Q.1 Which of the following is a primary function of a Commercial Bank?
Issuing currency
Accepting deposits
Regulating stock markets
Printing government bonds
Explanation - Commercial banks primarily accept deposits from the public and provide loans. They do not issue currency or regulate stock markets.
Correct answer is: Accepting deposits
Q.2 Which bank primarily provides banking services to the rural population in India?
Commercial Bank
Regional Rural Bank
Cooperative Bank
Central Bank
Explanation - Regional Rural Banks (RRBs) were created to serve rural areas with basic banking and financial services.
Correct answer is: Regional Rural Bank
Q.3 Which of the following is NOT a function of a Central Bank?
Controlling inflation
Issuing currency
Providing personal loans
Regulating commercial banks
Explanation - The Central Bank manages monetary policy, issues currency, and regulates banks but does not provide personal loans to individuals.
Correct answer is: Providing personal loans
Q.4 Which bank is an example of a Development Bank in India?
SBI
IDBI
HDFC
Punjab National Bank
Explanation - IDBI Bank was originally established as a Development Bank to provide medium and long-term finance for industrial development.
Correct answer is: IDBI
Q.5 Cooperative banks primarily aim to serve which group?
Urban corporate clients
Rural farmers and local communities
International investors
Government officials
Explanation - Cooperative banks are owned by their members and focus on local communities and rural populations.
Correct answer is: Rural farmers and local communities
Q.6 Which type of bank issues credit and debit cards?
Central Bank
Cooperative Bank
Commercial Bank
Development Bank
Explanation - Commercial banks provide a range of services including issuing debit and credit cards to account holders.
Correct answer is: Commercial Bank
Q.7 Which of the following is a Non-Banking Financial Company (NBFC)?
SBI
LIC Housing Finance
ICICI Bank
Punjab National Bank
Explanation - NBFCs provide financial services like loans and investment but do not hold a full banking license and cannot accept demand deposits.
Correct answer is: LIC Housing Finance
Q.8 Which bank primarily finances agricultural activities in India?
Commercial Bank
Agricultural Bank
Cooperative Bank
Regional Rural Bank
Explanation - Agricultural banks focus on providing credit and financial services to farmers and agribusinesses.
Correct answer is: Agricultural Bank
Q.9 Which of the following banks is categorized as a Public Sector Bank in India?
ICICI Bank
HDFC Bank
State Bank of India
Axis Bank
Explanation - Public sector banks are owned by the government, and SBI is a prime example.
Correct answer is: State Bank of India
Q.10 Which bank regulates all commercial banks in India?
State Bank of India
Reserve Bank of India
IDBI Bank
HDFC Bank
Explanation - The Reserve Bank of India (RBI) acts as the central bank and regulates all banking activities in the country.
Correct answer is: Reserve Bank of India
Q.11 Which bank provides long-term finance to industries and infrastructure projects?
Commercial Bank
Development Bank
Cooperative Bank
Regional Rural Bank
Explanation - Development banks specialize in providing long-term financial assistance for industrial and infrastructure development.
Correct answer is: Development Bank
Q.12 Which type of bank is owned by its members and operates for their benefit?
Commercial Bank
Cooperative Bank
Central Bank
Development Bank
Explanation - Cooperative banks are owned and managed by their members to provide credit and financial services to them.
Correct answer is: Cooperative Bank
Q.13 Which bank is an example of a private sector bank in India?
Bank of Baroda
ICICI Bank
Punjab National Bank
Union Bank of India
Explanation - Private sector banks are owned by private individuals or corporations. ICICI Bank is a leading example.
Correct answer is: ICICI Bank
Q.14 Which bank primarily deals with international trade financing?
Central Bank
Commercial Bank
Export-Import Bank
Cooperative Bank
Explanation - Export-Import Banks focus on financing international trade and providing credit for exporters and importers.
Correct answer is: Export-Import Bank
Q.15 Which bank provides financial assistance for housing loans?
Commercial Bank
Housing Finance Company
Central Bank
Development Bank
Explanation - Housing finance companies provide loans specifically for purchasing or constructing houses.
Correct answer is: Housing Finance Company
Q.16 Which bank plays a role in controlling inflation and money supply?
Commercial Bank
Central Bank
Cooperative Bank
Development Bank
Explanation - The Central Bank controls monetary policy, inflation, and liquidity in the economy.
Correct answer is: Central Bank
Q.17 Which of the following is a regional bank in India?
State Bank of India
Punjab National Bank
Prathama Bank
ICICI Bank
Explanation - Regional Rural Banks operate at a regional level to serve local populations, such as Prathama Bank.
Correct answer is: Prathama Bank
Q.18 Which bank primarily provides microfinance to low-income groups?
Commercial Bank
Microfinance Bank
Development Bank
Central Bank
Explanation - Microfinance banks provide small loans and financial services to economically weaker sections.
Correct answer is: Microfinance Bank
Q.19 Which of the following is a primary function of an Investment Bank?
Accepting deposits
Underwriting securities
Printing currency
Providing agricultural loans
Explanation - Investment banks help companies raise capital, underwrite securities, and facilitate mergers & acquisitions.
Correct answer is: Underwriting securities
Q.20 Which type of bank is primarily government-owned but operates commercially?
Public Sector Bank
Private Sector Bank
Development Bank
Cooperative Bank
Explanation - Public sector banks are owned by the government and provide commercial banking services to the public.
Correct answer is: Public Sector Bank
Q.21 Which type of bank cannot accept demand deposits but provides financial services?
Commercial Bank
NBFC
Cooperative Bank
Central Bank
Explanation - Non-Banking Financial Companies provide loans and investment services but cannot accept demand deposits.
Correct answer is: NBFC
Q.22 Which bank provides loans and advances to promote industrial development?
Development Bank
Commercial Bank
Cooperative Bank
Central Bank
Explanation - Development banks focus on long-term financing for industries to boost economic growth.
Correct answer is: Development Bank
Q.23 Which of the following banks focuses on small-scale industries and micro-enterprises?
Commercial Bank
Regional Rural Bank
Cooperative Bank
Small Industries Development Bank of India (SIDBI)
Explanation - SIDBI primarily supports small-scale industries, micro, and small enterprises with financial assistance.
Correct answer is: Small Industries Development Bank of India (SIDBI)
Q.24 Which type of bank is usually local, member-owned, and democratic in structure?
Cooperative Bank
Commercial Bank
Development Bank
Central Bank
Explanation - Cooperative banks are local institutions, owned by members, and operate on a democratic principle.
Correct answer is: Cooperative Bank
Q.25 Which bank primarily serves urban and semi-urban areas with commercial banking services?
Commercial Bank
Regional Rural Bank
Cooperative Bank
Development Bank
Explanation - Commercial banks operate in urban and semi-urban areas providing deposit, loan, and other banking services.
Correct answer is: Commercial Bank