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 money that is lent for one day in the call money market?
[A] Call Money
[B] Notice Money
[C] Term Money
[D] Day Money
Show Answer
Correct Answer: A [Call Money]
Notes:
The money that is lent for one day in this market is known as “Call Money”, and if it exceeds one day (but less than 15 days) it is referred to as “Notice Money”.
12. What is downpayment?
[A] Difference between the total purchase value and the loan amount
[B] First EMI of the loan amount
[C] Last EMI of the loan amount
[D] None of the above
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Correct Answer: A [Difference between the total purchase value and the loan amount]
Notes:
The difference between the total purchase value and the loan amount. The borrower is responsible for providing the funds for the downpayment.
13. What do we call the guarantee given by the bank for a payment when the buyer is not able to pay the required amount of money to the seller?
[A] Letter of Credit
[B] Bank Guarantee
[C] Bill of Lading
[D] None of the above
Show Answer
Correct Answer: B [Bank Guarantee]
Notes:
in a bank guarantee the payment is done only when the buyer is not able to pay the required amount of money to the seller.
14. Under which act the banks, which are desirous of operating as BBPOUs, need to get the approval?
[A] Banking & Regulation Act 1949
[B] RBI Act 1934
[C] Payments & settlement System Act ,2007
[D] None of the above
Show Answer
Correct Answer: C [Payments & settlement System Act ,2007]
Notes:
Banks which are desirous of operating as BBPOUs would need to obtain one time approval from the RBI under the Payments & settlement System Act ,2007.
15. When was UPI service launched?
[A] 2016
[B] 2017
[C] 2018
[D] 2019
Show Answer
Correct Answer: A [2016]
Notes:
UPI was introduced on 11th April 2016. The interface was created by NPIC and is regulated by the Reserve Bank of India.
16. The savings bank account that does not operate for more than 24 months, then the acount is called?
[A] dormant account
[B] demat account
[C] inoperative account
[D] inactive amount
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Correct Answer: A [dormant account]
Notes:
A dormant account has had no activity for a long period of time, other than posting interest. A statute of limitations usually does not apply to dormant accounts, meaning that funds can be claimed by the owner or beneficiary at any time.
17. Loans to poor people by banks have many limitations including lack of security and high operating cost. So to help them which type of finance system developed?
[A] Ponzi schemes
[B] Micro Finance System
[C] Money Laundering Schemes
[D] Money tampering finance
Show Answer
Correct Answer: B [Micro Finance System]
Notes:
Micro-finance systems, hardware and services related to microfinance – providing credit and loans, normally very small amounts, to low income communities.
18. In terms of investment in plant and machinery, up to what monetary value does an enterprise need to meet to be considered a micro enterprise?
[A] Rs. 25 Lakh
[B] Rs. 50 Lakh
[C] Rs. 1 Crore
[D] Rs. 5 Crore
Show Answer
Correct Answer: C [Rs. 1 Crore]
Notes:
Micro enterprises are characterized by the amount invested in plant and machinery. Specifically, for a business to be considered a micro enterprise, it must not have an investment exceeding Rs. 1 crore. This division helps governments and financial institutions better shape policies and aid strategies. Furthermore, the annual turnover for these enterprises should not exceed Rs. 5 crore. This further helps distinguish them from small and medium enterprises, which have a higher threshold for both investment and turnover.
19. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) was set up by Government of India and which of the following bank?
[A] RBI
[B] NABARD
[C] SIDBI
[D] MUDRA
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Correct Answer: C [SIDBI]
Notes:
The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS) was launched by the Government of India (GoI) to make available collateral-free credit to the micro and small enterprise sector
20. The Banking Ombudsman Scheme is introduced under which of the following sections in Banking Regulation Act, 1949?
[A] Section 25 A
[B] Section 30 A
[C] Section 40 A
[D] Section 35 A
Show Answer
Correct Answer: D [Section 35 A]
Notes:
The Banking Ombudsman Scheme is introduced under Section 35 A of the Banking Regulation Act, 1949.
