3653 + Mcqs in General Awareness Page 35 McqOptions

1701.	Exchange Rate of Foreign Currencies V2. RBI has asked banks to make a plan to provide banking services to all villages having a population up to 2000. This directive issued by the RBI will fall in which of the following categories? [Corporation Bank 2011]
A.	Plan for Financial Inclusion
B.	Efforts to meet the targets of Priority Sector Lending
C.	Extension of Relief Packages to the Farmers
D.	Plan for opening more rural branches
E.	None of these
Answer» B. Efforts to meet the targets of Priority Sector Lending

Discussion

1702.	What is the full form of 'ULIP', the term which was in the news recently? [Syndicate 2010]
A.	Universal Life & Investment Plan
B.	Unit Loan & Insurance Plan
C.	Universal Loan & Investment Plan
D.	Uniformly Loaded Investment Plan
E.	Unit Linked Insurance Plan
Answer» F.

Discussion

1703.	Which of the following Rates/Ratio is not covered under the Monetary and Credit policy of the RBI? [Syndicate 2010]
A.	Bank Rate
B.	Repo Rate
C.	Cash Reserve Ratio
D.	Reverse Repo Rate
E.	Exchange Rate of Foreign Currencies
Answer» F.

Discussion

1704.	In the recent times the RBI and the Securities & Exchange Board of India (SEBI) have taken various steps to control the flow of capital in India economy. Which of the following is/are NOT included in this/ these step(s)? [BOM 2008] [a] Guidelines have been issued to restrict unregulated overseas investors through "P-notes". [b] Rs. 60,000 crore out of this fund is being provided to waive the loans on farmers. [c] Borrowers raising external commercial borrowings of over $20 million would have to park the proceeds overseas for use as foreign currency expenditure.
A.	Only [a]
B.	Only [b]
C.	Only [c]
D.	Both [a] & [c]
E.	All [a], [b] & [c]
Answer» C. Only [c]

Discussion

1705.	As we know, the RBI is the apex bank of India. Similarly, the apex Bank of the USA is called.............. [Punjab & Sindh 2010]
A.	Federal Reserve
B.	The Central Bank of USA
C.	Bank of America
D.	Central National Bank of USA
E.	None of these
Answer» B. The Central Bank of USA

Discussion

1706.	The rate on which banks borrow from the RBI is called........... [Punjab & Sindh 2010]
A.	SLR
B.	CRR
C.	Interest Rate
D.	Bank Rate
E.	Repo Rate
Answer» F.

Discussion

1707.	The Reserve Bank of India (RBI) recently announced a hike in some policy rates and also indicated that there may be another change in near future. Which of the following is/are considered a policy rate(s) in the hands of the RBI? [Corporation Bank 2010] (1) Repo Rate (2) SLR (3) Inflation
A.	Only (1)
B.	Only (2)
C.	Only (3)
D.	Only (1) & (2)
E.	All (1), (2) & (3)
Answer» E. All (1), (2) & (3)

Discussion

1708.	Many a time we read in newspapers that some big banks have revised their lending rates to make them dearer or cheaper. Though the decision to raise the lending rates is always in the hands of the banks, normally they announce this decision of theirs [Corporation Bank 2010] [a] immediately after the Union Budget is presented in the Lok Sabha every year. [b] when the RBI makes changes in its policy rates. [c] when the Monetary and Credit Policy of the RBI is reviewed periodically.
A.	Only [a]
B.	Only [b]
C.	Only [c]
D.	Only [b] & [c]
E.	All [a], [b] & [c]
Answer» E. All [a], [b] & [c]

Discussion

1709.	As per the guidelines issued by the RBI, banks are preparing for a service which will allow customers to withdraw upto "1,000 using their debit cards from notified shops/ stores all over the country. All such shops / stores will have 'POS' terminals for the same. What is full form of the 'POS'? [Allahabad Bank 2010]
A.	Payment on Sale
B.	Power of Sale
C.	Point of Sale
D.	Payment Order Service
E.	None of these
Answer» D. Payment Order Service

