Important Multiple
Choice Questions with Answers for Bank Promotion Exams

 

1. Which of the
following is not a component under “Ayushman Bharat”
scheme?

 

A. Health and Wellness
Centres (HWCs).

B. Pradhan Mantri Jan
Arogya Yojana (PM-JAY).

C. Pradhan Mantri
Jeevan Asha Yojana.

D. All the above.

 

The correct answer is Option
C. Pradhan Mantri Jeevan Asha Yojana.

 

 

2. With respect to “Stand
up India”
Scheme of GOI, which of the following statement is appropriate?

 

A. The Scheme
facilitates bank loans between Rs.10 lakh and Rs.1 crore to at least one
Scheduled Caste/ Scheduled Tribe borrower and at least one-woman borrower per
bank branch for setting up Greenfield enterprises.

B. The Scheme
facilitates bank loans between Rs.1 lakh and Rs.10 lakh to at least one
Scheduled Caste/ Scheduled Tribe borrower and at least one-Woman borrower per
bank branch for setting up greenfield enterprises.

C. The scheme
facilitates the credit facility upto Rs. 2 crore for a start-up involving woman
entrepreneur.

D. The scheme
facilitates the credit facility upto Rs. 2 crore for a start-up involving woman
entrepreneur belong to SC/ST or OBC category.

 

The correct answer is Option
A. The Scheme facilitates bank loans between Rs.10 lakh and Rs.1 crore to at
least one Scheduled Caste/ Scheduled Tribe borrower and at least one-woman
borrower per bank branch for setting up Greenfield enterprises.

 

 

 

3. What is the maximum
subsidy available under Swachhta Udyami Yojana (SUY)?

 

A. Rs. 3.25 lakhs.

B. Rs. 3 lakhs.

C. Rs. 4 lakhs.

D. Rs. 5 lakhs.

 

The correct answer is Option
A. Rs. 3.25 lakhs.

 

 

4. Under the Swachhta
Udyami Yojana (SUY) the loan can be sanctioned by the banks for a maximum
period of?

 

A. 10 years.

B. 7 years.

C. 8 years.

D. 15 years.

 

The correct answer is Option
A. 10 years.

 

 

5. Under the Swachhta
Udyami Yojana (SUY) the loans should be sanctioned by the banks at a maximum
interest rate of?

 

A. 5% p.a.

B. 4% p.a.

C. 6% p.a.

D. Banks can decide.

 

The correct answer is Option
B. 4% p.a.

 

 

6. Which of the
following is the implementation agency of Prime Minister’s
Employment Generation Programme (PMEGP)?

 

A. Ministry of Rural
Development.

B. Ministry of
Agriculture.

C. Khadi and Village
Industries Commission (KVIC).

D. Niti ayog.

 

The correct answer is Option
C. Khadi and Village Industries Commission (KVIC).

 

 

7. What is the maximum
loan component which can be guaranteed under Loan Guarantee Scheme for Covid
Affected Sectors (LGSCAS) launched by Government of India with total funding
outlay of Rs. 50,000 crore?

 

A. Rs. 2 crore per
project.

B. Rs. 100 crore per
project.

C. Rs. 25 crore per
project.

D. Rs. 50 crore per
project.

 

The correct answer is Option
B. Rs. 100 crore per project.

 

 

8. What is the maximum
cap on interest rate specified by government for Loan Guarantee Scheme for
Covid Affected Sectors (LGSCAS)?

 

A. No maximum cap and
banks can decide.

B. 9.15%.

C. 7.95%.

D. 6.00%.

 

The correct answer is Option
C. 7.95%.

 

Mock test (SET 1) for Bank Promotion Exams

9. Which of the
following statement with respect to CGSMFI scheme is appropriate?

 

A. All NBFC-MFIs/MFIs
are eligible. Banks should ensure that at least 50% of the funding provided
should go to lower rated NBFC-MFIs/MFIs.

B. Guarantee cover is
provided upto 75% of the amount in default.

C. Maximum tenure of
loans sanctioned under the scheme is 3 years.

D. The interest rate on
funding provided by the MLIs to the NBFC-MFIs/MFIs shall be capped at MCLR+2%
p.a.

E. All the above.

 

The correct answer is Option
E. All the above.

