1. Banks in our country normally publicize that additional interest rate is allowed on retail domestic
term deposits of?
a) Minors b) Married Women
c) Senior citizens d) Government Employees
e) Rural residents
2. When the rate of inflation increases?
a) Purchasing power of money increases b) Purchasing power of money decreases
c) Value of money increases d) Purchasing power of money remains unaffected
e) Amount of money in circulation decreases
3. A centralized database with online connectivity to branches, internet as well as ATM-network
which has been adopted by almost all major banks of our country is known as?
a) Investment Banking b) Core Banking
c) Mobile Banking d) National Banking
e) Specialized Banking
4. Which of the following is NOT considered a money market instrument?
a) Treasury Bills b) Repurchase Agreement
c) Commercial Paper d) Certificate of Deposit
e) Shares and Bonds
5. Which of the following is necessary while opening deposit accounts in banks?
a) Will b) Registration
c) Nomination d) Indemnity
e) Guarantee
6. Which of the following is not a banking term?
a) Letter of credit b) MIBOR
c) Factoring services d) Entry load
e) None of these
7. Which of the following organizations issue the rules of global trade?
a) IMF b) World Trade Organization
c) Foreign trade d) G-20
e) None
8. One single statement that depicts the financial position of a Bank and / or Business enterprise
at a given point of time is called:
a) Statement of product details b) Foreign exchange
c) Balance Sheet d) Balance of payment
e) Trading and Manufacturing account
9. The Reverse Mortgage scheme is launched to give benefit to which of the following groups of
a) Persons below 60 yrs b) Senior Citizens
c) Unemployed youth d) Orphans
e) All
10. One of the major challenges banking industry is facing these days is curbing deliberate efforts
of some people to bring money earned through illegal activities in circulation. Which of the
following act is passed to prevent this activity?
a) Payment & settlements Act b) Control money supply Act
c) Narcotics and Psychotropic substance Act d) Prevention of Money laundering Act
e) None
11. Which of the following scheme is not meant for investment purposes?
a) National saving certificate b) Infrastructure bonds
c) Mutual funds d) Letter of credit
e) None of these
12. Basel norms which are important regulatory stipulations are meant for which sector?
a) Insurance b) Banking
c) Micro finance d) Pension funds
e) None
13. Systematic investment Plans relates to:
a) Mutual Funds b) Life Insurance Companies
c) Commercial Banks d) Post office savings schemes
e) None
14. Euro money is the official currency of?
a) NATO b) UN
c) European d) Germany and England
e) None of these
15. Which of the following is an example of cash less purchase?
a) Debit card b) Credit card
c) ATM withdrawal d) All of the above
e) None
16. Whose signature appears on Indian Rs. 100 note?
a) Finance Minister b) RBI Governor
c) Finance Secretary d) Chairman, Planning Commission
e) None
17. While discussing investments there is a mention of short term government security. What is
this investment?
a) Debenture b) Mutual funds
c) Treasury bill d) Share
e) None of these
18. NBFCs are an important part of the Indian financial system. what is meant by this term?
a) New Banking Financial Companies b) Non Banking Financial Companies
c) Neo Banking Financial Confederation d) Non banking Fiscal Companies
19. Banking loan against property requires the asset to be free from encumbrances. What does it
a) The asset to be free from any liability b) The asset to be properly registered
c) The property to be fully constructed d) The asset should not have multiple owners
e) None
20. RBI stipulates a healthy mix of CASA in the business figures of banks. What is CASA?
a) Customer Analysis and Savings Pattern b) Cost Appreciation and selling Analysis
c) Current Account and saving Account d) Credit and savings Aggregate
e) None of these
21. Which one of the following is not an electronic banking delivery channel?
a) Mobile Vans d) Mobile Phone Banking
c) Internet Banking d) Tele Banking
e) ATM
22. The Rate at which the domestic currency can be converted into foreign currency and viceversa
is known as the ____
a) Exchange rate b) MIBOR
c) Inter bank Call money rate d) Base rate
23. Now-a-days Banks are selling third party products. Example of third party product is:
a) Mutual funds b) Term deposits
c) Credit cards d) All of these
e) None
24. Electronic Clearing Service in banks can be availed only by:
a) Individuals b) Corporates
c) Senior Citizens d) All of these
e) None
1) c;   2) b;    3) b;    4) e;     5) c;     6) d;    7) b;    8) c;
9) b;    10) d;    11) d;    12) b;    13) a;    14) c;    15) d;    16) b;
17) c;    18) b;    19) a;    20) c;    21) a;    22) a;    23) a;    24) d;

