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.
11. How many banks were nationalised in 1980?
[A] 5
[B] 6
[C] 7
[D] 8
Show Answer
Correct Answer: B [6]
Notes:
Six banks were nationalised in 1980. These were as following: 1. Andhra Bank 2. Corporation Bank 3. New Bank of India 4. Oriental Bank of Commerce 5. Punjab & Sindh Bank 6. Vijaya Bank
12. Which of the following is the apex regulatory body for overall licensing and regulation of micro, small and medium enterprise finance companies in India?
[A] RBI
[B] SEBI
[C] SIDBI
[D] PFRDA
Show Answer
Correct Answer: B [SEBI]
Notes:
Small Industries Development Bank of India (SIDBI) is the apex regulatory body for overall licensing and regulation of micro, small and medium enterprise finance companies in India. It is under the jurisdiction of Ministry of Finance , Government of India headquartered at Lucknow and having its offices all over the country. Its purpose is to provide refinance facilities to banks and financial institutions and engage in term lending and working capital finance to industries, and serves as the principal financial institution in the Micro, Small and Medium Enterprises (MSME) sector. It was set up on April 2, 1990 under the Small Industries Development Bank of India Act, 1989. It has headquarters in Lucknow, Uttar Pradesh.
13. Who was the chairman of the first Banks Board Bureau?
[A] Vinod Rai
[B] Usha Mehta
[C] Ravi Shankar Menon
[D] Raghuram Rajan
Show Answer
Correct Answer: A [Vinod Rai]
Notes:
The first BBB was set up in February 2016 under chairmanship of former CAG Vinod Rai for two-year term that ended in March 2018.
14. Which of the following functions are performed by RBI as a banker of banks?
[A] settlements of inter-bank transactions
[B] enables banks to maintain their accounts with RBI for statutory reserve requirements
[C] acts as the lender of last resort
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
As a banker of banks, RBI enables smooth and swift clearing and settlements of inter-bank transactions. It also provides efficient means of funds transfer for all banks. It enables banks to maintain their accounts with RBI for statutory reserve requirements and maintenance of transaction balances. The RBI acts as lender of last resort.
15. What do we call the process of paying off an existing loan and establishing a new loan?
[A] Amortization
[B] Reconveyance
[C] Refinancing
[D] Servicing
Show Answer
Correct Answer: C [Refinancing]
Notes:
The process of paying off an existing loan and establishing a new loan. Refinancing is the replacement of an existing debt obligation with another debt obligation under different terms.
16. When was the SARFAESI Act enacted?
[A] 2004
[B] 2006
[C] 1999
[D] 2002
Show Answer
Correct Answer: D [2002]
Notes:
The Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (or the SARFAESI Act) allows the banks and other financial institution to auction residential or commercial properties(of Defaulter) to recover loans.
17. What does UPI stand for?
[A] Union Public Interface
[B] Unified Payment India
[C] Unified Payment Interface
[D] United Payment India
Show Answer
Correct Answer: C [Unified Payment Interface]
Notes:
Unified Payments Interface (UPI) is an instant real-time payment system developed by National Payments Corporation of India facilitating inter- bank transactions.
18. Which of the following methods can be used to send money over UPI?
[A] Mobile number
[B] VPA
[C] Bank Account Number
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
Money can be sent or requested over UPI by following methods: Virtual Payment Address (VPA) or UPI ID, Mobile number, Account number & IFSC, Aadhaar, QR code.
19. What is the full form of NRE account?
[A] National Rural External account
[B] National Resident External account
[C] Non Resident External account
[D] None of the above
Show Answer
Correct Answer: C [Non Resident External account]
Notes:
The NRE account can be credited with remittances from abroad, transfers from existing NRE/ FCNR accounts or by deposit of foreign exchange.
20. MSME is defined under which act?
[A] MSMED Act, 2006
[B] MSME Act, 2001
[C] MSMED Act, 1999
[D] MSME Act, 2004
Show Answer
Correct Answer: A [MSMED Act, 2006]
Notes:
The Micro Small & Medium Enterprises (MSMEs) are defined in India under the MSMED Act 2006 on the basis of capital investment made in plant and machinery, excluding investments in land and building.
