Bank Probationary Officer Banking Awareness Study Materials

Bank Probationary Officer Solved Papers

General Socio-Economic & Banking Awareness Study Materials

1. RBI's open market operation transactions are carried out with a view to regulate ____

• Liquidity in the economy
• Prices of essential commodities
• Inflation
• Borrowing power of the banks
• All the above

2. Open market operations , one of the measures taken by RBI in order to control credit
expansion in the economy means ____

• Sale or purchase of Govt. securities
• Issuance of different types of bonds
• Auction of gold
• To make available direct finance to borrowers
• None of these

3. The bank rate means ___

• Rate of interest charged by commercial banks from borrowers
• Rate of interest at which commercial banks discounted bills of their borrowers
• Rate of interest allowed by commercial banks on their deposits
• Rate at which RBI purchases or rediscounts bills of exchange of commercial banks
• None of these

4. What is an Indian Depository Receipt?

• A deposit account with a Public Sector Bank
• A deposit account with any of depositories in India
• An instrument in the form of depository receipt created by an Indian depository against
• underlying equity shares of the issuing company
• An instrument in the form of deposit receipt issued by an Indian depositories
• None of these

5. Fiscal deficit is ____

• total income less Govt. borrowing
• total payments less total receipts
• total payments less capital receipts
• total expenditure less total receipts excluding borrowing
• None of these

6. In the capital market , the term arbitrage is used with reference to ____

• purchase of securities to cover the sale
• sale of securities to reduce the loss on purchase
• simultaneous purchase and sale of securities to make profits from price
• variation in different markets
• Any of the above

7. The stance of RBI monetary policy is _____

• inflation control with adequate liquidity for growth
• improving credit quality of the Banks
• strengthening credit delivery mechanism
• supporting investment demand in the economy
• Any of the above

8. Currency Swap is an instrument to manage ___

• currency risk
• interest rate risk
• currency and interest rate risk
• cash flows in different currency
• All of the above

9. "Sub-prime" refers to_______

• lending done by banks at rates below PLR
• funds raised by the banks at sub - Libor Rates
• Group of banks which are not rate as prime banks as per Banker's Almanac
• lending done by financing institutions including banks to customers not not meeting with normally required credit appraisal standards
• All of the above

10. Euro Bond is an instrument _____

• issued in the European market
• issued in Euro currency
• issued in a country other than the country of the currency of the Bond
• All of the above
• None of these

11. Money laundering normally involves _____

• placement of funds
• layering of funds
• integrating of funds
• All of the Above
• None of the Above

12. The IMF and the World Bank were conceived as institutions to ____

• strengthening international economic co-operation and to help create a more stable
• and prosperous global economy
• IMF promotes international monetary cooperation
• The World Bank promotes long term economic development and poverty reduction
• All of the Above
• None of the Above

13. Capital Market Regulator is _____

• RBI
• IRDA
• NSE
• BSE
• SEBI

14. In the term BRICS , R stands for ______

• Romania
• Rajithan
• Russia
• Regulation
• Npne of these

15. FDI refers to _____

• Fixed Deposit Interest
• Fixed Deposit Investment
• Foreign Direct Investment
• Future Derivative Investment
• None of these

16. Which is the fist Indian company to be listed in NASDAQ?

• Reliance
• TCS
• HCL
• Infosys
• None of these

17. Which of the following is the Regulator of the credit rating agencies in India?

• RBI
• SBI
• SIDBI
• SEBI
• None of these

18. Who is Brand Endorsing Personality of Bank of Baroda?

• Juhi Chawala
• Kiran Bedi
• Amitabh Bachchan
• Kapil Dev
• None of these

19. The Branding Line of Bank of Baroda is ____

• International Bank of India
• India's International Bank
• India's Multinational Bank
• World's Local Bank
• None of these

20. The logo of Bank of Baroda is known as ___

• Sun of Bank of Baroda
• Baroda Sun
• Bank of Baroda's Rays
• Sunlight of Bank of Baroda
• None of these

21. One of the major challenges banking industries is facing these days is money
laundering. Which of the following acts/ norms are launched by the banks by the banks to
prevent money laundering in general ?

• Know your customer norms
• Banking Regulation Act
• Negotiable Instrument Act
• Narcotics and Psychotropic Substance Act
• None of these

22. Lot of Banks in India these days are offering M-Banking Facility to their customers .
What is the full form of 'M' in 'M-Banking'?

