Basic Banking Knowledge MCQ Questions Answers Objective Paper

Banking Knowledge Basic MCQ Question Answer Objective Model Paper Practice Set 

MCQ model questions answers of Basic Banking Knowledge for various competitive questions. Basic Banking Knowledge Questions with answers / solution / explanation is given below which is necessary for banking recruitment and other related services. Banking plays a crucial role in the modern economy, serving as a financial intermediary that facilitates the flow of funds and resources. Whether you’re a student, a job seeker, or simply curious about the fundamentals of banking, having a solid grasp of basic banking concepts is essential. Let’s explore some multiple-choice questions (MCQs) along with their answers to test and enhance your understanding of basic banking knowledge.

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1)Which of the following is Not a financial term?

a) Acid Test

b) Double Fault

c) Gross Profit

d) Depreciation

View Answer
Option – b)

2) Which of the following agencies/ organisations has decided to make major changes for ULIPs?


b) RBI



View Answer
Option – a)

3) As per newspaper reports, the RBI recently divested it stake in NABARD. Now RBI’s stake in it is only_____.

a) 10%

b) 1%

c) 3%

d)  none of these

View Answer
Option – b)

4) Which one of the following has decided to give guarantee for infra loans?


b) SBI



View Answer
Option – c)

5) Which one of the following banks has taken over the Centurion Bank of Punjab?

a) ICICI Bank

b) IDBI bank

c) HDFC Bank

d) AXIS Bank

View Answer
Option – c)

6) The Reserve Bank does not have an office in—

a) Kanpur

b) Gulbarga

c) Lucknow

d) Bhopal

View Answer
Option – b)

7) Which one of the following has launched guidebook on standards for exporters?

a) RBI


c) IBA


View Answer
Option – d)

8) Which one of the following has got RBI nod issue pre-paid cards to its clients?

a) LIC

b) GIC



View Answer
Option – a)

9) The foreign trade policy in India is announced by the—

a) Reserve Bank of India

b) Ministry of Commerce


d) Ministry of Finance

View Answer
Option – b)

10) Loan against the security of immovable property is by executing an agreement of—

a) Assignment

b) Pledge

c) Transfer

d) Mortgage

View Answer
Option – b)

11) Which one of the following has proposed $ 11 billion infrastructure debt fund?


b) SBI

c) RBI

d) Planning Commission

View Answer
Option – d)

12) The regulator of the banking system in India is—


b) Finance Minister


d) RBI

View Answer
Option – d)

13) Which of the following is a financial asset?

a) Gold

b) Silver

c) Shares in a demat account

d) Land and building

View Answer
Option – c)

14) The Direct Tax code which was revised recently will be implemented from which of the following dates?

a) April 2011

b) April 2012

c)  January 2011

d) January 21012

View Answer
Option – b)

15) Many times we read a term CBS used in banking operation. What is the full form of the letter ‘C’ in the term ‘CBS’?

a) Core

b) Credit

c) Continuous

d) Complete

View Answer
Option – a)