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.
21. Which of the following is not the Negotiable Instrument?
[A] Currency Note
[B] Promissory Note
[C] Bill of Exchange
[D] Cheques Answer
Show Answer
Correct Answer: A [Currency Note]
Notes:
Currency is a legal tender, guaranteed by the government to transfer value but the Negotiable Instruments have following characteristics. 1- It is written document, signed and stamped by the maker/drawer 2- It has a specific payee to whom the value is transferable 3- Negotiable Instruments requires acceptance and endorsement.
22. Which of the following documents is mandatory for withdrawal/remittance of foreign exchange?
[A] PAN
[B] Aadhar card
[C] Passport
[D] None of the above
Show Answer
Correct Answer: A [PAN]
Notes:
Permanent Account Number (PAN) is mandatory for all transactions under Liberalised Remittance Scheme.
23. Which committee mooted the idea of payments banks?
[A] Bimal Jalan Committee
[B] Nachiket Mor Committee
[C] P J Nayak Committee
[D] YV Reddy Committee
Show Answer
Correct Answer: B [Nachiket Mor Committee]
Notes:
he Nachiket Mor committee mooted the idea of payments banks in 2013.
24. IMPS is functional through which of the following?
[A] ECS
[B] EFS
[C] NFS
[D] RTGS
Show Answer
Correct Answer: C [NFS]
Notes:
National Financial Switch is a network of shared ATMs in India. The National Financial Switch facilitates routing of ATM transactions through inter-connectivity between the Bank’s Switches, thereby enabling the citizens of the country to utilize any ATM of a connected bank. IMPS utilizes this network.
25. Which of the following is not true about National Electronic Funds Transfer (NEFT) system?
[A] There is no limit on transaction through NEFT
[B] NEFT operates in hourly batches.
[C] NEFT is a payment system which facilitates one-to-one funds transfer.
[D] Only bank branches which are NEFT enabled, can be a part of the NEFT funds transfer network.
Show Answer
Correct Answer: B [ NEFT operates in hourly batches. ]
Notes:
RBI announced that additional 11 settlement batches at half- hourly intervals will be introduced from July 10 2017 , beginning from 8.30 am till 6.30 pm. With this, the total number of half hourly settlement batches during the day will increase to 23.
26. Which among the following are known as Narrow Money?
[A] M1 and M2
[B] M2 and M3
[C] M3 and M4
[D] M1 and M2
Show Answer
Correct Answer: A [M1 and M2]
Notes:
M1 and M2 are collectively known as Narrow Money.
27. Money market where debt and stocks are traded and maturity period is more than a year is classified as which of the following?
[A] shorter term markets
[B] capital markets
[C] counter markets
[D] long-term markets
Show Answer
Correct Answer: B [capital markets]
Notes:
Capital markets refer to the places where savings and investments are moved between suppliers of capital and those who are in need of capital.
28. The term ‘Merchant Bank’ is used in whivh of the following countries?
[A] United States of America
[B] United Kingdom
[C] France
[D] India
Show Answer
Correct Answer: B [United Kingdom]
Notes:
The term merchant bank used in the United Kingdom to describe investment banks.
29. Which of the following defines “issue” in Risk and Issue management?
[A] Something that has happened or a current problems
[B] Something that hasn’t happened yet but has some probability of occurring
[C] potential future problems
[D] None of the above
Show Answer
Correct Answer: A [Something that has happened or a current problems]
Notes:
A risk is something that hasn’t happened yet but has some probability of occurring. An issue is essentially a risk that has happened. In other words, risks are potential future problems and issues are current problems.
30. Who is the Chairperson of the Expert Committee on Debt resolution, constituted by the Reserve Bank of India (RBI)?
[A] Usha Thorat
[B] Urjit Patel
[C] K V Kamath
[D] N K Singh
Show Answer
Correct Answer: C [K V Kamath]
Notes:
The Reserve Bank of India has constituted an expert group on Debt resolution under the chairmanship of KV Kamath.
The committee would recommend to the RBI on the financial parameters and their sector-specific benchmark ranges, for deploying in Debt resolution plans. RBI will provide a window under the ‘Prudential Framework on Resolution of Stressed Assets’.
