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. What is a mutual fund that invests in other mutual funds called?
[A] Pool
[B] ETF (Exchange-Traded Fund)
[C] FOF (Fund of Funds)
[D] Portfolio
Show Answer
Correct Answer: C [FOF (Fund of Funds)]
Notes:
Fund of Funds (FOF) is an investment vehicle that pools capital to invest in multiple mutual funds. FOFs do not invest in stocks or bonds directly. In India, FOFs are regulated by the Securities and Exchange Board of India (SEBI). They can invest in mutual funds within the same fund house (fettered) or across different fund houses (unfettered). FOFs offer diversification and professional fund management.
2. In which year, Nationalization of Reserve Bank of India was done?
[A] 1947
[B] 1948
[C] 1949
[D] 1950
Show Answer
Correct Answer: C [ 1949 ]
Notes:
In 1949, the Government of India nationalized the Reserve Bank under the Reserve Bank (Transfer of Public Ownership) Act, 1948. From January 1, 1949, RBI started working as a government owned bank.
3. Direct Benefit Transfer or DBT beneficiaries can withdraw money through which of the following servies?
[A] Micro-ATMs
[B] Aadhar Enabled Payment System
[C] BHIM Aadhar Pay
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
DBT beneficiaries can withdraw their money through the micro-ATMs, AePS and BHIM Aadhaar Pay. Customer who want to receive entitled benefits or subsidies of welfare schemes funded from the Consolidated Fund of India in their account directly, can avail it via Aadhaar-based authentication using e-KYC .
4. FEMA head office is situated in which of the following city?
[A] Hyderabad
[B] Lucknow
[C] Bangalore
[D] New Delhi
Show Answer
Correct Answer: D [New Delhi]
Notes:
The FEMA head-office, also known as Enforcement Directorate is situated in New Delhi and is headed by a Director. The Directorate is further divided into 5 zonal offices in Delhi, Mumbai, Kolkata, Chennai and Jalandhar and each office is headed by a Deputy Director.
5. SMERA has been registered under which of the following Acts?
[A] Securities and Exchange Board of India Act, 1992
[B] Reserve Bank of India Act, 1934
[C] Banking Regulation Act, 1949
[D] Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999
Show Answer
Correct Answer: D [Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999]
Notes:
SMERA has been registered under Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999.SMERA is registered with the Securities and Exchange Board of India (SEBI) as 6th Credit Rating Agency in India.
6. Who is the CEO of the CRISIL?
[A] Ashu Suyash
[B] Rajesh Mokashi
[C] Naresh Takkar
[D] Varun Mirchandani
Show Answer
Correct Answer: A [Ashu Suyash]
Notes:
Ashu Suyash is the current CEO of the CRISIL. Rajesh Mokani is the current head of CARE India. Naresh Takkar is the CEO of ICRA. Varun Miranchandani is the head of ONICRA.
7. Which score is considered as the maximum credit score in India?
[A] 345
[B] 750
[C] 900
[D] 700
Show Answer
Correct Answer: C [900]
Notes:
The credit score ranges from 300 to 900. The closer you are to 900, the more confidence the credit institution will have in your ability to repay the loan and hence, the better the chances of your application getting approved. Anything above 750 is considered a good credit score.
8. When did the private companies got the permission to set up Mutual Funds?
[A] 1992
[B] 1993
[C] 1994
[D] 1982
Show Answer
Correct Answer: A [1992]
Notes:
In 1992 private companies also got permission to setup Mutual Funds and SEBI (Mutual Funds) Regulation 1993 provides guidelines for registration, constitution, management and schemes of Mutual Funds in India.
9. What is the full form of APR?
[A] Annual Priority Rates
[B] Annual Percentage Rates
[C] Amoritized Priority Rates
[D] None of the above
Show Answer
Correct Answer: B [Annual Percentage Rates]
Notes:
An annual percentage rate (APR) is the annual rate charged for borrowing through an investment. It is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan.
10. Which of the following clearly define the Leasing services?
[A] One party agrees to rent property owned by another party.
[B] It guarantees the lessee, also known as the tenant, use of an asset.
[C] It guarantees the lessor, regular payments from the lessee .
[D] All of the Above
Show Answer
Correct Answer: D [All of the Above]
Notes:
A lease is a contract. It outlines the terms under which one party agrees to rent property owned by another party. It guarantees the lessee, also known as the tenant, use of an asset and guarantees the lessor, regular payments from the lessee for a specified number of months or years.
