Banking & Financial Awareness MCQ Set-7

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

Q.1 Which among the following is not a function of General Insurance?

A. Fire Insurance

B. Cattle Insurance

C. Medical Insurance

D. Crop Insurance

Answer: C. Medical Insurance

Q.2 Minimum cash reserves fixed by the regulator constitute:

A. A percentage of aggregate deposits of the bank

B.

D. A percentage of gold reserve of the bank

Answer: A. A percentage of aggregate deposits of the bank

Q.3 Which of the following type of account is known as “Demat Account”?

A. Online banking account

B. Account in which shares of various companies are traded in electronic form

C. Zero Balance Account

D. None of these

Answer: B. Account in which shares of various companies are traded in electronic form

Q.4 Which among the following is the correct definition of “Mortgage”?

A. Amount to provide as security for getting a loan

B. Security on immovable property for a loan

C. Security on the movable property for a loan

D. None of these

Answer: B. Security on immovable property for a loan

Q.5 The currencies deposited in a currency chest is the property of which of the following?

A. Government of India

B. RBI

C. Respective bank

D. None of these

Answer: B. RBI

Note: A currency chest is a place where the Reserve Bank of India (RBI) stocks the money meant for banks and ATMs. These chests are usually situated on the premises of different banks but administrated by the RBI.

Q.6 Which of the following act governs the matter of Public Deposit for a company which is not non-banking financial company?

A. The companies act, 1956

B. RBI Act, 1934

C. Banking regulation act, 1949

D. None of these

Answer: A. The companies act, 1956

Q.7 In India, it is required to get a license from RBI for opening a bank branch, this is a requirement under:

A. Section 22 of the Banking Regulation Act, 1949

B. Section 22 of the RBI Act, 1934

C. Section 22 of the Companies Act, 1956

D. None of these

Answer: A. Section 22 of the Banking Regulation Act, 1949

Q.8 In which of the following year, India became a member of the Financial Action Task Force (FATF)?

A. 1989

B. 2006

C. 2010

D. 2015

Answer: C. 2010

Note: Financial Action Task Force (FATF) is an inter-governmental body, responsible for setting global standards on anti-money laundering (AML) and combating the financing of terrorism (CFT). India became Observer at FATF in the year 2006. FATF Plenary adopted the Mutual Evaluation Report on India on 24th June 2010 and on 25th June 2010 admitted India as 34th Country Member of FATF.

Q.9 Which among the following doesn’t fall under priority sector?

A. Housing loan

B. Renewable energy

C. Life insurance policy

D. Agriculture

Answer: C. Life insurance policy

Note: Priority Sector includes the following categories: Agriculture; Micro, Small and Medium Enterprises; Export Credit; Education; Housing; Social Infrastructure; Renewable Energy and other weaker section.

Q.10 What is the full form of PSLC?

A. Priority Sector Lending Certificate

B. Pending Sanction of Loan Certificate

C. Priority Sector Loan Certificate

D. None of these

Answer: A. Priority Sector Lending Certificate

Note: Priority Sector Lending Certificates (PSLCs) are a mechanism to enable banks to achieve the priority sector lending target and sub-targets by purchase of priority sectors’ instruments in the event of shortfall.

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

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