Banking & Financial Awareness MCQ Set-13

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

Q.1 Which of the following are credit bureau in India?

I. TransUnion Credit Information Bureau India Ltd (CBIL)

II. Equifax

III. CRIF High Mark & Experian

A. Only I

B. Only III

C. Both I & III

D. I, II and III

Answer: D. I, II & III

Note: In India, there are four credit bureau present and these are CBIL, Equifax, CRIF High Mark and Experian.

Q.2 How many deputy Governor are present in RBI?

A. 2

B. 3

C. 4

D. 5

Answer: C. 4

Note: The general superintendence and direction of the RBI is entrusted with the 21-member Central Board of Directors. They are the Governor, 4 Deputy Governors, 2 Finance Ministry representatives, 10 government-nominated directors, and 4 directors to represent local boards headquartered at Mumbai. Kolkata, Chennai and New Delhi.

Q.3 Which of the following agency of the Government of India is responsible for regulate and authorize credit rating agency in India?

A. RBI

B. SEBI

C. Enforcement Directorate

D. None of these

Answer: B. SEBI

Note: As per SEBI Regulations, 1999 or the SEBI Act, 1992; the Securities and Exchange Board of India (SEBI) reserves the right to authorize and regulate credit rating agencies in India.

Q.4 Which one of the following belongs to Bank Capitalization?

A. Basel II norms

B. Basel III norms

C. Basel I norms

D. Solvency II norms

Answer: B. Basel III norms

Note: Basel III or the Third Basel Accord is a global, voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity risk.

Q.5 The Basel Committee on Banking Supervision (BCBS) headquarter is located in which country?

A. Switzerland

B. United Kingdom

C. Germany

D. Japan

Answer: A. Switzerland

Note: The Basel Committee on Banking Supervision (BCBS) is a committee of banking supervisory authorities that was established by the central bank governors of the Group of Ten countries in 1974.

Q.6 Which among the following is CORRECT about the Basel IV Standards

A. Basel IV standards are changes to credit rating norms

B. Basel IV standards are changes to global bank capital requirements

C. Basel IV standards are changes to capital adequacy for for registering as a bank

D. None of these

Answer: B. Basel IV standards are changes to global bank capital requirements

Note: The Basel IV standards are changes to global bank capital requirements that were agreed in 2017 and are due for implementation in January 2023.

Q.7 What is the full form of CDS?

A. Credit Debit System

B. Credit Default Swap

C. Corporate Debit System

D. None of these

Answer: B. Credit Default Swap

Note: A credit default swap (CDS) is a financial derivative or contract that allows an investor to “swap” or offset his or her credit risk with that of another investor.

Q.8 Which among the following are included in the Forex of India?

A. Foreign Currency Assets

B. Special Drawing Right at IMF

C. Reserve Position in the IMF

D. All of the above

Answer: D. All of the above

Q.9 What type of fund is required to be listed in the Stock Exchange?

A. Liquid Fund

B. Debit Fund

C. Closed-end Fund

D. Sector Fund

Answer: C. Closed-end Fund

Note: A closed-end fund or closed-ended fund is a collective investment model based on issuing a fixed number of shares which are not redeemable from the fund.

Q.10 What is the full form of NIM?

A. Net Interest Measurement

B. Net Interest Margin

C. Net Interest Management

D. Net Interest Manipulation

Answer: B. Net Interest Margin

Note: Net interest margin (NIM) is a measurement comparing the net interest income a financial firm generates from credit products like loans and mortgages, with the outgoing interest it pays holders of savings accounts and certificates of deposit.

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

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