Banking & General Financial Awareness
Banking & General Financial Awareness Multiple Choice Questions (MCQs) and Answers with explanation for All Banking Exams of 2020-2021 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 position does India hold in Foreign Exchange Reserve?
[A] 7th
[B] 2nd
[C] 4th
[D] 3rd
Show Answer
Correct Answer: C [4th]
Notes:India currently has the fourth largest foreign exchange reserves in the world, Minister of State for Finance Pankaj Chaudhary told Lok Sabha . As on November 19, 2021, he said the forex reserve stood at USD 640.4 billion.
2. Which of the following acts provide the legal provisions for the maintenance of Foreign Reserve in India?
[A] RBI Act 1934
[B] Banking Regulation Act 1949
[C] FEMA 1999
[D] Both a and c
Show Answer
Correct Answer: D [Both a and c]
Notes:
Reserve Bank of India act 1934 and Foreign Exchange Management Act 1999 are the two acts of government of India which provide legal provisions to the maintenance of Foreign Exchange Reserve .
3. Which of the following is the biggest contributor to the Foreign Reserve of India?
[A] Gold
[B] Foreign Assets
[C] SDR
[D] Reserve Tranche with IMF
Show Answer
Correct Answer: B [Foreign Assets]
Notes:
India’s forex reserves stood at USD 547.25 billion for the week ended November 18, 2022. The major component of this is Foreign Currency Assets (FCA) which stands at USD 484.29 billion, followed by Gold Reserves at USD 40.01 billion and Special Drawing Rights (SDRs) at USD 17.906 billion.
4. Which of the following rating agencies is best suited for MSME Ratings?
[A] CRISIL
[B] CIBIL
[C] SMERA
[D] ICRA
Show Answer
Correct Answer: C [SMERA]
Notes:
SMERA is the country’s first Rating agency that focuses primarily on the Indian MSME segment. SMERA a joint initiative by SIDBI, Dun & Bradstreet Information Services India Private Limited (D&B) and several leading banks in the country.
5. Who was the head of review committee on underwriting rules and regulation ?
[A] Shri Vallabh Bhansali
[B] C. Rangarajan
[C] Urjit Patel
[D] Nandan Nilekani
Show Answer
Correct Answer: A [Shri Vallabh Bhansali]
Notes:
Shri Vallabh Bhansali was the head of review committee on underwriting rules and regulations. The SEBI (Underwriters) Rules and Regulations, 1993 deals primarily with issues such as registration, capital adequacy, obligation and responsibilities of the underwriters.
6. Which section of the RBI allows the RBI to provide loans to banks and state financial corporations?
[A] 17
[B] 18
[C] 19
[D] 20
Show Answer
Correct Answer: A [ 17 ]
Notes:
Under Section 17, The RBI can provide loans to banks and state financial corporations. It can provide advances to the central government and state governments.
7. In which year the Banking Regulation Act 1949 was amended to make it applicable to cooperative banks?
[A] 1962
[B] 1964
[C] 1965
[D] 1969
Show Answer
Correct Answer: C [1965]
Notes:
It is applicable in Jammu and Kashmir from 1956. Initially, the law was applicable only to banking companies. But, 1965 it was amended to make it applicable to cooperative banks and to introduce other changes. In 2020 it was amended to bring the cooperative banks under the supervision of the Reserve Bank of India.
8. How many banks were nationalised in 1980?
[A] 5
[B] 6
[C] 7
[D] 8
Show Answer
Correct Answer: B [6]
Notes:
Six banks were nationalised in 1980. These were as following: 1. Andhra Bank 2. Corporation Bank 3. New Bank of India 4. Oriental Bank of Commerce 5. Punjab & Sindh Bank 6. Vijaya Bank
9. Which of these is a Priority Sector for Lending as specified by the RBI?
[A] Agriculture
[B] Education
[C] Housing
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
Priority Sector Lending means that the banks have to make sure that they lend to few specific sectors like agriculture and allied activities, micro and small enterprises, poor people for housing, students for education and other low income groups and weaker sections.
10. Which state has the highest number of RRBs in India?
[A] Uttar Pradesh
[B] Bihar
[C] West Bengal
[D] Maharashtra
Show Answer
Correct Answer: A [Uttar Pradesh]
Notes:
Uttar Pradesh has the highest number of 36 RRBs, followed by, Madhya Pradesh with 19 and Bihar with 16 RRBs. There are no RRBs in Goa and Sikkim.
