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Banking Latest Current Affairs - RBI, BANKS & FINANCIAL INSTITUTIONS

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RBI, BANKS & FINANCIAL INSTITUTIONS

1. Which authority/organization is the major shareholder in NABARD?

(a) RBI (b) Central Government

(c) SBI (d) None of these

Ans : (b)

2. NABARD was established by an act of Parliament. Which of the following is its year of establishment?

(a) 1982 (b) 1979

(c) 1990 (d) 1969

Ans : (a)

3. Which of the following institutions was the first development financial institution in India?

(a) IDBI (b) IFCI Ltd

(c) IIBI (d) NABARD

Ans : (b)

4. Which development financial institution is known to have integrated with a bank?

(a) IFCI Ltd (b) ICICI Ltd

(c) NHB (d) IIFCL

Ans : (b)

5. Which financial institution is helping commercial banks in lending to the infrastructure sector?

(a) IFCI Ltd (b) IDBI

(c) IIFCL (d) IIBI

Ans : (c)

6. Which of the following is a development bank?

(a) HDFC bank

(b) NHB

(c) Axis Bank

(d) Development Credit Bank

Ans : (b)

7. Which of the following is not an apex institution?

(a) SBI

(b) SIDBI

(c) NABARD

(d) State Cooperative bank

Ans : (a)

8. Which of the following institution is responsible for finalizing the interest rates and credit policy of the Eurozone?

(a) Bundesbank

(b) European Central Bank

(c) Federal Reserve

(d) Bank of England

Ans : (b)

9. Special drawing right is an international practice of drawing funds from the organization by its member countries. Which of the following control this special funding?

(a) International Monetary Fund

(b) Asian Development Bank

(c) Federal Reserve

(d) European Common Market

Ans : (a)

10. Which foreign bank operating in India recently celebrated 200 years of its existence?

(a) Standard Chartered bank

(b) Citi bank

(c) HSBC

(d) Royal Bank of Scotland

Ans : (b)

11. Which authority/institution fully acquired Reserve Bank of India’s stake in State Bank of India in 2007?

(a) LIC

(b) Government of India

(c) NABARD

(d) ICICI Bank

Ans : (b)

12. Out of the four entities mentioned below which is not a credit rating agency?

(a) CRISIL (b) ICRA

(c) Experian (d) FITCH

Ans : (c)

13. Which of the following is not an international rating agency?

(a) Standard & Poors

(b) Moodys

(c) Fitch

(d) Morgan Stanley

Ans : (d)

14. When RBI sells securities its effect on the market is that—

(a) The liquidity in the banking system increases

(b) The liquidity in the system remains inaffected

(c) The liquidity in the banking system diminishes

(d) None of the above

Ans : (c)

15. Which one of the following is not a tool of fiscal policy?

(a) Public expenditure

(b) Taxation

(c) Interest rate

(d) Public borrowing

Ans : (c)

16. For the top posts of Chairman and Managing Director and Executive Directors of public sector banks which of the following is the appointing authority?

(a) RBI

(b) The central government

(c) Respective bank’s board of directors

(d) Indian Banks’ Association

Ans : (b)

17. PMI is a measure of the growth of different sectors of an economy. What is it?

(a) Prime measurement index

(b) Purchasing Manager’s Index

(c) Prime Mean index

(d) Purchase Mean index

Ans : (b)

18. In terms of the Banking Amendment Bill passed in December 2012 the cap on voting rights for investors in government banks has been raised from the current 1%. What is the new cap?

(a) 5% (b) 7%

(c) 10% (d) 12%

Ans : (c)

19. Which of the following is not a financial regulator?

(a) IRDA (b) PFRDA

(c) SEBI (d) AMFI

Ans : (d)

20. Which international organization helps in prevention of money laundering?

(a) World Bank (b) IMF

(c) FATF (d) All of these

Ans : (c)

21. Who is the appointing authority for the Banking Ombudsman?

(a) RBI

(b) Finance Ministry

(c) PMO

(d) Team of PM, Finance Minister and RBI Governor

Ans : (a)

22. Which of the following is the government’s customer grievances website?

(a) Jago grahak jago (b) Grahak sewa

(c) Paisa bolta hai (d) Grahak kalyan

Ans : (b)

23. The bullion market trades in which commodities?

(a) Precious metals (b) Iron ore, steel etc

(c) Gold, silver (d) Copper, bronze

Ans : (c)

24. Deposits of customers in banks are insured upto ` 1 lakh. Which organization is responsible for payment of claims, if any?

