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.
1. The SARFAESI Act was enacted in which year?
[A] 2000
[B] 2001
[C] 2002
[D] 2003
Show Answer
Correct Answer: C [2002]
Notes:
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act was enacted in 2002. The Act enables banks and financial institutions to auction properties to recover loans. SARFAESI Act applies to secured loans and is not applicable to unsecured loans. It does not cover agricultural land. The Act was notified on 17 December 2002 by the Government of India.
2. Which authority regulates chit funds in India?
[A] SEBI
[B] RBI
[C] State governments
[D] Central government
Show Answer
Correct Answer: C [State governments]
Notes:
The Chit Funds Act, 1982 is a central law governing chit funds in India. Regulation, registration, and licensing are administered by the state governments. Each state appoints a Registrar of Chits to oversee chit fund activities. Central government sets the legislative framework, but daily regulation and enforcement are delegated to the respective states as per the Act.
3. Direct Benefit Transfer or DBT beneficiaries can withdraw money through which of the following servies?
[A] Micro-ATMs
[B] Aadhar Enabled Payment System
[C] BHIM Aadhar Pay
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
DBT beneficiaries can withdraw their money through the micro-ATMs, AePS and BHIM Aadhaar Pay. Customer who want to receive entitled benefits or subsidies of welfare schemes funded from the Consolidated Fund of India in their account directly, can avail it via Aadhaar-based authentication using e-KYC .
4. Which of the following are among the Credit Bureaus present in India?
[A] Equifax
[B] CRIF Highmark
[C] Credit Information Bureau India Limited
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
At Present, there are four credit bureaus in India-
(a) Credit Information Bureau (India) Limited (CIBIL)
(b) Equifax
(c) Experian
(d) CRIF Highmark
All these bureaus provide credit scores and allied reports and services. The bureaus are regulated by the RBI under the Credit Information Companies Regulation Act 2005.
5. What is the full form of FEMA?
[A] Foreign Exchange Management Act
[B] Foreign Exchange Management Agency
[C] Foreign Emergency Managing agent
[D] Foreign Exchange Management Agency
Show Answer
Correct Answer: A [Foreign Exchange Management Act]
Notes:
FEMA stands for The Foreign Exchange Management Act, 1999. It is an Act of the Parliament of India to consolidate and change the law relating to foreign exchange. Its objective is to facilitate external trade and payments.
6. Where does the headquarters of CRISIL situated?
[A] Mumbai
[B] Delhi
[C] Haryana
[D] Kolkata
Show Answer
Correct Answer: A [Mumbai]
Notes:
CRISIL stands for Credit Rating Information Services of India Ltd. It is headquartered in Mumbai and is a subsidiary of Standard and Poor’s.
7. What does the Credit Rating Agency IND-RA stand for?
[A] India Ratings and Research
[B] India Ratings Agency
[C] India Ratings Association
[D] None of the Above
Show Answer
Correct Answer: A [India Ratings and Research]
Notes:
India Ratings and Research (Ind-Ra) is India’s most respected credit rating agency and is headquartered in Mumbai. Ind-Ra has seven branch offices located in Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata and Pune. Ind-Ra is a 100% owned subsidiary of the Fitch Group.
8. Which of the following is the largest Credit Rating Agency in India?
[A] CRISIL
[B] ICRA
[C] CARE
[D] SMERA
Show Answer
Correct Answer: A [CRISIL]
Notes:
Indian credit rating industry mainly comprises of CRISIL, ICRA, CARE, ONICRA, FITCH & SMERA. CRISIL is the largest credit rating agency in India, with a market share of greater than 60%.
9. Which score is considered as the maximum credit score in India?
[A] 345
[B] 750
[C] 900
[D] 700
Show Answer
Correct Answer: C [900]
Notes:
The credit score ranges from 300 to 900. The closer you are to 900, the more confidence the credit institution will have in your ability to repay the loan and hence, the better the chances of your application getting approved. Anything above 750 is considered a good credit score.
10. Venture capital was originated in which of the following countries?
[A] India
[B] Britain
[C] France
[D] USA
Show Answer
Correct Answer: D [USA]
Notes:
The public successes of the venture capital industry in the 1970s and early 1980s gave rise to a major proliferation of venture capital investment firms. Venture Capital Fund of America, the first private equity firm focused on acquiring secondary market interests started its operation in 1982.
