Banking & General Financial Awareness
Banking & General Financial Awareness Multiple Choice Questions (MCQs) and Answers with explanation for All Banking Exams of 2020-2021 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.
1. Who was the first Indian Governor of Reserve Bank of India?
[A] Sir C D Deshmukh
[B] Sir Benegal Rama Rau
[C] K G Ambegaonkar
[D] H V R Iengar
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Correct Answer: A [ Sir C D Deshmukh ]
Notes:
Chintaman Dwarkanath Deshmukh, a member of the Indian Civil Service, was the first Indian Governor of the Bank. His association with the Bank commenced in 1939, when he was appointed Government’s liaison officer. He later served as Secretary and thereafter in 1941 as Deputy Governor of the Bank. On the demise of James Taylor, he took over stewardship of the Bank and was appointed Governor in August, 1943.
2. RBI did not issue any currency notes during work period of which RBI Governor?
[A] Sir C D Deshmukh
[B] Sir Benegal Rama Rau
[C] K G Ambegaonkar
[D] H V R Iengar
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Correct Answer: C [ K G Ambegaonkar ]
Notes:
K G Ambegaonkar was governor of RBI from 14-01-1957 to 28-02-1957. He was appointed as interim governor till H V R Iengar could take over. He did not sign any bank notes.
3. Which of the following are among the direct methods of exchange control in India?
[A] Intervention
[B] Exchange Restrictions
[C] Exchange Clearing Agreements
[D] All of the above
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Correct Answer: D [All of the above]
Notes:
The direct methods of exchange control are adopted by the central bank with the object of restricting the use and the quantity of foreign exchange. These include intervention, exchange restriction, exchange clearing agreements and payments agreements.
4. What is the full form of ELSS?
[A] Equity Linked Saving Scheme
[B] Equity Linking Saving System
[C] Equitable Linked Saving System
[D] None of the above
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Correct Answer: A [Equity Linked Saving Scheme]
Notes:
An Equity Linked Savings Scheme (ELSS) is an open-ended Equity Mutual Fund that help to save tax. It also gives an opportunity to grow money. It qualifies for tax exemptions under section 80C of the Indian Income Tax Act.
5. What is an amortization schedule?
[A] It is a table that gives details of the periodic principal and interest payments on a loan and the
[B] It is convenient for borrowers who are in the beginning of their careers.
[C] It is the schedule at which commercial banks charge their customers who are most creditworthy.
[D] All of the Above
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Correct Answer: A [It is a table that gives details of the periodic principal and interest payments on a loan and the]
Notes:
Amortization schedule is a table that gives details of the periodic principal and interest payments on a loan and the amount outstanding at any point of time. It also shows the gradual decrease of the loan balance until it reaches zero.
6. Which of the following is the first stock exchange in Asia?
[A] Amsterdam stock exchange
[B] Tokyo stock exchange
[C] New Delhi stock exchange
[D] Bombay stock exchange
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Correct Answer: D [Bombay stock exchange]
Notes:
The Bombay Stock Exchange is an Indian stock exchange located at Dalal Street, Mumbai. Established in 1875, the BSE is Asia’s first stock exchange. The BSE is the world’s 10th largest stock exchange with an overall market capitalization of more than $2.3 trillion on as of April 2018.
7. Which of these banks was not associated with the State Bank of India in 1959?
[A] State Bank of Hyderabad
[B] State Bank of Indore
[C] State Bank of Mysore
[D] State Bank of Patna
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Correct Answer: D [State Bank of Patna]
Notes:
SBI acquired the control of seven banks via the State Bank of India (Subsidiary Banks) Act, 1959. These seven banks were State Bank of Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Indore (SBN), State Bank of Mysore (SBM), State Bank of Patiala (SBP), State Bank of Saurashtra (SBS) and State Bank of Travancore (SBT).
8. When was HDFC bank established?
[A] 1994
[B] 1991
[C] 1993
[D] 1996
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Correct Answer: A [1994]
Notes:
The HDFC Bank was incorporated in 1994, with its registered office in Mumbai, India. HDFC (Housing Development Finance Corporation) is the largest private sector bank of India.
9. Where was Citi Bank India first established its office in 1902?
[A] Calcutta
[B] Bombay
[C] Madras
[D] Dhaka
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Correct Answer: A [Calcutta]
Notes:
Citi Bank India was established in 1902 in Calcutta (Kolkata). Citi Bank India has its headquarters located in Mumbai and is the second largest foreign bank of India.
10. Which is correct about PSL targets for Foreign banks in India?
[A] It is not applicable on foreign banks
[B] It is applicable on foreign banks having 50 or more branches
[C] It is applicable on foreign banks having 20 or more branches
[D] It is applicable on all foreign banks
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Correct Answer: C [It is applicable on foreign banks having 20 or more branches]
Notes:
The targets under Priority sector Lending are applicable to all the Domestic scheduled commercial banks (excluding Regional Rural Banks and Small Finance Banks) and Foreign banks with 20 branches and above.
