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Banking and financial Awareness Previous Year Questions

Q 81. Truncation of cheques means

(a) Scanning of the cheques and transmission of electronic image instead of physical cheque in the clearing cycle
(b) Debiting of drawer’s account through internet
(c) Both of the above
(d) None of the above

(a) or (b)
Ans: (a)

Table of Contents

Q 82. What is the term for the conversion of existing assets or future cash flows into marketable securities?

(a) Dematerialization
(b) Securitization
(c) Underwriting
(d) Monetization
(e) Hedging
Ans: (b)

Q 83. Which of the following is an unsecured money market instrument ?

(a) Treasury Bills
(b) Certificates of Deposit
(c) Commercial Paper
(d) Bankers’ Acceptances
(e) All of these
Ans: (c)

Q 84. Rupee coins are the legal tender in India under the provisions of

(a) Indian coinage Act, 1906
(b) Reserve Bank of India Act, 1934
(c) Negotiable instruments Act, 1881
(d) Banking Regulation Act, 1949
(e) None of these
Ans: (a)

Q 85. In India, the system of decimal coinage was introduced on…

(a) 26th Jan. 1949
(b) 1st April, 1957
(c) 15th August, 1957
(d) All of the above
(e) None of these
Ans: (b)

Q 86. Reverse Repo is a tool used by RBI to……

(a) Increase liquidity of banking system
(b) Absorb liquidity
(c) Inject liquidity
(d) Keep the liquidity a one level
(e) None of these
Ans: (b)

Q 87. Which of the following banks has launched its Multi Option Payment Acceptance Device for digital payments?

(a) Axis Bank
(b) State Bank of India
(c) Punjab National Bank
(d) ICICI Bank
(e) Bank of Baroda
Ans: (b)

Q 88. The Monetary Policy Committee of India is responsible for fixing the benchmark interest rate in India. Who is not in MPC?

(a) Urjit R Patel
(b) Arun Jaitley
(c) Viral V Acharya
(d) Michael Debabrata Patra
(e) Ravindra H Dholakia
Ans: (b)

Q 89. YONO app is launched by which of the following?

(a) ICICI Bank
(b) Bank of Baroda
(c) PNB
(d) SBI
(e) HDFC Bank
Ans: (d)

Q 90. Truncated Cheques come under which act?

(a) Negotiable Instruments Act, 1881
(b) Negotiable Instruments Act, 1901
(c) Negotiable Instruments Act, 1867
(d) Negotiable Instruments Act, 1884
(e) None of these
Ans: (a)

Q 91. Who among the following is the chairman of Indian Banks’ Association which was formed as a representative body of management of banking in India?

(a) Jatinder Bir Singh
(b) Dinabandhu Mohapatra
(c) Sunil Mehta
(d) Rajnish Kumar
(e) Chanda Kochhar
Ans: (c)

Q 92. For how long the cheques, Drafts, Pay Orders and Banker’s Cheques are valid from the date of instrument?

(a) 4 months
(b) 1 months
(c) 6 months
(d) 3 months
(e) 5 months
Ans: (d)

Q 93. Which bank has partnered with Srei Equipment Finance Limited to offer loans to MSMEs and retail customers under a co-lending arrangement?

(a) Punjab National bank
(b) State Bank of India
(c) Corporation Bank
(d) United Bank of India
(e) Axis Bank
Ans: (d)

Q 94. Which of the following three year roadmap finalized by The Reserve Bank of India to improve regulation and supervision, among other functions of the central bank?

(a) Utkarsh 2021
(b) Utkarsh 2022
(c) Utkarsh 2023
(d) Utkarsh 2024
(e) Utkarsh 2025
Ans: (b)

Q 95. Full form of “MANI” app launched by RBI

(a) Mobile Application Note Identifier
(b) Mobile Aided Note Identifier
(c) Mobile Aided Number Identity
(d) Mobile App Note Identity
(e) Mobile Apps No Identifier
Ans: (b)

Q 96. What is the Full form of M in MDR?

(a) Merchant
(b) Money
(c) Merchant
(d) Mechanism
(e) None of these
Ans: (a)

Lesson 4 Monetary & Financial Aspects Banking and financial Awareness Previous Year Questions)
Q1. Which of the following is not one of the Monitorable Targets of the 11th Five Year Plan ?

(a) To increase the average GDP growth rate
(b) To increasing the literacy rate
(c) To increase energy efficiency
(d) To improve sex ratio
(e) To maximize the effect of global warming
Ans: (e)

Q 2. What does the letter ‘L’ denote in the term ‘LAF’ as referred every now and then in relation to monetary policy of the RBI?