1. Interest payable on savings bank accounts is?
a) De-regulated by RBI b) Regulated by State Governments
c) Regulated by Central Govt d) Regulated by RBI
e) Regulated by Finance Minister
2. The usual deposit accounts of banks are?
a) Current accounts, electricity accounts and insurance premium accounts.
b) Current accounts, post office savings, bank accounts and term deposit accounts.
c) Loan accounts, savings bank accounts and term deposit accounts.
d) Current accounts, savings bank accounts and term deposit accounts.
e) Current bill accounts and term deposit accounts.

3. Fixed deposits and recurring deposits are?
a) Repayable after an agreed period
b) Repayable on demand
c) Not repayable
d) Repayable after death of depositors
e) Repayable on demand or after an agreed period as per bank’s choice
4. Accounts are allowed to be operated by cheques in respect of?
a) Both savings bank accounts and fixed deposit accounts.
b) Savings bank accounts and current accounts.
c) Both savings bank accounts and loan accounts.
d) Both savings bank accounts and cash accounts only.
e) Both current accounts and fixed deposit accounts.
5. Which of the following is correct statement?
a)No interest is paid on current deposit accounts.
b)Interest is paid on current accounts at the same rate as term deposit accounts.
c) The rate of interest on current accounts and savings accounts are the same.
d) No interest is paid on any deposit by the bank.
e) Savings deposits are the same as current deposits.
6. Banking services delivered to a customer by means of a computer control system that does
not directly involve banks branch is called?
a) Universal banking b) Virtual banking
c) Narrow banking d) Brick & Mortal banking
e) None
7. Financial inclusion means provision of ?
a) Financial services namely payments, remittances, savings, loans and insurance at affordable cost to
persons not yet given the bank
b) Ration at affordable cost to persons not yet given the same
c) House at affordable cost to persons not yet given the same
d) Food at affordable cost to persons not yet given the same
e) Education at affordable cost to persons not yet given the same
8. When a bank returns a cheque unpaid, it is called?
a) Payment of the cheque b) Drawing of the cheque
c) Canceling of the cheque d) Dishonour of the cheque
e) Taking of the cheque
9. Who is the Chairman of the committee constituted by RBI to study issues and concerns in the
Micro Finance Institutions (MFI) Sector?
a) YH Malegam b) Dr. KC Chakraborty
c) C. Rangrajan d) M. Damodaran
e) Usha Thorat

10. Which of the following types of accounts are known as ‘Demat Accounts’?
a) Accounts which are Zero Balance
b) Accounts which are opened to facilitate repayment of a loan taken from the bank. No other business
can be conducted from there
c) Accounts in which shares of various companies are traded in electronic form
d) Accounts which are operated through internet banking facility
e) None of the above
11. NEFT means?
a) National Electronic Funds Transfer
b) Negotiated Efficient Fund Transfer system
c) National Efficient Fund Transfer solution
d) Non Effective Fund Transfer system
e) Negotiated Electronic Foreign Transfer system.
12. Distribution of insurance products and insurance policies by banks as corporate agents is
known as?
a) General insurance b) Non life insurance
c) Bancassurance d) Insurance Banking
e) Deposit Insurance
13. In respect of partnership business, LLP stands for:
a) Local Labour Promotion b) Low Labour Projects
c) Limited Loan Partnership d) Longer Liability Partnership
e) Limited Liability Partnership
14. What is a stale cheque?
a) A cheque issued without drawer’s signature.
b) A cheque with only signature of the drawer.
c) A cheque which has completed 3 months from the date of its issue.
d) Any one of the above.
e) None
15. Interest on savings bank account is now calculated by banks on?
a) Minimum balance during the month
b) Minimum balance from 7th to last day of the month
c) Minimum balance from 10th to last day of the month
d) Maximum balance during the month
e) Daily product basis
16. Largest shareholder (in percentage shareholding) of a Nationalized bank is ?
c) LIC d) Govt of India
e) IBA


