Banking MCQ Questions With Answers

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.

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