(a) Liquidity
(b) Liability
(c) Leveraged
(d) Longitudinal
(e) Linear
Ans: (a)

Q 3. The European Union has adopted which of the following as a common currency?

(a) Dollar
(b) Dinar
(c) Yen
(d) Euro
(e) Peso
Ans: (d)

Q 4. Government usually classifies its expenditure in term of planned and non-planned expenditure. Identify, which is the correct definiton of Planned expenditure?

(a) It represents the expenditure of all the State Governments.
(b) It represents the total expenditure of the Central Government.
(c) It is the expenditure which is spent through centrally sponsored programmes and flagship schemes of Government.
(d) It represents the expenditure incurred on Defence.
(e) Other than those given as options.
Ans: (b)

Q 5. Which of the following places in India does not have a Stock Exchange?

(a) Kolkata
(b) Ahmedabad
(c) Mumbai
(d) Delhi
(e) Udaipur
Ans: (e)

Q 6. What is financial inclusion?

(a) To provide a permanent employment to the unemployed
(b) To provide a 100 days job to all those who are in need of a job
(c) To provide banking services to all those living in remote areas
(d) To ensure that all financial transactions amounting ` 5,000 and above are done through banks.
(e) To provide finances for all
Ans: (c)

Q 7. Which of the following terms is used in banking and finance?

(a) Abiotic
(b) Demand Deposit
(c) Fat scales
(d) A diabetic
(e) Cathode
Ans: (b)

Q 8. Which of the following is an economic term?

(a) Plaintiff
(b) Bunker Blaster
(c) Deflation
(d) Lampoon
(e) Zero Hour
Ans: (c)

Q 9. What does the letter ‘F’ denote in the abbreviated name ‘IIFCL’?

(a) Functional
(b) Foreign
(c) Forwarded
(d) Finance
(e) None of these
Ans: (d)

Q 10. NAV is normally used in respect of schemes floated by_______

(a) Banks
(b) Mutual funds
(c) Insurance companies
(d) Merchant banker
(e) None of these
Ans: (b)

Q 11. Money laundering refers to _______

(a) Conversion of assets into cash
(b) Conversion of money which is illegally obtained
(c) Conversion of cash into gold
(d) Conversion of gold into cash
(e) Money power
Ans: (b)

Q 12. What is money laundering?

(a) Conversion of assets into cash
(b) Conversion of Money which is illegally obtained
(c) Conversion of cash into gold
(d) Conversion of gold into cash
(e) Conversion of gold into foreign currency
Ans: (b)

Q 13. Expand the term ALM as used in Banking/Finance sector.

(a) Asset Liability Management
(b) Asset Liability Maturity
(c) Asset Liability Mismatch
(d) Asset Liability Manpower
(e) Asset Liability Maintenance
Ans: (a)

Q 14. Insurance cover for bank deposits in our country is provided by

(a) SBI
(b) Government of India
(c) GIG
(d) LIC
Ans: (e)

Q 15. The economy in which there is a mixture of public sector and private sector both, is called ___________ .

(a) Closed economy
(b) Mixed economy
(c) Open economy
(d) Free trade economy
(e) Public economy
Ans: (b)

Q 16. What does the letter ‘P’ denote in the term ‘PAN’ as used in financial transactions ?

(a) Primary
(b) Partial
(c) Permanent
(d) Provisional
(e) Public
Ans: (c)

Q 17. MCX is the index of which of the following stock exchanges of India ?

(a) National Stock Exchange
(b) Bombay Stock Exchange
(c) Delhi Stock Exchange
(d) Kolkata Stock Exchange
(e) Multi Commodity Stock Exchange
Ans: (e)

Q 18. The Central Board of Direct Taxes has made e-filing of income-tax returns mandatory for all assesses whose annual earnings exceed _________.

(a) ` 5 lakh during the fiscal
(b) ` 10 lakh during the fiscal
(c) ` 15 lakh during the fiscal
(d) ` 20 lakh during the fiscal
(e) ` 25 lakh during the fiscal
Ans: (b)

Q 19. The process by which a life insurance policyholder can transfer all rights, title and interest under a policy contract to a third person is known as

(a) Assignment of the policy
(b) Hypothecation of the policy
(c) Reinvestment of the policy
(d) Negotiation of the policy
(e) Nomination of the policy
Ans: (a)

Q 20. An Equity share is also commonly referred to as

(a) ordinary share
(b) debenture
(c) convertible share
(d) security receipt
(e) preferred stock
Ans: (a)

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