Sunday Banking Awareness Quiz: 15 RBI and Finance MCQs
Quick Answer: This Sunday Banking Awareness Quiz brings you 15 exam-style MCQs covering RBI functions, monetary policy tools (Repo Rate, CRR, SLR, Open Market Operations), money market instruments (Treasury Bills, Commercial Paper, Certificates of Deposit, Call Money) and core banking and finance terms (NEFT, IMPS, BASEL norms, priority sector lending, NPAs). Attempt all 15 questions in 12 minutes, then check the answer key with quick explanations and the revision snapshot table at the end.
- Quiz Overview: What This 12-Minute Banking Awareness Test Covers
- How to Attempt the Quiz: Rules and Timer
- RBI Functions and Monetary Policy MCQs (Q1–Q5)
- Money Market Instruments MCQs (Q6–Q10)
- Banking and Finance Terms MCQs (Q11–Q15)
- Answer Key with Quick Explanations
- Score Analysis: What Your Result Means
- Key Facts to Remember: RBI and Money Market Snapshot
- Common Mistakes Aspirants Make in Banking Awareness
- Next Sunday Quiz Preview and Practice Resources
- Frequently Asked Questions
- Q: How often is the banking awareness quiz published?
- Q: Is this quiz useful for SSC and UPSC exams?
- Q: What is the maximum tenure of Treasury Bills in India?
- Q: Who regulates the money market in India?
- Q: Where can I find answers and explanations for this quiz?
- Related reading
Quiz Overview: What This 12-Minute Banking Awareness Test Covers
Banking awareness is a high-scoring section across SSC, UPSC prelims, IBPS and other government exams, but only if your fundamentals on the Reserve Bank of India (RBI) and the money market are airtight. This quiz tests exactly the facts examiners love: the difference between Repo Rate and Reverse Repo Rate, the roles of CRR and SLR, Treasury Bill tenures, Commercial Paper vs Certificates of Deposit, and core finance terms such as NPAs and BASEL norms.
All 15 questions are aligned with current RBI frameworks and exam patterns. For rate-sensitive facts, always cross-check the latest figures on the official RBI website, and use PIB for policy announcements. Focus keyword: banking awareness quiz RBI money market MCQs.
How to Attempt the Quiz: Rules and Timer
- Questions: 15 multiple-choice questions (Q1–Q15).
- Time limit: 12 minutes — roughly 48 seconds per question.
- Marking: One mark per correct answer; no marks deducted for unattempted questions.
- Negative marking (suggested): For exam realism, deduct 0.25 marks for every wrong answer, mirroring SSC and banking exam patterns.
- Attempt order: Answer RBI and money market questions first if you are strong there; park longer finance-term questions for the end.
Start your timer now. Write down your answers (a, b, c or d) before scrolling to the answer key.
RBI Functions and Monetary Policy MCQs (Q1–Q5)
Q1. The Repo Rate is the rate at which:
(a) RBI lends short-term funds to commercial banks (b) RBI borrows from commercial banks (c) Banks lend to their best customers (d) Banks lend to each other overnight
Q2. Cash Reserve Ratio (CRR) is maintained by banks as:
(a) Government securities with RBI (b) Cash reserves with RBI (c) Gold with the bank (d) Fixed deposits with SIDBI
Q3. Statutory Liquidity Ratio (SLR) requires banks to maintain:
(a) Cash with RBI only (b) Liquid assets such as cash, gold and approved securities (c) Foreign currency reserves (d) Equity investments only
Q4. Open Market Operations (OMO) refer to:
(a) RBI’s purchase and sale of government securities (b) RBI’s foreign exchange intervention (c) Banks’ lending to priority sectors (d) SEBI’s trading rules
Q5. Which of the following is NOT a function of the RBI?
(a) Issuing currency notes (b) Acting as banker to the Government (c) Regulating the money market (d) Accepting fixed deposits from the general public
Money Market Instruments MCQs (Q6–Q10)
Q6. Treasury Bills in India are issued with which maximum tenure?
(a) 91 days (b) 182 days (c) 364 days (d) 5 years
Q7. Commercial Paper (CP) is issued by:
(a) Only the Government of India (b) Corporates and financial institutions to meet short-term working capital needs (c) Regional Rural Banks (d) RBI to control liquidity
Q8. A Certificate of Deposit (CD) is issued by:
(a) Commercial banks and financial institutions (b) SEBI (c) NABARD only (d) Insurance companies
Q9. Call money in the money market refers to:
(a) Loans with a tenure of more than one year (b) Overnight or very short-term loans among banks (c) Loans given to retail customers (d) Government long-term borrowing
Q10. Under a repurchase agreement (repo), the borrower:
(a) Sells securities with an agreement to repurchase them later (b) Buys securities permanently (c) Pledges gold without repurchase (d) Borrows from SEBI
Banking and Finance Terms MCQs (Q11–Q15)
Q11. NEFT is best described as:
(a) A card-based payment system (b) An electronic funds transfer system settled in batches (c) An instant 24×7 mobile payment facility (d) A cheque clearing system
Q12. IMPS differs from NEFT primarily because IMPS:
(a) Works only during banking hours (b) Enables instant, 24×7 interbank mobile transfers (c) Is limited to government payments (d) Requires a cheque
Q13. BASEL norms are related to:
(a) Agricultural credit (b) Capital adequacy and risk management standards for banks (c) Income tax rules (d) Stock exchange listing
Q14. Under priority sector lending, domestic scheduled commercial banks must lend what proportion of ANBC to the priority sector?