1) a;    2) d;    3) a;    4) b;    5) a;    6) b;    7) a;    8) d;
9) a;    10) c;    11) a;    12) c;   13) e;    14) c;    15) e;    16) d

1. What is a Repo Rate?
(A) It is a rate at which RBI sell government securities to banks
(B) It is a rate at which banks borrow rupees from RBI
(C) It is a rate at which RBI allows small loans in the market
(D) It is a rate which is offered by Banks to their most valued customers or prime customers
(E) None of these
Ans : (B)
2. In economics it is generally believed that the main objective of a Public Sector Financial Company
like Bank is to:
(A) Employ more and more people (B) Maximize total profits
(C) Maximize total production
(D) Provide financial service to the people of the nation of its origin across the country
(E) Sell the goods at subsidized cost
Ans : (D)
3. Which of the following cannot be called as a Debt Instrument as referred in financial transactions?
(A) Certificate of Deposits (B) Bonds
(C) Stocks (D) Commercial Papers
(E) Loans
Ans : (C)
4. The government formed the panel after many ex-servicemen returned their medals to protest
the rejection of their ‘one rank one pension’ demand. Who is heading this panel?
(A) K.M. Chandrasekhar (B) R Balakrishanan
(C) B S Padmanabham (D) T. Raja Shekhar
(E) R Balu
Ans : (A)
5. Whenever RBI does some Open Market Operation Transaction, actually it wishes to regulate
which of the following?
(A) Inflation only (B) liquidity in economy
(C) Borrowing powers of the banks (D) Flow of Foreign Direct Investments
(E) None of these
Ans : (B)
6. The maximum amount of the total Revenue earned by the government of India comes from:
(A) Income Tax (B) Customs Duty
(C) Excise Duty (D) Value Added Tax
(E) Corporate Tax
Ans: (C)
The Institute of Banking Training 150
7. Which was the first Indian Bank to introduce credit card?
(A) State Bank of India (B) Central Bank of India
(C) Union Bank of India (D) ICICI
(E) None of theseAns: B
8. Capital Market Regulator is—
Ans: (E)
9. FDI refers to—
(A) Fixed Deposit Interest (B) Fixed Deposit Investment
(C) Foreign Direct Investment (D) Future Derivative Investment
(E) None of these
Ans: (C)
10. What is Call Money ?
(A) Money borrowed or lent for a day or over night
(B) Money borrowed for more than one day but upto 3 days
(C) Money borrowed for more than one day but upto 7 days
(D) Money borrowed for more than one day but upto 14 days
(E) None of these
Ans: (A)
11. Which is the first Indian company to be listed in NASDAQ ?
(A) Reliance (B) TCS
(C) HCL (D) Infosys
(E) None of these
Ans: (D)
12. Which among the following decides the oil Prices in India?
(A) Government of India (B) Government of Respective states
(C) Ministry of Petroleum (D) Oil Companies
(E) None of these
Ans: (D)
13. SEBI has been imposed a restriction on money flow in equity through ‘P-notes’. What is the
full form of ‘P-notes’?
(A) permanent notes (B) purchase notes
(C) participatory notes (D) private notes
(E) None of these
Ans: C
The Institute of Banking Training 151
14. Which of the following is known as plastic money?
(A) bearer cheques (B) credit cards
(C) demand drafts (D) gift cheques
(E) None of these
Ans: B
15. Who is known as the ‘Father of Economics’?
(A) Adam Smith (B) Marshall
(C) J.M. Keynes (D) Pareto
(E) None of these
Ans: A
16. Which sister organization of the World Bank provides long term loans at zero interest to the
poorest developing countries?
(A) Asian Development Bank (B) IMF
(C) International Developmental Association (D) International Finance Corporation
(E) None of these
Ans: C
17. DSCR indicates the ability of a company to-
(A) Meet its current liabilities (B) Service its share holders
(C) Meet its long term debt obligations (D) Raise further capital
(E) None of these
Ans: C
18. When there is an inflationary trend in the economy what would be trend in the pricing of the
Bank products ?
(A) Increasing trend
(B) Decreasing trend
(C) Constant trend
(D) There is no relevance of the inflation in pricing of the Banking Products
(E) None of these
Ans: (A)

Most Expected ‘GA’ questions for IBPS RRB OFFICE ASSISTANT 2017


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