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Latest RBI Grade B Exam Question (Objective Questions), MCQ in English

Subjects : General Awareness, Quantitative Aptitude, English Language, Reasoning

Question Bank RBI Grade B Phase I Prelims Exam (General) - English
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General Awareness

Question 1Single Answer
Which if the following is TRUE about the meaning of a bank?
  1. A
    It is a financial establishment
  2. B
    It acts like a financial intermediary
  3. C
    It accepts deposits from the public 
  4. D
    It provides safe locker facility
  5. E
    All the above
Question 2Single Answer
Which of the following is NOT true about the functioning of a bank ?
  1. A
    A bank should always add the word “bank” to its name.
  2. B
    They include general utility services and agency services.
  3. C
    A bank is a non-profit organization having service oriented approach.
  4. D
    A bank acts as a connecting link between borrowers and lenders of money.
  5. E
    A bank lends out money in the form of loans to those who require it for different purposes.
Question 3Single Answer
Which of the following is NOT a banking service?
  1. A
    Issuance of debit and credit cards
  2. B
    Providing safe custody of valuable items 
  3. C
    ATM services
  4. D
    Provision for higher interest rates to the accounts held by women
  5. E
    Online transfer of funds across the globe
Question 4Single Answer
The definition of Banking is given in which of the following ACTs?
  1. A
    Negotiable Instrument Act 1881
  2. B
    Reserve Bank of India (RBI) Act 1934
  3. C
    Banking Regulation Act 1949
  4. D
    Company Act 1956
  5. E
    None of the above
Question 5Single Answer
Banks in India are regulated by :
  1. A
    The Reserve Bank of India Act,1934
  2. B
    The Banking regulation Act,1949
  3. C
    The Reserve Bank of India (Amendment and Misc. Provisions) Act, 1953
  4. D
    The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980
  5. E
    None of the above
Question 6Single Answer
Which of the following terms is used in Banking field ?
  1. A
    Zero Hour
  2. B
    Input devices
  3. C
    Privilege motion
  4. D
    Sedimentary
  5. E
    Invest rate swap
Question 7Single Answer
A centralized database with online connectivity to branches, internet as well as ATM-network which has been adopted by almost all major banks of our country is known as?
  1. A
    Investment Banking 
  2. B
    Core Banking
  3. C
    Mobile Banking 
  4. D
    National Banking 
  5. E
    Specialized Banking 
Question 8Single Answer
Which of the following is necessary while opening deposit account in banks ?         
  1. A
    Will 
  2. B
    Registration
  3. C
    Nomination
  4. D
    Indemnity
  5. E
    Guarantee
Question 9Single Answer
Which of the following is not banking term?
  1. A
    Letter of credit
  2. B
    MIBOR
  3. C
    Factoring services
  4. D
    Entry load
  5. E
    None of the above
Question 10Single Answer
Systematic investment plans relates to:
  1. A
    Mutual Funds
  2. B
    Life Insurance Companies
  3. C
    Commercial Banks
  4. D
    Post office saving schemes
  5. E
    None of the above
Question 11Single Answer
Which is the following is / are third party products sold out by banks?
  1. A
    Mutual funds
  2. B
    Term deposits
  3. C
    Credit cards
  4. D
    All of these
  5. E
    None of the above
Question 12Single Answer
The first bank the Bank of Hindustan was established in:
  1. A
    1780    
  2. B
    1790
  3. C
    1770    
  4. D
    1802
  5. E
    1814
Question 13Single Answer
Which of the following NOT a Retail banking product ?
  1. A
    Checking account
  2. B
    Saving account
  3. C
    Money market account
  4. D
    Certificate of deposit (CD)
  5. E
    Mutual Fund
Question 14Single Answer
Which of the following is Not a Business (or commercial / investment) banking product ?
  1. A
    Business loan
  2. B
    Capital raisig
  3. C
    Checking account
  4. D
    Project finance
  5. E
    Term loan
Question 15Single Answer
The banker’s bank in any country called as:
  1. A
    Commercial bank
  2. B
    Central bank 
  3. C
    EXIM bank
  4. D
    Scheduled Bank
  5. E
    Development bank
Question 16Single Answer
Which of the following is the Central bank of India?