(a) RBI (b) Government

(c) DICGC (d) ECGC

Ans : (c)

25. Forward Markets Commission is the independent regulator of which of the following markets?

(a) Mutual funds

(b) Stock exchanges

(c) Commodity exchanges

(d) Foreign exchange

Ans : (c)

26. Inter bank mobile payments service has been launched by National Payments Corporation of India to facilitate transfer of money using cell phones. What is National Payments Corporation of India?

(a) It is an independent body set up by Indian Banks’ Association to monitor mobile payments

(b) It is an autonomous body under the Finance ministry

(c) It is an institution set up by RBI to handle the retail payments system

(d) It is an organization under the Telecom Regulatory Authority for mobile transactions

Ans : (c)

27. Which of the following is a fully owned subsidiary of RBI?

(a) NABARD (b) NHB

(c) SIDBI (d) IDBI

Ans : (b)

28. Euro money is the official currency of—

(a) NATO

(b) UN

(c) European Union

(d) Germany and England

Ans : (c)

29. Which of the following institutions introduced the concept of reverse mortgage loans?

(a) RBI (b) NHB

(c) SBI (d) None of these

Ans : (b)

30. Bank rate as fixed by RBI means—

(a) Rate of interest charged by banks from borrowers

(b) Rate of interest on bank deposits

(c) Rate of interest charged by RBI on its long term loans to banks

(d) Rate of interest on inter bank loans

Ans : (c)

31. How many countries constitute the Euro zone, which share the same currency?

(a) 17 (b) 21

(c) 24 (d) 11

Ans : (a)

32. Which of the following institution is responsible for finalizing the interest rates and credit policy of the Euro zone?

(a) Bundesbank

(b) European Central Bank

(c) Federal Reserve

(d) Bank of England

Ans : (b)

33. What is the criteria for charging of service tax on companies?

(a) All services not covered under the negative list is liable for payment of service tax

(b) The Customs and Central Excise department notifies the services which are liable for payment

(c) The Income Tax department announces the services which are liable

(d) The list of services liable is mentioned in the Annual Budget

Ans : (a)

34. The full form of the organization known as FEDAI is—

(a) Foreign Exchange Dealers Agency of India

(b) Full Exchange Deal and Industries

(c) Foreign Exchange Dealers’ Association of India

(d) Foreign Exchange Draft Associated Instructions

Ans : (c)

35. Which of the following banks are permitted to undertake business of the central and state governments in India?

(a) Public sector banks only

(b) All commercial banks

(c) Only public and private sector banks

(d) Public, private sector and foreign banks

Ans : (c)

36. Why are anti money laundering laws important for the economy?

(a) To control flow of illegal money to stop anti national and criminal activities

(b) To prohibit trade in unaccounted money

(c) To stop benami activity

(d) To check money lending activity

Ans : (a)

37. Where does RBI mint currency coins?

(a) At Mumbai and Alipore (Kolkata)

(b) At Mumbai and Noida

(c) At Kolkata and Noida

(d) At Mumbai, Alipore(Kolkata), Hyderabad and Noida

Ans : (d)

38. Which of the following accounts for the maximum share in India’s foreign exchange reserves?

(a) Gold reserves

(b) NRI deposits

(c) Special depository receipts

(d) Foreign currency assets

Ans : (d)

39. The government of India is empowered to borrow funds from RBI. Through which of the following instruments does it borrow?

