Banking & Financial Awareness MCQ Set-3

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

Q.1 The higher rate of growth of economy certainly reduces:

A. Gender inequalities

B. Poverty

C. Population of the country

D. None of these

Answer: B. Poverty

Q.2 When growth of the GDP of a country slows down suddenly, people started losing jobs and the situation continues for several weeks, what name is given to this state of economy?

A. Inflation

B. Recession

C. Deflation

D. Economic Boom

Answer: B. Recession

Q.3 Which of the following economic concept is frequently referred by Dr. Amartya Sen?

A. Positive Freedom

B. Corporate ethics

C. Welfare economics

D. Capability to function

Answer: C. Welfare economics

Q.4 Mixed-economy means:

A. Co-existence of primary, secondary and tertiary sector

B. Co-existence of public and private sector

C. Co-existence of poor and rich class

D. None of these

Answer: B. Co-existence of public and private sector

Q.5 Which of the following measures economic growth of a country?

A. Volume of Foreign Direct Investment

B. Gross Domestic Product

C. Number of companies listed in the stock exchange of the country

D. All of the above

Answer: B. Gross Domestic Product

Q.6 Consider the following statements

I. GDP is a better measure of national income than the GNP

II. GNP is always higher than the GDP

Which among the following is CORRECT based on the above statements?

A. Only I

B. Only II

C. Both I & II

D. Neither I nor II

Answer: D. Neither I nor II

Note: GDP contains the income generated by foreigners living in a country, however it GNP doesn’t. Hence state I is false. GNP= GDP – Depreciation. Hence GDP is always higher than GNP. Hence statement II is false.

Q.7 Which among the following is CORRECT about the Real National Income Growth?

A. National Income adjusted for inflation

B. National Income adjusted for population growth

C. National Income adjusted for depreciation

D. None of these

Answer: A. National Income adjusted for inflation

Note: Real national income is nominal or money national income (output) adjusted for inflation. It is also national income at ‘at constant prices.

Q.8 NABARD can give refinance assistance to which of the following types of banks?

A. Regional Rural Banks

B. Scheduled Commercial Banks

C. Co-operative banks

D. All of the above

Answer: D. All of the above

Note: NABARD can give refinance assistance to Scheduled Commercial Banks, Regional Rural Banks, State Cooperative Banks, State Cooperative Agriculture and Rural Development Banks, District Central Cooperative Banks, Primary Urban Cooperative Banks, Small Finance Banks NBFCs/NBFC-MFIs etc. or any other financial institutions.

Q.9 Which of the following is the correct sequence of contribution to GDP of India by various sectors of economy in the last 10 years?

A. Service- Agriculture- Industry

B. Agriculture- Service- Industry

C. Service- Industry- Agriculture

D. Industry- Service- Agriculture

Answer: C. Service- Industry- Agriculture

Note: Service sector is the highest contributing sector of Indian economy followed by industry and agriculture.

Q.10 The term “Gross National Happiness” was coined by:

A. Amartya Sen

B. Jigme Singye Wangchuck

C. Maqbool Haq

D. UNDP

Answer: B. Jigme Singye Wangchuck

Note: Jigme Singye Wangchuck, the fourth king of Bhutan coined the term “Gross National Happiness” in the 1970s.

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