  1. A
    State Bank of India
  2. B
    National Bank for Agriculture and Rural Development
  3. C
    Export-Import Bank of India
  4. D
    Reserve Bank of India
  5. E
    None of the above
Question 17Single Answer
What is the Minimum balance required to be maintained for a saving account with cheque book facility?
  1. A
    Rs. 100            
  2. B
    Rs. 400
  3. C
    Rs. 500            
  4. D
    Rs.1000
  5. E
    Rs. 1500
Question 18Single Answer
Which of the following represents Profit and Loss Account ?
  1. A
    Position of profit on a particular date 
  2. B
    Position of profit for a given period
  3. C
    Position of loss for a given period
  4. D
    Both 2 and 3
  5. E
    None of the above
Question 19Single Answer
Which among the following is /are ‘Term Deposit’?
  1. A
    Fixed Deposit
  2. B
    Current Deposit
  3. C
    Recurring Deposit
  4. D
    All of the above 
  5. E
    None of the above
Question 20Single Answer
The first bank of limited liability managed by Indians was :
  1. A
    The Commercial Bank of India
  2. B
    Allahabad Bank
  3. C
    Oudh Commercial Bank
  4. D
    Punjab National bank ltd
  5. E
    None of the above
Question 21Single Answer
Which of the following scheme is not meant for investment purposes?
  1. A
    Letter of credit
  2. B
    National saving certificate 
  3. C
    Infrastructure bonds
  4. D
    Mutual funds
  5. E
    None of the above
Question 22Single Answer
What is meant by development Oriented banking?
  1. A
    Infrastructure financing 
  2. B
    Extending loans to State, which are undevelopment
  3. C
    Taking up the task of development of the economy by providing support to under privileged section of the society
  4. D
    All of the above 
  5. E
    None of the above
Question 23Single Answer
The Reserve Bank of India was established in:
  1. A
    April 1935        
  2. B
    June 1935
  3. C
    August 1934    
  4. D
    May 1936
  5. E
    January 1949
Question 24Single Answer
14 major Indian commercial banks of the country were nationalized in:
  1. A
    July 1965        
  2. B
    June 1960
  3. C
    July 1969        
  4. D
    May 1970
  5. E
    January 1949
Question 25Single Answer
On the basis of suggestions of which of the following committee. The Banking Regulation Act was amended in 1983 to open the gates for the new private sector banks ?
  1. A
    Narasimham Committee
  2. B
    Rangrajan Committee
  3. C
    Rangrajan Committee
  4. D
    Goiporia committee
  5. E
    None of the above
Question 26Single Answer
What does the term "ATM" stand for in banking ?
  1. A
    Automated Teller Machine
  2. B
    Advanced Transaction Module
  3. C
    Automatic Transfer Mechanism
  4. D
    All - Time Money
Question 27Single Answer
What is the primary purpose of a savings account ?
  1. A
    To earn high interest
  2. B
    To facilitate daily transactions
  3. C
    To save money for long - term goals
  4. D
    To invest in the stock market
Question 28Single Answer
What does "FDIC" stand for in the context of banking ?
  1. A
    Federal Deposit Insurance Corporation
  2. B
    Financial Data and Information Center
  3. C
    Foreign Direct Investment Commission
  4. D
    Federal Debt and Income Calculation
Question 29Single Answer
Which of the following is a common feature of a checking account ?
  1. A
    High - interest rates
  2. B
    Limited withdrawals
  3. C
    Overdraft protection
  4. D
    Fixed maturity date
Question 30Single Answer
What is the primary function of a central bank in a country ?
  1. A
    Issuing currency
  2. B
    Providing loans to individuals
  3. C
    Managing credit card transactions
  4. D
    Offering mortgage services
Question 31Single Answer
Which document serves as evidence of ownership in a publicly traded company ?
  1. A
    Debit card
  2. B
    Savings passbook
  3. C
    Stock certificate
  4. D
    Credit report
Question 32Single Answer
What is the primary purpose of a cashier's check ?
  1. A
    Personal savings
  2. B
    Business transactions
  3. C
    Large purchases
  4. D
    Safe deposit box rental
Question 33Single Answer
What is the purpose of the SWIFT code in international banking ?
