Banking Exam Cheat Sheet 2026

The 30 highest-yield Banking Exam facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Which one of the following is not a General Insurance function? → Medical Insurance
2. Under the Basel III framework, Tier 1 capital primarily consists of: → Common equity and retained earnings (Common Equity Tier 1 / CET1)
3. What Does Repo Rate Mean? → rate at which RBI lends to commercial banks
4. Which of the following best describes a bond? → A debt instrument where the issuer borrows money and pays periodic interest
5. What is the primary role of the Asset-Liability Committee (ALCO) in a bank? → Overseeing the bank's balance sheet structure, interest rate risk, and liquidity policy
6. Which of the following cities houses the Reserve Bank of India's headquarters? → Mumbai
7. Which instrument is most commonly used by banks for overnight short-term liquidity management? → Federal funds
8. What is a credit default swap (CDS)? → A derivative that transfers the credit risk of a debt instrument from one party to another
9. The primary purpose of the Net Stable Funding Ratio (NSFR) under Basel III is to: → Require banks to fund long-term assets with stable, long-term funding sources
10. A service known as Unstructured Supplementary Service Data (USSD) → Mobile Service
11. The ratio of 15 to A to B is 10. B is 22 less than 3 times A if 10 is deducted from it. How much do A and B add up to? → 20
12. A dad and his son are typically 48 years old. 13 years ago, their ages were 11: 3 in proportion. What is the son's current age? → 28 years
13. A bank's 'cost of funds' is best described as: → The average interest rate paid on all interest-bearing liabilities
14. Which of the following loan types are teaser rates associated to? → Home loans
15. The elderly man chose to die in a harness rather than live a rusty existence. → to continue occupation till death
16. Who of the following is responsible for overseeing banking operations? → Reserve Bank of India
17. 450 kilometres are covered by a train in 6 hours. The speed of a bike is one-half that of a train. How long will it take the bike to travel 300 kilometers? → 8 hr
18. In India, obtaining a license from the RBI is required before operating a new branch. A requirement of the ___ Act states that. → Section 22 of banking Regulation Act
19. In the context of capital markets, what does an IPO stand for? → Initial Public Offering
20. Which of the following best describes the primary purpose of Know Your Customer (KYC) requirements within a bank's Anti-Money Laundering (AML) program? → To gather and verify customer identity to assess and monitor their risk profile.
21. When did the SARFAESI Act begin? → 2002
22. Net Interest Margin (NIM) is calculated as: → (Interest income minus interest expense) divided by average earning assets
23. Which of the following phrases is relevant to the banking industry? → Interest rate swap
24. These are the minimum cash reserves required by law. → A percentage of aggregate deposits of the bank
25. National Electronic Fund Transfer, or NEFT, can be used to → Account holders
26. Which regulatory requirement directly impacts a bank's short-term liquidity management under Basel III? → Liquidity Coverage Ratio (LCR)
27. The sponsors of Regional Rural Banks are → Nationalised Commercial Bank
28. What exactly is MSF? → Marginal Standing Facility
29. The balance sheet's liability section consists of: → All of the above
30. An arm of the UN is the International Development Association (IDA). → World Bank