Banking Awareness Section plays an important part in SBI CBO exam. We’ve provided Banking Awareness Quiz for SBI CBO that is essential for SBI CBO examination. The Banking Awareness Quiz for SBI CBO is based on both static banking and current banking in the news. This Banking Awareness Quiz for SBI CBO can help you prepare for the upcoming SBI CO exam and others. So go ahead and attempt the Banking Awareness Quiz for SBI CBO, now.
Q1. Bank A & Bank B have allowed loan on consortium basis. Loan is irregular with Bank A for 120 days and with bank B for 18 months. The classification of account should be as
(a) subs-standard account by both the banks
(b) sub-standard with Bank A and doubtful with Bank B
(c) Doubtful by both the banks
(d) In consortium account, NPA rules are not applicable
(e) None of the above
Answer & Explanation
1. Ans (b)
Bank A & Bank B have allowed loan on consortium basis. Loan is irregular with Bank A for 120 days and with bank B for 18 months. The classification of account should be as sub-standard with Bank A and doubtful with Bank B. a sub-standard asset is one, which has remained NPA for a period less than or equal to 18 months. In such cases, the current net worth of the borrower/ guarantor or the current market value of the security is charged is not enough to ensure recovery of the dues to the banks in full.
Q2. In respect of loan accounts classified as doubtful, the provision rate is ___ if the account is doubtful for a period up to one year
(a) 25% for secured portion and 100% for unsecured portion in a loan account
(b) 40% for secured portion and 100% for unsecured portion in a loan account
(c) 25% for the entire balance
(d) 40% for the entire balance
(e) 30% of entire balance
Answer & Explanation
2.Ans (a)
In respect of loan accounts classified as doubtful, the provision rate is 25% for secured portion and 100% for unsecured portion in a loan account if the account is doubtful for a period up to one year
Q3. The aggregate loan sanction limit for agricultural produce is __________ per borrower.
(a) 200 crores
(b) 300 crores
(c) 50 crores
(d) 100 crores
(e) 75 Crores
Answer & Explanation
3. Ans (d)
Loans for agriculture infrastructure will be subject to an aggregate sanctioned limit of ₹100 crore per borrower from the banking system. Agricultural infrastructure primarily includes wide range of public services that facilitate production, procurement, processing, preservation and trade. Input based infrastructure: Seed, Fertilizer, Pesticides, Farm equipment and machinery etc.
Q4. Loan limit for start-ups as per definition of Ministry of Commerce and Industry is ____.
(a) 100 crores
(b) 50 crores
(c) 5 crores
(d) 25 Crores
(e) 10 crores
Answer & Explanation
4. Ans (b)
Loans up to ₹50 crore to Start-ups, as per definition of Ministry of Commerce and Industry, Govt. of India that are engaged in agriculture and allied services. A startup is a company that’s in the initial stages of business. Until the business gets off the ground, a startup is often financed by its founders and may attempt to attract outside investment.
Q5. Loans for horticulture, purchase of agricultural implements and machinery is subject to an aggregate limit of ______ per borrowing entity.
(a) 5 crores
(b) 2 crores
(c) 1 crore
(d) 10 crore
(e) None of the above
Answer & Explanation
5. Ans (b)
Loans for the following activities will be subject to an aggregate limit of ₹2 crore per borrowing entity:
Crop loans to farmers which will include traditional/non-traditional plantations and horticulture and loans for allied activities,Medium and long-term loans for agriculture and allied activities (e.g. purchase of agricultural implements and machinery and developmental loans for allied activities).
Q6. The Reserve Bank of India Bulletin is published every
(a) fortnightly
(b) Monthly
(c) Quarterly
(d) Bi Monthly
(e) Half yearly
Answer & Explanation
6.Ans (b)
RBI Bulletin is a monthly publication released in the first week – usually on 10th – of every month. The Bulletin publishes analytical articles based on data collected by the Reserve Bank often specifically for the purpose. It carries speeches of the Governor, Deputy Governors and Executive Directors
Q7. The monetary liabilities of central Bank of the country are called?
(a) High Powered Money
(b) Reserves
(c) Extraordinary liabilities
(d) unbacked liability
(e) None of the above
Answer & Explanation
7.Ans (a)
The monetary liabilities of central Bank of the country are called High powered Money.
The monetary base has traditionally been considered high-powered because its increase will typically result in a much larger increase in the supply of demand deposits through banks’ loan-making, a ratio called the money multiplier.
Q8. Which of the following is true about the restrictions on RBI?
(i) It is not to compete with the commercial banks.
(ii) It is not allowed to pay interest on its deposits.
(iii) It cannot engage directly or indirectly in trade.
(iv) It cannot acquire or advice loans against immovable property.
(v) It is prohibited from purchasing its own shares or the shares of any other bank or any company or granting loans on such security.
(a) only (i),(ii),(iii), and (iv)
(b) only (v)
(c)Only i,ii,iii
(d) all the above
(e) none of the above
Answer & Explanation
8.Ans (d)
Certain restrictions have been imposed on the Reserve Bank as it is a central bank. It is not to compete with the commercial banks. It is not allowed to pay interest on its deposits. It cannot engage directly or indirectly in trade. It cannot also acquire or advice loans against immovable property. It is also prohibited from purchasing its own shares or the shares of any other bank or any company or granting loans on such security.
Q9.Basel II introduced a new _____ weighting for borrowers with lower credit ratings.
(a) 100%
(b) 125%
(c) 150%
(d) 200%
(e) None of the above
Answer & Explanation
9.Ans (c)
Basel II introduced a new 150% weighting for borrowers with lower credit ratings
Q10. Which of the following is used for risk measuring ?
(a) VaR
(b) hadoop
(c) Anaconda
(d) Spyder
(e) None of the above
Answer & Explanation
10.Ans. (a)
Value at risk (VaR) is a statistic that quantifies the extent of possible financial losses within a firm, portfolio, or position over a specific time frame. This metric is most commonly used by investment and commercial banks to determine the extent and probabilities of potential losses in their institutional portfolios.Hadoop,Anaconda, Spyder are software tools.
