Tuesday, 15 August 2017

Banking Awareness



Q1. PFRDA is responsible for the appointment of which of the following agency?
(a) Pension Fund Managers
(b) Custodian
(c) NPS Trustee Bank
(d) Central Record Keeping Agency (CRA)
(e) All of the above

S1. Ans.(e)
Sol. PFRDA is responsible for the appointment of various intermediate agencies such as Central Record Keeping Agency (CRA), Pension Fund Managers, Custodian, NPS Trustee Bank, etc.

Q2. Pension Fund Regulatory and Development Authority (PFRDA) is authorized by?
(a) GOI
(b) RBI
(c) Ministry of Commerce
(d) Ministry of Finance
(e) SEBI

S2. Ans.(d)
Sol. Pension Fund Regulatory and Development Authority (PFRDA) is authorized by Ministry of Finance, Department of Financial Services.

Q3. The headquarters of Pension Fund Regulatory and Development Authority (PFRDA) is-
(a) Mumbai
(b) Hyderabad
(c) New Delhi
(d) Bangalore
(e) Kolkata

S3. Ans.(c)
Sol. The headquarters of Pension Fund Regulatory and Development Authority (PFRDA) is New Delhi.

Q4. Which of the following is an investment strategy in which a fund invests in other types of funds?
(a) Bond
(b) Securities
(c) Stock
(d) Funds of Fund
(e) None of the given options is true

S4. Ans.(d)
Sol. Funds of Fund is an investment strategy in which a fund invests in other types of funds.

Q5. Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) was established by ____________  as its wholly owned subsidiary.
(a) NABARD
(b) RBI
(c) SBI
(d) SIDBI
(e) SEBI

S5. Ans.(b)
Sol. Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) was established by Reserve Bank of India (RBI) as its wholly owned subsidiary on 3rd February 1995 with a view to augmenting the production of bank notes in India to enable the RBI to bridge the gap between the supply and demand for bank notes in the country.

Q6. In which of the following types of banking, there is a direct execution of transaction between a bank and its consumers?
(a) Retail Banking
(b) Universal Banking
(c) Virtual Banking
(d) Unit Banking
(e) None of the given options is true

S6. Ans.(a)

Sol. Retail banking also known as Consumer Banking is the provision of services by a bank to individual consumers, rather than to companies, corporations or other banks. Services offered include savings and transactional accounts, mortgages, personal loans, debit cards, and credit cards.

Q7. Maximum loan amount to individuals against physical security shares can be _____
(a) 20 lakh
(b) 15 lakh
(c) 25 lakh
(d) 50 lakh
(e) 10 lakh

S7. Ans.(e)
Sol. Loans/ advances granted to individuals against the security of shares, debentures and PSU bonds should not exceed Rs.10 lakh and Rs.20 lakh, if the securities are held in physical form and dematerialized form respectively.

Q8. The process by which the central bank of a country controls the supply of money in the economy by exercising its control over interest rates in order to maintain price stability and achieve high economic growth is known as:
(a) Economic Policy
(b) Monetary Policy
(c) Fiscal Policy
(d) Credit Policy
(e) Budgetary Policy

S8. Ans.(b)
Sol. Monetary Policy is the process by which monetary authority of a country, generally a central bank controls the supply of money in the economy by exercising its control over interest rates in order to maintain price stability and achieve high economic growth. In India, the central monetary authority is the Reserve Bank of India (RBI). is so designed as to maintain the price stability in the economy.

Q9. Loans granted by a bank to an exporter popularly known as ‘Export credit’ is guaranteed, in case of default by which of the following-
(a) EXIM Bank
(b) Ministry of International Trade, GOA
(c) ECGC
(d) DICGC
(e) None of the given options is true

S9. Ans.(c)
Sol. ECGC Limited (Formerly Export Credit Guarantee Corporation of India Ltd) is a company wholly owned by the Government of India based in Mumbai, Maharashtra. It provides export credit insurance support to Indian exporters and is controlled by the Ministry of Commerce.

Q10. Who amongst the following is the regulator in the financial system of the country?
(a) OIC
(b) SEBI
(c) CRISIL
(d) TRAN
(e) CERC

S10. Ans.(b)
Sol. The financial system in India is regulated by independent regulators in the field of banking, insurance, capital market, commodities market, and pension funds. Example of Financial Regulators: RBI, IRDAI, SEBI, PFRDA.

Q11. According to the Income Tax act of 1961, the age of Super senior Citizens should be-
(a) 60 years
(b) 70 years
(c) 80 years
(d) 75 years
(e) 65 years

S11. Ans.(c)
Sol. According to the Income Tax act of 1961, the age of Super senior Citizens is 80 years.

Q12. Part of company’s earning or profit which is paid out to share holders is known as _______
(a) Premium
(b) Dividend
(c) Bonus
(d) Sum Assured
(e) Return

S12. Ans.(b)
Sol. A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. When a corporation earns a profit or surplus, it can re-invest it in the business (called retained earnings) and pay a fraction of the profit as a dividend to shareholders.

Q13. Which of the following economic concepts is categorised on the basis of Current Account or Capital Account or both?
(a) Balance of Payments
(b) Value of the food grain stock of a country
(c) Gross National Product
(d) Gross National Income (GNI)
(e) Total collection of Direct Taxes in a year

S13. Ans.(a)
Sol. A Balance of payments statement is a summary of a nation’s total economic transactions undertaken on international account. It is usually composed of two sections:-
1. Current Account
2. Capital Account

Q14. When there is a difference between all receipts and expenditure of the Government of India both capital and revenue it is called-
(a) Revenue Deficit
(b) Budgetary Deficit
(c) Zero Budgeting
(d) Trade Gap
(e) Balance of Payment Problem

S14. Ans.(b)
Sol. Budgetary deficit is the difference between all receipts and expenses in both revenue and capital account of the government. If revenue expenses of the government exceed revenue receipts, it results in revenue account deficit. Similarly, if the capital disbursements of the government exceed capital receipts, it leads to capital account deficit. Budgetary deficit is usually expressed as a percentage of GDP.

Q15. Sukanya Samriddhi Account can be opened up to age of ________ years only from the date of birth.
(a) Five years
(b) Four years
(c) Six years
(d) Eight years
(e) Ten years

S15. Ans.(e)
Sol. Sukanya Samriddhi Account can be opened up to age of 10 years only from the date of birth.

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