IBPS Question Bank for Recruitment in Banking - Computer Knowledge

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Exam: IBPS Exam Preparations
Type: Government Exams
Questions Contents Type: Objective Type Question Bank for IBPS
Subject: Computer Knowledge.
Study Materials supplied as: Text
How to download: Just select texts and copy to your computer.

1. What are the measures taken by RBI to reduce liquidity in the banking system?
a) RBI increases the CRR. b) RBI increases the SLR
c) RBI increases the repo rate. d) RBI increases the bank rate.
e) All the above

2. LAF stands for .......
a) Loan Adjustment Fund
b) Liquidity Adjustment Facility
c) Long Awaited Funds
d) Loan Against Funds e) None of these

3. Open market operations, one of the measures taken by RBI in order to control credit
expansion in the economy, means ........
a) Sale or purchase of govt. securities
b) Issuance of different types of bonds
c) Auction of gold
d) To make available the direct finance to borrowers
e) None of these

4. Truncation of cheques means .........
a) The cheques in the paper form will be retained by the collecting banker and he
will submit only photograph image of cheque to the clearing house.
b) A trunk call will be booked by banks to the payee bank and requests them to clear
the cheque.
c) Cheques will be scanned and the electronic image, instead of physical cheque, will be transmitted in the clearing cycle.
d) Debiting the drawers account through internet banking.
e) None of these

5. Which of the following institution plays a major role in promotion of cross border trade and investment?
a) SIDBI b) IFCI c) NHB
d) EXIM Bank e) None of these

6. Forged cheque means ........
a) The cheque which is post dated cheque
b) The cheque in which the signature of the drawer of the cheque is not genuine.
c) A stale cheque
d) All of the above e) None of these

7. Amalgamation of Regional Rural Banks is recommended by?
a) K.C. Chakravarthy Committee
b) Usha Thorat Committee
c) Vyas Committee
d) C.V. Anand Bose Committee
e) None of these

8. Which of the following loan products is also known as 'teaser loans'?
a) Working capital loan b) Education loans
c) Jewel loans d) Home loans
e) Consumer durable products loans

9. Lending to customers with less than ideal credit status is known as?
a) sub-prime lending b) Banks don't lend
c) Ideal credit lending d) Risky lending
e) None of these

10. Expand NPA in the context of loan products?
a) Non-performing assets
b) New product ascendant
c) Net performing assets
d) Net profit on assets e) None of these

11. Loan period or term of loan in case of repo is ........
a) Greaterthan 365 days
b) Lessthan 30 days
c) Greaterthan 30 days
d) No limit in case of term in repo
e) None of these

12. Identify lending institution from the following .......
a) Exports and Imports Bank (EXIM Bank)
b) Small Industries Development Bank of India (SIDBI)
c) Housing Development Finance Corporation (HDFC)
d) All the above e) None of these

13. Advancing term loan or cash credit or working capital requirements is known as ......
a) Retail lending
b) Corporate financing
c) Multilateral lending
d) Company financing e) None of these

14. EXIM Bank's Line of credit preclude ...... for Indian exporters.
a) Credit risk b) Legal Risk
c) Systemic Risk and settlement Risk
d) Market Risk e) None of these

15. Money with the public and money with banks in form demand deposits and money
with RBI in other deposits is known as?
a) Narrow banking money or M2
b) Narrow Money or M1
c) Broad money or M3
d) High powered money or M0 e) None

16. The concept of classifying banks into weak banks and permitting them to invest only in government securities is known as?
a) Narrow Banking concept
b) Tarapore and Narasimham concept
c) Banking investment concept
d) Four-tire banking concept e) None

17. Automatically converting amount from savings bank account into fixed deposit,
beyond a fixed limit, set as per the customer's request is known as .......
a) Re-investment deposit
b) Demand Term deposit c) Flexi deposit
d) Recurring deposit e) None of these

18. What are loans and advances provided by banks to meet working capital requirements
of a business entity?
a) Overdraft b) Cash credit
c) Purchase and discounting of bills
d) Loans e) All the above

19. As per RBI guidelines what percentage does Indian banks must lend to Priority
Sector?
a) 40% b) 32%
c) More than 50% d) 18%
e) As per the individual bank's capacity

20. Exchange Earner's Foreign Currency (EEFC) account .....
a) It is a current account so no interest is paid to the deposits in the account
b) Account deposits are not in Indian Rupee
c) This account can be opened by all categories of foreign exchange earners but resident in India
d) The amount have to be convert into Indian rupee before a month
e) All the above

21. Which of the following credit rating institutions is promoted by RBI along with SBI, HDFC Bank and ICICI Bank?
a) ICRA b) CIBIL c) CRISIL
d) CRO e) None of these

22. Identify the odd one from the following. While lending banks will follow certain
cardinal principle, those are ........
a) Safety and Security
b) Liquidity and Profitability c) Purpose
d) Diversification of risk e) None

23. What are methods used to estimate the working capital needs?
a) Operating cycle
b) Turn over projection
c) Net working capital projection
d) All the above e) None of these

24. What is the mode of charges laid on vehicle loan?
a) Pledge b) Hypothecation
c) Assignment d) Mortgage
e) All the above

25. Generally banks face a credit risk when ....
a) Customer defaulting to repay the loan
b) Banks lend money to RBI
c) Banks lend money to government
d) Credit given to the customer
e) All the above

26. Identify the odd out of following with respect to priority sector ......
a) Agriculture b) Education c) Housing
d) Consumer durable credit
e) Export Credit

27. What is the percent of advances does Khadi and Village Industries Sector (KVI) must be lent by banks in the SME and MSME category of Priority Sector advancing?
a) More than 50% SME and MSME category
b) 60% of total Priority Sector advances
c) 60% of SME and MSME category
d) Less than 40% SME and MSME category
e) None of these

28. As per present RBI guidelines what is minimum percentage does commercial banks
need to lend Government?
a) 22% b) 4% c) 9% d) 8% e) No need to lend

29. A reduction in SLR rate leads to .......
a) Gold rate decrease
b) Support the credit growth in India.
c) Government will be funded more as the rate is reduced.
d) Reduction in credit growth in India
e) None of these

Answer Key: 1-a; 2-b; 3-a; 4-c; 5-d; 6-b; 7-c; 8-d; 9-a; 10-a; 11-c; 12-d; 13-b; 14-a; 15-b; 16-a; 17-c; 18-e; 19-a; 20-e; 21-b; 22-e; 23-d; 24-b; 25-a; 26-d; 27-c; 28-a; 29-b.

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