Important Banking Awareness Answer MCQs Part - 1
1.Correct Answer: C [District]
Notes:
Leader Bank Scheme was based on Area Approach for targeted and focused banking. The banker’s committee, headed by S. Nariman, concluded that districts would be the units for area approach and each district could be allotted to a particular bank which will perform the role of a Lead Bank.
Leader Bank Scheme was based on Area Approach for targeted and focused banking. The banker’s committee, headed by S. Nariman, concluded that districts would be the units for area approach and each district could be allotted to a particular bank which will perform the role of a Lead Bank.
2.Correct Answer: C [ Punjab National Bank ]
Notes:
The first bank purely managed by Indians was Punjab National Bank, established in Lahore in 1895. The Punjab national Bank has not only survived till date but also is one of the largest banks in India.
The first bank purely managed by Indians was Punjab National Bank, established in Lahore in 1895. The Punjab national Bank has not only survived till date but also is one of the largest banks in India.
3.Correct Answer: D [All of the above]
Notes:
DBT beneficiaries can withdraw their money through the micro-ATMs, AePS and BHIM Aadhaar Pay. Customer who want to receive entitled benefits or subsidies of welfare schemes funded from the Consolidated Fund of India in their account directly, can avail it via Aadhaar-based authentication using e-KYC .
DBT beneficiaries can withdraw their money through the micro-ATMs, AePS and BHIM Aadhaar Pay. Customer who want to receive entitled benefits or subsidies of welfare schemes funded from the Consolidated Fund of India in their account directly, can avail it via Aadhaar-based authentication using e-KYC .
4.Correct Answer: B [13000]
Notes:
The India Post has established around 13,000 Aadhaar Enrolment and Update Centres till 2018. A total of 121 crore Aadhaar cards have been issued so far, according to the Unique Identification Authority of India (UIDAI).
The India Post has established around 13,000 Aadhaar Enrolment and Update Centres till 2018. A total of 121 crore Aadhaar cards have been issued so far, according to the Unique Identification Authority of India (UIDAI).
5.Correct Answer: C [Managed float]
Notes:
In India, the exchange rate system is managed floating from 1994 onwards and hence the relevant currency movements are appreciation and depreciation. Managed float regime is the environment in which exchange rates fluctuate from day to day.
In India, the exchange rate system is managed floating from 1994 onwards and hence the relevant currency movements are appreciation and depreciation. Managed float regime is the environment in which exchange rates fluctuate from day to day.
6.Correct Answer: A [RBI]
Notes:
RBI i.e. Reserve Bank of India has an important role in regulating & managing Foreign Exchange of the country. It manages forex and gold reserves of the nation. The RBI’s Financial Markets Department (FMD) participates in the foreign exchange market by undertaking sales / purchases of foreign currency.
RBI i.e. Reserve Bank of India has an important role in regulating & managing Foreign Exchange of the country. It manages forex and gold reserves of the nation. The RBI’s Financial Markets Department (FMD) participates in the foreign exchange market by undertaking sales / purchases of foreign currency.
7.Correct Answer: D [All of the above]
Notes:
The Department of External Investments and Operations (DEIO) invests the country’s foreign exchange reserves built up by purchase of foreign currency from the market. In investing its foreign assets, the Reserve Bank is guided by three principles: Safety, Liquidity, Return.
The Department of External Investments and Operations (DEIO) invests the country’s foreign exchange reserves built up by purchase of foreign currency from the market. In investing its foreign assets, the Reserve Bank is guided by three principles: Safety, Liquidity, Return.
8.Correct Answer: D [Brazil Real]
Notes:
Special Drawing Rights or SDR basket includes five currencies. These are US Dollar, Chinese Yuan, Japanese yen, Pound sterling and Euro. Chinese RMB joined the US dollar, euro, Japanese yen, and British pound sterling in the SDR basket on October 1, 2016.
Special Drawing Rights or SDR basket includes five currencies. These are US Dollar, Chinese Yuan, Japanese yen, Pound sterling and Euro. Chinese RMB joined the US dollar, euro, Japanese yen, and British pound sterling in the SDR basket on October 1, 2016.
9.Correct Answer: 6 [B]
Notes:
There are six credit rating agencies in India. These are CRISIL, ICRA, CARE, SMERA, Fitch India and Brickwork Ratings. These six agencies are registered under SEBI.
There are six credit rating agencies in India. These are CRISIL, ICRA, CARE, SMERA, Fitch India and Brickwork Ratings. These six agencies are registered under SEBI.
10.Correct Answer: A [Credit Analysis and Research Limited,1993]
Notes:
Credit Analysis and Research Limited (CARE) is a credit rating, research and advisory committee promoted by Industrial Development Bank of India (IDBI), Canara Bank, Unit Trust of India (UTI) and other financial and lending institutions. It was established in 1993.
