Financial Aawareness Paper 3-Federal Bank

Federal Bank Clerk Financial Awareness and Marketing Awareness
Financial Awareness and Marketing Awareness Practice Paper
1. The International Bank for Reconstruction and Development (IBRD) is better known as
(A) World Bank, (B) Asian Development Bank, (C) IMF, (D) It is known by its name


2. When was the Reserve Bank of India established?
(A) 1935, (B) 1920, (C) 1928, (D) 1947


3. Which is the largest commercial bank in India?
(A) Reserve Bank of India, (B) State Bank of India, (C) ICICI Bank, (D) Bank of India

4. The Bank of Calcutta, Bank of Bombay and Bank of Madras were merged in 1921 to form
(A) Reserve Bank of India, (B) Imperial Bank of India
(C) Bank of India, (D) Union Bank of India

5. Which sister organization of the World Bank helps private activity in developing countries by financing projects with long-term capital in the form of equity and loans?
(A) Asian Development Bank, (B) IMF, (C) International Developmental Association
(D) International Finance Corporation

6. Which sister organization of the World Bank provides long term loans at zero interest to the poorest developing countries?
(A) Asian Development Bank, (B) IMF
(C) International Developmental Association
(D) International Finance Corporation


7. Who is known as the ‘Father of Economics’?
(A) Adam Smith, (B) Chanakya, (C) Machiavelli, (D) None of these

8. Which was the first Indian Bank to introduce credit card?
(A) State Bank of India, (B) Central Bank of India, (C) Union Bank of India, (D) ICICI


9. What does devaluation of a currency mean?
(A) decrease in the internal value of money
(B) decrease in the external value of money
(C) decrease both in the external and internal values of money, (D) none of these

10.Which of the following is known as plastic money?
(A) bearer cheques, (B) credit cards, (C) demand drafts, (D) gift cheques

11. Which of the following statements best describes the concept of involvement in the context of buyer behaviour?
(A) The length of time involved in the buying process
(B) The potential impact of a product on an individual's self-identity
(C) The number of people involved in the decision-making unit
(D) The complexity of an order


12. Buying decisions generally follow a pattern of overlapping stages. Which of the following best describes the typical stages of the buying process?
(A) Need recognition > Information search > Evaluation > Decision > Post purchase evaluation
(B) Need recognition > Evaluation > Information search > Decision > Post purchase evaluation
(C) Information search > Need recognition > Evaluation > Decision > Post purchase evaluation
(D) Need recognition > Information search > Decision > Evaluation > Post purchase evaluation


13. Needs differ from wants because:
(A) Wants are a socialized manifestation of underlying needs
(B) Needs are a socialized manifest Needs are historical; wants are about the futuretation of underlying wants
(C) Needs are historical; wants are about the future
(D) Needs and wants are exactly the same


14. Which of the following levels of Maslow's Hierarchy of Needs is most likely to be associated with consumers' purchase of goods which appeal to their inner sense of peace of mind (e.g. art classes)?
(A) Self-actualization, (B) Love,(C) Security,(D) Physiological


15. An individual is considering buying a new microwave cooker and is faced with the possibility of several models. Which of the following describes the widest range of microwave cookers, which the buyer considers in some form?
(A) The choice set, (B) The awareness set, (C) The total set, (D) The pre-evaluation set


16. A company uses The Coors to endorse its range of snack foods. This endorsement is likely to be particularly effective if the Coors are seen by Large numbers of the company's target market as:
(A) A primary reference group.(B) A tertiary reference group.
(C) A secondary reference group., (D) A non-reference group.


