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 organizations is the Mutual Fund market regulator in India?
[A] SEBI
[B] RBI
[C] ICICI
[D] CIBIL
Show Answer
Correct Answer: A [SEBI]
Notes:
As far as Mutual funds are concerned, SEBI makes the policies for mutual funds and also regulates the industry. It lays guidelines for the mutual funds to safeguard the investors’ interest.
12. How many Mutual Fund companies are there in India?
Show Answer
Correct Answer: A [43]
Notes:
Presently, India is having only 43 mutual fund offering companies. Mutual funds are highly under tapped market in India and have huge potential to grow in coming years.
13. Mutual funds in India are permitted to invest in which of the following?
[A] Securities
[B] Securities and Gold
[C] Securities other than Real Estate
[D] Securities, Gold and Real Estate
Show Answer
Correct Answer: D [Securities, Gold and Real Estate]
Notes:
Mutual funds in India are permitted to invest in Securities, Gold and Real Estate. A mutual fund is prohibited from investing in any unlisted security or a security issued through private placement by an associate or a group company of the sponsor.
14. Which of the following countries has the largest Mutual Fund market in the World?
[A] USA
[B] Japan
[C] China
[D] Brazil
Show Answer
Correct Answer: A [USA]
Notes:
The country with the largest mutual fund industry is United States. It has an amount of $18.9 trillion. Mutual fund assets worldwide is approximately $40.4 trillion.
15. What type of loan is a Housing loan?
[A] Unsecured Loan
[B] Secured Loan
[C] Corporate Loan
[D] Consumer Loan
Show Answer
Correct Answer: B [Secured Loan]
Notes:
Housing loan is a secured loan that is backed by an asset or equipment. The asset is called collateral. This collateral is needed because the amount of loan in the case of secured loan is much higher.
16. On how much amount of interest repayment ,an income tax rebate is available in India?
[A] 1.5 lakh per annum
[B] 2 lakh per annum
[C] 3 lakh per annum
[D] 2.5 lakh per annum
Show Answer
Correct Answer: A [1.5 lakh per annum]
Notes:
Resident Indians are eligible for certain tax benefits on both principal and interest components of a loan under the Income Tax Act, 1961. Under the current laws, one is entitled to an income tax rebate for interest repayment up to Rs. 1,50,000 /- per annum.
17. National Housing Bank was set up on July 9, 1988 under which among the following acts?
[A] National Housing Bank Act, 1985
[B] National Housing Bank Act, 1986
[C] National Housing Bank Act, 1987
[D] None of the Above
Show Answer
Correct Answer: C [National Housing Bank Act, 1987]
Notes:
NHB is wholly owned by Reserve Bank of India, which contributed the entire paid-up capital. The Head Office of NHB is at New Delhi. NHB was set up on July 9, 1988 under the National Housing Bank Act, 1987.
18. Which of the following civilization is considered to be the origin of Factoring?
[A] Indus Valley Civilization
[B] Mesopotamian culture
[C] Incas Civilization
[D] Aztecs Civilization
Show Answer
Correct Answer: B [Mesopotamian culture]
Notes:
Factoring originated with ancient Mesopotamian culture, with rules of factoring preserved in the Code of Hammurabi. Factoring is a method used by some firms to obtain cash.
19. What is the time period for a long term corporate loan?
[A] 3-15 Years
[B] 3-23 Years
[C] 3-25 Years
[D] Unlimited time period
Show Answer
Correct Answer: C [3-25 Years]
Notes:
A long-term loan runs for three to 25 years. It uses company assets as collateral, and requires monthly or quarterly payments from profits or cash flow.
20. What is the full form of IPO?
[A] Initial Payment Offer
[B] Initial Public Offering
[C] Indian Public Offer
[D] Indian Payment offer
Show Answer
Correct Answer: B [Initial Public Offering]
Notes:
Initial public offering is the process by which a private company can go public by sale of its stocks to general public. After IPO, the company’s shares are traded in an open market.