Discussion

1710.	The Reserve Bank of India has asked all the banks to install "Note Sorting Machines" in the branches. How will this help banks and the general public? [Allahabad Bank 2010] (1) The machines will check for counterfeit notes and drop these from circulation. (2) This will help banks to count the notes quickly and accurately. (3) This will help in sorting out soiled notes so that they are not reissued by the banks.
A.	Only (2)
B.	Only (1)
C.	Only (3)
D.	Only (1) & (2)
E.	None of these
Answer» B. Only (1)

Discussion

1711.	As decided by the Reserve Bank of India, all the villages with a population of 2000 will have access to financial services by the end of [SBI 2010]
A.	2009-10
B.	2010-11
C.	2011-12
D.	2012-13
E.	None of these
Answer» D. 2012-13

Discussion

1712.	As per the news published in various financial newspapers, the RBI is reworking the roadmap on Capital Account Convertibiliy. If this is done, who amongst the following would be able to invest in foreign projects or acquire assets outside India without any restrictions? [SBI 2010] [a] Public Sector Banks [b] Companies which are registered in India [c] Govt. of India [d] Any Individual
A.	Only [a]
B.	Only [b]
C.	Only [c]
D.	All [a], [b], [c] & [d]
E.	None of these
Answer» C. Only [c]

Discussion

1713.	As we all know Securities & Exchange Board of India (SEBI) has taken some corrective steps to restrict functioning of Participatory Notes (P-Notes) in Indian Stock Markets. Why P-Notes are considered dangerous for the financial markets of a country? [OBC 2008] [a] This allows a foreign investor to invest funds without knowing the history/ financial health of a company. If the company fails foreign investors lose their money. Govt of India does not want this as this will bring a bad name to the country. [b] P-Notes allow foreign investors to buy shares of blue chip companies without following Konw Your Customer (KYC) norms. Hence money invested here may not be from a valid and legal source. [c] P-Notes are launched to arrange funds only for social schemes. Due to huge funds available with NRIs for investment they are sending it in bulk. Hence the cost of such investments is very high and it is not commercially viable for banks to accept such investments.
A.	Only [a] is correct
B.	Only [b] is correct
C.	Only [c] is correct
D.	Both [a] and [b] are correct
E.	None of these
Answer» C. Only [c] is correct

Discussion

1714.	As per the news published in major newspapers, the Reserve Bank of India (RBI) raised Statutory Liquidity Ratio (SLR) by 100 basis points to 25%. What was/were the reason(s) owing to which RBI raised the SLR? [Indian Bank 2010] [a] It will help in reducing liquidity in the market. [b] Inflation will come down substantially. [c] It will facilitate companies to launch their IPOs as the financial climate will become conducive for the same.
A.	Only [a]
B.	Only [b]
C.	Only [a] & [b]
D.	Only [b] & [c]
E.	All [a], [b] & [c]
Answer» D. Only [b] & [c]

Discussion

1715.	As per the Reserve Bank of India (RBI), the economic conditions in India are not yet suitable for full convertibility of Rupee. At present Rupee is convertible at which of the following accounts? [Indian Bank 2010] [a] Fully at Capital Account [b] Fully at Current Account [c] Partially at Trade Account
A.	Only [a]
B.	Only [b]
C.	Only [c]
D.	Only [a] & [c]
E.	None of these
Answer» C. Only [c]

Discussion

1716.	As per the reports in various newspapers many private companies are trying to obtain the licences to launch a banking company in India. Which of the following organisations/agencies issue the licence for the same? [Corporation Bank 2009]
A.	Securities & Exchange Board of India (SEBI)
B.	Indian Institute of Banking & Finance (IIBF)
C.	Reserve Bank of India (RBI)
D.	Registrar of Companies
E.	None of these
Answer» D. Registrar of Companies

Discussion

1717.	An agreement, which in fact is a contract, between the RBI and Banks for the sale and repurchase of Govt securities and short-term treasury bills at a future date and for which the RBI indicates "the interest rate", is generally known as [RBI 2009]
A.	Repo Rate
B.	Bank Rate
C.	Reverse Repo Rate
D.	Prime Lending Rate
E.	None of these
Answer» B. Bank Rate

Discussion

1718.	What is the Statutory Liquidity Ratio (SLR) at present? [IOB 2008]
A.	14%
B.	18%
C.	20%
D.	24%
E.	None of these
Answer» E. None of these