(a) Commercial papers

(b) Certificates of deposits

(c) Treasury bills

(d) Ways and Means advances

Ans : (c)

40. RBI enables banks to tide over their funds problems with the help of LAF facility. What is the full form of LAF?

(a) Liquid Adjustment Facility

(b) Liabilities Adjustment Finance

(c) Liquid Assets and Finance

(d) Liquidity and Finance

Ans : (a)

41. Basel Committee on Banking Supervision is also commonly known as—

(a) Banking Regulation Committee

(b) Bretton Woods Institution

(c) Bank for International Supervision

(d) Federal Reserve

Ans : (c)

42. SWIFT is a network for banks to exchange information. What is the expanded form?

(a) Safe Window for International transactions

(b) Secured Worldwide International Transactions

(c) Society for Worldwide Interbank Financial Telecommunications

(d) None of the above

Ans : (c)

43. Which of the following units is known as ‘Paper Gold’?

(a) Euro dollars

(b) Special drawing rights

(c) Global depository receipts

(d) Petro dollars

Ans : (b)

44. National income in India is estimated by which authority?

(a) NCAER

(b) Ministry of Statistics

(c) Planning Commission

(d) Central Statistical Office

Ans : (d)

45. The foreign exchange rate is dependent on which of the following?

(a) Government policies

(b) Monetary policy directives

(c) Demand and supply forces

(d) Foreign exchange reserves

Ans : (c)

46. The European Union is passing through a serious financial crisis. When did it come into existence?

(a) 1993 (b) 1997

(c) 2001 (d) 2002

Ans : (a)

47. A bank which acts as a banker to other banks is called?

(a) Commercial bank (b) Development bank

(c) Central bank (d) Investment bank

Ans : (c)

48. Regional Rural banks are working in all the states of India except—

(a) Sikkim (b) J&K

(c) Goa (d) Sikkim and Goa

Ans : (d)

49. What method does RBI follow while issuing currency notes?

(a) Maximum reserve system

(b) Fixed fiduciary system

(c) Minimum reserve system

(d) Proportionate reserve system

Ans : (c)

50. The cash balances held in the currency chests are the property of……?

(a) Respective banks where the currency chest is located

(b) Reserve Bank of India

(c) The government

(d) The individual bank branch

Ans : (b)

51. Which bank was established to promote investments in the real estate market?

(a) SIDBI (b) NHB

(c) NABARD (d) IFCI

Ans : (b)

52. Which of the following interest rates signify RBI’s long term stance of monetary policy?

(a) Repo rate

(b) Bank rate

(c) Cash reserve ratio

(d) Statutory liquidity ratio

Ans : (b)

53. Swabhiman scheme of the central government is meant to promote which of the following?

(a) Rural food security

(b) Pension scheme

(c) Rural banking

(d) All of the above

Ans : (c)

54. Which of the following statements is true about RBI’s recent branch licensing policy for banks?

(a) Banks are permitted to open branches freely in Tier 2 to Tier 6 centres

(b) Banks can open branches in metropolitan centres without approval from RBI

(c) Loss making semi urban branches to be closed

(d) Merging adjacent branches in urban centres

Ans : (a)

55. A new mechanism to check tax evasion by identifying deals or arrangements which are made specifically to avoid the tax stipulations is likely to be introduced by the government shortly. Which regulations are being referred to?

(a) Direct Taxes Code

(b) GAAR

(c) General anti avoidance restrictions

(d) FEMA

Ans : (b)

56. Where was Reserve Bank of India’s first central office located?

(a) Calcutta now Kolkata

(b) Bombay now Mumbai

(c) New Delhi

(d) Hyderabad

Ans : (a)

57. What was achieved by passing the Banking Companies Act 1969?

(a) Starting of regional rural banks

(b) Nationalization of 14 commercial banks

(c) Introduction of Lead Bank scheme

(d) Introduced the concept of social control of banks

Ans : (b)

58. For collecting rural data for the newly launched Consumer Price Index who will be used by the Government of India?

(a) The local SBI branch

(b) The patwari

(c) The local postman

(d) All of the above

Ans : (c)

59. What was World Bank previously known as?

(a) International Bank for Reconstruction and Development IBRD

(b) International Development Agency IDA

(c) International Finance Corporation IFC

(d) International Monetary Fund IMF

Ans : (a)

60. Which is the first country to launch plastic currency notes?

(a) Australia (b) USA

(c) Germany (d) France

Ans : (a)

