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 component of capital market?
[A] Equity market
[B] Debt market
[C] Derivative market
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
There are three component of capital market are:- EQUITY MARKET, DEBT MARKET and DERIVATIVE MARKET.
22. 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.
23. For what kind of transactions, are demat accounts necessary ?
[A] For trading in shares of companies
[B] For having mobile banking facilities
[C] For taking retail loans from banks
[D] For non resident account
Show Answer
Correct Answer: A [For trading in shares of companies]
Notes:
Demat account number is quoted for all transactions to enable electronic settlements of trades to take place. Every shareholder will have a Dematerialized account for the purpose of transacting.
24. 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.
25. Which among the following NBFC are not excluded from the Ombudsman scheme for NBFC?
[A] Deposit accepting NBFCs
[B] NBFC-IFC
[C] Core Investment Company
[D] IDF-NBFC
Show Answer
Correct Answer: A [Deposit accepting NBFCs]
Notes:
The following NBFCs are excluded from the ambit of the Scheme: Non-banking Financial Company – Infrastructure Finance Company (NBFC-IFC), Core Investment Company (CIC), Infrastructure Debt Fund – Non-banking Financial Company (IDF-NBFC) and NBFC under liquidation
26. Loan disbursed by an NBFC-MFI to a borrower with urban and semi-urban household income should not exceed how much amount?
[A] Rs.1,00,000
[B] Rs. 1,60,000
[C] Rs. 2,60,000
[D] Rs.1,50,000
Show Answer
Correct Answer: B [Rs. 1,60,000]
Notes:
Loan disbursed by an NBFC-MFI to a borrower with urban and semi-urban household income should not exceed ₹ 1,60,000
27. Core investment company is a type of which of the following?
[A] IT company
[B] Insurance company
[C] Bank
[D] NBFC
Show Answer
Correct Answer: D [NBFC]
Notes:
Core Investment Company (CIC) is a non-banking financial company carrying on the business of acquisition of shares and securities.
28. Which of the following type of CICs are exempted from the requirement of registration with RBI?
[A] CICs with assets above Rs. 10 crore
[B] CICs with assets above Rs. 100 crore
[C] CICs with assets above Rs. 200 crore
[D] None of the above
Show Answer
Correct Answer: B [CICs with assets above Rs. 100 crore]
Notes:
CICs with asset size above Rs. 100 crore but not accessing public funds are also exempted from the requirement of registration with RBI.
29. Who among the following initiated Capital Market Line?
[A] William Sharpe
[B] Markowitz
[C] Linter
[D] Mohsin
Show Answer
Correct Answer: A [William Sharpe]
Notes:
Sharpe is well known for developing the capital asset pricing model (CAPM) in the 1960s. The CAPM describes the relationship between systematic risk and expected returns, and states that taking on more risk is necessary to earn a higher return.
30. Who heads the RBI committee on urban cooperative banks’ consolidation?
[A] Michael D Patra
[B] N S Vishvanathan
[C] B P Kanungo
[D] Usha Thorat
Show Answer
Correct Answer: B [N S Vishvanathan]
Notes:
N S Vishvanathan, former RBI Deputy Governor, chairs the expert committee to chart regulatory measures and study consolidation among urban cooperative banks. The 8-member panel was formed by RBI in 2021 and mandated to report within three months on stability and sector road map.
