year the concept of Banking Secrecy was converted into law?

(a) 1924
(b) 1927
(c) 1930
(d) 1934




15. When was the Banking Regulation Act implemented?

(a) September 6, 1949
(b) April 1, 1949
(c) March 16, 1949
(d) March 31, 1949




16. When were the 14 banks nationalized?

(a) July 19, 1969
(b) June 1, 1969
(c) June 16, 1969
(d) July 1, 1969




17. Who hold the large part of the equity capital?

(a) Public sector institutions such as banks, LIC
(b) World Bank
(c) Reserve Bank
(d) None of the above




18. Who appoints the chairman of Regional Rural Bank?

(a) State Government
(b) Reserve Bank of India
(c) Central Government
(d) Sponsoring bank in consultation with NABARD




19. Who manage(s) each Regional Rural Bank (RRB)?

(a) Board of Directors
(b) Reserve Bank
(c) Sponsoring commercial bank
(d) None of the above




20. What are Co-operative banks? They are-

(a) Private sector banks
(b) Public sector banks
(c) Joint-sector banks
(d) None of the above




21. What is the meaning of the term 'escrow'?

(a) Conditional delivery of an instrument
(b) An inchoate instrument
(c) Kite flying
(d) Window dressing




22. How do you define a relationship between a banker and a customer?

(a) That of a debtor and a creditor
(b) That of a creditor and a debtor
(c) Primarily that of a debtor and a creditor
(d) (a) and (b) together




23. Which of the following is the most undesirable customer?


(a) A minor
(b) A married woman
(c) An unregistered firm
(d) An undischarged bankrupt




24. What is the most important feature of negotiable instrument?

(a) Free transfer
(b) Transfer free from defects
(c) Right to issue
(d) (a) and (b) together




25. In which year the Export and Import Bank of India was set up?

(a) 1976
(b) 1982
(c) 1995
(d) 1997




We will publish more model banking awareness questions here very soon. Keep checking our website for more IBPS sample questions.


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