17. Which of the following consumer responses is LEAST likely to overcome cognitive dissonance experienced by a consumer who is dissatisfied with their purchase?
(A) Rationalizing to ourselves that a product is actually quite good
(B) Seeing the product in a different light so that we emphasize the bad aspects of a product
(C) Seeing the product in a different light so that we emphasize the good aspects of a product
(D) Complaining and returning goods to the supplier


18.Which of the following labels is NOT associated with a role in a buying Decision Making Unit?
(A) Supplier, (B) Gatekeeper, (C) Decision maker, (D) User


19. A secretary who answers calls for a company buyer may be taking on which role within the company's decision-making unit?
(A) User, (B) Influencer, (C) Gatekeeper, (D) Buyer


20. Which of the following is NOT an element of a Marketing Information System?
(A) Marketing research, (B) Decision support system
(C) Production monitoring system, (D) None of these
Answer: 1a, 2a, 3b, 4b, 5d, 6c, 7a, 8b, 9b, 10b, 11a, 12a, 13a, 14a, 15a, 16b, 17a, 18b, 19c, 20d

Financial Aawareness Paper 2-Federal Bank

Federal Bank Clerk Financial Awareness
Financial Awareness Practice Paper
1. When did Regional Rural Banks start functioning in India?
(A) 1975, (B) 1947, (C) 1956, (D) 1960
2. Who was the Chairman of the Sixth Central Pay Commission?
(A) Justice B. N. Srikrishna, (B) Prof. Ravindra Dholakia
(C) J. S. Mathur, (D) Sushma Nath
3. The 11th Five Year Plan is termed as plan for.
(A) India’s Health, (B) Eradication of poverty from India
(C) India’s Education, (D) Development of Rural India
4. Which of the following correctly describes what sub-prime lending is?
(1) Lending to the people with less than ideal credit status.
(2) Lending to the people who are high value customers of the banks.
(3) Lending to those who are not a regular customer
(A) Only 1, (B) Only 2, (C) Only 3, (D) All
5. The actual return of an investor is reduced sometimes as the prices of the commodities go up all of a sudden. In financial sector this type of phenomenon is known as:
(A) Probability risk, (B) Market risk, (C) Inflation risk, (D) Credit risk
6. Which of the following is the limitation of the ATMs owing to which people are required to visit branches of the bank?
(1) It does not accept deposits., (2) It has a limited cash disbursement capacity.
(3) Lack of human interface.,
(A) Only (1), (B) Only (2), (C) Only (3), (D) All
7. The World Development Report 2009 is released by which of the following Organisations?
(A) UNESCO, (B) ADB, (C) IMF, (D) World Bank
8. Which of the following statements is/are TRUE about the Lehman Brothers Holdings Inc. which was in news sometimes back?
(1) The US government provided a US$ 7000 million bailout package to the company.
(2) The company filed for bankruptcy in a court in New York.
(3) The company is now out of financial crisis and is busy in its restructuring so that it can start afresh.
(A) Only (1), (B) Only (2), (C) Only (3), (D) All
9. The Reserve Bank of India has recently issued guidelines to banks on Pillar 2 of Basel II framework. Pillar 2 deals with which of the following?
(1) Better human resource management, (2) Adequate capital to support risks
(3) Better profitability with minimum number of employees
(A) Only (1), (B) Only (2), (C) Only (3), (D) None of these
10.The World Investment Report 2008 was released in September 20This report is published every year by:
(A) Government of India, (B) World Trade Organisation (WTO)
(C) Asian Development Bank (ADB)
(D) United Nations Conference on Trade and Development (UNCTAD)
11. As we all know some new initiatives were introduced in the area of Fiscal Management by the government of India. Which of the following acts was passed a few years back to keep a check on the fiscal indiscipline on macroeconomic parameters?
(A) FERA, (B) FRBMA, (C) FEMA, (D) Public Debt Act
12. Which of the following has the sole right of issuing paper notes in India?
(A) Union Government, (B) Reserve Bank of India
(C) Ministry of Finance, (D) Supreme Court
13. Decision taken at Bretton Woods Conference led to the formation of
(A) IDA, (B) IMF, (C) ADB, (D) IFC
14. Which of the following is known as plastic money?
(A) bearer cheques, (B) credit cards, (C) demand drafts, (D) gift cheques
15. Euro is the currency of European Union. When did it come into being?
(A) 1999, (B) 1995, (C) 2000, (D) 2001
16. Which is the largest commercial bank in India?
(A) Reserve Bank of India, (B) State Bank of India
(C) ICICI Bank, (D) Bank of India
17. The Bank of Calcutta, Bank of Bombay and Bank of Madras were merged in 1921 to form
(A) Reserve Bank of India, (B) Imperial Bank of India
(C) Bank of India, (D) Union Bank of India
18.In India, income tax is levied by
(A) Union Government, (B) State Governments, (C) Ministry of Finance, (D) RBI
19. The Reserve Bank of India was nationalized in?
(A) 1947, (B) 1948, (C) 1950, (D) 1956
20. What is a Bank which has capital and reserves of over Rs. 5 lakhs called?
(A) National Bank, (B) Cooperative Bank, (C) Scheduled Bank, (D) Unscheduled Bank
Answer 1a, 2a, 3c, 4a, 5a, 6d, 7d, 8b, 9d, 10d, 11b, 12b, 13b, 14b, 15a, 16b, 17b, 18a, 19b, 20c

