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 correctly define the Foreign Exchange (Forex) Market?
[A] It is a market where only Foreign currency is used.
[B] It is a market where foreign currencies are bought and sold simultaneously.
[C] It is a physical market where only foreigners are allowed.
[D] None of the Above
Show Answer
Correct Answer: B [It is a market where foreign currencies are bought and sold simultaneously.]
Notes:
The market in which international currency trade takes place i.e. where foreign currencies are bought and sold simultaneously is called the Foreign Exchange (Forex) Market. It is the framework within which banks, merchants, firms, investors, individuals and government exchange foreign currencies for one another.
2. An underwriter undertakes to buy a certain number of shares or debentures irrespective of the subscription from the public. This type of underwriting is known as___________?
[A] Sub-Underwriting
[B] Firm Underwriting
[C] Syndicate Underwriting
[D] Outright Purchases of Issues
Show Answer
Correct Answer: B [Firm Underwriting]
Notes:
When an underwriter undertakes to buy or subscribe a certain number of shares or debentures irrespective of the subscription from the public, it is called firm underwriting. Firm underwriting generates confidence among investors and increases the chances of success of the issue.
3. Which nationalised bank was merged with Punjab National bank in 1993?
[A] Punjab and Sind Bank
[B] Ludhiana Area bank
[C] Majha united bank
[D] New Bank of India
Show Answer
Correct Answer: D [New Bank of India]
Notes:
In the year 1993, the Union government merged the New Bank of India with Punjab National Bank. Total nationalised banks came down to 19 with this.
4. Which of these is a Financial Inclusion scheme that was launched in 2014?
[A] Pradhan Mantri Sampada Yojna
[B] Bharat Nirman
[C] Pradhan Mantri Jan Dhan Yojana
[D] All of the above
Show Answer
Correct Answer: C [Pradhan Mantri Jan Dhan Yojana]
Notes:
Pradhan Mantri Jan Dhan Yojana (PMJDY), is financial inclusion program of Government of India which was launched on 15 August 2014.
5. What is Islamic Banking?
[A] Banking in which lending is prohibited
[B] Banking in Muslim countries
[C] Banking consistent with the principles of sharia
[D] None of the above
Show Answer
Correct Answer: C [Banking consistent with the principles of sharia]
Notes:
Islamic banking is banking or banking activity that is consistent with the principles of sharia and its practical application through the development of Islamic countries.
6. Bank Pasargad belongs to which country?
[A] Iran
[B] Germany
[C] Russia
[D] Sweden
Show Answer
Correct Answer: A [Iran]
Notes:
Bank Pasargad is also known as BPI, is a major Iranian private bank. The Government of India has approved a proposal from Iranian private lender Bank Pasargad to open a branch in India.
7. Where was the first society under Cooperative Societies Act 1904 registered in India?
[A] Madurai
[B] Kanjipoorum
[C] Gaya
[D] Panaji
Show Answer
Correct Answer: B [Kanjipoorum]
Notes:
In 1904, Cooperative Credit Societies Act, was enacted. The first society registered, under the Cooperative Societies Act 1904, was in Kanjipoorum now in Tamil Nadu.
8. Which of these committees in 1945 recommended the setting up of a Cooperative Training College in every state?
[A] Saraiya Committee
[B] Machalan Committee
[C] Narsimaham Committee
[D] Rajagopalachari Committee
Show Answer
Correct Answer: A [Saraiya Committee]
Notes:
Saraiya Committee, in 1945, further recommended the setting up of a Cooperative Training College in every state and a Cooperative Training Institute for Advanced Study and Research at the Central level.
9. Where is the headquarters of North-East Small Finance Bank located in India?
[A] Dispur
[B] Gangtok
[C] Guwahati
[D] Patna
Show Answer
Correct Answer: C [Guwahati]
Notes:
The headquarters of North-East Small Finance Bank is located Guwahati in India. Its started its operation on 17 October 2017.
10. Which is India’s first Payment bank?
[A] PayTM Payments Bank
[B] JIO Payments Bank
[C] Airtel Payments Bank
[D] Fino Payments Bank
Show Answer
Correct Answer: C [Airtel Payments Bank]
Notes:
Bharti Airtel launched India’s first live payments bank named Airtel payment bank in March 2017. At present, there are 7 operational Payments Banks.