Discussion

1719.	A customer wishes to purchase some US dollars in India. He/she should go to [IOB 2008]
A.	Public Debt Division of the RBI only
B.	American Express Bank Only
C.	RBI or any branch of a bank which is authorized for such business
D.	Ministry of Foreign Affairs
E.	None of these
Answer» D. Ministry of Foreign Affairs

Discussion

1720.	Which of the following policies of the financial sectors is basically designed to transfer local financial assets into foreign financial assets freely and at market determined exchange rates? Policy of [IOB 2008]
A.	Capital Account Convertibility
B.	Financial Deficit Management
C.	Minimum Support Price
D.	Restrictive Trade practices
E.	None of these
Answer» B. Financial Deficit Management

Discussion

1721.	Whenever RBI does some Open Market Operation Transactions, actually it wishes to regulate which of the following? [IOB 2008]
A.	Inflation only
B.	Liquidity in economy
C.	Borrowing powers of the banks
D.	Flow of Foreign Direct Investments
E.	None of these
Answer» C. Borrowing powers of the banks

Discussion

1722.	Which of the following organisations / agencies has asked all the banks in India to form customer service panels at branch levels? [OBC 2008]
A.	Indian Banks Association
B.	Reserve Bank of India (RBI)
C.	Supreme Court of India
D.	Securities & Exchange Board of India (SEBI)
E.	None of these
Answer» C. Supreme Court of India

Discussion

1723.	The recent decisions of the RBI to cut Cash Reserve Ratio (CRR) by 150 basis points (October 2008) will be able to infuse how much liquidity into the market? [OBC 2008]
A.	Rs. 10,000 crores
B.	Rs. 30,000 crores
C.	Rs. 40,000 crores
D.	Rs. 50,000 crores
E.	None of these
Answer» D. Rs. 50,000 crores

Discussion

1724.	Capital Market Regulator is [BOB 2008]
A.	RBI
B.	IRDA
C.	NSE
D.	BSE
E.	SEBI
Answer» F.

Discussion

1725.	The stance of RBI monetary policy is [BOB 2008]
A.	inflation control with adequate liquidity for growth
B.	improving credit quality of the Banks
C.	strengthening credit delivery mechanism
D.	supporting investment demand m the economy
E.	Any of the above
Answer» F.

Discussion

1726.	The bank rate means [BOB 2008]
A.	Rate of interest charged by commercial banks from borrowers
B.	Rate of interest at which commercial banks discounted bills of their borrowers
C.	Rate of interest allowed by commercial banks on their deposits
D.	Rate at which RBI purchases or rediscounts bills of exchange of commercial banks
E.	None of these
Answer» E. None of these

Discussion

1727.	Open market operations, one of the measures taken by RBI in order to control credit expansion in the economy, means [BOB 2008]
A.	Sale or purchase of Govt. securities
B.	Issuance of different types of bonds
C.	Auction of gold
D.	To make available direct finance to borrowers
E.	None of these
Answer» B. Issuance of different types of bonds

Discussion

1728.	RBI's open market operation transactions are carried out with a veiw to regulate [BOB 2008]
A.	Liquidity in the economy
B.	Prices of essential commodities
C.	Inflation
D.	Borrowing power of the banks
E.	All the above
Answer» F.

Discussion

1729.	Many times we read a term "Hot Money" in newspapers. What is/are the characteristics of Hot money? [UBOI 2008] [a] The term is used for fresh currency notes issued by the RBI. [b] It is the fund which flows in the market to take advantage of high interest rates. [c] It is the fund which is thrown in the market to create imbalance in the stock markets.
A.	Only [a]
B.	Only [b]
C.	Only [c]
D.	All [a], [b] & [c]
E.	None of these
Answer» C. Only [c]

Discussion

1730.	Very often we read in the newspapers about various measures taken up to control the flow of the capital in the Indian markets. Who amongst the following is/are the regulators who can control the flow of the same in India? [UBOI 2008] [a] Indian Bank's Association [b] RBI [c] SEBI
A.	Only [a]
B.	Only [b]
C.	Only [c]
D.	Both [b] & [c]
E.	Both [a] & [b]
Answer» C. Only [c]

