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.
21. How many members are there in one Self Help Group?
[A] 1-5
[B] 10-25
[C] 20-25
[D] 5-10
Show Answer
Correct Answer: B [10-25]
Notes:
A self-help group is a financial intermediary committee usually composed of 10 to 25 local women between the ages of 18 and 50. Most self-help groups are in India, though they can be found in other countries, especially in South Asia and Southeast Asia.
22. In which of the following bills, the payment is to be made immediately by means of Bill of Exchange?
[A] Term Bill
[B] Faster Bill
[C] Sight Bill
[D] Ready Bill
Show Answer
Correct Answer: C [Sight Bill]
Notes:
When the payment is to be made immediately by means of Bill of Exchange, such bill is called as Sight Bill.
23. Which of the following relates to the notice of protest under section 102 of the Negotiable Instruments Act, 1881?
[A] may be given by the notary public who makes the protest
[B] must always be given by the notary public who makes the protest
[C] must be given by the holder
[D] none of the above
Show Answer
Correct Answer: A [may be given by the notary public who makes the protest]
Notes:
When a promissory note or bill of exchange is required by law to be protested, notice of such protest must be given instead of notice of dishonour, in the same manner and subject to the same conditions; but the notice may be given by the notary public who makes the protest.
24. Which of the following is not true about Unified Payments Interface (UPI)?
[A] UPI is an instant payment system developed by the National Payments Corporation of India (NPCI).
[B] Through UPI, all payments are instant and takes place in banking hours.
[C] Under UPI person will have a single identity and password for using multiple bank accounts.
[D] UPI is based on the Immediate Payment Services (IMPS) infrastructure.
Show Answer
Correct Answer: B [ Through UPI, all payments are instant and takes place in banking hours. ]
Notes:
UPI is an indigenously developed platform by National Payments Corporation of India (NPCI) and set up with the support of the Reserve Bank and Indian Banks Association (IBA). Through UPI, all payments are instant but it provides 24/7 service, irrespective of banking hours.
25. Commercial paper issued with low interest rate thus commercial paper are categorized as
[A] payables rating
[B] commercial rating
[C] poor credit rating
[D] better credit rating
Show Answer
Correct Answer: D [ better credit rating ]
Notes:
Commercial paper is usually sold at a discount from face value and generally carries lower interest repayment rates than bonds due to the shorter maturities of commercial paper.
26. Which of the following units guarantees that all buying and selling will be made by traders?
[A] clearing house
[B] trading house
[C] guarantee house
[D] professional house
Show Answer
Correct Answer: A [clearing house]
Notes:
A clearing house is a financial institution formed to facilitate the exchange of payments, securities, or derivatives transactions. The clearing house stands between two clearing firms.
27. Which of the following portals has been launched by SEBI to enable investors to post their complains and for its follow up?
[A] SCORES
[B] Happy Times
[C] MORE
[D] Aadhar
Show Answer
Correct Answer: A [SCORES]
Notes:
SCORES enables investors to lodge and follow up their complaints and track the status of redressal of such complaints online from the above website from anywhere.
28. Which of the following acts defines ‘Factoring Business’?
[A] Factoring Act, 2011
[B] Factoring Act, 2012
[C] Factoring Act, 2010
[D] Factoring Act, 2005
Show Answer
Correct Answer: A [Factoring Act, 2011]
Notes:
The Factoring Act, 2011 defines the ‘Factoring Business’ as “the business of acquisition of receivables of assignor by accepting assignment of such receivables or financing, whether by way of making loans or advances or in any other manner against the security interest over any receivables”.
29. Issue management is an important function of which of the following?
[A] Public banker
[B] Lead banker
[C] Merchant banker
[D] Private banker
Show Answer
Correct Answer: C [Merchant banker]
Notes:
Issue management is the process of identifying and resolving issues. Problems with staff or suppliers, technical failures, material shortages – these might all have a negative impact on your project.
30. Who is the head of RBI’s committee to evaluate the role of asset reconstruction companies (ARCs) in stressed debt resolution?
[A] Sudarshan Sen
[B] Kasturi Rangan
[C] K Sivan
[D] Michael Pathra
Show Answer
Correct Answer: A [Sudarshan Sen]
Notes:
The Reserve Bank of India (RBI) has constituted a 6-member committee for evaluating the role of asset reconstruction companies (ARCs) in debt resolution and reviewing their business model.
The committee is headed by RBI executive director Sudarshan Sen and comprises eminent economists and industry experts. The committee will review the legal and regulatory framework of ARCs and recommend measures to improve their efficacy.
