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.
21. Which of the following is an account maintained in foreign currency with an Authorised Dealer Bank?
[A] Exchange Earners’ Foreign Currency Account
[B] Exchange Eligible Foreign Currency Account
[C] Earners’ Eligible Foreign Currency Account
[D] Earners’ Exchange Foreign Currency Account
Show Answer
Correct Answer: A [Exchange Earners’ Foreign Currency Account]
Notes:
Exchange Earners’ Foreign Currency Account (EEFC) is an account maintained in foreign currency with an Authorised Dealer Bank (Category – I Bank) in foreign exchange.
22. What is call money?
[A] It is an overnight loan in the money market
[B] It is loan of above 1 day to 14 days in the money market
[C] It is loan of above 14 day to 364 days in the money market
[D] None of the above
Show Answer
Correct Answer: A [It is an overnight loan in the money market]
Notes:
Call money is minimum 5% short-term finance repayable on demand, with a maturity period of one to fourteen days or overnight to fortnight. It is used for inter-bank transactions.
23. SIMEX share price index relates to the stock exchange of which of the following ?
[A] London
[B] Tokyo
[C] Mumbai
[D] Singapore
Show Answer
Correct Answer: D [Singapore]
Notes:
The Singapore International Monetary Exchange was a futures exchange in Singapore.
24. Which of the following financial activities is carried by CIC?
[A] granting of loans to group companies
[B] investment in bank deposits
[C] issuing guarantees on behalf of group companies
[D] all of the above
Show Answer
Correct Answer: D [all of the above]
Notes:
CIC does not carry on any other financial activity referred to in Section 45I© and 45I (f) of the Reserve Bank of India Act, 1934 except investment in bank deposits, money market instruments, including money market mutual funds and liquid mutual funds, government securities, and bonds or debentures issued by group companies, granting of loans to group companies and issuing guarantees on behalf of group companies.
25. What should be the equity participation by the NBFC of the IDF?
[A] 50-60%
[B] 10-20%
[C] 25-35%
[D] 30-49%
Show Answer
Correct Answer: D [30-49%]
Notes:
IDF-NBFCs can be sponsored by banks and Infrastructure Finance companies. ‘Sponsorship’ means an equity participation by the NBFC between 30 to 49% of the IDF.
26. Which of the following acts as an intermediary to link up the sources of ideas and the sources of fund?
[A] Merchant banking
[B] Venture capital
[C] Leasing
[D] None of these
Show Answer
Correct Answer: B [Venture capital]
Notes:
Venture capitalact as an intermediary to link up the sources of ideas and the sources of fund.
27. State Bank of India started merchant banking in which of the following years?
[A] 1974
[B] 1978
[C] 1973
[D] 1980
Show Answer
Correct Answer: C [1973]
Notes:
State Bank of India started merchant banking in 1973. SBI, the largest Bank of the country, provides Merchant Acquiring Services through its large branch network of more than 15000 branches. Its Merchant Acquiring Services enable merchant to accept all Visa/ MasterCard/RuPay cards for payment.
28. Which of the following problems is needed to be resolved under issue management?
[A] Problems with staff
[B] Technical failures
[C] Material shortages
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
Issue management is the process of identifying and resolving issues. Problems with staff or suppliers, technical failures, material shortages – these might all have a negative impact on your project
29. Which of the following is the correct sequence to track an issue? 1. Document the process by which the issue was resolved. 2. Document an issue including any pertinent details such as the date and who reported it. 3. Track the status of the resolution. 4. Determine a priority for the issue and Assign the issue to a project team member.
[A] 2,4,3,1
[B] 4,3,2,1
[C] 1,2,3,4
[D] 2,1,3,4
Show Answer
Correct Answer: A [2,4,3,1]
Notes:
To track an issue, you just need to follow these steps- Document an issue, including any pertinent details such as the date and who reported it. Determine a priority for the issue. Assign the issue to a project team member. Track the status of the resolution. Document the process by which the issue was resolved.
30. The net wealth of the aggregate economy is equal to the sum of which of the following?
[A] All real assets
[B] All financial assets
[C] All physical assets
[D] All real and financial assets
Show Answer
Correct Answer: A [All real assets]
Notes:
The net wealth of the aggregate economy is equal to the sum of all real assets. Financial assets do not directly contribute the productive capacity of the economy.