Discussion

1731.	Many a times, we read in newspaper that the RBI has revised certain rates/ratios under LAF. What is full form of LAF? [IBPS PO Main 2015]
A.	Legal Adjustment Facility
B.	Liquidity Adjustment Facility
C.	Long-term Achievement Facility
D.	Legal Adjustment Formality
E.	None of these
Answer» B. Liquidity Adjustment Facility

Discussion

1732.	As reported in various newspapers many banks have revised their interest rates on home loans, car loans and other such loans. Which of the following phenomenon prompted these banks to make such an upward revision in their interest rates? [UBOI 2008][1] RBI has revised the CRR and other such rates upward, which has created a liquidity crunch in the market.[2] Stock markets in the country are showing very high fluctuations as visible through their indexes. As a result banks have lost a huge amount of money in trading. Banks now want .to recover that money by increasing their interest rates.[3] Banks are in need of a huge amount of money, as they have to give revised pay to all its employees.
A.	Only (1)
B.	Only (2)
C.	Only (3)
D.	All (1), (2) & (3)
E.	None of these
Answer» B. Only (2)

Discussion

1733.	As reported in the newspapers, China has asked its banks to put 12.5% money instead of earlier 12% as CRR. This correction in CRR has been made for the seventh time in past one year. Why did China have to take this step again and again and so frequently? [OBC 2008] [a] It will put a curb on lending of money by the banks. [b] It will help Govt of China to tame the rate of inflation. [c] It will help the poor to get easy loans at cheaper rates from the banks as higher CRR brings more money for activities of the social sector.
A.	Only [a] is correct
B.	Only [b] is correct
C.	All [a], [b] and [c] are correct
D.	Only [c] is correct
E.	Both [a] and [b] are correct
Answer» F.

Discussion

1734.	Which of the following is NOT a Government of India undertaking? [Allahabad Bank 2010]
A.	Oil India Ltd.
B.	Sutlej Jal Vidyut Nigam Ltd.
C.	ICICI Bank
D.	National Thermal Power Corporation Ltd.
E.	Rural Electrification Corporation Ltd.
Answer» D. National Thermal Power Corporation Ltd.

Discussion

1735.	One of the major emphasis of Basel II is that banks should have ?. [Allahabad Bank 2010]
A.	adequate Capital Adequacy Ratio
B.	only few branches in urban centres
C.	more and more branches in rural areas
D.	core banking mode of operation
E.	all the above to comply with Basel II norms
Answer» B. only few branches in urban centres

Discussion

1736.	Which of the following is/was NOT included in the agenda set for the Banking Reforms in India? [RBI 2009]
A.	Dismantling of administered interest rates
B.	Measures to strengthen risk management
C.	Promulgation of SARFAESI Act
D.	Promotion of the concept of easy credit to all with a guaranteed subsidy from the Govt
E.	Granting of operational autonomy to public sector banks and allowing them to raise capital from the open market.
Answer» E. Granting of operational autonomy to public sector banks and allowing them to raise capital from the open market.

Discussion

1737.	Very often we see in the advertisements published by Financing Institutes/Agencies stating their products are given high or average Ratings. These Rating Agencies classify bonds/investments into how many categories? [UBI 2009] (1) Low Risk (2) Average Risk (3) High Risk
A.	Only (1)
B.	Only (2)
C.	Only (3)
D.	All (1), (2) & (3)
E.	None of these
Answer» E. None of these

Discussion

1738.	Which bank has tied with New India Assurance to launch health insurance products for women account holders of the bank. (SBI 2014)
A.	State bank of India
B.	ICICI bank
C.	Punjab National Bank
D.	Bhartiya Mahila Bank
E.	None of these
Answer» E. None of these

Discussion

1739.	A/Bank Financial Organisation these days relies heavily on e-commerce for its transaction. As a part of system security, it has introduced the organisation's security awareness manual. This step of the organisation can be classified under which one of the following categories of measures for a business? [IOB 2008]
A.	Preventive
B.	Compliance
C.	Corrective
D.	Detective
E.	None of these
Answer» B. Compliance

