Banking Awareness Section is the most important section in banking exams from the preparation point of view.Most of the Question asked in this section are related to Banking Terminology,Financial terminology and Current Economic Awareness

In this article on Banking Awareness Questions  we have listed some of the most common Questions that are asked in Banking Awareness Section.Students must study this section thoroughly because most students don't prepare this section thoroughly

1. Many a times we read in financial News papers about "Share Swap" done by Big Corporates.What is a "Share Swap" ?

A Share Swap is a business takeover in which acquiring company uses its own stock to pay for the acquired company.

2 On the basis of Study done by the Govt. of India,various states were divided into two groups "High Poverty States" and "Low poverty States".Which of the following is a low poverty State ?

a)Andhra Padesh

c)Gujarat

d)Karnataka

e)Kerala

3. As reported in the major financial newspapers,the federal Reserve had made several changes / correction in its federal fund rates.It will bring effects directly on banks located in

a)Russia

c)Japan

d)China

e)France

4.Which of the following countries has the largest checques truncatin facility in Asia

a)China

c)Sri Lanka

d)Myanmar

e)None of these

5.Which of the following is the name of asset reconstruction company created by various banks in India

a)AMFI

c)SEBI

d)HCR

e)None of these

6.India doesn't have a single branch office of any of its banks in the following countries ?

a)UK

b)Russia

c)USA

d)Nepal

7. Very Often we read in Newspapers about Money Market.What are the main activities of Money Market?

a)It Provide short term funds to government and Public sector organizations.

b)businessman and others get short term funds to meet their day to day neds of the working capital

c)Money market is nothing but only the other name of Forex market.Only foreign currencies are purchased

 and sold there

(1) Only A

(2) Only b

(3) Only C

(5) None of these

8.)Who among the following are the beneficiaries of Ways and Means Advances (WMA) facility of Reserve Bank of India?

(A)Commercial Banks
(B)Regional Rural banks
(C)State Governments
(D)Authorized Dealers of Foreign Exchanges
(E)All of above

9.Which among the following is an example of Arbitrage?

(A)A firm of brokers purchases certain shares at BSE and sells the same number of shares at NSE to take advantage of minor difference in rates
(B)A firm of currency brokers purchases US dollars and sells the British Pounds with the same value
(C)A firm buys certain number shares of a company and sells similar number of shares of another company which is doing better in the market
(D)A firm buys certain currency today and undergoes a contract to sell the same currency after two months
(E)None of them

8.In context with the markets, what is dematerialization of securities?
(A)Shortening the time of debt repayment on securities
(B)Electric holding of the shares replacing the paper securities
(C)The price of a shares falling below certain point in the share market
(D)The buyback of shares by a company
(E)Dividend distribution