Banking Awareness – 2020 for IBPS, RBI, SBI, NABARD and other Bank Examinations
Welcome to GKToday’s Banking Awareness Section. This section shows 100 random questions from GKToday’s Banking Awareness MCQs.
A chapterwise course of all the 925 questions divided into 88 Chapters in Banking Awareness is Available in
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11. Which of the following institute is the regulator of the housing finance in India?
[A] RBI
[B] CIBIL
[C] SEBI
[D] NHB
Show Answer
Correct Answer: D [NHB]
Notes:
National Housing Bank is the Housing finance regulator in India. The main aim of NHB is to promote a sound, healthy, viable and cost effective housing finance system to cater to all segments of the population and to integrate the housing finance system with the overall financial system.
12. The credit for availing the first Home Loan goes to which of the following persons in India?
[A] Nandan Nilekani
[B] Rustom Padri
[C] D B Remedios
[D] None of the Above
Show Answer
Correct Answer: C [D B Remedios]
Notes:
The credit for availing the first Home Loan goes to one D B Remedios took a Home Loan of 30,000 from HDFC in 1978 to construct his house in Malad, Mumbai. The total cost of the house was 70,000.
13. For which of the following businesses Factoring services are most commonly used?
[A] Haulage Business
[B] Healthcare Industry
[C] Real Estate
[D] All of the Above
Show Answer
Correct Answer: D [All of the Above]
Notes:
Factoring is often used by haulage companies to cover upfront expenses, such as fuel. The healthcare industry makes for a special case in which factoring is much needed because of long payment cycles from government, private insurance companies and other third party payers.
14. What is the normal time period range for factoring in India?
[A] 70-80 days
[B] 80-90 days
[C] 90-120 days
[D] 90-150 days
Show Answer
Correct Answer: D [90-150 days]
Notes:
Usually the period for factoring is 90 to 150 days. Some factoring companies allow even more than 150 days. Factoring is considered to be a costly source of finance compared to other sources of short-term borrowings.
15. Who was the head of review committee on underwriting rules and regulation ?
[A] Shri Vallabh Bhansali
[B] C. Rangarajan
[C] Urjit Patel
[D] Nandan Nilekani
Show Answer
Correct Answer: A [Shri Vallabh Bhansali]
Notes:
Shri Vallabh Bhansali was the head of review committee on underwriting rules and regulations. The SEBI (Underwriters) Rules and Regulations, 1993 deals primarily with issues such as registration, capital adequacy, obligation and responsibilities of the underwriters.
16. The Certificate of Initial Registration for an underwriter with SEBI remains valid for how many years?
Show Answer
Correct Answer: C [5]
Notes:
The Certificate of Initial Registration remains valid for five years. The Merchant Banker has to apply for grant of Certificate of Permanent Registration to SEBI, three months before the expiry of the validity of the Certificate of Initial Registration.
17. The type of lease that includes a third party, a lender, is called as which of the following?
[A] Sale and leaseback
[B] Leveraged lease
[C] Direct leasing arrangement
[D] Operating lease.
Show Answer
Correct Answer: B [Leveraged lease]
Notes:
A leveraged lease is a lease agreement that is partially financed by the lessor through a third-party financial institution. The lender is given a senior secured interest on the asset and an assignment of the lease and lease payments.
18. What Street Name is used to refer to the RBI?
[A] Reserve Street
[B] Credit Street
[C] Mint Street
[D] None of the above
Show Answer
Correct Answer: C [Mint Street]
Notes:
RBI is the central bank of India which controls the issuance and supply of the Indian rupee. It is also referred to as the Mint Street. RBI is also known as banker’s bank.
19. Where is the headquarter of Bharatiya Reserve Bank Note Mudran Private Limited located?
[A] Chennai
[B] New Delhi
[C] Hyderabad
[D] Bangalore
Show Answer
Correct Answer: D [Bangalore]
Notes:
The headquarter of Bharatiya Reserve Bank Note Mudran Private Limited is at Bangalore, Karnataka. It was established on 3rd February 1995. It designs, print and supply banknotes for the Reserve Bank of India(RBI).
20. Who is entrusted with the power to lay down instructions to the banks in India for audits?
[A] RBI
[B] Finance Ministry
[C] State Government
[D] None
Show Answer
Correct Answer: A [RBI]
Notes:
The banking regulation Act empowers RBI to regulate the operations of banks; lay down instructions for audits; control moratorium, mergers and liquidation; issue directives in the interests of public good.
