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. Which of these states are not served by RBI as its banker?
[A] Goa
[B] Assam
[C] Sikkim
[D] Arunachal Pradesh
Show Answer
Correct Answer: C [Sikkim]
Notes:
The Reserve Bank acts as banker to all the State Governments in India (including Union Territory of Puducherry), except Sikkim. For Sikkim, it has limited agreement for management of its public debt.
12. What is the duration for which RBI makes the WMA to the state governments?
[A] 30 days
[B] 60 days
[C] 90 days
[D] 180 days
Show Answer
Correct Answer: C [90 days]
Notes:
RBI makes WMA to the state governments for a period of 90 Days. The interest rate on WMA is at or around bank rate and overdrawing if any carries 2% higher interest.
13. What is the minimum limit of CRR that can be set by the RBI?
[A] No Limit
[B] 12%
[C] 15%
[D] 20%
Show Answer
Correct Answer: A [No Limit]
Notes:
The Reserve Bank of India (RBI) Act implicitly prescribed the CRR originally at a minimum of 3 per cent of any bank’s net demand and time liabilities. That restriction was removed by an amendment in 2006.
14. When was the RBI Act amended to establish the Monetary Policy Committee?
[A] 2014
[B] 2015
[C] 2016
[D] 2017
Show Answer
Correct Answer: C [2016]
Notes:
In 2016, the Government of India amended the RBI Act to establish the Monetary Policy Committee (MPC) to set. This limited the role of the RBI in setting interest rates.
15. Where is the current account of all other banks are maintained?
[A] Finance Ministry
[B] RBI
[C] State Bank of India
[D] World Bank
Show Answer
Correct Answer: B [RBI]
Notes:
Reserve Bank maintains current account of all other banks and provides them facility to maintain cash reserves and also to carry out inter-bank transactions.
16. Which of these facilities is given by RBI to the banks for inter-bank transactions?
[A] RTGS
[B] SWIFT
[C] M-PESA
[D] All of the above
Show Answer
Correct Answer: A [RTGS]
Notes:
RBI provides the Real Time Gross Settlement System (RTGS) facility to the banks for inter-bank fund transfers. It is applicable only for money transfer within the country.
17. What is the primary aim of enacting the SARFAESI Act?
[A] Recovering Loans
[B] Increasing Deposits
[C] Transparent appointment of Directors
[D] Reducing Corruptions and Scams
Show Answer
Correct Answer: A [Recovering Loans]
Notes:
The SARFAESI Act allowed the creation of asset reconstruction companies (ARC) and allowed banks to sell their non-performing assets to ARCs.
18. When was UPI service launched?
[A] 2016
[B] 2017
[C] 2018
[D] 2019
Show Answer
Correct Answer: A [2016]
Notes:
UPI was introduced on 11th April 2016. The interface was created by NPIC and is regulated by the Reserve Bank of India.
19. What is the frequency of publishing of the report on management od FOREX Exchange Reserves (FER) by RBI?
[A] Monthly
[B] Quarterly
[C] Annually
[D] Half year
Show Answer
Correct Answer: D [Half year]
Notes:
The Reserve Bank of India (RBI) publishes the report on Management of Foreign Exchange Reserves (FER) on a quarterly basis. This report provides insights into the country’s foreign exchange reserves, which are crucial for maintaining economic stability and managing currency fluctuations. The RBI’s transparency in reporting helps in assessing the health of the economy and investor confidence.
20. How much foreign exchange can be brought in while visiting India?
[A] Without any limit
[B] 10 crore
[C] 25 lac
[D] 5 crore
Show Answer
Correct Answer: A [Without any limit]
Notes:
You can bring into India foreign exchange without any limit. If, however, the value of foreign currency in cash exceeds US$ 5,000 and/or the cash plus TCs exceed US$ 10,000 it should be declared to the customs authorities at the airport in the currency declaration form (CDF), on arrival in India.
