Banking & General Financial Awareness
Banking & General Financial Awareness Multiple Choice Questions (MCQs) and Answers with explanation for All Banking Exams of 2024-25 such as IBPS Bank PO, IBPS Bank Clerical, RRB PO and Clerical, SBI PO and SBI Clerical, IBPS Recruitments, RBI Grade B and RBI Banking Examinations.
1. Which among the following was chosen as a unit of developing banking infrastructure in the Lead Bank Scheme?
[A] Town
[B] Village
[C] District
[D] Panchayat
Show Answer
Correct Answer: C [District]
Notes:
Leader Bank Scheme was based on Area Approach for targeted and focused banking. The banker’s committee, headed by S. Nariman, concluded that districts would be the units for area approach and each district could be allotted to a particular bank which will perform the role of a Lead Bank.
2. What was the name of the first person in India who was given an Aadhaar Identity number?
[A] Sonia Gandhi
[B] Nandan Nilekani
[C] Ranjana Sonawane
[D] Atul Bhushan Pandey
Show Answer
Correct Answer: C [Ranjana Sonawane]
Notes:
Ranjana Sonawne has become the first Indian to get an Aadhaar identity number. The number allotted to her was 782474317884. She is from Tembhli village in the state of Maharashtra.She got her Unique Identitification on september 28, 2010.
3. Which of the following correctly define India’s Foreign Exchange rate system?
[A] Fixed
[B] Free float
[C] Managed float
[D] Fixed target of band
Show Answer
Correct Answer: C [Managed float]
Notes:
In India, the exchange rate system is managed floating from 1994 onwards and hence the relevant currency movements are appreciation and depreciation. Managed float regime is the environment in which exchange rates fluctuate from day to day.
4. What is the full form of VCT?
[A] Venture Capital Trusts
[B] Venture Capital Trading
[C] Value Capital Trading
[D] Value Capital Trusts
Show Answer
Correct Answer: A [Venture Capital Trusts]
Notes:
A venture capital trust (VCT) is a type of publicly listed closed-end fund found in the United Kingdom. VCTs are the companies listed on the London Stock Exchange, which invest in other companies which are not themselves listed. It was first introduced by the government in the Finance Act 1995.
5. How many Mutual Fund companies are there in India?
[A] 43
[B] 44
[C] 54
[D] 48
Show Answer
Correct Answer: B [44]
Notes:
Presently, India is having only 44 mutual fund offering companies. Mutual funds are highly under tapped market in India and have huge potential to grow in coming years.
6. When was Deposit Insurance and Credit Guarantee Corporation established under RBI?
[A] 1976
[B] 1978
[C] 1981
[D] 1969
Show Answer
Correct Answer: B [1978]
Notes:
Deposit Insurance and Credit Guarantee Corporation (DICGC) is a subsidiary of Reserve Bank of India. It was established on 15 July 1978 under Deposit Insurance and Credit Guarantee Corporation Act, 1961 for the purpose of providing insurance of deposits and guaranteeing of credit facilities.
7. Which of these banks was nationalised in 1969?
[A] United Bank of India
[B] Vijaya Bank
[C] Andhra Bank
[D] Punjab and Sind Bank
Show Answer
Correct Answer: A [United Bank of India]
Notes:
United Bank of India was nationalised in the first round of nationalisation in 1969. Rest of the options were nationalised in 1980.
8. What is the function of a Central Bank?
[A] Foreign exchange management
[B] Managing currency
[C] Money Supply management
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
Central Banks, also known as Reserve Banks or Monetary Authorities are generally the top banking institution of a country with responsibilities such as managing currency, foreign exchange, money supply, interest rates etc. of that country.
9. Which is the 3rd largest foreign bank of India in terms of branches?
[A] HSBC
[B] Citi
[C] Standard Chartered
[D] Royal bank of Scotland
Show Answer
Correct Answer: A [HSBC]
Notes:
HSBC is the second largest foreign bank in India with 50 outlets across the country while Citibank is India’s third largest foreign bank with 45 operational outlets.
10. In 2020, RBI cancelled the license of which Local Area Bank due to mismanagement?
[A] Subhadra Local Area Bank Ltd
[B] Coastal Local Area Bank Ltd
[C] Krishna Bhima Samruddhi Local Area Bank Ltd
[D] None of them
Show Answer
Correct Answer: A [Subhadra Local Area Bank Ltd]
Notes:
On December 24, 2020, Reserve Bank of India (RBI) cancelled the banking license issued to Subhadra Local Area Bank Ltd., Kolhapur, Maharashtra under Section 22 (4) of the Banking Regulation Act, 1949 to carry on banking business in India. RBI cancelled the license of the Subhadra Local Area Bank Ltd because its affairs were conducted in a manner detrimental to the interests of its present and future depositors. With this, this bank was closed down.
