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.
11. Which of the following is not among the All India Financial Institutions (AIFI)?
[A] NABARD
[B] SIDBI
[C] Exim Bank
[D] RBI
Show Answer
Correct Answer: D [RBI ]
Notes:
There are four All India Financial Institutions (AIFI) in India viz. Export – Import Bank of India (Exim Bank), National Bank for Agriculture and Rural Development (NABARD), Small Industries Development Bank of India (SIDBI) and National Housing Bank (NHB). These four institutions play key role in Indian financial markets.
12. Which of the following Development Financial Institution in India is a Non-Banking Finance Company?
[A] NABARD
[B] SIDBI
[C] Industrial Finance Corporation of India
[D] Exim Bank
Show Answer
Correct Answer: C [Industrial Finance Corporation of India]
Notes:
Industrial Finance Corporation of India was set up on July 1, 1948 in New Delhi to provide medium and long-term financial assistance to the manufacturing, services and infrastructure sectors. IFCI is a Non-Banking Finance Company in the public sector. Established in 1948 as a statutory corporation, IFCI is currently a company listed on BSE and NSE. IFCI manages Six number of subsidiaries and one associate under its fold.
13. Until when did the Reserve Bank of India function as the central bank for Pakistan?
[A] August 1947
[B] January 1950
[C] June 1948
[D] November 1949
Show Answer
Correct Answer: C [June 1948]
Notes:
Post-independence in 1947, India’s central bank, the Reserve Bank of India, also served as Pakistan’s central bank. The RBI continued to serve as the Central Bank for Pakistan till June 1948. After that, Pakistan started its own currency regulation through the State Bank of Pakistan, established in July 1948.
14. Who was the chairman of the Committee on Medium-term Path on Financial Inclusion?
[A] Chandan Sinha
[B] Deepak Mohanty
[C] Sushil Chandra
[D] Nachiket Mor
Show Answer
Correct Answer: B [Deepak Mohanty]
Notes:
Deepak Mohanty was the chairman of the Committee on Medium-term Path on Financial Inclusion. It was formed in 2015.
15. What is the maximum amount for which a note can be printed by the RBI?
[A] 2000
[B] 5000
[C] 10000
[D] 50000
Show Answer
Correct Answer: C [10000]
Notes:
As per RBI act, RBI can issue any note of any denomination but NOT exceeding Rs. 10,000. The notes denomination is notified by Government and RBI acts accordingly.
16. How much money is the Central Government required to maintain as minimum cash balance with RBI on a daily basis?
[A] Rs 50 crore
[B] Rs 10 crore
[C] Rs 1 crore
[D] Rs 1000 crore
Show Answer
Correct Answer: B [Rs 10 crore]
Notes:
Central Government is required to maintain a minimum cash balance with the Reserve Bank. Currently, this amount is Rs.10 crore on a daily basis and Rs.100 crore on Fridays, as also at the end of March and July.
17. After how many crop seasons, an unpaid short duration Farm loan will be termed as NPA?
[A] 1 crop season
[B] 2 crops seasons
[C] 2 years
[D] 4 crop seasons
Show Answer
Correct Answer: B [2 crops seasons]
Notes:
For short duration crop agriculture loans such as paddy, Jowar, Bajra etc. if the loan (installment / interest) is not paid for 2 crop seasons , it would be classified as NPA.
18. Which of the following is the feature of the commercial paper?
[A] It is an additional instrument to the investing community.
[B] It is an unsecured instrument issued in the form of promissory note.
[C] The highly rated corporate borrowers can raise short term funds through this instrument.
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
It is a short-term money market tool, including a promissory note and a set maturity. It acts as an evidence certificate of unsecured debt. It is subscribed at a discount rate and can be issued in an interest-bearing application.
19. The Lead Bank Scheme was finalised to adopt a which of the following for intensive development?
[A] Town
[B] District
[C] State
[D] Village
Show Answer
Correct Answer: D [Village ]
Notes:
Lead Bank Scheme was finalised to adopt preparedness at village level, of an objective to help the farming community.
20. ATMs cards are issued to a person who maintains which of the following accounts with the bank ?
[A] saving bank accounts
[B] Current accounts
[C] term deposits
[D] either 1 or 2
Show Answer
Correct Answer: D [either 1 or 2]
Notes:
There are two kinds of accounts. At an ATM, we are always faced with the option of choosing between a Savings Account or a Current Account.
