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.
21. Which of the following deposit accounts caters to professionals and businessmen alike?
[A] Fixed Deposit Account
[B] Savings Bank Account
[C] Recurring Account
[D] Current Account
Show Answer
Correct Answer: D [Current Account]
Notes:
A current account is a type of deposit account that caters to professionals and businessmen alike. Dealing largely with liquid deposits, this product allows for withdrawal of funds and checks being written against the balance and does not limit the number of transactions in a day.
22. In Negotiable Instruments Act, the Bill of Exchange is covered under which section?
[A] Section 4
[B] Section 6
[C] Section 13
[D] Section 5
Show Answer
Correct Answer: D [Section 5]
Notes:
Section 5 of the Negotiable Instruments Act, 1881 defines bills of exchange. Bills of exchange are negotiable instruments which demand money from debtors within a stipulated period of time.
23. Which of the following is not true about National Electronic Funds Transfer (NEFT) system?
[A] There is no limit on transaction through NEFT
[B] NEFT operates in hourly batches.
[C] NEFT is a payment system which facilitates one-to-one funds transfer.
[D] Only bank branches which are NEFT enabled, can be a part of the NEFT funds transfer network.
Show Answer
Correct Answer: B [ NEFT operates in hourly batches. ]
Notes:
RBI announced that additional 11 settlement batches at half- hourly intervals will be introduced from July 10 2017 , beginning from 8.30 am till 6.30 pm. With this, the total number of half hourly settlement batches during the day will increase to 23.
24. Liquidity status of certificate of deposit which is more negotiable is considered as?
[A] certified liquidity
[B] term liquidity
[C] more liquid
[D] less liquid
Show Answer
Correct Answer: C [ more liquid ]
Notes:
Liquidity status of certificate of deposit which is more negotiable is considered as more liquid.
25. Which of the following economic concepts is categorised on the basis of current account or capital account or both?
[A] Value of the foodgrains stock of a country.
[B] The balance of payments
[C] Gross National Product
[D] Gross National Income
Show Answer
Correct Answer: B [The balance of payments]
Notes:
The balance of payments is the record of all economic transactions between the residents of the country and the rest of the world in a particular period of time. It is categorised on the basis of current account or capital account or both.
26. Non–Banking Financial Companies (NBFC) are registered under which act?
[A] Companies Act, 1970
[B] Companies Act, 1956
[C] Companies Act, 1967
[D] Companies Act, 1958
Show Answer
Correct Answer: B [Companies Act, 1956]
Notes:
A Non Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 of India, engaged in the business of loans and advances, acquisition of shares, stock, bonds, hire-purchase insurance business or chit-fund business.
27. CICs having asset size of 100 crore or above are categorised as which of the following?
[A] Systemically Important Core Certified Companies
[B] Systemically Important Core Investment Companies
[C] Systemically Core Investment Companies
[D] None of the above
Show Answer
Correct Answer: B [Systemically Important Core Investment Companies]
Notes:
CICs having asset size of 100 crore or above are categorised as Systemically Important Core Investment Companies (CICs-ND-SI) and are required to obtain Certificate of Registration from the Reserve Bank.
28. Infrastructure debt funds are sponsored by which of the following?
[A] SEBI
[B] NBFCs
[C] Cooperative society
[D] SBI
Show Answer
Correct Answer: B [NBFCs]
Notes:
Infrastructure debt funds are sponsored by commercial banks and NBFCs in India in which domestic/offshore institutional investors, specially insurance and pension funds can invest through units and bonds issued by the IDFs.
29. Which of the following is the principle business carried out by NBFC?
[A] Hire purchasing finance
[B] Housing finance
[C] Investment and loan
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
The NBFC is a financial institute which carries out Hire purchasing finance, Housing finance, investment, loan and equipment leasing businesses as their principle business.
30. Formal merchant banking activity in India was originated in which of the following years?
[A] 1978
[B] 1969
[C] 1769
[D] 1987
Show Answer
Correct Answer: B [1969]
Notes:
Formal merchant banking activity in India was originated in 1969.
