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.
11. What do we call the funds that the banks keep with RBI as a portion of their Net Demand and Time Liabilities?
[A] Statutory Liquidity Ratio
[B] Cash Reserve Ratio
[C] Bank Rate
[D] Reverse Repo Rate
Show Answer
Correct Answer: B [Cash Reserve Ratio]
Notes:
The Cash Reserve Ratio is the amount of funds that the banks are bound to keep with Reserve bank of India as a portion of their Net Demand and Time Liabilities (NDTL).
12. What amount of Gold RBI needs to maintain under the Minimum Reserve System?
[A] Rs 150 crore
[B] Rs 200 crore
[C] Rs 115 crore
[D] Rs 100 crore
Show Answer
Correct Answer: C [Rs 115 crore]
Notes:
RBI is required to maintain a Gold and Foreign Exchange Reserves of Rs. 200 Crore of which at least Rs. 115 Crore should be in Gold. This is called Minimum Reserve System.
13. When was the Government Securities Act passed?
[A] 2002
[B] 1999
[C] 2005
[D] 2006
Show Answer
Correct Answer: D [2006]
Notes:
The Government Securities Act, 2006 is a legislation of the Parliament of India, which aims to introduce various improvements in the government securities market and the management of government securities by the Reserve Bank of India
14. Under which section of the RBI Act 1934 the Ways and Means Advances is provided?
[A] Section 3(15)
[B] Section 6(3)
[C] Section 21
[D] Section 17(5)
Show Answer
Correct Answer: D [Section 17(5)]
Notes:
The Ways and Advances scheme of the RBI is guided under Section 17(5) of RBI Act, 1934. The WMA scheme for the Central Government was introduced on April 1, 1997. it ended the four-decade old system of adhoc (temporary) Treasury Bills to finance the Central Government deficit.
15. What do we call the facility given to a current account holder of withdrawal of more amount than his deposit?
[A] Overdraft
[B] EMI
[C] Sweep-in Facility
[D] Recurring Deposit
Show Answer
Correct Answer: A [Overdraft]
Notes:
An overdraft facility is a credit agreement made with a bank that allows an account holder to use or withdraw more money than what they have in their account up to the approved limit.
16. What is the time period for a term loan to be classified as NPA?
[A] 30 days
[B] 60 days
[C] 90 days
[D] 365 days
Show Answer
Correct Answer: C [90 days]
Notes:
According to RBI, terms loans on which interest or installment of principal remain overdue for a period of more than 90 days from the end of a particular quarter is called a Non-performing Asset.
17. Which organisation developed BHIM Application?
[A] SBI
[B] RBI
[C] NPCI
[D] SEBI
Show Answer
Correct Answer: C [NPCI]
Notes:
The BHIM mobile app was developed by the National Payments Corporation of India (NPCI). It is based on the Unified Payments Interface (UPI).
18. Which account is opened by the investor while registering with an investment broker?
[A] De-materialized Account
[B] Recurring Account
[C] Savings Bank Account
[D] Fixed Deposit Account
Show Answer
Correct Answer: A [De-materialized Account]
Notes:
DEMAT or De-materialized Account refers to a deposit made at an Indian financial institution that can be used for investing in shares of stocks and other financial assets.Securities are held electronically in a DEMAT Account, thereby eliminating the need for physical paper certificates.
19. Which of the following parties are involved in the Promissory notes?
[A] The Maker
[B] The Payee
[C] Endorsee
[D] Both 1 and 2
Show Answer
Correct Answer: D [Both 1 and 2]
Notes:
The person who promises to pay money through Promissory Note is called as the maker (payer/drawer) and the person to whom the money is to be received is called as Payee/Drawee.
20. How many Banking Ombudsmen have been appointed?
[A] 20
[B] 10
[C] 15
[D] 18
Show Answer
Correct Answer: A [20]
Notes:
As on date, twenty Banking Ombudsmen have been appointed with their offices.
