Banking & Financial Awareness MCQ Set-5

Find out the most important Banking Awareness GK MCQ for IBPS PO, SBI PO, IBPS RRB, Insurance examinations and various other competitive examinations of BFSI sector in India.

Q.1 In which of the following amendment of the Indian Companies Act, introduced that the company which uses the term “Bank, Banker or Banking” would be deemed as banking company?

A. Indian Companies Act, 1913

B. Indian Companies Act (Amendment), 1936

C. Indian Companies Act (Second Amendment), 1942

D. None of these

Answer: C. Indian Companies Act (Second Amendment), 1942

Q.2 Banking Regulation Act of Indian came into force in which of the following year?

A. 1947

B. 1948

C. 1949

D. 1950

Answer: C. 1949

Note: The Banking Regulation Act, 1949 is a legislation in India that regulates all banking firms in India. The act was enacted on 10th March, 1949 and it came into force from 16 March 1949.

Q.3 The Banking Regulation (Amendment) Bill, 2020 got the assent of the President of India on which of the following date?

A. 29th September, 2020

B. 15th August, 2020

C. 22 October, 2020

D. None of these

Answer: A. 29th September, 2020

Q.4 Which among the following is/are major highlight of the Banking Regulation (Amendment) Act, 2020?

I. RBI can initiate a scheme for reconstruction or amalgamation of stressed lender without imposing moratorium.

II. Brought co-operative banks under direct supervision of RBI.

III. As per the bill, Banking regulation shall not apply to the co-operative societies or credit societies providing long term loan for agricultural development.

A. Only I

B. Only II

C. Only III

D. I, II and III

Answer: D. I, II and III

Q.5 Reserve Bank of India was Nationalized on which of the following date?

A. 1st January, 1949

B. 15th August, 1948

C. 1st April, 1949

D. 1st April, 1950

Answer: A. 1st January, 1949

Q.6 Which among the following is NOT a fully owned subsidiaries of RBI?

A. National Housing Bank

B. Deposit Insurance and Credit Guarantee Corporation of India

C. Reserve Bank Information Technology Private Ltd

D. National Bank for Agriculture and Rural Development

Answer: D. National Bank for Agriculture and Rural Development

Q.7 Which among the following is CORRECT about the local boards of RBI?

I. RBI has four local boards

II. The members of local boards of RBI are appointed by the Central Government for a period of 4 years.

III. The headquarter of the local boards of RBI are located in New Delhi, Mumbai, Chennai and Kolkata

A. Only I

B. Only II

C. Only III

D. I, II and III

Answer: D. I, II and III

Q.8 The Indian Rupee symbol “₹” came into force in which of the following year?

A. 1949

B. 1950

C. 2010

D. 2015

Answer: C. 2020

Note: The Indian Rupee sign was adopted by the Government of India on 15th July, 2010. Udaya Kumar Dharmalingam designed the symbol.

Q.9 If Cash Reserve Ratio is increased, which of the following is likely to happen?

A. The available amount of commercial bank will come down

B. The available amount of commercial bank will go up

C. The available government treasury will go up

D. None of these

Answer: A. The available amount of commercial bank will come down

Note: Cash Reserve ratio is the share of a bank’s total deposit that is mandated by the Reserve Bank of India (RBI) to be maintained with the latter as reserves in the form of liquid cash.

Q.10 Which of the following is/are a part of Liquidity Adjustment Facility(LAF) of RBI?

A. Repo rate and reserve repo rate

B. Credit Authorization Scheme

C. Statutory Liquidity Ratio

D. None of these

Answer: A. Repo rate and reserve repo rate

Note: A liquidity adjustment facility (LAF) is a tool used in monetary policy, primarily by the Reserve Bank of India (RBI) that allows banks to borrow money through repurchase agreements (repos) or to make loans to the RBI through reverse repo agreements.

List of Banking & Financial Awareness MCQ sets from GKLead.com

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