Financial Aawareness Paper 1-Federal Bank

Federal Bank Financial Awareness Questions, Clerk Grade

Financial Awareness Practice Paper for clerk , PO

1. Sunita has two bank accounts, one with HDFC Bank and another with ICICI Bank. She wants to transfer Rs.10,000 from HDFC Bank to ICICI Bank. Which is the safest method to do so?
A. Write a ‘Self’ cheque for Rs.10,000 and withdraw cash from HDFC Bank, go to ICICI Bank and deposit the amount in cash
B. Visit ATM of HDFC Bank, withdraw Rs.10,000 cash, go to ICICI Bank and deposit the amount in cash.
C. Transfer Rs.10,000 by cheque from HDFC Bank account to ICICI Bank
D. All
2. What is known as the plastic money?
A. Plastic tokens used in Financial Games, B. Debit Card
C. Credit Card, D. Debit card and credit card both
3. USD/INR exchange rate has come down from 50 to 48. What does it mean?
A. Indian Rupee has depreciated against US Dollar
B. Indian Rupee has appreciated against US Dollar
C. USD has become stronger, D. INR has become weaker
4. Which is the Central bank of India?
A. Central Bank of India, B. State Bank of India, C. Indian Bank, D. Reserve Bank of India
5. What is the full form of the term AQB, which is associated with bank account?
A. Audited Quarterly Balance, B. Account with Quarterly Balance
C. Assessed Quarterly Balance, D. Average Quarterly Balance
6. In various types of Loans, the term EMI is used for
A. Equal Minimum Installment, B. Equated Monthly Installment
C. Equated Money Index, D. Easy Money Installment
7. Full form of NAV in Mutual Fund Parlance
A. Net Annual Value, B. Net Actual Value
C. Net Asset Value, D. Non Asset Value
8. In the Life Insurance, which policy is the purest form of insurance
A. Endowment Policy, B. Money Back Policy
C. Whole Life Policy, D. Term Insurance Policy
9. Manoj was allotted shares of the company under employee stock options. He has made some profit by selling shares. His profit is known as
A. Income from share, B. Income from stock options
C. Income from other allowances, D. Income from capital gains
10. What is the full form for NPS
A. New Pension Scheme, B. Non Government Pension Scheme
C. National Public Scheme, D. National Planning Service
11. What is the full form of ITR
A. India Technology and Research, B. Income Tax Return
C. Income Tax Review, D. Income Tax Report
12. If a company issues its shares first time to the public, it is known as IPO. In the same way, when a mutual fund issues units for the first time, what is it called
A. Rights Issue, B. Public Issue, C. New Issue, D. NFO
13. What is the full form of NCD
A. National Capital District, B. Non Cumulative Deposit
C. National Crime Detection, D. Non Convertible Debentures
14. What is meant by Free Credit Period in case of credit card?
A. Period during which credit card holders can purchase anything free of cost
B. Period during which credit card holders can shop without paying any finance charges
C. Period during which credit card holders cannot do any shopping
D. Period during which credit card holders are not eligible for any reward points
15. What is the full form of ATM
