Banking Awareness: Test 1

10 questions · 15 minutes · scoring and calculator rules shown before you begin

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Banking Awareness Test 1: questions and answers

Take the test first if you want an honest score. The answers and solutions below are folded away until you open them.

  1. 1. The Reserve Bank of India was established in the year
    1. 1955
    2. 1935
    3. 1947
    4. 1949

    Reference: q-14dda1c8-54 · Report this question

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    Answer: B. 1935

    The RBI began operations on 1 April 1935 under the Reserve Bank of India Act, 1934.
  2. 2. The headquarters of the Reserve Bank of India is in
    1. Kolkata
    2. Chennai
    3. New Delhi
    4. Mumbai

    Reference: q-c2c12c56-52 · Report this question

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    Answer: D. Mumbai

    The RBI's central office is in Mumbai.
  3. 3. The Reserve Bank of India was nationalised in the year
    1. 1955
    2. 1949
    3. 1969
    4. 1935

    Reference: q-37be0083-55 · Report this question

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    Answer: B. 1949

    The RBI was nationalised on 1 January 1949.
  4. 4. The rate at which the Reserve Bank of India lends money to commercial banks for the short term against securities is called the
    1. Reverse repo rate
    2. Repo rate
    3. Bank rate
    4. Cash reserve ratio

    Reference: q-b0e754c6-128 · Report this question

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    Answer: B. Repo rate

    Under a repo, banks borrow from the RBI against government securities at the repo rate.
  5. 5. Fourteen major commercial banks were nationalised in India in the year
    1. 1969
    2. 1949
    3. 1991
    4. 1980

    Reference: q-b2941a04-71 · Report this question

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    Answer: A. 1969

    Fourteen banks were nationalised in 1969 and six more in 1980.
  6. 6. Currency notes of Rs. 10 and above in India bear the signature of the
    1. Finance Secretary
    2. President of India
    3. Finance Minister
    4. Governor of the Reserve Bank of India

    Reference: q-5d8b1185-70 · Report this question

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    Answer: D. Governor of the Reserve Bank of India

    Bank notes are signed by the RBI Governor. Only the one-rupee note is signed by the Finance Secretary.
  7. 7. The State Bank of India was earlier known as the
    1. Bank of Bengal
    2. Presidency Bank of India
    3. Bank of Hindustan
    4. Imperial Bank of India

    Reference: q-885d7818-49 · Report this question

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    Answer: D. Imperial Bank of India

    The Imperial Bank of India became the State Bank of India in 1955.
  8. 8. Which institution is called the "lender of last resort" in India?
    1. NABARD
    2. Reserve Bank of India
    3. State Bank of India
    4. Ministry of Finance

    Reference: q-44111717-66 · Report this question

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    Answer: B. Reserve Bank of India

    The RBI lends to banks when they cannot raise funds from any other source.
  9. 9. The minimum amount that can be transferred through RTGS is
    1. Rs. 2 lakh
    2. Rs. 5 lakh
    3. Rs. 1 lakh
    4. Rs. 50,000

    Reference: q-e4e4f3f9-59 · Report this question

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    Answer: A. Rs. 2 lakh

    RTGS is meant for large-value transfers, with a minimum of Rs. 2 lakh.
  10. 10. NABARD was established in the year
    1. 1975
    2. 1991
    3. 1969
    4. 1982

    Reference: q-7efb8bf3-35 · Report this question

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    Answer: D. 1982

    NABARD was set up on 12 July 1982.

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