DescriptionBANKING QUESTIONS and Answers exams contains the questions from various competitive exams.These questions are the part of previous year paper.These kind of questions would be helpful in preparing for exams like IAS, PCS, UPSC, NDA, CDS SSC, RRB, PSC, IBPS

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Question: What are Open Market Operations ?

Answer:Selling of gilt edged securities by the Government

Question: Which from the following is NOT true when the interest rate in the economy goes up ?

Answer:Return on capital increases

Question: Rate of interest is determined by :

Answer:Commercial Banks

Question: Interest is the reward for abstinence. who says this ?


Question: Which bank was earlier called the Imperial Bank of India ?


Question: It is said that good banker is one who knows the distinction between Mortgage and ..... ?

Answer:Liquid Assets

Question: India s largest commercial Bank is :

Answer:State Bank of India

Question: Which Bank in India performs duties of Central Bank ?

Answer:Reserve Bank of India

Question: Reserve Bank of India was nationalized in :


Question: Open Market operations of RBI refer to buying and selling of :

Answer:Government bonds

Question: The Narasimhan Committee (1991)on financial reforms proposed for establishment of a :

Answer:Four tier hierarchy of the banking structure

Question: Green Banking means:

Answer:Financing of environmental friendly projects by banks

Question: Which one of the following is NOT a quantitative credit control technique ?

Answer:Increase of interest rate on saving deposit

Question: An instrument of qualitative credit control in India is:

Answer:credit rationing

Question: The Bank Rate is the rate of interest at which the Reserve Bank of India Provides loans to the :

Answer:Scheduled Commercial Banks

Question: The Monetary Policy of India is announced by the :

Answer:Governor of the RBI

Question: Which of the following rate is NOT decided by the Reserve Bank of India ?

Answer:Income Tax Rates

Question: Which of the following rates is NOT decided by the Reserve Bank of India

Answer:Income tax Rates

Question: India has different categories of commercial Banks which of the following is not one such category ?

Answer:Commodity Banks

Question: Which among the following activities can not be considered a common activity of a general bank customer ?

Answer:Increase or decrease in PLR and announcement of credit policy