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. Mutual Funds are regulated in India by which among the following?
[A] RBI
[B] SBI
[C] SEBI
[D] RBI & SBI
Show Answer
Correct Answer: C [SEBI]
Notes:
A mutual fund is a fund that is created when a large number of investors put in their money, and is managed by professionally qualified persons with experience in investing in different asset classes-shares, bonds, money market instruments like call money, and other assets like gold and property.
Mutual funds are compulsorily registered with the Securities and Exchange Board of India (Sebi), which also acts as the first wall of defence for all investors in these funds
2. How many Aadhaar Enrolment and Update Centres in total are there in India?
[A] 17000
[B] 23000
[C] 11000
[D] 60000
Show Answer
Correct Answer: B [23000]
Notes:
The ASK will run along with over 35,000 Aadhaar Kendra already being run by banks, post offices, BSNL and state governments.
3. The PCR will collect data from which of the following entities?
[A] SEBI
[B] Goods and Services Network
[C] Insolvency and Bankruptcy Board of India
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
The PCR will include data from entities such as SEBI, the Corporate Affairs Ministry, the Goods and Service Tax Network (GSTN) and the Insolvency and Bankruptcy Board of India (IBBI). It will enable banks and financial institutions to get a 360-degree profile of the existing, as well as prospective, borrowers on a real-time basis.
4. FEMA was introduced in which of the following year?
[A] 1990
[B] 1989
[C] 1999
[D] 1991
Show Answer
Correct Answer: C [1999]
Notes:
Foreign Exchange Management Act was enacted in 1999 and it had 25 original notifications. This act came into force w.e.f June 1, 2000.FEMA manages foreign exchange, i.e. forex.
5. Which of the following city is the headquarter of ONICRA?
[A] Mumbai
[B] Gurugram
[C] Noida
[D] Faridabad
Show Answer
Correct Answer: B [Gurugram]
Notes:
ONICRA provides ratings, risk assessment and analytical solutions. It was established in 1993. It provides assessment, grading and rating models for individuals & MSMES. The headquarter is in Gurugram, Haryana.
6. The idea of providing factoring services was first thought of in India by which of the following?
[A] Tandem Committee
[B] Patel Committee
[C] Malhotra committee
[D] Vaghul committee
Show Answer
Correct Answer: D [Vaghul committee]
Notes:
Invoice factoring for startup companies is a flexible financing solution that is a good way for new businesses to get the cash they need to cover essential operating costs. It was suggested by Vaghul Committee in India.
7. Which of the following best defines the Reverse Mortgage Loan Scheme?
[A] A reverse mortgage is a loan for seniors age 62 and older.
[B] These loans are secured over a residential property.
[C] These loans typically do not require monthly mortgage payments.
[D] All of the Above
Show Answer
Correct Answer: D [All of the Above]
Notes:
The scheme of reverse mortgage has been introduced recently for the benefit of senior citizens owning a house but having inadequate income to meet their needs. Reverse Mortgage Loan provides an additional source of income for senior citizens of India, who have a self- acquired or self-occupied home in India.
8. 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.
9. Corporate loans are offered to applicants who have established their business for how many years in India?
[A] 5
[B] 6
[C] 2
[D] 7
Show Answer
Correct Answer: A [5]
Notes:
Corporate loans are offered to applicants who have their business established for at least 5 years and in the last 2 years has made profit and has a strong credit rating and has a proven track of successful business. If the business had taken loans previously, then the repayment status is looked into while sanctioning the loan.
10. When was the RBI Act enacted?
[A] 1st April 1935
[B] 28th November 1934
[C] 6th March 1934
[D] 31st March 1935
Show Answer
Correct Answer: C [ 6th March 1934 ]
Notes:
Reserve Bank of India Act, 1934 was enacted on 6 March, 1934 to constitute the Reserve Bank of India and commended from April 1, 1935. It provides for laws for the supervision of banking firms in India and other related matters.
