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. Which of the following is also known as Prepaid Debit cards?
[A] Loadable Debit Cards
[B] Reloadable Debit Cards
[C] Relational Debit Cards
[D] None of The Above
Show Answer
Correct Answer: B [Reloadable Debit Cards]
Notes:
Reloadable prepaid cards work like traditional debit cards. Customers can load funds and use to shop, transfer money, pay bills, withdraw cash from an ATM and receive direct deposits of payroll and government benefits.
22. Which of the following committee s recommended the setting up of ATM?
[A] Rangarajan committee
[B] Shere committee
[C] Saraf committee
[D] Narasimhan committee
Show Answer
Correct Answer: A [Rangarajan committee]
Notes:
Automated Teller Machine (ATM) is an electronic machine operated by a customer himself to deposit or withdraws cash. In India, Dr. C Rangarajan Committee was recommended the establishment of ATMs.
23. The Banking Ombudsman Scheme was introduced under which of the following acts?
[A] Banking Regulation Act, 1935
[B] Banking Regulation Act , 1949
[C] Banking Regulation Act, 1985
[D] None of The Above
Show Answer
Correct Answer: B [Banking Regulation Act , 1949]
Notes:
The Banking Ombudsman Scheme was introduced under the Banking Regulation Act, 1949. This act provides the framework for the regulation of banks in India and was amended to include the Banking Ombudsman Scheme in 2006, aimed at addressing customer complaints and grievances against banks. The scheme enhances consumer protection in the banking sector.
24. How much money can Residents of India tremit upto?
[A] 3,50,000
[B] 4,00,000
[C] 2,00,000
[D] 2,50,000
Show Answer
Correct Answer: D [$2,50,000]
Notes:
Liberalised Remittance Scheme is applicable to all residents including the minors. If a minor has to apply for this scheme, Form A2 has to be filled and duly signed by the minor’s guardian. Under the Liberalised Remittance Scheme, residents of India are permitted to remit up to USD 250,000 for one financial year which is from April – March.
25. Which among the following is/are correct regarding Call Money?
[A] No Collateral is required in Call Money transaction
[B] It is the money lent/borrowed for maximum period of 30 days
[C] It is the money lent/borrowed for maximum period of 45 days
[D] Banks borrow primarily from customers
Show Answer
Correct Answer: A [ No Collateral is required in Call Money transaction ]
Notes:
Call money is the money lent/borrowed for maximum period of 14 days. No Collateral is required in Call Money transaction. Banks borrow primarily from the inter-bank (call money) market.
26. What is the maximum maturity period for holding commercial paper?
[A] 170 days
[B] 270 days
[C] 120 days
[D] 5 days
Show Answer
Correct Answer: B [270 days]
Notes:
In the global financial market, commercial paper is an unsecured short-term debt instrument, often issued by corporations. The maximum maturity period for holding it is not more than 270 days. Commercial paper is usually sold at a discount from face value and carries lower interest rates than bonds, due to its shorter maturity period. It’s a critical source of funds for many corporations, as it helps meet short-term obligations.
27. Which of the following cannot be called as a debt instrument as referred to in financial transactions?
[A] Bonds
[B] Stocks
[C] Commercial papers
[D] Loans
Show Answer
Correct Answer: D [Loans]
Notes:
Bonds, stocks, commercial papers, etc, can be called as a debt instrument as referred to in financial transactions.
28. What is an Indian Depository Receipt (IDR)?
[A] A deposit account with a public sector bank.
[B] A depository account with Indian depositories.
[C] An instrument in the form of a depository receipt.
[D] An instrument in the form of deposit receipt issued by Indian depositories.
Show Answer
Correct Answer: C [An instrument in the form of a depository receipt.]
Notes:
An Indian Depository Receipt (IDR) is a financial instrument denominated in Indian Rupees, issued by a domestic depository against the equity shares of a foreign company. IDRs are listed and traded on Indian stock exchanges. The concept was introduced under Section 605A of the Companies Act, 1956 and regulated by SEBI. The first IDR was issued by Standard Chartered PLC in 2010.
29. Which of the following companies is engaged in the principal business of financing of acquisition or construction of houses?
[A] House loan companies
[B] Housing finance companies
[C] HDFC
[D] None of the above
Show Answer
Correct Answer: B [Housing finance companies]
Notes:
Housing finance companies have mention housing finance as the main clause in its main memorandum of association. NBFC’s have complemented commercials bank in providing mid-term capital loans to individual or firms; their flexibility and less stringent regulation provide them competing for an edge over commercial banks.
30. 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.