• Money
• Marginal
• Message
• Mutual Fund
• Mobile Phone

23. Which of the following is/are true about the "Sub-Prime Crisis" ? (The term was very
much in news recently.)
1. It is a Mortage Crisis referring to Credit default by the borrowers
2. Sub-Prime borrowers were those borrowers who were rated low and were high risk
borrowers
3. This crisis originated of negligence in credit rating of the borrowers

• Only 1
• Only 2
• Only 3
• All 1,2 & 3
• None of these

24. Which of the following is NOT the part of the structure of the financial System in India ?

• Industrial Finance
• Agricultural Finance
• Government Finance
• Development Finance
• Personal Finance

25. Which of the following is NOT the part of the Scheduled Banking structure in India ?

• Money Lenders
• Public Sector Banks
• Private Sector Banks
• Regional Rural Banks
• State Co-operative Banks

26. As we all know Govt. of India collects tax revenue on various activities in the
country. Which of the following is a part of the tax revenue of the Govt. ?
1. Tax on Income
2. Tax on Expenditure
3 .Tax on property or Capital Asset
4. Tax on Goods and Services

• Both 1 and 3 only
• Both 2 and 4 only
• All 1,2,3 & 4
• Only 2,3 and 4
• None of these

27. We very frequently read about Special Economic Zones (SEZs) in newspapers. These
SEZs were established with which of the following objectives ?
1. To attract foreign investment directly
2. To protect domestic market from direct competition from multinationals
3. To provide more capital to agriculture and allied activities

• Only 1
• Only 2
• Only 3
• All 1,2 & 3
• None of these

28. Which of the following groups of the countries has almost 50% share in Global
emission of carbon every year ?

• US, China, India, South Africa
• India, china, Russia , Britain
• South Africa, Nepal , Myanmar
• US, Russia, China & India
• None of these

29. Many times we read about Future Trading in newspapers. What is Future Trading ?
1. It is nothing but a trade between any two stock exchanges where in it is decided to
purchase the stocks of each other on a fixed price throughout the year
2. It is an agreement between two parties to buy and sell an underlying asset in the
future at a predetermined price
3. It is agreement between Stock Exchanges that they will not trade the stocks of each
other under any circumstances in future or for a given period of time

• Only 1
• Only 2
• Only 3
• All 1,2 & 3
• None of these

30. Hillary Clinton formally suspended her campaign to ensure election of who amongst
the following for the next President of USA?

• George Bush
• Barack Obama
• John McCain
• Boll Clinton
• None of these

31. Hugo Chavez whose name was recently in news is the _____

• President of Cango
• Prime Minister of Uganda
• President of Venezuela
• Prime Minister of Brazil
• None of these

32. The Govt. of India has raised the amount of the loan Waiver to the farmers by 20%.
Now the amount is nearly _____

• Rs. 60,000 crores
• Rs. 65,000 crores
• Rs. 72,000 crores
• Rs. 76,000 crores
• Rs. 80,000 crores

33. Delimitation Commission has made a recommendation the next Census should be
Panchayat-wise. When is the next Census due ?

• 2010
• 2011
• 2012
• 2013
• 2015

34. The world Health Organization has urged that advertisements of which of the
following should be banned to protect youth from bad effects of the same ?

• Tobacco
• Alcoholic drinks
• Junk Food
• Soft drinks with chemical preservatives
• None of these

35. Which of the following countries has allocated a huge amount of US $ 10 billion to
provide relief to its earthquake victims ?

• Japan
• South Korea
• China
• South Africa
• None of these

36. Which of the foloowing names is NOT closely associated with space Programme of
India or any other country ?

• CARTOSAT
• NLS-5
• RUBIN-8
• GSLV
• SCOPE

37. Vijay Hazare Trophy is associated with game of _____

• Hockey
• Cricket
• Badminton
• Football
• Golf

38. Which of the following was theme of the Olympic Torch ?

• Journey of Harmony
• Green World Clean World
• Journey of Peace
• Jouney of Hunger-free World
• None of these

39. Which of the following schemes is NOT a social development Scheme ?

• Indira Awas Yojana
• Mid Day Meal
• Bharat Nirman Yojana
• Sarva Siksha Abhiyan
• All are Social Schemes

40. Which of the following is NOT a member of ASEAN ?

• Maleysia
• Indonesia
• Vietnam
• Britain
• Singapore