Banking MCQ Questions with Answers for the students preparing for exams like IBPS/RBI/SSC/UPSC and other competitive bank exams.
1. Who was appointed as the chair of Business 20 (B20)?
- A) Ratan Tata
- B) Mukesh Ambani
- C) N. Chandrasekaran
- D) Gautam Adani
C) N. Chandrasekaran
Explanation: N. Chandrasekaran, the chairman of Tata Sons, was appointed as the chair of Business 20 (B20) which is a part of the G20 dialogue forum with the global business community.
2. Which card has higher credit risk to the bank?
- A) Debit card
- B) Credit card
- C) Prepaid card
- D) Gift card
B) Credit card
Explanation: Credit cards have a higher credit risk to the bank because they allow cardholders to borrow funds up to a certain limit. The bank faces the risk of non-repayment by the cardholder.
3. Which public sector bank has the highest number of foreign branches?
- A) State Bank of India
- B) Bank of Baroda
- C) Punjab National Bank
- D) Canara Bank
B) Bank of Baroda
Explanation: Bank of Baroda has the highest number of foreign branches among Indian public sector banks, with a significant international presence.
4. Where are the headquarters of the Asian Development Bank (ADB)?
- A) Tokyo, Japan
- B) Beijing, China
- C) Manila, Philippines
- D) New Delhi, India
C) Manila, Philippines
Explanation: The Asian Development Bank (ADB) is headquartered in Manila, Philippines. It aims to promote social and economic development in Asia.
5. What does ‘M’ in MDR stands for?
- A) Money
- B) Merchant
- C) Minimum
- D) Monthly
B) Merchant
Explanation: MDR stands for Merchant Discount Rate, which is a fee charged to merchants by banks for providing debit and credit card services.
6. What is the meaning of NDTL?
- A) Net Demand and Time Liabilities
- B) Net Deposits and Term Liabilities
- C) Net Discount and Trade Liabilities
- D) Net Domestic and Trade Liabilities
A) Net Demand and Time Liabilities
Explanation: NDTL stands for Net Demand and Time Liabilities, which refers to the total demand and time liabilities (deposits) held by a bank, used to calculate the reserve requirements.
7. The consumer confidence survey is launched by which organization?
- A) National Sample Survey Office
- B) Reserve Bank of India
- C) Ministry of Finance
- D) NITI Aayog
B) Reserve Bank of India
Explanation: The Reserve Bank of India (RBI) conducts the Consumer Confidence Survey to assess consumer sentiment and expectations.
8. What is the currency of Japan?
- A) Yuan
- B) Yen
- C) Won
- D) Peso
B) Yen
Explanation: The currency of Japan is the Yen, symbolized as ¥ and is one of the most traded currencies in the world.
9. The money a commercial bank needs to preserve in the form of cash, or gold or Bonds before providing credit to their own customers is known as____
- A) Cash Reserve Ratio
- B) Statutory Liquidity Ratio
- C) Bank Rate
- D) Reverse Repo Rate
B) Statutory Liquidity Ratio
Explanation: Statutory Liquidity Ratio (SLR) is the percentage of a bank’s net demand and time liabilities that must be maintained in the form of cash, gold, or government-approved securities before offering credit.
10. What is the primary function of DICGC?
- A) Regulating microfinance institutions
- B) Insuring deposits of all banks
- C) Managing government debt
- D) Issuing currency notes
B) Insuring deposits of all banks
Explanation: The primary function of the Deposit Insurance and Credit Guarantee Corporation (DICGC) is to protect the interests of small depositors by insuring their deposits up to a specified limit in case a bank fails. This insurance provides a safety net for depositors, ensuring that they do not lose their savings even if the bank faces insolvency.
