SBI PO - Financial Awareness, Banking Terminologies, Government Schemes Online Test (MCQ Quiz)

1. What does NPA stand for in the banking sector?

A) Non-Performing Asset B) New Payment Arrangement C) Nationalized Public Account D) Net Profitability Analysis

2. Which of the following is a tool used by the Reserve Bank of India (RBI) to control inflation?

A) Fiscal Deficit B) Repo Rate C) Gross Domestic Product (GDP) D) Balance of Trade

3. What is the primary objective of the Pradhan Mantri Jan Dhan Yojana (PMJDY)?

A) To provide affordable housing B) To ensure financial inclusion C) To offer crop insurance D) To promote digital literacy

4. Which term refers to the interest rate at which commercial banks borrow money from the RBI, usually for short-term needs?

A) Reverse Repo Rate B) Bank Rate C) Cash Reserve Ratio (CRR) D) Marginal Standing Facility (MSF) Rate

5. What is the maximum deposit insurance cover provided by the Deposit Insurance and Credit Guarantee Corporation (DICGC) per depositor per bank?

A) ₹1 lakh B) ₹5 lakh C) ₹10 lakh D) ₹50 lakh

6. The 'Make in India' initiative aims to:

A) Promote tourism in India B) Encourage manufacturing and investment in India C) Boost agricultural exports D) Develop digital infrastructure

7. What does 'CRR' represent in banking terminology?

A) Current Revenue Rate B) Capital Requirement Ratio C) Cash Reserve Ratio D) Customer Relationship Ratio

8. Which government scheme provides health insurance coverage to vulnerable families?

A) Pradhan Mantri Mudra Yojana B) Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) C) Pradhan Mantri Vaya Vandana Yojana D) Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)

9. What is the main function of a 'debit card'?

A) To allow borrowing of funds from a bank B) To facilitate payments directly from a linked bank account C) To earn interest on deposited money D) To provide access to credit facilities

10. The repo rate is the rate at which:

A) The RBI lends money to commercial banks B) Commercial banks lend money to the RBI C) The government borrows money from the public D) Foreign investors invest in Indian markets

11. What is the objective of the 'Stand-Up India Scheme'?

A) To provide loans to small businesses B) To promote entrepreneurship among SC/ST and women C) To fund renewable energy projects D) To support skill development programs

12. Which of the following is a monetary policy tool used by the RBI to manage liquidity in the economy?

A) Public Debt B) Export Subsidy C) Open Market Operations (OMOs) D) Corporate Tax Rate

13. What is the term for a loan where the borrower fails to make scheduled payments for a specified period?

A) Sub-prime loan B) Secured loan C) Non-Performing Asset (NPA) D) Overdraft facility

14. The 'PM-KISAN' scheme provides financial assistance to:

A) Urban small business owners B) Landholding farmer families C) Students pursuing higher education D) Senior citizens for their retirement

15. What does 'KYC' stand for in banking and financial services?

A) Know Your Customer B) Key Verification Compliance C) Knowledge Yield Calculation D) Kindly Validate Credentials

16. Which organization is responsible for issuing currency in India?

A) Ministry of Finance B) State Bank of India C) Reserve Bank of India (RBI) D) Securities and Exchange Board of India (SEBI)

17. What is the primary purpose of the 'Atal Pension Yojana' (APY)?

A) To provide education loans B) To offer affordable housing finance C) To ensure social security through pension D) To promote digital payments

18. If the RBI increases the Cash Reserve Ratio (CRR), what is the likely impact on the money supply?

A) Money supply will increase B) Money supply will decrease C) Money supply will remain unchanged D) Money supply will become volatile

19. What is the meaning of 'overdraft' in a bank account?

A) A loan taken against collateral B) A withdrawal of funds exceeding the account balance C) Interest earned on savings D) A fixed deposit with a higher interest rate

20. The 'Pradhan Mantri Vaya Vandana Yojana' is a scheme for:

A) Youth skill development B) Farmers' income support C) Affordable housing D) Senior citizens

21. What is the term for the central bank's policy of buying or selling government securities in the open market to influence the money supply?

A) Fiscal Policy B) Monetary Policy C) Open Market Operations D) Quantitative Easing

22. Which of the following is NOT a type of bank account?

A) Savings Account B) Current Account C) Fixed Deposit Account D) Loan Account

23. The 'Mudra Yojana' scheme aims to provide:

A) Financial support to startups B) Loans to small and medium enterprises (SMEs) C) Micro-credit to non-corporate, non-farm small/micro enterprises D) Subsidies for agricultural inputs

24. What is the primary role of the Securities and Exchange Board of India (SEBI)?

A) To regulate the banking sector B) To develop rural infrastructure C) To regulate the securities market D) To manage foreign exchange reserves

25. What is 'inflation' in economic terms?

A) A decrease in the general price level of goods and services B) An increase in the general price level of goods and services C) A decrease in unemployment rates D) An increase in economic growth

26. The 'Sovereign Gold Bond' scheme allows individuals to invest in:

A) Physical gold B) Gold ETFs C) Gold in dematerialized form D) Gold mining companies

