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 of the following is not the feature of FEMA?
[A] There is a simplification of Foreign Exchange Transactions.
[B] There was a discharge provisions of criminal proceedings in case of default cases.
[C] It came into force on 01.01.2004.
[D] None of the Above
Show Answer
Correct Answer: B [There was a discharge provisions of criminal proceedings in case of default cases.]
Notes:
FEMA was enacted in 1999 and is in effect from 01.06.2000.It made all offence regarding Foreign Exchange Civil Offence, as opposed to criminal offences as dictated by FERA.
2. What is the full form of CRISIL?
[A] Credit Rating Information Services of India Limited
[B] Credit Rating Investment Services of India Limited
[C] Credit Rating Indian Services for Investment and Liability
[D] Credit Rating Insight Services of India Limited
Show Answer
Correct Answer: A [Credit Rating Information Services of India Limited]
Notes:
CRISIL stands for Credit Rating Information Services of India Limited. It is a global analytical company providing ratings, research, and risk and policy advisory services. CRISIL’s majority shareholder is Standard & Poor’s.
3. Which of the following committee formed the basis for the introduction of factoring services in India?
[A] C.Rangarajan Committee
[B] Urjit Patel Committee
[C] C. S. Kalyan Sundaram Committee
[D] None of the Above
Show Answer
Correct Answer: C [C. S. Kalyan Sundaram Committee]
Notes:
A Committee headed by Shri C. S. Kalyan Sundaram went into the aspects of factoring services in India in 1988,which formed the basis for introduction of factoring services in India.
4. What is the time period for a Short term corporate loan?
[A] 1 Year
[B] 18 Months
[C] Both a and b
[D] None of the above
Show Answer
Correct Answer: C [Both a and b]
Notes:
A short-term loan, usually offered to firms that don’t qualify for a line of credit. It generally runs less than a year, though it can also refer to a loan of up to 18 months or so.
5. 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.
6. 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.
7. Which of these is an International Financial Institution?
[A] World Bank
[B] European Investment Bank
[C] Both a and b
[D] None of the above
Show Answer
Correct Answer: C [Both a and b]
Notes:
These are those banks that are established by more than one country and provide international finance. Example: European Investment Bank, World Bank, Asian Infrastructure Investment Bank etc.
8. Which of these banks are not-for-profit banks owned by the depositor?
[A] Cooperative banks
[B] Merchant banks
[C] Land Banks
[D] None of the above
Show Answer
Correct Answer: A [Cooperative banks]
Notes:
Cooperative banking is retail and commercial banking organized on a cooperative basis. These are generally not-for-profit banks owned by the depositors.
9. Which is the largest foreign bank in India?
[A] HSBC
[B] Citi Bank
[C] Standard Chartered Bank
[D] Deutshce Bank
Show Answer
Correct Answer: C [Standard Chartered Bank]
Notes:
Standard Chartered, the UK based bank, is the largest foreign bank of India. It has 100 branches in India at present.
10. Which of these are at the lowest rung of Rural Cooperative banking structure in India?
[A] State Cooperative Banks
[B] District Central Cooperative Banks
[C] Primary Agricultural Credit Societies
[D] None of the above
Show Answer
Correct Answer: C [Primary Agricultural Credit Societies]
Notes:
Primary credit societies are at the lowest rung and operate at village level. Then, there are central cooperative banks at the district level and state cooperative banks at the state level.
