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. In which year did RBI assume currency issuing powers from Controller of Currency?
[A] 1928
[B] 1935
[C] 1947
[D] 1950
Show Answer
Correct Answer: B [1935]
Notes:
On 1st April 1935, RBI took over the currency function from Controller of Currency as per Section 22 of RBI Act, 1934, giving RBI sole authority to issue banknotes in India.
12. 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.
13. 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.
14. Which of the following about money supply measures adopted in 1998 is wrong?
[A] M1= currency with public +demand deposits with banking system + other deposits with RBI
[B] M2= M1 + savings deposits of post office savings bank
[C] M3= M1+ time deposits with banking system
[D] None of the above
Show Answer
Correct Answer: D [None of the above]
Notes:
Money supply is defined as the total quantity of money circulating in the economy at a particular time. There are three measures of money supply M1, M2, and M3.
15. Which of the following is known as broad money?
[A] M3
[B] M1
[C] M2
[D] M4
Show Answer
Correct Answer: A [M3]
Notes:
M3 is known as broad money as more items are included in this measure when compared to M1 which is known as narrow money.
16. The tenure of the loan issued by NBFC-MFI to the borrower should not be less than 24 months for loan amount in excess of how much amount?
[A] Rs. 30,000
[B] Rs. 20,000
[C] Rs. 15,000
[D] Rs. 25,000
Show Answer
Correct Answer: C [Rs. 15,000]
Notes:
The tenure of the loan issued by NBFC-MFI to the borrower should not be less than 24 months for loan amount in excess of Rs. 15,000.
17. Core Investment Company holds not less than how much percent of its net assests in the form of investment?
[A] 50%
[B] 70%
[C] 90%
[D] 80%
Show Answer
Correct Answer: C [90%]
Notes:
Core Investment Company (CIC) is a non-banking financial company carrying on the business of acquisition of shares and securities and which (a) holds not less than 90 per cent of its net assets in the form of investment.
18. IDF provides funds to which of the following sectors?
[A] Infrastructure sector
[B] Health sector
[C] Insurance sector
[D] None of the above
Show Answer
Correct Answer: A [Infrastructure sector]
Notes:
IDFs are investment vehicles for channelizing investment into the infrastructure sector.
19. Which of the following is true regarding NBFC?
[A] NBFC provides banking services to people without holding bank license
[B] NBFC can accept demand deposits
[C] NBFC is a part of payment and settlement
[D] NBFC can issue checks drawn on itself
Show Answer
Correct Answer: A [NBFC provides banking services to people without holding bank license]
Notes:
NBFC provides banking services to people without holding bank license. NBFC cannot accept demand deposits. NBFC is not a part of payment and settlement. NBFC can not issue checks drawn on itself.
20. Formal merchant banking activity in India was originated in which of the following years?
[A] 1978
[B] 1969
[C] 1769
[D] 1987
Show Answer
Correct Answer: B [1969]
Notes:
Formal merchant banking activity in India was originated in 1969.