A. Any Time Machine, B. Automated Teller Machine
C. Automatic Tea Machine, D. Average Trading Multiple
16. In the compound interest formula = A(1 + r/m)^mn, A is the principal amount, r is the rate of interest, and m is the frequency of compounding. If a bank pays interest compounded quarterly, what is the value of m?
A. 12, B. 3, C. 4, D. 6
17. If you want to use your credit card prudently, what you should ideally do?
A. Pay off minimum amount every month
B. Pay only the finance charges
C. Pay the total bill every month in full
D. Roll over the outstanding purchases until you can save enough money to clear all the debt at one time
18. What is the full form of PAN
A. Pension Account Notification, B. Permanent Account Number
C. Primary Account Number, D. Previous Account Number
19. International price of gold is quoted in terms of US Dollar, what is its unit?
A. Per Gram, B. Per Kg, C. Per 10 Grams, D. Per Troy Ounce
20. In India, gold is currently sold at Rs.15,000 per 10 grams. What is the price of 1 Kg of gold?
A. 1.5 Million, B. 1.5 Billion, C. 150 Thousand, D. None of the above
21. Which of the following life insurance plans is the cheapest in terms of premium?
A. Term Insurance Plan, B. Term Insurance Plan with return of Premium
C. Endowment Plan, D. Whole Life Plan
22. Bank ABC pays 8% interest for a three year term deposit with interest compounded annually. Bank XYZ pays 8% interest for a three year term deposit with quarterly compounding of interest. Which bank is more attractive in terms of returns?
A. Bank ABC, B. Bank XYZ, C. None, D. Both
23. A car financing company offers you a loan of 300,000 repayable in three years by way EMI of 10,000. What is the total interest outgo?
A. 290,000, B. 60,000, C. Nil, D. 20,000
24. For the Assessment Year 2010-2011, if an individual falls in the highest tax slab, what will be the rate of income tax for income above 500,000? (Excluding Education Cess)
A. 20%, B. 10%, C. 30%, D. 35%
25. What is the rate of interest on PPF and what is the permissible investment amount per year?
A. 8%, 70,000, B. 8%, No Limit, C. 8%, 60,000, D. 8.5%, 70,000
26. For the Credit Card issuing companies, a credit card is a type of _____ loan
A. Secured Loan, B. Unsecured Loan, C. Mortgage Loan, D. Housing
27. For opening DEMAT Account, _________ is the mandatory requirement
A. Share Trading Account, B. Investment in Shares, C. PAN Card, D. Age Proof
28. What is the rate of service tax + education cess on stock brokerage charges?
A. 10%, B. 10.3%, C. 10.36%%, D. 0.125%
29. What do you require in order to withdraw cash from your bank account through ATM
A. Debit card and PIN, B. ATM card and PIN, C. Credit card and PIN, D. Any one of A or B
30. Ramesh wants to transfer Rs.5000 from Bank A to Bank B by cheque. Ramesh should write a cheque from the chequebook of Bank A and deposit it in Bank B with a cheque deposit slip. In whose name, should Ramesh write the cheque?
A. Yourself, B. Bank A, C. Bank B, D. Ramesh
ANSWERS 1-c, 2d, 3b, 4d, 5d, 6b, 7c, 8d, 9d, 10a, 11b, 12d, 13d, 14b, 15b, 16c, 17c, 18b, 19d, 20a, 21a, 22b, 23b, 24c, 25a, 26b, 27c, 28b, 29d, 30d