Banking Awareness Questions for Bank of Baroda PO Exam

Dear Readers,

Q1. MICR code is used for-
(a) Electronic Clearance of Cheques
(b) Electronic Funds Transfer
(c) Code Banking Solution
(d) Cheque Truncation Services
(e) None of the above

Q2. Islamic Development Bank (IDB) in May 2016 announced to open its first branch in India at-
(a) Ahmedabad, Gujarat
(b) Lucknow, Uttar Pradesh
(c) Ajmer, Rajasthan
(d) Chennai, Tamil Nadu
(e) Kolkata, West Bengal

Q3. With reference to the insurance and banking sector, which of the following is the most appropriate explanation of "PIN"?
(a) Postal Index Number
(b) Personal Index Number
(c) Personal Identification Number
(d) Personal Information Number
(e) Permanent Identification Number

Q4. The rate at which the central bank of a country lends money to commercial banks in the event of any shortfall of funds is called-
(a) Call Rate
(b) CRR
(c) Bank Rate
(d) Repo Rate
(e) SLR

Q5. In a bid to curtail domestic black money flow, the finance ministry has announced that it will be mandatory to furnish permanent account number (PAN) for all transactions above Rs.________ through all payment modes with effect from January 1, 2016.
(a) Rs. 1 lakh
(b) Rs. 2 lakh
(c) Rs. 3 lakh
(d) Rs. 4 lakh
(e) Rs. 5 lakh

Q6. Many a time we read in the newspapers that RBI has changed or revised a particular ratio/rate by a few basis points. What is basis point?
(a) Ten percent of one-hundredth point
(b) One hundredth of 1%
(c) One hundredth of 10%
(d) Ten per cent of 1000
(e) None of the above

Q7. Which of the following is NOT a type of cheque issued by an individual?
(a) Bearer cheque
(b) Order cheque
(c) Crossed cheque
(d) Savings cheque
(e) None of the above

Q8. What is Financial Inclusion?
(a) To provide a permanent employment to the unemployment
(b) To provide a 100 days job to all those who are in need of a job
(c) Delivery of financial services at affordable costs to vast sections of disadvantaged and low income groups
(d) To ensure that all financial transaction amounting Rs. 5,000/- and above are done through banks.
(e) None of the above

Q9. Which of the following places in India does not have a stock Exchange?
(a) Kolkata
(b) Ahmedabad
(c) Mumbai
(d) Udaipur
(e) None of the above

Q10. Which of the following is the name of private sector Bank in India?
(a) IDBI Bank
(b) Axis Bank
(c) Corporation Bank
(d) UCO Bank
(e) Dena Bank

Q11. Many times we read a term CBS used in banking operation. What is the full form of the letter 'C' in the term 'CBS'?
(a) Core
(b) Credit
(c) Continuous
(d) Complete
(e) None of the above

Q12. The National Housing Bank is a subsidiary of-
(a) RBI
(b) NABARD
(c) IDBI
(d) SEBI
(e) SIDBI

Q13. What is the full form of “NDTL”?
(a) Net Demand and Term Liabilities
(b) Net Demand and Time Liabilities
(c) New Demand and Term Liabilities
(d) Net Demand and Term Liquidities
(e) None of the above

Q14. Treasury bills or T-bills, which are money market instruments, are short-term debt instruments issued by
(a) Reserve Bank of India
(b) Individual Banks
(c) Government of India
(d) IRDA
(e) Corporate & Financial Institutions

Q15. What is the correct expansion of the term MUDRA?
(a) Micro Undertakings Development and Refinance Authority
(b) Micro Units Development and Refinance Agency
(c) Micro Undertakings Development and Restructuring Agency
(d) Mini Units Development and Restructuring Authority
(e) None of the above

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