Banking & General Financial Awareness
Banking & General Financial Awareness Multiple Choice Questions (MCQs) and Answers with explanation for All Banking Exams of 2020-2021 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. In which year, the first bank of India “Bank of Hindustan” was established?
[A] 1870
[B] 1770
[C] 1795
[D] 1880
Show Answer
Correct Answer: B [ 1770 ]
Notes:
The first bank of India is Bank of Hindustan established in 1770. This bank was established at Calcutta under European management. It was liquidated in 1830-32.
2. Who manages the Foreign Exchange control in India?
[A] RBI
[B] SEBI
[C] NABARD
[D] Central Government
Show Answer
Correct Answer: A [RBI]
Notes:
RBI i.e. Reserve Bank of India has an important role in regulating & managing Foreign Exchange of the country. It manages forex and gold reserves of the nation. The RBI’s Financial Markets Department (FMD) participates in the foreign exchange market by undertaking sales / purchases of foreign currency.
3. Which of the following institutions issue the Special Drawing Rights?
[A] IMF
[B] World Bank
[C] RBI
[D] BIS
Show Answer
Correct Answer: A [IMF]
Notes:
The SDR is an international reserve asset, created by the IMF in 1969.The main purpose was to supplement its member countries’ official reserves. The SDR is neither a currency nor a claim on the IMF. Rather, it is a potential claim on the freely usable currencies of IMF members. SDRs can be exchanged for these currencies.
4. SMERA has been registered under which of the following Acts?
[A] Securities and Exchange Board of India Act, 1992
[B] Reserve Bank of India Act, 1934
[C] Banking Regulation Act, 1949
[D] Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999
Show Answer
Correct Answer: D [Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999]
Notes:
SMERA has been registered under Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999.SMERA is registered with the Securities and Exchange Board of India (SEBI) as 6th Credit Rating Agency in India.
5. Which of the following funds is basically an index fund which trades like a closed-end fund?
[A] Open-end fund
[B] Money market fund
[C] Mutual fund
[D] Exchange-traded fund
Show Answer
Correct Answer: D [Exchange-traded fund]
Notes:
An ETF is a basket of stocks .It looks like a composition of an Index including many stocks like S&P CNX Nifty or BSE Sensex. The ETFs trading value is based on the net asset value of the underlying stocks that it represents.
6. When was the RBI Act enacted?
[A] 1st April 1935
[B] 28th November 1934
[C] 6th March 1934
[D] 31st March 1935
Show Answer
Correct Answer: C [ 6th March 1934 ]
Notes:
Reserve Bank of India Act, 1934 was enacted on 6 March, 1934 to constitute the Reserve Bank of India and commended from April 1, 1935. It provides for laws for the supervision of banking firms in India and other related matters.
7. Which public sector bank has the tagline “Your Tech-friendly bank”?
[A] Dena bank
[B] Bank of Baroda
[C] Indian bank
[D] United Bank
Show Answer
Correct Answer: C [Indian bank]
Notes:
Indian Bank is an Indian state-owned financial services company established in 1907 and headquartered in Chennai, India.
8. Where was Citi Bank India first established its office in 1902?
[A] Calcutta
[B] Bombay
[C] Madras
[D] Dhaka
Show Answer
Correct Answer: A [Calcutta]
Notes:
Citi Bank India was established in 1902 in Calcutta (Kolkata). Citi Bank India has its headquarters located in Mumbai and is the second largest foreign bank of India.
9. How much credit small finance banks has to give to priority sectors?
[A] 50%
[B] 75%
[C] 40%
[D] 80%
Show Answer
Correct Answer: B [75%]
Notes:
The small Finance Banks have been mandated to extend 75% of their credit to priority sector lending. Further, at least half of these loans should be below Rs. 25 Lakh.
10. What kind of Deposits are covered by DICGC?
[A] Saving deposits
[B] Fixed deposits
[C] Current deposits
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
DICGC insures all bank deposits, such as saving, fixed, current, Recurring deposit for up to the limit of Rs. 100,000 of each deposits in a bank. It was set up in 1987.
