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.
41. Which of the following is a key risk associated with trading commodity futures?
[A] Liquidity risk
[B] Credit risk
[C] Price volatility risk
[D] Inflation risk
Show Answer
Correct Answer: C [Price volatility risk]
Notes:
Price volatility risk is one of the key risks in commodity futures trading, as commodity prices can be highly volatile due to factors such as supply and demand, weather, and geopolitical events.
42. What is the primary objective of the SEBI (Buyback of Securities) Regulations, 1998?
[A] To enable companies to raise capital
[B] To provide a mechanism for companies to repurchase their own shares
[C] To facilitate mergers
[D] To regulate debt markets
Show Answer
Correct Answer: B [To provide a mechanism for companies to repurchase their own shares]
Notes:
The SEBI (Buyback of Securities) Regulations, 1998 provide a framework for companies to repurchase their shares from the market, often to improve shareholder value or reduce surplus cash.
43. Which of the following entities is responsible for regulating the insurance market in India?
[A] SEBI
[B] Reserve Bank of India (RBI)
[C] Insurance Regulatory and Development Authority of India (IRDAI)
[D] Ministry of Finance
Show Answer
Correct Answer: C [Insurance Regulatory and Development Authority of India (IRDAI)]
Notes:
The IRDAI regulates and oversees the insurance market in India to protect policyholders’ interests and ensure the orderly development of the industry.
44. What is the primary role of an Insurance Ombudsman?
[A] To regulate insurance pricing
[B] To resolve complaints and disputes between policyholders and insurers
[C] To approve new insurance products
[D] To manage insurance repositories
Show Answer
Correct Answer: B [To resolve complaints and disputes between policyholders and insurers]
Notes:
The Insurance Ombudsman is responsible for resolving complaints and disputes between policyholders and insurers in a cost-effective and time-bound manner.
45. Which of the following is a key feature of the Integrated Grievance Management System (IGMS)?
[A] Real-time monitoring of complaints
[B] Centralized database of grievances
[C] Automatic escalation of unresolved complaints to IRDAI
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
The Integrated Grievance Management System (IGMS) offers features like real-time monitoring, a centralized grievance database, and automatic escalation of unresolved complaints to IRDAI.
46. What is “Premium” in an insurance policy?
[A] The amount paid by the insurer to the policyholder
[B] The fee paid by the policyholder to the insurer for coverage
[C] The maturity benefit of a life insurance policy
[D] The sum assured under the policy
Show Answer
Correct Answer: B [The fee paid by the policyholder to the insurer for coverage]
Notes:
Premium is the amount paid periodically by the policyholder to the insurer in exchange for coverage under the policy.
47. Which of the following is the largest and most liquid financial market in the world?
[A] Stock Market
[B] Commodity Market
[C] Forex Market
[D] Bond Market
Show Answer
Correct Answer: C [Forex Market]
Notes:
The Forex Market is the largest and most liquid financial market in the world, with a daily trading volume exceeding $6 trillion.
48. What is the minimum investment required for retail investors in Real Estate Investment Trusts (REITs) in India?
[A] INR 1,000
[B] INR 10,000
[C] INR 50,000
[D] INR 1,00,000
Show Answer
Correct Answer: B [INR 10,000]
Notes:
The minimum investment required for retail investors in Real Estate Investment Trusts (REITs) in India is INR 10,000 as per SEBI regulations.
49. Which regulatory body oversees Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) in India?
[A] Reserve Bank of India (RBI)
[B] Securities and Exchange Board of India (SEBI)
[C] Pension Fund Regulatory and Development Authority (PFRDA)
[D] Insurance Regulatory and Development Authority of India (IRDAI)
Show Answer
Correct Answer: B [Securities and Exchange Board of India (SEBI)]
Notes:
SEBI regulates Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) in India to ensure transparency and investor protection.
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.
