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.
31. Which document is mandatory for opening a Jan Dhan account?
[A] Passport
[B] Aadhaar
[C] Voter ID
[D] Any officially valid document (OVD)
Show Answer
Correct Answer: D [Any officially valid document (OVD)]
Notes:
For opening a Jan Dhan account, any officially valid document (such as Aadhaar, PAN, or Voter ID) is acceptable under KYC norms.
32. What is the main purpose of offshore banking?
[A] Promoting local trade
[B] Providing services in foreign jurisdictions with financial benefits
[C] Reducing domestic regulations
[D] Supporting microfinance institutions
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Correct Answer: B [Providing services in foreign jurisdictions with financial benefits]
Notes:
Offshore banking allows individuals and corporations to open accounts in foreign jurisdictions that offer financial benefits, such as lower taxes, greater privacy, and flexible regulations.
33. How does blockchain ensure the immutability of transactions?
[A] By allowing manual edits of past records
[B] By storing transactions on centralized servers
[C] By using cryptographic hashes and linking blocks in a chain
[D] By regularly deleting old transaction data
Show Answer
Correct Answer: C [By using cryptographic hashes and linking blocks in a chain]
Notes:
Blockchain ensures immutability by storing transactions in blocks, each linked to the previous one using cryptographic hashes. Once a block is added to the chain, altering its contents requires changing all subsequent blocks, making tampering nearly impossible.
34. Which cybersecurity threat involves attackers encrypting a bank’s data and demanding payment for its release?
[A] Phishing
[B] Ransomware
[C] DDoS attack
[D] Man-in-the-middle attack
Show Answer
Correct Answer: B [Ransomware]
Notes:
Ransomware is a type of cyberattack where attackers encrypt sensitive data and demand a ransom in exchange for the decryption key. It is a threat to financial institutions.
35. Which of the following best describes the concept of “tick size” in stock trading?
[A] The minimum lot size for a trade
[B] The smallest price movement allowed in trading
[C] The maximum fluctuation allowed in a stock price
[D] The total number of trades executed in a day
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Correct Answer: B [The smallest price movement allowed in trading]
Notes:
Tick size is the minimum price increment by which a stock can move up or down during trading. It ensures uniformity in price movements and helps in orderly trading.
36. Which of the following is the largest commodity derivatives exchange in India?
[A] National Stock Exchange (NSE)
[B] Multi Commodity Exchange (MCX)
[C] National Commodity and Derivatives Exchange (NCDEX)
[D] Bombay Stock Exchange (BSE)
Show Answer
Correct Answer: B [Multi Commodity Exchange (MCX)]
Notes:
The Multi Commodity Exchange (MCX) is the largest commodity derivatives exchange in India, offering trading in a wide range of commodities such as gold, silver, crude oil, and base metals.
37. Which commodity is most actively traded on the Multi Commodity Exchange (MCX)?
[A] Copper
[B] Gold
[C] Soybean
[D] Cotton
Show Answer
Correct Answer: B [Gold]
Notes:
Gold is one of the most actively traded commodities on the Multi Commodity Exchange (MCX).
38. In an IPO, shares are allotted to retail investors through:
[A] Pro-rata basis
[B] Book-building process
[C] Lottery system, if the issue is oversubscribed
[D] Fixed price allotment
Show Answer
Correct Answer: C [Lottery system, if the issue is oversubscribed]
Notes:
In case of oversubscription, shares are allotted to retail investors through a lottery system, ensuring fair allocation.
39. Which of the following stock exchanges was recognized as the first stock exchange in India?
[A] National Stock Exchange (NSE)
[B] Bombay Stock Exchange (BSE)
[C] Calcutta Stock Exchange
[D] Delhi Stock Exchange
Show Answer
Correct Answer: B [Bombay Stock Exchange (BSE)]
Notes:
The Bombay Stock Exchange (BSE), established in 1875, is the first and oldest stock exchange in India.
40. What year marked the introduction of life insurance in India?
[A] 1818
[B] 1906
[C] 1956
[D] 1938
Show Answer
Correct Answer: A [1818]
Notes:
Life insurance was pioneered in India in 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. This marked the first formal and legitimate insurance operation in India. It brought about a sense of security among the public, establishing an option for financial support upon unfortunate events.
