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.
11. In which year, Export-Import Bank of India Act was passed to establish EXIM Bank?
[A] 1980
[B] 1981
[C] 1982
[D] 1983
Show Answer
Correct Answer: B [1981]
Notes:
The Export-Import Bank of India Act was passed in September 1981 and the EXIM Bank commenced its operations in March 1982. EXIM Bank was set up for financing, facilitating and promoting foreign trade of India.
12. Where is the headquarter of Bharatiya Reserve Bank Note Mudran Private Limited located?
[A] Chennai
[B] New Delhi
[C] Hyderabad
[D] Bangalore
Show Answer
Correct Answer: D [Bangalore]
Notes:
The headquarter of Bharatiya Reserve Bank Note Mudran Private Limited is at Bangalore, Karnataka. It was established on 3rd February 1995. It designs, print and supply banknotes for the Reserve Bank of India(RBI).
13. What is the function of Board for Financial Supervision (BFS)?
[A] supervision of the financial sector
[B] supervision of all types of payment and settlement systems
[C] appointing the directors of scheduled banks
[D] All of the above
Show Answer
Correct Answer: A [supervision of the financial sector]
Notes:
The main function of BFS is to undertake consolidated supervision of the financial sector comprising commercial banks, Non-Banking Finance Companies (NBFCs), development finance institutions, urban co-operative banks and primary dealers.
14. Which of the following counts under SLR?
[A] Cash in Hand
[B] Gold owned by the bank
[C] Balance with RBI
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
To comply with the SLR, the banks can keep any of the following: Cash in hand, Gold owned by the bank, Balance with RBI, Net balance in current account.
15. Which of the following comes under Statutory Pre-emotions?
[A] Cash Reserve Ratio
[B] Statutory Liquidity Ratio
[C] Both a and b
[D] None
Show Answer
Correct Answer: C [Both a and b]
Notes:
Both Cash Reserve Ratio and Statutory Liquidity Ratio norms comes under Statutory Pre-emotions and is an important tool for bank regulation.
16. Where is the SARFAESI Act not applicable?
[A] On unsecured loans
[B] Loans below 100000
[C] where remaining debt is below 20% of the original principal
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
The SARFAESI Act does not apply to unsecured loans, loans below ₹100,000 or where remaining debt is below 20% of the original principal.
17. Which of the following is not acceptable as address proof for opening a bank account by an individual?
[A] Letter from any recognized public authority
[B] Domicile certificate
[C] A rent agreement indicating the address of the customer duly registered with State Govt.
[D] Other than those gives as options
Show Answer
Correct Answer: C [A rent agreement indicating the address of the customer duly registered with State Govt.]
Notes:
Bank accounts such as savings account are opened on the basis of KYC. The list of documents required to open a savings account are: Identity Proof – Passport/Aadhaar Card/Voter ID/Driving License/PAN Card and Recent Passport Size Photographs.
18. When did the Lead Bank Scheme reduce the developmental gap between different regions of the country launched in India?
[A] Towards the end of First Five Year Plan
[B] Towards the close of the Second Five Year Plan
[C] Towards the close of the Plan Holiday in Indian Economy
[D] Towards the end of the Eight Five Year Plan
Show Answer
Correct Answer: C [Towards the close of the Plan Holiday in Indian Economy ]
Notes:
Lead Bank Scheme reduce the developmental gap between different regions of the country launched in India towards the close of the Plan Holiday in Indian Economy.
19. Self Help groups is related to which of the following models?
[A] Banking Model
[B] Indian Microfinance Model
[C] Financial Inclusion model
[D] VK Mehta Model
Show Answer
Correct Answer: B [Indian Microfinance Model]
Notes:
Status of Microfinance in India report has been prepared based on a unique home grown microfinance model titled Self Help Group.
20. Which of the following is another name for Self help groups?
[A] mutual aid
[B] support groups
[C] groups of people
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
Self-help groups—also called mutual help or mutual aid groups—are composed of peers who share a similar mental, emotional, or physical problem, or who are interested in a focal issue, such as education or parenting.
