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. The most active segment of the Money Market in India is which one of the following?
[A] Call Money / Notice Money Market
[B] Repo / Reverse Repo
[C] Commercial Paper (CP)
[D] Certificate of Deposit (CD)
Show Answer
Correct Answer: A [Call Money / Notice Money Market]
Notes:
Call Money / Notice Money Market is the most active segment of the money market in India.
2. Which was the first bank to open a branch on foreign soil?
[A] Bank of India
[B] State Bank of India
[C] Bank of Punjab
[D] Allahabad Bank
Show Answer
Correct Answer: A [ Bank of India ]
Notes:
Bank of India was the first Indian bank to open a branch outside India in London in 1946 and the first to open a branch in continental Europe at Paris in 1974.
3. UIDAI is a statutory authority formed under which of the following ?
[A] Niti Aayog
[B] Home Ministry
[C] Ministry of Communication and Information Technology
[D] Ministry of Statisctics and Programmme Implementation
Show Answer
Correct Answer: C [Ministry of Communication and Information Technology]
Notes:
The Unique Identification Authority of India is a central government agency of India under the ministry of communication and information technology India. It was set up by the Government of India on 28 January 2009 .The UIDAI is under the administrative control of the ministry of communication and information technology.
4. What is the full form of FERA?
[A] Foreign Exchange Regulation Act
[B] Foreign Exchange Regulation Agency
[C] Foreign Exchange Repulsive Agent
[D] Foreign Expert Regulation Act
Show Answer
Correct Answer: A [Foreign Exchange Regulation Act]
Notes:
FERA stands for Foreign Exchange Regulation Act. It came into 1973.FERA lays emphasis on the regulation of currencies. The act came into force, to regulate foreign payments, securities, currency import and export and purchase of fixed assets by foreigners.
5. Personal Loans are also called as by which of the following names?
[A] Signature Loans
[B] Unsecured Loans
[C] Consumer Loans
[D] All of the Above
Show Answer
Correct Answer: D [All of the Above]
Notes:
Unsecured loans (called signature loans) are advanced on the basis of the borrower’s credit-history and ability to repay the loan from personal income. Repayment is usually through fixed amount installments over a fixed term. Also called consumer loan.
6. Which of the following are the ways to repay the personal loan?
[A] Equated Monthly Installments via Cheques
[B] Electronic Clearing Services
[C] Cash
[D] Both a and b
Show Answer
Correct Answer: D [Both a and b]
Notes:
The loan can be repaid in the form of Equated Monthly Installment (EMI) via post-dated cheques drawn in favour of the bank or by releasing a mandate allowing payment through the Electronic Clearing Services (ECS) system.
7. What is the full form of ELSS?
[A] Equity Linked Saving Scheme
[B] Equity Linking Saving System
[C] Equitable Linked Saving System
[D] None of the above
Show Answer
Correct Answer: A [Equity Linked Saving Scheme]
Notes:
An Equity Linked Savings Scheme (ELSS) is an open-ended Equity Mutual Fund that help to save tax. It also gives an opportunity to grow money. It qualifies for tax exemptions under section 80C of the Indian Income Tax Act.
8. What is the time period for a long term corporate loan?
[A] 3-15 Years
[B] 3-23 Years
[C] 3-30 Years
[D] Unlimited time period
Show Answer
Correct Answer: C [3-30 Years]
Notes:
A form of loan that is paid off over an extended period of time greater than 3 years is termed as a long-term loan. This time period can be anywhere between 3-30 years.
9. Which of the following acts regulates the underwriting process in India?
[A] RBI Act 1934
[B] Securities and Exchanges Board of India (Underwriters) Regulations, 1993.
[C] Securities and Exchange Board of India (Underwriters) (Amendment) Regulations, 2006
[D] Both b and c
Show Answer
Correct Answer: D [Both b and c]
Notes:
The underwriter must get a certificate of registration under the Securities and Exchanges Board of India (Underwriters) Regulations, 1993.These regulations have been further amended by the Securities and Exchange Board of India (Underwriters) (Amendment) Regulations, 2006.
10. As per Section 31 of the RBI, who can issue and accept promissory notes that are payable on demand in India?
[A] RBI
[B] Central Government
[C] Both a and b
[D] None
Show Answer
Correct Answer: C [ Both a and b ]
Notes:
The section 31 states that in India, only the RBI or the central government can issue and accept promissory notes that are payable on demand.
