Banking & Financial Awareness Quiz – Set 130

Banking & Financial Awareness Quiz: We have created many quizzes on Banking Awareness and this set is one of them. These questions are most important for banking and insurance exams. The question asked in the Banking Awareness section are based both on static banking and that to current banking in news. These Banking Awareness sets will guide you in all banking exams like IBPS Clerk, IBPS PO, SBI Clerk, SBI PO, RRB Clerk and PO and other exams.  The set will be beneficial for the Banking and financial awareness section of LIC AAO. So attempt all the sets now.

Banking & Financial Awareness Questions

1. Which of these is not a source of funds for the commercial banks?
   A) Deposits
   B) Capital
   C) Borrowings from  RBI
   D) Call money borrowings
   
   View answer

   Option C
   
2. The RBI acts as Banker’s Bank implies which of these?
   A) Banks maintain their deposits with RBI
   B) RBI lends to commercial banks in times of need
   C) RBI advises banks on monetary matter’s
   D) All the above
   
   View answer

   Option D
   
3. The currency notes deposited in the currency chest is the property of _____________
   A) RBI
   B) Ministry of Finance
   C) Respective Banks
   D) IBA
   
   View answer

   Option A
   
4. The International Monetary Fund’s main purpose is to grant loan to _______
   A) Developed countries
   B) Member countries only
   C) Central bank of a country
   D) Any country in need
   
   View answer

   Option B
   
5. What do you understand by the Minimum Lending Rate (MLR)?
   A) Rate at which Commercial banks lend to Central Bank
   B) Rate at which Central Banks lends to member banks
   C) Rate at which Commercial Bank lends to public
   D) Rate at which one PSB lends to other PSB
   
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   Option B
   
6. A currency which is hyper sensitive and fluctuates frequently is known as ____________
   A) Core currency
   B) Hard currency
   C) Soft currency
   D) Demand currency
   
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   Option C
   Explanation: Soft currency is a currency which is hyper sensitive and fluctuates frequently. Such currencies react very sharply to the political or the economic situation of a country. 
7. Any risk arising on chances of a government failing to make debt repayments or not honouring a loan agreement is known as ___________
   A) Credit risk
   B) Sovereign risk
   C) Longevity risk
   D) Liquidity risk
   
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   Option B
   Explanation: A nation is a sovereign entity. Any risk arising on chances of a government failing to make debt repayments or not honouring a loan agreement is a sovereign risk.
   
8. An Inchoate instruments as per Negotiable Instrument Act is a document which is_______ 
   A) Incomplete
   B) Handwritten
   C) Incorrect
   D) Inappropriate
   
   View answer

   Option A
   
9. Which among the following is the oldest existing organisation?
   A) RBI
   B) IMF
   C) WHO
   D) ILO
   
   View answer

   Option D
   Explanation: ILO was founded in 1919
10. The Institute for Development and Research in Banking Technology was founded by RBI in 1996. It is based in which city?
    A) New Delhi
    B) Mumbai
    C) Hyderabad
    D) Kanpur
    
    View answer

    Option C
    

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