Banking Additional Practice Test

12th Standard Economics — Banking: Additional Online Practice Test

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Which bank is considered the world's first finance-lending bank, established in 1157?

A.The Bank of England B.The Bank of Venice C.The Ricks Bank of Sweden D.The Bank of Hindustan

Which is the oldest central bank in the world, springing from a private bank established in 1656?

A.The Bank of England B.The Ricks Bank of Sweden C.The Federal Reserve Bank D.The South African Reserve Bank

In India, the three Presidency Banks of Bengal, Bombay, and Madras were merged in which year to form the Imperial Bank of India?

A.1806 B.1921 C.1935 D.1955

The Imperial Bank of India was transformed into which of the following banks in 1955?

A.Reserve Bank of India B.State Bank of India C.Bank of Hindustan D.Indian Bank

Why do commercial banks generally avoid providing long-term credit options?

A.Because of low interest profit rates B.To maintain the liquidity of their assets C.To adhere to central bank printing limits D.Due to high statutory reserve requirements

Which of the following is classified as a primary function of commercial banks?

A.Providing safe locker facilities B.Underwriting corporate securities C.Accepting public deposits D.Dealing in foreign exchange

When a bank creates a deposit in favor of a borrower without any prior payment of equivalent cash by the customer, it is known as a:

A.Primary deposit B.Passive deposit C.Derived deposit D.Time deposit

If all commercial banks are obliged to keep a minimum cash-to-deposit ratio of 20 percent, what is the value of the money multiplier?

A.2 B.4 C.5 D.10

Non-Banking Financial Institutions (NBFIs) are broadly classified into which two categories?

A.Commercial Banks and Co-operative Banks B.Stock Exchange and Other Financial Institutions C.Primary Societies and Central Co-operative Banks D.Central Bank and Sponsoring Banks

Q10

In which years did the Reserve Bank of India (RBI) commence its operations and get nationalised respectively?

A.Commenced in 1935, nationalised in 1949 B.Commenced in 1934, nationalised in 1947 C.Commenced in 1947, nationalised in 1955 D.Commenced in 1935, nationalised in 1969

Q11

Who was appointed as the first Governor of the Reserve Bank of India in 1935?

A.C.D. Deshmukh B.Osborne Smith C.James Braid Taylor D.Sir Benegal Rama Rau

Q12

Which of the following statements is true regarding the relationship between the Repo Rate (RR) and the Reverse Repo Rate (RRR) in India?

A.The Repo Rate is always equal to the Reverse Repo Rate. B.The Repo Rate is always greater than the Reverse Repo Rate. C.The Repo Rate is always less than the Reverse Repo Rate. D.The Repo Rate is always exactly half of the Reverse Repo Rate.

Q13

Regional Rural Banks (RRBs) were set up in India in which year to liquidate rural indebtedness and provide institutional credit?

A.1963 B.1975 C.1982 D.1995

Q14

What is the share capital subscription ratio in Regional Rural Banks (RRBs) among the Central Government, State Government, and sponsoring commercial bank respectively?

A.50%, 15%, 35% B.50%, 35%, 15% C.35%, 15%, 50% D.15%, 35%, 50%

Q15

In July 1982, which institution was set up to take over the refinancing functions of the RBI and the ARDC in relation to co-operative banks and RRBs?

A.IFCI B.SIDCO C.NABARD D.EXIM Bank

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About this Banking test

This free online practice test covers Banking from the 12th Standard Economics (Samacheer Kalvi) syllabus. Choose the number of questions and an optional time limit, then answer and submit — everything is checked in your browser, with the correct answers and a worked explanation shown at the end. For the full solutions to every question in this set, see the solved MCQs page.

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