61. When was the World Bank established?

(a) 1947 (b) 1943

(c) 1949 (d) 1944

Ans : (d)

62. What is the name for the stock market regulator in the UK?

(a) Financial Services Authority FSA

(b) Securities and Exchange Commission

(c) Federal Reserve

(d) Bank of England

Ans : (a)

63. What is the maximum denomination for which coins can be produced in India?

(a) ` 1,000 (b) ` 10

(c) ` 100 (d) ` 50

Ans : (a)

64. Which is the minimum denomination of coin that is accepted as legal tender in India?

(a) 50 paise coin (b) 25 paise

(c) One rupee coin (d) All of these

Ans : (a)

65. Which body/authority is vested with the power to mint coins in India?

(a) The government of India

(b) RBI

(c) SBI

(d) State governments

Ans : (a)

66. Who is responsible for the production of currency notes in India?

(a) Reserve Bank of India

(b) The central government

(c) The President of India

(d) The Chief Justice of India

Ans : (a)

67. What is meant by the net worth of a company?

(a) It is the financial statement of the net asset position of an enterprise

(b) It is an indication of the strength to do business

(c) It is the aggregation of the strength of the directors of a company

(d) It reflects the total tax paid to the government during each financial year

Ans : (a)

68. Four credit information companies have been permitted by RBI to start operating in the country. What is the scope of these companies?

(a) They maintain a data base of individuals/ companies with their credit history

(b) They decide in association with banks whether to sanction loan to an individual or not

(c) Corporate loans are sanctioned only after clearance from these companies

(d) All of the above

Ans : (a)

69. When economists speak of angel investors, seed funds, venture capitals what do they intend to convey?

(a) Suggests people wishing to invest in financial companies

(b) Means type of investors willing to promote a new business idea/venture

(c) Indicates foreign investors with substantial financial strength

(d) Means high net worth individuals looking for suitable investments

Ans : (b)

70. What does ‘write off’ mean in the context of banking business?

(a) Loans sanctioned but not disbursed to the customer

(b) Syndicated lending with other banks for large advances

(c) Those loans which cannot become bad because of government guarantee

(d) Bad and unpaid loans which have no possibility of recovery

Ans : (d)

71. Which of the following organization maintains the individual borrower’s credit history in India?

(a) RBI (b) CRISIL

(c) Experian (d) ICRA

Ans : (c)

72. Banks in India do not give loans against the security of the bank’s own shares because—

(a) It is prohibited by RBI

(b) It is not permitted by the Banking Regulation Act

(c) It is against the provisions of the Companies Act

(d) It is considered risky

Ans : (b)

73. A warehouse receipt which is acceptable as security for loans is best described by which of the following?

(a) It is a trustee security

(b) It is a contract of lease

(c) It is a document of title to goods

(d) It is a negotiable instrument

Ans : (c)

74. Which of the following is true about cooperative banks?

(a) They are established under the cooperative societies act

(b) They have profit as their main motive

(c) All are scheduled banks

(d) All of the above

Ans : (a)

75. Negotiable Instruments Act 1881 is an important law which relates to—

(a) Banking (b) Stock markets

(c) Mutual Funds (d) Insurance

Ans : (a)

76. Which of the following is not a banking term?

(a) Letter of credit

(b) MIBOR

(c) Factoring services

(d) Entry load

Ans : (d)

77. Which is the largest associate bank of State Bank of India?

(a) State Bank of Patiala

(b) State Bank of Hyderabad

(c) State Bank of Bikaner & Jaipur

(d) State Bank of Saurashtra

Ans : (b)

78. Which was the first associate bank of State Bank of India to merge with it in 2008?

(a) State Bank of Saurashtra

(b) State Bank of Indore

(c) State Bank of Mysore

(d) State Bank of Travancore

Ans : (a)

79. Which of the following is an old private sector bank in India?

(a) Kotak bank (b) Indus Ind bank

(c) Federal bank (d) UCO bank

Ans : (c)

80. Which Act is fully applicable to the commercial banks?

(a) Companies Act 1956

(b) Partnership Act

(c) Banking Regulation Act

(d) Sale of Goods Act

Ans : (c)

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