(a) 25% (b) 40% (c) 50% (d) 10%
Q15. A loan is classified as a Non-Performing Asset (NPA) when interest or instalment remains overdue for more than:
(a) 30 days (b) 60 days (c) 90 days (d) 180 days
Answer Key with Quick Explanations
- (a) Repo Rate is the rate at which RBI lends short-term funds to banks against government securities.
- (b) CRR is the percentage of NDTL banks must keep as cash reserves with the RBI; it earns no interest.
- (b) SLR is the percentage of NDTL maintained in liquid assets — cash, gold and approved securities — held by the bank itself.
- (a) OMOs are RBI’s purchase or sale of government securities to inject or absorb liquidity.
- (d) RBI does not accept fixed deposits from the general public; that is a commercial bank function.
- (c) T-bills are issued in 91-day, 182-day and 364-day tenures — the maximum is 364 days.
- (b) Commercial Paper is an unsecured promissory note issued by corporates and financial institutions for short-term working capital.
- (a) CDs are negotiable term deposits issued by commercial banks and eligible financial institutions.
- (b) Call money covers overnight to very short-term interbank borrowing, with notice money up to 14 days.
- (a) A repo involves selling securities with an agreement to repurchase them at a set price and date.
- (b) NEFT (operated by RBI) transfers funds in half-hourly batches and has been available 24×7 since December 2019.
- (b) IMPS offers instant, round-the-clock interbank transfers, including via mobile phones.
- (b) BASEL norms, set by the Bank for International Settlements, prescribe capital adequacy and risk management standards.
- (b) The priority sector lending target for domestic scheduled commercial banks is 40% of ANBC.
- (c) An asset becomes an NPA when interest/principal remains overdue for more than 90 days.
Score Analysis: What Your Result Means
- 12–15 correct: Excellent. Your banking awareness is exam-ready; keep revising current RBI rates weekly.
- 8–11 correct: Good foundation. Revisit the specific instruments you missed and retry next Sunday.
- Below 8: Revise banking awareness systematically — start with RBI functions and money market instruments before attempting more MCQs.
Key Facts to Remember: RBI and Money Market Snapshot
| Concept | Key Fact | Exam Pointer |
|---|---|---|
| Repo Rate | RBI lends to banks against securities | Liquidity injection tool |
| Reverse Repo Rate | RBI borrows from banks | Liquidity absorption tool |
| CRR | Cash with RBI, % of NDTL | No interest earned |
| SLR | Cash, gold, approved securities | Held by the bank itself |
| Treasury Bills | 91, 182, 364 days | Issued at discount, no coupon |
| Commercial Paper | Unsecured, corporates, up to 1 year | Working capital tool |
| Certificate of Deposit | Issued by banks/financial institutions | Negotiable term deposit |
| Call Money | Overnight interbank lending | Notice money: 2–14 days |
| PSL Target | 40% of ANBC | Domestic scheduled commercial banks |
| NPA Classification | Overdue > 90 days | As per RBI asset classification |
Note: Policy rates (Repo, Reverse Repo, CRR, SLR) change with RBI’s Monetary Policy Committee decisions — verify the latest figures on rbi.org.in before your exam.
Common Mistakes Aspirants Make in Banking Awareness
- Repo vs Reverse Repo: Repo means RBI lends; Reverse Repo means RBI borrows. Swap them and you lose two marks, not one.
- CRR vs SLR: CRR is cash held with RBI (no interest); SLR is liquid assets held by the bank itself (can include gold and securities).
- CP vs CD: Commercial Paper is issued by corporates; Certificates of Deposit are issued by banks and financial institutions. Both are money market instruments, but the issuer differs.
- NEFT vs IMPS: NEFT settles in batches (24×7 since December 2019); IMPS is instant. Don’t mark NEFT as “instant”.
- T-bill tenures: 91, 182 and 364 days only — T-bills are short-term and issued at a discount, never with a coupon.
Next Sunday Quiz Preview and Practice Resources
Next Sunday’s quiz will cover National Income, Banking Reforms and Financial Institutions, including NABARD, SIDBI and recent banking sector developments. Pair this quiz with our static GK banking notes and current affairs digests for full coverage, and cross-check policy updates on rbi.org.in and pib.gov.in.
Frequently Asked Questions
Q: How often is the banking awareness quiz published?
Every Sunday. Each edition carries 15 timed MCQs on banking, RBI and finance topics, with an answer key and explanations.
Q: Is this quiz useful for SSC and UPSC exams?
Yes. Banking awareness and RBI-related questions regularly appear in SSC exams, UPSC prelims (economy section) and all major banking recruitment exams.
Q: What is the maximum tenure of Treasury Bills in India?
364 days. T-bills are issued in 91-day, 182-day and 364-day tenures.
Q: Who regulates the money market in India?
The RBI regulates the money market. SEBI regulates certain market segments, such as commercial paper issuance norms, in coordination with the RBI.
Q: Where can I find answers and explanations for this quiz?
The answer key with short, verified explanations is included in the “Answer Key with Quick Explanations” section above, along with a revision snapshot table.
Related reading
- Simple vs Compound Interest Shortcuts: Ratio Trick and Difference Formula for SSC & Bank Exams
- Wednesday Warm-Up Quiz: 15 Puzzles and Seating Arrangement Questions for Banking Mains
Quick revision
- Questions: 15 multiple-choice questions (Q1–Q15).
- Time limit: 12 minutes — roughly 48 seconds per question.
- Marking: One mark per correct answer; no marks deducted for unattempted questions.
- Negative marking (suggested): For exam realism, deduct 0.25 marks for every wrong answer, mirroring SSC and banking exam patterns.
- Attempt order: Answer RBI and money market questions first if you are strong there; park longer finance-term questions for the end.
- (a): Repo Rate is the rate at which RBI lends short-term funds to banks against government securities.
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