Banking & Financial Awareness MCQ Set-10

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

Q.1 Which among the following is CORRECT about subprime lending?

I. The rate of interest in subprime lending is higher

II. It is given to borrower not having good credit history

III. It is given to borrower who wish to take top up loan against securities 

A. Only I

B. Only II

C. Both I & II

D. Both I & III

Answer: C. Both I & II

Note: A subprime loan is a type of loan offered at a rate above prime  rate to an individuals who does not qualify for prime-rate loans. This is applied to the customer having  low credit ratings or other factors that suggest they have a reasonable chance of defaulting on the debt repayment.

Q.2 The commercial banking system in India comprise of:

A. Scheduled and Non-Scheduled Banks

B. Nationalized & Private Banks

C. Land Development Banks

D. None of these

Answer: A. Scheduled and Non-Scheduled Banks

Q.3 Which among the following is CORRECT about SWIFT?

I. SWIFT stands for Society for Worldwide Interbank Financial Telecommunication 

II. It is headquartered in La Hulpe, Belgium

III. It was founded in 1973

A. Only I

B. Only II

C. Only III

D. I, II and III

Answer: D. I, II and III

Q.4 Swift is a:

A. Private Limited Company

B. Bank owned non-profit Cooperative Society

C. Public Limited Company

D. None of these

Answer: B. Bank owned non-profit Cooperative Society

Q.5 Insurance Regulatory and Development Authority of India (IRDAI) is a:

A. Non-Profit company

B. Public Sector Company of Government of India

C. Was constituted by the act of Parliament IDRA Act, 1999

D. is an NGO

Answer: C. Was constituted by the act of Parliament IDRA Act, 1999

Q.6 Which of the following bill is not purchased/discounted by banks?

A. Accommodation Bills

B. Documentary Bills

C. Clean Bills

D. Usance Bills

Answer: A. Accommodation Bills

Q.7 In India, which among the following are part of Legal Tender Money?

A. Coins and Currency Notes

B. Coins, Currency Notes and Bank Drafts

C. Currency Notes and SDRs.

D. Only Currency Notes issued by RBI

Answer: A. Coins and Currency Notes

Q.8 Any note, which is wholly or partially, obliterated, shrunk, washed, altered or indecipherable is a/an:

A. Mutilated note

B. Imperfect note

C. Mismatched note

D. Solid note

Answer: B. Imperfect note

Q.9 Indian one Rupee note bears signature of which among the following?

A. Finance Secretary

B. Governor of RBI

C. Finance Minister of India

D. Deputy Governor of RBI

Answer: A. Finance Secretary

Q.10 A cheque is considered as stale when if has been in circulation for:

A. More than 1 month

B. More than 3 months

C. More than 6 months

D. More than 1 year

Answer: B. More than 3 months

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

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