 

 

10. What is the
incentive provided by RBI for distribution of coins in rural and semi-urban
areas?

 

A. Rs. 25 per Bag.

B. Rs. 55 per Bag.

C. Rs. 65 per Bag.

D. Rs. 75 per Bag.

 

The correct answer is Option
D. Rs. 75 per Bag.

 

 

11. What is the maximum
per transaction limit can be transferred through NEFT to Nepal under Indo-Nepal
Remittance Facility Scheme?

 

A. Rs. 50000.

B. Rs. 20000.

C. Rs. 1,00,000.

D. Rs. 2,00,000.

 

The correct answer is Option
D. Rs. 2,00,000.

 

 

12. Which of the
following is a component of Marginal Cost of Funds based Lending Rate (MCLR)?

 

A. Marginal cost of
funds.

B. Negative carry on
account of CRR.

C. Operating costs
& Tenor premium.

D. All the above.

 

The correct answer is Option
D. All the above.

 

 

13. The average daily
balance that a bank is required to maintain with the Reserve Bank as a share of
such per cent of its Net demand and time liabilities (NDTL) is known as?

 

A. Statutory Liquidity
Ratio.

B. Cash Reserve Ratio
(CRR).

C. Marginal Standing
Facility.

D. Open Market
Operation.

 

The correct answer is Option
B. Cash Reserve Ratio (CRR).

 

 

14. SLR is the share of
NDTL that a bank is required to maintain in safe and liquid assets specified by
RBI mainly in Government securities. What is the minimum and maximum SLR, RBI
can specify for the banks?

 

A. 0% and 25%.

B. 5% and 40%.

C. 0% and 40%.

D. 5% and 25%.

 

The correct answer is Option
C. 0% and 40%.

 

 

15. Under Marginal
Standing Facility (MSF), the banks can borrow from RBI upto a maximum limit of?

 

A. Excess of the SLR
Balance held only.

B. 5% of NDTL.

C. 5% of NDTL and
Excess balance held in SLR.

D. 2% of NDTL and
Excess balance held in SLR.

 

The correct answer is Option
D. 2% of NDTL and Excess balance held in SLR.

 

 

16. The Rate at which
RBI extends overnight liquidity to banks against the collateral of government
and other approved securities under the liquidity adjustment facility (LAF) is?

 

A. Reverse Repo Rate.

B. Ways and Means of
Finance.

C. Repo Rate.

D. Marginal Standing
Facility.

 

The correct answer is Option
C. Repo Rate.

 

 

Previous Years Recalled Questions for Bank Promotion Exams (Set 7)

 

17. Under “Long Term
Repo Operations” a bank can borrow from
RBI against the government securities or with similar collaterals for period
ranging from?

 

A. 3 months to 1 years.

B. 6 months to 3 years.

C. 1 year to 3 years.

D. 1 year to 5 years.

 

The correct answer is Option
C. 1 year to 3 years.

 

 

18. A Bank can issue
Certificate of Deposit for a tenure of?

 

A. 7 days to 1 year.

B. 7 days to 3 years.

C. 1 years to 3 years.

D. 1 year to 5 years.

 

The correct answer is Option
A. 7 days to 1 year.

 

 

19. The (fixed)
interest rate at which the Reserve Bank absorbs liquidity, on an overnight
basis, from banks against the collateral of eligible government securities
under the LAF is known as?

 

A. Repo Rate.

B. Marginal Standing
facility.

C. Reverse Repo.

D. Ways and Means of
Advance.

 

The correct answer is Option
C. Reverse Repo.

20. Commercial papers
are issued with a minimum denomination of?

 

A. Rs. 10 lakhs and
multiples thereof.

B. Rs. 1 lakh and
multiples thereof.

C. Rs. 1 crore and
multiples thereof.

D. Rs. 5 lakhs and
multiples thereof.

 

The correct answer is Option
D. Rs. 5 lakhs and multiples thereof.