  1. A
    Identifying a specific bank
  2. B
    Verifying customer identity
  3. C
    Authorizing transactions
  4. D
    Calculating interest rates
Question 34Single Answer
What does the term "KYC" stand for in banking ?
  1. A
    Know Your Customer
  2. B
    Keep Your Cards
  3. C
    Key Yield Calculation
  4. D
    Kindly Yield Credits
Question 35Single Answer
Which type of account typically offers the highest interest rates ?
  1. A
    Checking account
  2. B
    Savings account
  3. C
    Certificate of Deposit (CD)
  4. D
    Money market account
Question 36Single Answer
What is the purpose of a bank statement ?
  1. A
    To advertise banking services
  2. B
    To inform customers about new policies
  3. C
    To provide a summary of account transactions
  4. D
    To request a loan
Question 37Single Answer
Which financial institution is typically member - owned and operated for the benefit of its members ?
  1. A
    Commercial bank
  2. B
    Investment bank
  3. C
    Credit union
  4. D
    Central bank
Question 38Single Answer
What is the primary function of a wire transfer ?
  1. A
    To withdraw cash from an ATM
  2. B
    To transfer funds electronically between banks
  3. C
    To apply for a loan
  4. D
    To open a new account
Question 39Single Answer
What is the purpose of the Federal Reserve in the United States ?
  1. A
    Issuing currency
  2. B
    Regulating banks and monetary policy
  3. C
    Providing loans to consumers
  4. D
    Managing international trade
Question 40Single Answer
What does the term "collateral" refer to in banking ?
  1. A
    Bank employees
  2. B
    Security for a loan
  3. C
    Credit score
  4. D
    Checking account balance
Question 41Single Answer
What is the main function of a credit score ?
  1. A
    Determining eligibility for loans and credit
  2. B
    Monitoring personal expenses
  3. C
    Managing savings accounts
  4. D
    Issuing credit cards
Question 42Single Answer
Which financial instrument represents a debt owed by the issuer to the bond holder ?
  1. A
    Stock
  2. B
    Certificate of Deposit (CD)
  3. C
    Bond
  4. D
    Mutual fund
Question 43Single Answer
What is the purpose of the Dodd - Frank Wall Street Reform and Consumer Protection Act ?
  1. A
    Promoting stock market speculation
  2. B
    Regulating credit unions
  3. C
    Preventing another financial crisis
  4. D
    Encouraging risky banking practices
Question 44Single Answer
Which of the following is NOT a type of risk associated with banking ?
  1. A
    Credit risk
  2. B
    Inflation risk
  3. C
    Savings risk
  4. D
    Operational risk
Question 45Single Answer
What does the term "liquidity" refer to in banking ?
  1. A
    The ability to convert assets into cash
  2. B
    High - interest rates on loans
  3. C
    Long - term financial stability
  4. D
    The total value of a bank's assets
Question 46Single Answer
In banking, what is the purpose of a safety deposit box ?
  1. A
    Storing cash
  2. B
    Safekeeping important documents and valuables
  3. C
    Opening a new account
  4. D
    Applying for a credit card
Question 47Single Answer
What is the role of the FDIC in the United States banking system ?
  1. A
    Setting interest rates
  2. B
    Regulating credit unions
  3. C
    Insuring deposits in member banks
  4. D
    Managing international trade agreements
Question 48Single Answer
Which financial institution is responsible for implementing monetary policy in the Eurozone ?
  1. A
    Federal Reserve (U.S.)
  2. B
    European Central Bank (ECB)
  3. C
    Bank of England
  4. D
    Reserve Bank of India
Question 49Single Answer
What is the purpose of the Bank Secrecy Act (BSA) in the United States ?
  1. A
    Promoting transparency in banking transactions
  2. B
    Encouraging off shore banking
  3. C
    Allowing anonymous bank accounts
  4. D
    Regulating stock exchanges
Question 50Single Answer
What does the term "ACH" stand for in banking ?
  1. A
    Automated Clearing House
  2. B
    Account Checking History
  3. C
    Annual Credit History
  4. D
    Asset Control Hub
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