Banking & Financial Awareness MCQ Set-16

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

Q.1 Which of the following is CORRECT about Islamic Banking?

A. It is a banking system for the Muslim population

B. It is a banking system in Islamic countries

C. It is a banking system based on the principles of Sharia

D. None of these

Answer: C. It is a banking system based on the principles of Sharia

Q.2 Which of the following is the first cooperative bank in India?

A. Anyonya Co-operative Bank

B. Abhyudaya Cooperative Bank Ltd

C. Bharat Cooperative Bank

D. Janata Cooperative Bank

Answer: A. Anyonya Co-operative Bank

Note: Anyonya Co-operative Bank Limited (ACBL) located in the city of Vadodara in Gujarat, is the first co-operative bank in India. ACBL was established in 1889 under the name Anyonya Sahayakari Mandali Co-operative Bank Limited.

Q.3 NABARD was set up in which of the following year?

A. 1982

B. 1981

C. 1985

D. 1991

Answer: A. 1982

Note: NABARD was set up in 1982 under the NABARD Act, 1981.

Q.4 Which bank is a specialized financial institution for financing, facilitating and promoting foreign trade of India?

A. HDFC Bank

B. ICICI Bank

C. Exim Bank

D. SBI

Answer: C. Exim Bank

Note: Exim Bank (India), a finance institution in India, established in 1982 under Export-Import Bank of India Act 1981.

Q.5 Which of the following is NOT a para banking activity?

A. Cash withdrawal

B. Merchant banking

C. Mutual funds business

D. None of these

Answer: A. Cash withdrawal

Note: Para banking activities are the activities that are done by a Bank apart from its normal day-to-day activities. The para banking activities are asset management, mutual funds business, insurance business, merchant banking activities, factoring services etc.

Q.6 Under which of the following act, RBI oversees government securities and their management?

A. RBI Act, 1934

B. Banking Regulation Act, 1949

C. Government Securities Act, 2006

D. None of these

Answer: C. Government Securities Act, 2006

Note: The Government Securities Act, 2006 enacted on 30th August 2006 is a legislation of the Parliament of India, which aims to introduce various improvements in the government securities market and the management of government securities by the Reserve Bank of India.

Q.7 Which among the following is CORRECT about the Ways and Means Advance (WMA) Scheme?

I. WMA has two types; normal and special.

II. After the a has exhausted the limit of Special Drawing Facility, it gets normal WMA.

III. A Special WMA or Special Drawing Facility is provided against the collateral of the government securities held by the state.

A. Only I

B. Only II

C. Only III

D. I, II & III

Answer: D. I, II and III

Q.8 In which of the following form the banks are required to maintain deposits with RBI under Cash Reserve Ratio?

A. Cash

B. Gold

C. Securities

D. All of the above

Answer: A. Cash

Note: Cash Reserve Ratio (CRR) 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 in the form of liquid cash.

Q.9 RuPay debit card is managed by which of the following organization?

A. RBI

B. SBI

C. NPCI

D. SEBI

Answer: C. NPCI

Note: NPCI stands for National Payment Corporation of India.

Q.10 Which of the following organization has developed India’s  National Unified USSD Platform (NUUP)?

A. NPCI

B. NIC

C. RBI

D. SBI

Answer: NPCI

Note: The National Unified USSD Platform (NUUP), also known as the *99# service, is a platform that provides access to the Unified Payment Interface (UPI) service over the USSD protocol. Initiated by the Government of India and developed by the National Payments Corporation of India (NPCI), it facilitates access to banking services from mobile phones.

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

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