Discussion

1740.	Which of the following values is considered by a bank when it gives loan against LIC policy? (SBI 2014)
A.	Face value
B.	Surrender value
C.	Insured value
D.	Both [a] and [b]
E.	All of these
Answer» C. Insured value

Discussion

1741.	Which among the following Companies in India has a tie-up with the Japanese Financial Nomura for insurance market? (IBPS 2013)
A.	ICICI Bank
B.	UCO Bank
C.	Kotak Finance
D.	Life Insurance Corporation of India
E.	None of the above
Answer» E. None of the above

Discussion

1742.	Banks' mandatory lending to farmers for agriculture, micro and small enterprises and other weaker sections where in banks are required to lend up to 40% of the loans is generally described as (IBPS 2013)
A.	Para banking
B.	Sub-prime lending
C.	Retail lending
D.	Non-priority sector lending
E.	Priority sector lending
Answer» F.

Discussion

1743.	Which bank announced that it had entered into agreements with private insurers Cigna TTK and Reliance General Insurance to provide, health and general insurance services to its customers? (IBPS 2016)
A.	Tamil Nadu Merchantile Bank
B.	Bank of Baroda
C.	Maharashtra Bank
D.	Andhra Bank
E.	None of these
Answer» E. None of these

Discussion

1744.	Which insurance company will insure under 'varishtha Pension Bima Yojana'? (IBPS 2014)
A.	United India
B.	LIC
C.	National Insurance
D.	New India Assurance
E.	None of these
Answer» C. National Insurance

Discussion

1745.	The process by which a life insurance policyholder can transfer all rights/ title and interest- under a policy contract to a third person is known as (IBPS PO 2013)
A.	Assignment of the policy
B.	Hypothecation of the policy
C.	Reinvestment of the policy
D.	Negotiation of the policy
E.	Nomination of the policy
Answer» B. Hypothecation of the policy

Discussion

1746.	The arrangement under which banks sell insurance products acting as the agents of the respective companies is called the (IBPS PO 2013)
A.	Insurance joint venture
B.	Bancassurance Model
C.	Hybrid Insurance Model
D.	Insurance Broking
E.	Integrated Model
Answer» C. Hybrid Insurance Model

Discussion

1747.	Which of the following organization is made specifically responsible for empowering Micro, Small and Medium enterprises in India? [SBI Bank 2013]
A.	NABARD
B.	RBI
C.	SIDBI
D.	ECGC
E.	SEBI
Answer» F.

Discussion

1748.	Banks' mandatory lending to farmers for agriculture, micro and small enterprises and other weaker sections -wherein banks are required to lend up to 40% of the loans is generally described as [IBPS 2013]
A.	Para banking
B.	Sub-prime lending
C.	Retail lending
D.	Non-priority sector lending
E.	Priority sector lending
Answer» F.

Discussion

1749.	The actual return of an investor is reduced sometimes as the prices of the commodities go up all of a sudden. In financial sector this type of phenomenon is known as................. [IOB2008]
A.	Probability risk
B.	Market risk
C.	Inflation risk
D.	Credit risk
E.	None of these
Answer» C. Inflation risk

Discussion

1750.	One of the major emphases of Basel II is that banks should have [Allhabad Bank 2010]
A.	adequate Capital Adequacy Ratio
B.	only few branches in urban centres
C.	more and more branches in rural areas
D.	core banking mode of operation
E.	All of the above
Answer» B. only few branches in urban centres

Discussion

Explore topic-wise MCQs in Banking And Financial Awareness.

Exchange Rate of Foreign Currencies V2. RBI has asked banks to make a plan to provide banking services to all villages having a population up to 2000. This directive issued by the RBI will fall in which of the following categories? [Corporation Bank 2011]

What is the full form of 'ULIP', the term which was in the news recently? [Syndicate 2010]

Which of the following Rates/Ratio is not covered under the Monetary and Credit policy of the RBI? [Syndicate 2010]

As we know, the RBI is the apex bank of India. Similarly, the apex Bank of the USA is called.............. [Punjab & Sindh 2010]

The rate on which banks borrow from the RBI is called........... [Punjab & Sindh 2010]

