Banking & Financial Awareness MCQ Set-6

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

Q.1 The minting of rupee coin is government by which of the following act?

A. The Indian Coinage Act, 1906

B. Reserve Bank of India Act, 1934

C. Currency Act, 1902

D. None of these

Answer: A. The Indian Coinage Act, 1906

Q.2 Which among the following fall under the qualitative methods of credit control adopted by RBI?

A. Selective Credit Control

B. Credit Authorization Scheme

C. Moral Suasion

D. All of the above

Answer: D. All of the above

Q.3 The term “Moral Suasion” refers to:

A. The moral duty of banks to follow the order of RBI

B. The banker’s duty of secrecy and privacy related to customers information

C. The advice given by RBI to banks and financial institutions in the matter of their lending land/other operations with the objective that they might implement or follow it

D. None of these

Answer: C

Q.4 The amount commercial banks are required to maintain in form of cash, gold or government securities before providing credit to its customer is called as:

A. CRR

B. SLR

C. MSF

D. RRR

Answer: B. SLR

Note: SLR refers to Statutory Liquidity Ratio

Q.5 The ratio of Cash reserve the banks are required to keep with RBI is referred as:

A. CRR

B. SLR

C. RRR

D. MSF

Answer: A.CRR

Note: CRR refers to Cash Reserve Ratio.

Q.6 The note-issuing system of India is based upon?

A. Minimum Reserve System

B. Gold Deposit System

C. The Maximum Limit System

D. Simple Deposit System

Answer: A. Minimum Reserve System

Q.7 Which of the following is NOT an autonomous institute run by the RBI?

A. NIBM

B. IGIDR

C. IDRBT

D. College of Agricultural Banking, Pune

Answer: D. College of Agricultural Banking, Pune

Note: RBI has two training colleges for its officers, viz. Reserve Bank Staff College, Chennai and College of Agricultural Banking, Pune. There are three autonomous institutions run by RBI namely National Institute of Bank Management (NIBM), Indira Gandhi Institute of Development Research (IGIDR) and Institute for Development and Research in Banking Technology (IDRBT).

Q.8 In the period of depression, when RBI desires to encourage the baking system to create more credit:

A. Reduces the bank rate

B. Increases the cash reserve ratio

C. Raises the bank rate

D. None of these

Answer: A. Reduces the bank rate

Q.9 When RBI desires to restrict expansion of credit, which of the following would be done?

A. Raise the bank rate

B. Reduce the bank rate

C. Freeze the bank note

D. None of these

Answer: A. Raise the bank rate

Q.10 Who among the following is the final authority for design, form and choosing the material of currency notes?

A. Central Government

B. RBI

C. Indian Bank Association

D. None of these

Answer: A. Central Government

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