Credit Analysis and Research Limited (CARE) is a credit rating, research and advisory committee promoted by Industrial Development Bank of India (IDBI), Canara Bank, Unit Trust of India (UTI) and other financial and lending institutions. It was established in 1993.
11.Correct Answer: A [Liberalized Remittance Scheme]
Notes:
The LRS stands for Liberalized Remittance Scheme. It is made available by the Reserve Bank of India and is effective from 1 June 2015.The LRS scheme is used by resident Indians to send money abroad for their children’s studies and also to invest in foreign stocks and property.
The LRS stands for Liberalized Remittance Scheme. It is made available by the Reserve Bank of India and is effective from 1 June 2015.The LRS scheme is used by resident Indians to send money abroad for their children’s studies and also to invest in foreign stocks and property.
12.Correct Answer: D [CIBIL]
Notes:
Credit Information Bureau Limited (CIBIL) is the first Credit Information Company in India. It was founded in August 2000. CIBIL was promoted by State Bank of India (SBI), Housing Development Finance Corporation (HDFC), Dun & Bradstreet Information Services India Private Limited (D&B) and TransUnion International Inc.
Credit Information Bureau Limited (CIBIL) is the first Credit Information Company in India. It was founded in August 2000. CIBIL was promoted by State Bank of India (SBI), Housing Development Finance Corporation (HDFC), Dun & Bradstreet Information Services India Private Limited (D&B) and TransUnion International Inc.
13.Correct Answer: A [Simple Alphanumeric Symbols]
Notes:
Credit Rating Agencies denote the credit ratings by Simple Alphanumeric Symbols like AAA,BBB,Baa etc. These symbols sometimes include numerical also such as Baa2,Baa3 etc.
Credit Rating Agencies denote the credit ratings by Simple Alphanumeric Symbols like AAA,BBB,Baa etc. These symbols sometimes include numerical also such as Baa2,Baa3 etc.
14.Correct Answer: D [USA]
Notes:
The public successes of the venture capital industry in the 1970s and early 1980s gave rise to a major proliferation of venture capital investment firms. Venture Capital Fund of America, the first private equity firm focused on acquiring secondary market interests started its operation in 1982.
The public successes of the venture capital industry in the 1970s and early 1980s gave rise to a major proliferation of venture capital investment firms. Venture Capital Fund of America, the first private equity firm focused on acquiring secondary market interests started its operation in 1982.
15.Correct Answer: D [All of the Above]
Notes:
Mezzanine capital is any subordinated debt or preferred equity instrument that represents a claim on a company’s assets. Mezzanine financings can be structured either as debt or preferred stock.
Mezzanine capital is any subordinated debt or preferred equity instrument that represents a claim on a company’s assets. Mezzanine financings can be structured either as debt or preferred stock.
16.Correct Answer: A [Bhatt Committee]
Notes:
The need for venture capital financing was first highlighted in 1972 by the Committee on Development of small and medium entrepreneurs under the chairmanship of R.S.Bhatt (popularly known as the Bhatt Committee) which drew attention to the problems of new entrepreneurs and technologists in setting up industries.
The need for venture capital financing was first highlighted in 1972 by the Committee on Development of small and medium entrepreneurs under the chairmanship of R.S.Bhatt (popularly known as the Bhatt Committee) which drew attention to the problems of new entrepreneurs and technologists in setting up industries.
17.Correct Answer: A [SEBI]
Notes:
As far as Mutual funds are concerned, SEBI makes the policies for mutual funds and also regulates the industry. It lays guidelines for the mutual funds to safeguard the investors’ interest.
As far as Mutual funds are concerned, SEBI makes the policies for mutual funds and also regulates the industry. It lays guidelines for the mutual funds to safeguard the investors’ interest.
18.Correct Answer: B [1963]
Notes:
The first introduction of a mutual fund in India occurred in 1963, when the Government of India launched Unit Trust of India (UTI).UTI enjoyed a monopoly in the Indian mutual fund market until 1987.
The first introduction of a mutual fund in India occurred in 1963, when the Government of India launched Unit Trust of India (UTI).UTI enjoyed a monopoly in the Indian mutual fund market until 1987.
19.Correct Answer: B [It has units available for sale and repurchase at all times.]
Notes:
Open-end fund is a fund that can issue and redeem shares at any time. An investor purchase shares in this fund directly from the fund itself, rather than from the existing shareholders.
Open-end fund is a fund that can issue and redeem shares at any time. An investor purchase shares in this fund directly from the fund itself, rather than from the existing shareholders.
20.Correct Answer: D [All of the Above]
Notes:
Primary structures of mutual funds include open-end funds, unit investment trusts, and closed-end funds. Exchange-traded funds (ETFs) are open-end funds or unit investment trusts that trade on an exchange.
Primary structures of mutual funds include open-end funds, unit investment trusts, and closed-end funds. Exchange-traded funds (ETFs) are open-end funds or unit investment trusts that trade on an exchange.