Banking & Financial Awareness Quiz – Set 174

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.

1. _______ has the right to transact Government business of the Union in India.
   A) SBI
   B) RBI
   C) Commercial Bank
   D) Any of these
   
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     Option B
   Explanation: Only RBI has the right to to deal in government business. However it may on its decision appoint agency banks to act on its behalf.
2. State Government transactions are carried out by RBI in terms of the agreement entered into with the State Governments. Which state government has not entered into agreement with RBI?
   A) J&K
   B) Manipur
   C) Sikkim
   D) Arunachal Pradesh
   
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     Option C
   Explanation: State Government transactions are carried out by RBI in terms of the agreement entered into with the State Governments in terms of section 21 A of the Act. As of now, such agreements exist between RBI and all the State Governments except Government of Sikkim.
3. The Priority Sector Lending Certificates expires on ____ of every year?
   A) December 31
   B) January 01
   C) March 31
   D) April 01
   
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   Option D
   Explanation: All PSLCs will be valid till March 31st and will expire on April 1st.
4. There are how many eligible categories of Priority Sector Lending Certificates (PSLC)
   A) 3
   B) 4
   C) 5
   D) 6
   
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   Option B
   Explanation: There are only four eligible categories of PSLCs i.e. PSLC General, PSLC Small and Marginal Farmer, PSLC Agriculture & PSLC Micro Enterprises.
5. What is the minimum balance required to be maintained in the pension account maintained with the banks?
   A) Rs 10,000
   B) Rs 5,000
   C) Rs 1,000
   D) It may vary from banks to bank as no limit has been fixed by RBI
   
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   Option D
   Explanation: RBI has not stipulated any minimum balance to be maintained in pension accounts by the pensioners. Individual banks have framed their own rules in this regard.
6. Which of the following number identifies the pensioner?
   A) CPPC
   B) PPO
   C) GPO
   D) LHO
   
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   Option C
   Explanation: Pension Payment Orders
7. A pensioner is required to furnish a Life Certificate to the bank in the prescribed format in the month of ______every year to ensure continued receipt of pension without interruption.
   A) December
   B) November
   C) July
   D) January
   
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   Option B
   Explanation: November
8. What is the interest rate that a pensioner will get in case of delayed credit of pension/ arrears of pension?
   A) 2%
   B) 5%
   C) 8%
   D) 10%
   
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   Option C
   Explanation: A Pensioner is entitled for compensation for delayed credit of pension/arrears thereof at the fixed rate of 8% per annum (since October 1, 2008) and the same would be credited to the pensioner’s account automatically by the bank on the same day when the bank affords delayed credit of such pension / arrears etc. without any claim from the pensioner.
9. ________ is a breach of the provisions of the Foreign Exchange Management Act (FEMA), 1999.
   A) Compounding
   B) Authorization
   C) Contravention
   D) Investigation
   
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   Option C
   Explanation: Contravention is a breach of the provisions of the Foreign Exchange Management Act (FEMA), 1999 and rules/ regulations/ notification/ orders/ directions/ circulars issued there under. Compounding refers to the process of voluntarily admitting the contravention, pleading guilty and seeking redressal.
10. Authorised Money Changers (AMCs) are authorized by _______?
    A) SEBI
    B) GoI
    C) SIDBI
    D) RBI
    
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    Option D
    Explanation: Authorised Money Changers (AMCs) are entities, authorised by the Reserve Bank under Section 10 of the Foreign Exchange Management Act, 1999.

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