Banking & Financial Awareness Quiz – Set 185

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. So attempt all the sets now.

1. Which of these institutions are eligible to avail the refinance facility provided by NABARD?
   A) State Cooperative Banks
   B) Regional Rural Banks
   C) Commercial Banks
   D) All of the above
   
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   Option D
   
2. Which section of RBI Act 1934 defines the maximum denomination of bank notes that can be issued by RBI?
   A) Section 20
   B) Section 24
   C) Section 28
   D) Section 32
   
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   Option B
   Explanation: Denominations of notes is defined in section 24
3. The current account deficit denotes
   A) Fall in the value of a country’s net foreign assets
   B) High productivity
   C) Capital account surplus
   D) Low rate of interest
   
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   Option A
   Explanation: A current account deficit occurs when a country spends more on imports than it receives on exports.
4. Which is the first Indian state to issue the smart card license system?
   A) West Bengal
   B) Maharashtra
   C) Gujarat
   D) Karnataka
   
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   Option C
   Explanation: In 1999 Gujarat was the first Indian state to introduce a smart card license system
5. The KYC guidelines are issued under which act?
   A) Reserve Bank of India Act, 1934
   B) Banking Regulation Act, 1949
   C) Prevention of Money Laundering Act 2002
   D)  Companies Act 2013
   
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   Option B
   Explanation: The KYC guidelines are issued under Section 35A of the Banking Regulation Act, 1949
6. Telephone banking, ATM, Mail banking are some of the examples of
   A) Universal banking
   B) Narrow banking
   C) Virtual banking
   D) Islamic banking
   
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   Option C
   Explanation: Online banking, mobile banking are also part of virtual banking
7. Who was the head of the Working Group on Wilful Defaulters (WGWD) formed by RBI in 2001?
   A) Y.V. Reddy
   B) S.S. Kohli
   C) A.S. Ganguly
   D) Y.H. Malegam
   
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   Option B
   
8. The Imperial Bank of India was converted into State Bank of India in which year?
   A) 1948
   B) 1935
   C) 1921
   D) 1955
   
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   Option D
   Explanation: On July 1, 1955, as per the State Bank of India Act 1955, the State Bank of India (SBI) was constituted and it took over the business and undertaking of the Imperial Bank. In the same year the State Bank of India (Subsidiary Bank) Act was passed, with the State Bank of Hyderabad becoming the first subsidiary of the SBI.
9. SCC is a qualitative method of credit control used by RBI. What does SCC stands for?
   A) Specified Consumer Credit
   B) Shares Credit Control
   C) Selective Credit Controls
   D) Securities Cost Control
   
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   Option C
   Explanation: Selective credit control refers to qualitative method of credit control by the central bank. The techniques of selective credit control generally are of two varieties. 1. minimum margins, higher or lower, for lending against specific securities, ceilings on the amount of credit for certain purposes, and differential rates of interest for certain types of advances, and 2. regulation of consumer credit for durable goods.
10. Under the Minimum Reserve System, RBI has to keep a minimum reserve of Rs ___________  as backing while issuing new currency 
    A) Rs 200 crore
    B) Rs 100 crore
    C) Rs 150 crore
    D) Rs 250 crore
    
    View answer

    Option A
    Explanation: Under the Minimum Reserve System, the RBI has to keep a minimum reserve of Rs 200 crore comprising of gold coin and gold bullion and foreign currencies
     

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