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. Mutual Funds are regulated in India by which among the following?
[A] RBI
[B] SBI
[C] SEBI
[D] RBI & SBI
Show Answer
Correct Answer: C [SEBI]
Notes:
A mutual fund is a fund that is created when a large number of investors put in their money, and is managed by professionally qualified persons with experience in investing in different asset classes-shares, bonds, money market instruments like call money, and other assets like gold and property.
Mutual funds are compulsorily registered with the Securities and Exchange Board of India (Sebi), which also acts as the first wall of defence for all investors in these funds
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. In which year, Nationalization of Reserve Bank of India was done?
[A] 1947
[B] 1948
[C] 1949
[D] 1950
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Correct Answer: C [ 1949 ]
Notes:
In 1949, the Government of India nationalized the Reserve Bank under the Reserve Bank (Transfer of Public Ownership) Act, 1948. From January 1, 1949, RBI started working as a government owned bank.
4. 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 .
5. Which of the following countries has the largest Mutual Fund market in the World?
[A] USA
[B] Japan
[C] China
[D] Brazil
Show Answer
Correct Answer: A [USA]
Notes:
The country with the largest mutual fund industry is United States. It has an amount of $18.9 trillion. Mutual fund assets worldwide is approximately $40.4 trillion.
6. Which of the following are the chacteristics of a Mortgage Loan?
[A] It is secured against, immovable or fixed property.
[B] It is a long-term loan in nature.
[C] It is repaid in small monthly installments along with interest
[D] All of the Above
Show Answer
Correct Answer: D [All of the Above]
Notes:
A loan, secured by real property such as a building or land is called a mortgage loan. Housing finance also is provided in the same manner as mortgage lending. A housing loan has all the characteristics of a mortgage loan.
7. Which of the following is the largest Housing Finance Company in India?
[A] SBI
[B] HDFC
[C] HUDCO
[D] IHFL
Show Answer
Correct Answer: B [HDFC]
Notes:
Housing Development Finance Corporation Limited is an Indian financial conglomerate based in Mumbai, India. It is a major provider of finance for housing in India.
8. When was the Factoring Regulation Act passed in India?
[A] 2011
[B] 2000
[C] 1991
[D] 2001
Show Answer
Correct Answer: A [2011]
Notes:
The parliament of India has passed the Factoring Regulation Bill in 2011.Any company can commence Factoring by obtaining registration from the RBI as a non-banking finance company. Such registration shall be governed by the existing law applicable to NBFCs as well as the new Factoring Regulation Act, 2011.
9. 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
10. Which nationalised bank sponsored the Prathama Bank?
[A] Syndicate bank
[B] Punjab National Bank
[C] State Bank of India
[D] Allahabad Bank
Show Answer
Correct Answer: A [Syndicate bank]
Notes:
Syndicate Bank sponsored Prathama Bank, the first regional rural bank in India by name, in Moradabad district, Uttar Pradesh in 1975.
