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.
41. Which regulatory body is responsible for the Investor Protection and Education Fund (IPEF)?
[A] SEBI
[B] IRDAI
[C] RBI
[D] PFRDA
Show Answer
Correct Answer: A [SEBI]
Notes:
SEBI manages the Investor Protection and Education Fund (IPEF) to promote investor awareness and protect the interests of investors in the securities market.
42. Corporate bonds are issued by:
[A] Central banks
[B] Corporations to raise long-term capital
[C] The government for short-term financing
[D] Mutual funds
Show Answer
Correct Answer: B [Corporations to raise long-term capital]
Notes:
Corporate bonds are issued by corporations to raise long-term capital for various purposes, such as expansion or new projects.
43. What is the purpose of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011?
[A] To regulate mergers and acquisitions
[B] To ensure transparency during the acquisition of substantial shares of a company
[C] To manage public debt
[D] To regulate currency trading
Show Answer
Correct Answer: B [To ensure transparency during the acquisition of substantial shares of a company]
Notes:
The SEBI Takeover Regulations, 2011 ensure transparency and fairness during the acquisition of substantial shares or voting rights in a listed company.
44. In India, a health insurance policy with maternity benefits typically has:
[A] No waiting period
[B] A waiting period of 2-4 years
[C] A waiting period of 6 months
[D] Immediate coverage upon purchase
Show Answer
Correct Answer: B [A waiting period of 2-4 years]
Notes:
Health insurance policies with maternity benefits often have a waiting period of 2-4 years before claims can be made.
45. Which financial instrument is commonly used for short-term financing in international trade?
[A] Promissory Note
[B] Bank Guarantee
[C] Trade Credit
[D] Commercial Paper
Show Answer
Correct Answer: C [Trade Credit]
Notes:
Trade Credit is a common short-term financing method where the supplier extends credit to the importer for a specific period.
46. Which of the following instruments helps protect an exporter from foreign exchange rate fluctuations?
[A] Currency Option
[B] Mutual Fund
[C] Exchange-Traded Fund
[D] Government Bond
Show Answer
Correct Answer: A [Currency Option]
Notes:
A currency option gives the exporter the right, but not the obligation, to exchange currency at a predetermined rate, thus protecting against adverse movements in exchange rates.
47. What is the main purpose of a currency swap in forex markets?
[A] To speculate on currency price movements
[B] To hedge against exchange rate fluctuations
[C] To increase trading profits
[D] To avoid transaction costs
Show Answer
Correct Answer: B [To hedge against exchange rate fluctuations]
Notes:
A currency swap is used primarily for hedging against exchange rate fluctuations by exchanging principal and interest payments in different currencies.
48. Which type of fund primarily invests in infrastructure projects and is considered an alternative investment in India?
[A] Equity Fund
[B] Infrastructure Investment Trust (InvIT)
[C] Debt Fund
[D] Balanced Fund
Show Answer
Correct Answer: B [Infrastructure Investment Trust (InvIT)]
Notes:
Infrastructure Investment Trusts (InvITs) are considered alternative investments and primarily invest in infrastructure projects such as roads, power plants, and telecom towers.
49. Which of the following best describes “working capital management”?
[A] Managing long-term fixed assets
[B] Managing short-term assets and liabilities
[C] Investing in real estate
[D] Issuing equity shares
Show Answer
Correct Answer: B [Managing short-term assets and liabilities]
Notes:
Working capital management involves managing a company’s short-term assets and liabilities to ensure adequate liquidity for operations.
50. Which of the following countries is piloting the E-Yuan as a digital version of its currency?
[A] Japan
[B] South Korea
[C] China
[D] Russia
Show Answer
Correct Answer: C [China]
Notes:
China is piloting the E-Yuan, also known as the Digital Yuan, as a digital version of its national currency.