27. What is the meaning of 'liquidity' in finance?

A) The rate of return on an investment B) The ease with which an asset can be converted into cash C) The total value of an asset D) The risk associated with an investment

28. Which scheme aims to provide insurance cover against crop failure for farmers?

A) Pradhan Mantri Gramin Digital Saksharta Abhiyan B) Pradhan Mantri Fasal Bima Yojana (PMFBY) C) National Health Mission D) Ujjwala Yojana

29. What is a 'credit card'?

A) A card used for withdrawing cash from ATMs B) A card that allows users to borrow money from the issuer C) A card linked directly to a savings account D) A card for making online payments only

30. What is the 'Reverse Repo Rate'?

A) The rate at which commercial banks borrow from the RBI B) The rate at which the RBI borrows from commercial banks C) The rate at which banks lend to customers D) The rate at which foreign currency is exchanged

31. The 'Ujjwala Yojana' primarily focuses on:

A) Providing financial assistance to farmers B) Providing clean cooking fuel (LPG) connections to women C) Promoting digital education D) Ensuring health insurance for the poor

32. What does 'GDP' measure?

A) The total value of goods and services produced by a country's citizens, regardless of location B) The total value of goods and services produced within a country's borders in a specific time period C) The total income earned by a country's citizens D) The total exports of a country

33. What is the term for the system of exchanging goods or services without using money?

A) Inflation B) Deflation C) Barter System D) Monetary Policy

34. The 'Janani Shishu Suraksha Karyakram' (JSSK) aims to improve maternal and child health by:

A) Providing financial aid for education B) Ensuring free and cashless delivery and related services C) Promoting skill development for women D) Offering agricultural subsidies

35. What is the 'Bank Rate' set by the RBI?

A) The rate at which banks lend to each other B) The rate at which the RBI lends to commercial banks without collateral C) The rate at which banks accept deposits D) The rate used for foreign exchange transactions

36. Which of the following is a form of digital payment?

A) Cheque B) Demand Draft C) UPI (Unified Payments Interface) D) Money Order

37. What is the primary goal of the 'National Rural Employment Guarantee Act' (NREGA), now MGNREGA?

A) To provide financial assistance to rural entrepreneurs B) To guarantee at least 100 days of wage employment in rural areas C) To promote rural tourism D) To provide housing for rural families

38. What does 'CRR' (Cash Reserve Ratio) mandate for banks?

A) Maintain a certain percentage of their deposits in gold B) Maintain a certain percentage of their deposits with the RBI C) Lend a certain percentage of their deposits to small businesses D) Invest a certain percentage of their deposits in government bonds

39. What is the purpose of the 'Pradhan Mantri Suraksha Bima Yojana' (PMSBY)?

A) To provide life insurance cover B) To provide pension benefits C) To provide accidental death and disability insurance D) To provide health insurance

40. Which term describes the process of a bank lending money out at a higher interest rate than it pays on deposits?

A) Financial Inclusion B) Interest Rate Differential C) Banking Spread D) Monetary Easing

41. What is the 'Marginal Standing Facility' (MSF) rate?

A) The rate at which banks can borrow overnight funds from the RBI against eligible securities B) The rate at which banks lend to each other C) The rate at which the RBI accepts deposits D) The rate for long-term loans from the RBI

42. The 'Skill India Mission' aims to:

A) Provide free education to all citizens B) Enhance vocational skills and employability C) Support research and development D) Promote entrepreneurship in the IT sector

43. What is a 'balance sheet' in accounting?

A) A summary of a company's revenues and expenses over a period B) A statement of a company's financial position at a specific point in time C) A forecast of future profits D) A record of cash inflows and outflows

44. Which scheme provides financial support to women for starting small businesses?

A) PM-KISAN B) Stand-Up India Scheme C) Ujjwala Yojana D) Jan Dhan Yojana

45. What is the meaning of 'fiscal deficit'?

A) The difference between a government's total revenue and its total expenditure B) The difference between a government's total revenue and its total borrowing C) The difference between a government's total expenditure and its total revenue D) The difference between a government's imports and exports

46. What is the primary function of a 'credit rating agency'?

A) To provide loans to individuals B) To assess and rate the creditworthiness of borrowers C) To manage stock markets D) To regulate insurance companies

47. The 'Digital India' initiative aims to transform India into:

A) A cashless economy B) A digitally empowered society and knowledge economy C) A manufacturing hub D) A service-based economy

48. What is the 'Bank for International Settlements' (BIS)?

A) A global stock exchange B) A bank for central banks C) A commercial bank operating internationally D) A development finance institution

49. What is 'demonetization'?

A) The process of introducing new currency notes B) The act of removing a currency unit's status as legal tender C) The conversion of black money into white money D) The reduction of interest rates by the central bank

50. Which government scheme provides financial assistance to eligible urban households for the construction or acquisition of houses?

A) PMAY-Gramin B) PMAY-Urban C) PM-KISAN D) MGNREGA

Financial Awareness, Banking Terminologies, Government Schemes - Online Test

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