Banking & Financial Awareness MCQ Set-8

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

Q.1 In which of the following year, Deposit Insurance Corporation (DIC) and Credit Guarantee Corporation of India Ltd (CGCI) was merged?

A. 1971

B. 1978

C. 1989

D. 1992

Answer: B. 1978

Note: The Deposit Insurance Act, 1961 came into force on January 1, 1962 and the Deposit Insurance Corporation (DCI) was established. Further, RBI promoted a public sector company “Credit Guarantee Corporation of India Ltd (CGCI) in 1971. Later, the two organizations (DIC & CGCI) were merged and the present Deposit Insurance and Credit Guarantee Corporation (DICGC) came into existence on July 15, 1978. Consequently, the title of Deposit Insurance Act, 1961 was changed to ‘The Deposit Insurance and Credit Guarantee Corporation Act, 1961 ‘.

Q.2 Mutual Funds are required to be registered with?

A. RBI

B. IRDAI

C. SEBI

D. IBA

Answer: C. SEBI

Q.3 In case of a draft issued by a bank is lost by the customer and the customer sends letter to the bank to stop payment; which of the following would be done by the bank?

A. Stop payment

B. Note caution and will advice payee to contact the purchaser of the draft.

C. Intimate all the branches for the report

D. Do nothing

Answer: B. B. Note caution and will advice payee to contact the purchaser of the draft.

Q.4 Which among the following is CORRECT about Yield Curve Risk?

A. The Yield Curve Risk plot gives an idea of future interest rate changes and economic activity

B. When yields changes, this will impact the price of fixed-income instrument

C. RBI can intervene to twist the Yield Curve in desired direction

D. All of the above

Answer: D. All of the above

Note: The yield curve risk is the risk of experiencing an adverse shift in market interest rates associated with investing in a fixed income instrument.

Q.5 As per the Global Financial Centre Index as on March, 2021, which of the world’s no one financial center is located in:

A. London

B. Shanghai

C. New York City

D. Hong Kong

Answer: C. New York City

Note: The Global Financial Centres Index (GFCI) is a ranking of the competitiveness of financial centres based on over 29,000 financial centres assessments from an online questionnaire together with over 100 indices from organizations such as the World Bank, the Organization for Economic Co-operation and Development (OECD), and the Economist Intelligence Unit. The first index was published in March 2007. It has been jointly published twice per year by Z/Yen Group in London and the China Development Institute in Shenzhen since 2015.

Q.6 The BIFR for the purpose of sick companies’ remedy stands for:

A. Board for Industrial and Financial Reconstruction

B. Bureau for Industrial and Financial Reconstruction

C. Board for Institutional and Financial Reform

D. None of these

Answer: A. Board for Industrial and Financial Reconstruction

Note: The Board for Industrial and Financial Reconstruction (BIFR) was an agency of the Government of India, part of the Department of Financial Services of the Ministry of Finance. It was founded in 1987 and dissolved on 30th November, 2016.

Q.7 Which of the following depreciation method is applied if depreciation is same for every year?

A. Diminishing  Balance Method

B. Written Down Value Method

C. Straight-Line Method

D. None of these

Answer: C. Straight-Line Method

Q.8 The first bank in India to launch interactive banking service through Dish TV is:

A. ICICI

B. HDFC

C. SBI

D. Axis Bank

Answer: B. HDFC

Q.9 The term ALM in banking/financial sector stands for:

A. Asset Liability Management

B. Asset Liability Maturity

C. Asset Liability Mismatch

D. None of these

Answer: A. Asset Liability Management

Q.10 Loan of very small amount given to the low income group is called as:

A. Small Credit

B. Micro Credit

C. Simple Overdraft

D. Cash Credit

Answer: Micro Credit

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

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