The Reserve Bank of India (RBI) recently announced a hike in some policy rates and also indicated that there may be another change in near future. Which of the following is/are considered a policy rate(s) in the hands of the RBI? [Corporation Bank 2010] (1) Repo Rate (2) SLR (3) Inflation

As decided by the Reserve Bank of India, all the villages with a population of 2000 will have access to financial services by the end of [SBI 2010]

As per the reports in various newspapers many private companies are trying to obtain the licences to launch a banking company in India. Which of the following organisations/agencies issue the licence for the same? [Corporation Bank 2009]

An agreement, which in fact is a contract, between the RBI and Banks for the sale and repurchase of Govt securities and short-term treasury bills at a future date and for which the RBI indicates "the interest rate", is generally known as [RBI 2009]

What is the Statutory Liquidity Ratio (SLR) at present? [IOB 2008]

A customer wishes to purchase some US dollars in India. He/she should go to [IOB 2008]

Which of the following policies of the financial sectors is basically designed to transfer local financial assets into foreign financial assets freely and at market determined exchange rates? Policy of [IOB 2008]

Whenever RBI does some Open Market Operation Transactions, actually it wishes to regulate which of the following? [IOB 2008]

Which of the following organisations / agencies has asked all the banks in India to form customer service panels at branch levels? [OBC 2008]

The recent decisions of the RBI to cut Cash Reserve Ratio (CRR) by 150 basis points (October 2008) will be able to infuse how much liquidity into the market? [OBC 2008]

Capital Market Regulator is [BOB 2008]

The stance of RBI monetary policy is [BOB 2008]

The bank rate means [BOB 2008]

Open market operations, one of the measures taken by RBI in order to control credit expansion in the economy, means [BOB 2008]

RBI's open market operation transactions are carried out with a veiw to regulate [BOB 2008]

Very often we read in the newspapers about various measures taken up to control the flow of the capital in the Indian markets. Who amongst the following is/are the regulators who can control the flow of the same in India? [UBOI 2008] [a] Indian Bank's Association [b] RBI [c] SEBI

Many a times, we read in newspaper that the RBI has revised certain rates/ratios under LAF. What is full form of LAF? [IBPS PO Main 2015]

Which of the following is NOT a Government of India undertaking? [Allahabad Bank 2010]

One of the major emphasis of Basel II is that banks should have ?. [Allahabad Bank 2010]

Which of the following is/was NOT included in the agenda set for the Banking Reforms in India? [RBI 2009]

Very often we see in the advertisements published by Financing Institutes/Agencies stating their products are given high or average Ratings. These Rating Agencies classify bonds/investments into how many categories? [UBI 2009] (1) Low Risk (2) Average Risk (3) High Risk

Which bank has tied with New India Assurance to launch health insurance products for women account holders of the bank. (SBI 2014)

Which of the following values is considered by a bank when it gives loan against LIC policy? (SBI 2014)

Which among the following Companies in India has a tie-up with the Japanese Financial Nomura for insurance market? (IBPS 2013)

Banks' mandatory lending to farmers for agriculture, micro and small enterprises and other weaker sections where in banks are required to lend up to 40% of the loans is generally described as (IBPS 2013)

Which bank announced that it had entered into agreements with private insurers Cigna TTK and Reliance General Insurance to provide, health and general insurance services to its customers? (IBPS 2016)

Which insurance company will insure under 'varishtha Pension Bima Yojana'? (IBPS 2014)

The process by which a life insurance policyholder can transfer all rights/ title and interest- under a policy contract to a third person is known as (IBPS PO 2013)

The arrangement under which banks sell insurance products acting as the agents of the respective companies is called the (IBPS PO 2013)

Which of the following organization is made specifically responsible for empowering Micro, Small and Medium enterprises in India? [SBI Bank 2013]

Banks' mandatory lending to farmers for agriculture, micro and small enterprises and other weaker sections -wherein banks are required to lend up to 40% of the loans is generally described as [IBPS 2013]

The actual return of an investor is reduced sometimes as the prices of the commodities go up all of a sudden. In financial sector this type of phenomenon is known as................. [IOB2008]

One of the major emphases of Basel II is that banks should have [Allhabad Bank 2010]