GK - Banking & Insurance - SPLessons

Financial Awareness Quiz 35

Home > > Tutorial
SPLessons 5 Steps, 3 Clicks
5 Steps - 3 Clicks

Financial Awareness Quiz 35

shape Introduction

What is meant by Financial Awareness? Financial awareness foundation is financial literacy, which is defined as the ability to use knowledge and skills to effectively manage financial resources efficiently at a personal level and through the life cycle.
Financial Awareness is a section that is present in most of the banking competitive exams. Candidates planning to take up employment in the banking sector must be aware of many of the terms policies and other such important information related to financial awareness. The article Financial Awareness Quiz 35 provides quiz sets useful to the candidates while preparing Various Banking & Government Exams like IBPS RRB, SBI PO, SBI Clerk, SSC CPO, SSC CHSL.

shape Quiz

1. In India, an Asset Reconstruction Company is regulated by?
    A. MUDRA B. SEBI C. NABARD D. EXIM E. RBI

Answer: Option E
Explanation: The leading problem in the country right now is alarming volume of Non-Performing Assets with the banking system. Several attempts were made to tackle NPAs. A serious such step was the creation of dedicated institutions called Asset Reconstruction Companies or ARCs that purchases bad assets or NPAs from banks at a negotiable price and helps banks to clean up their balance sheets (by removing the NPAs). RBI has got the power to regulate the ARCs.
2. Narrow Money is the term in monetary aggregates, which is represented by?
    A. M1 B. M2 C. M3 D. M4 E. M5

Answer: Option A
Explanation: Different measures of the money supply. Not all of them are widely used and the exact classifications depend on the country. M0 and M1, also called narrow money, normally include coins and notes in circulation and other money equivalents that are easily convertible into cash. M2 includes M1 plus short-term time deposits in banks and 24-hour money market funds. M3 includes M2 plus longer-term time deposits and money market funds with more than 24-hour maturity. The exact definitions of the three measures depend on the country. M4 includes M3 plus other deposits. The term broad money is used to describe M2, M3 or M4, depending on the local practice.
3. Which among the following commodity exchange has launched India’s first commodity options in gold?
    A. National Spot Exchange Limited (NSEL) B. Indian Commodity Exchange Limited (ICEX) C. National Commodity & Derivatives Exchange Limited (NCDEX) D. Multi-Commodity Exchange of India Ltd (MCX) E. Securities and Exchange Board of India (SEBI)

Answer: Option D
Explanation: The Multi-Commodity Exchange of India Ltd (MCX) launched India’s first commodity options in gold, giving stakeholders a new set of financial instruments to hedge their price risks. Launched by Union Finance Minister ArunJaitley in New Delhi on the auspicious day of Dhanteras, the gold options received an encouraging response on Day 1.
4. What should be the minimum processing capacity of the Currency Chests according to the latest notification of the RBI?
    A. 5,50,000 pieces banknotes/day B. 4,40,000 pieces banknotes/day C. 2,20,000 pieces banknotes/day D. 6,60,000 pieces banknotes/day E. 7,70,000 pieces banknotes/day

Answer: Option D
Explanation: Processing capacity of 6,60,000 pieces of banknotes per day. For those situated in the hilly/ inaccessible places, capacity of 2,10,000 pieces of banknotes per day
5. The branches of selected banks authorized by the RBI to stock rupee notes and coins for the circulation in the economy is known as ------
    A. Blue Chip B. Front Office C. Currency Chest D. Holding Company E. None of these

Answer: Option C
Explanation: Currency Chest is a bank branch authorised by RBI to hold the money for distribution of money to other bank branches. It acts as an extended arm of RBI for the circulation of currency in the economy.
1. Which bank becomes the first lender to impose charges On UPI transactions, namely, Paytm, Google Pay, PhonePe?
    A. ICICI Bank B. City Union Bank C. Kotak Mahindra Bank D. Lakshmi Vilas Bank E. None of these

Answer: Option C
Explanation: Starting from 1st May, 2019, India’s private sector bank, Kotak Mahindra Bank would become the first lender to levy charges on peer-to-peer (P2P) UPI transactions available across all platforms, namely, Paytm, Google Pay, PhonePe, Trucaller Pay among others. For Kotak Mahindra Bank’s account holders, the first 30 peer-to-peer UPI fund transfer would be free of cost. Once a person exceeds 30 UPI transactions, he will be charged Rs. 2.50 per transaction for of Rs. 1000 or less. For transfers exceeding Rs. 1000, the bank will charge Rs. 5 plus 18% GST. No additional charges have been imposed upon reception of money via UPI for merchant transactions or bill payments.
2. What is the limit of Ways and Means Advances (WMA) set up by Reserve Bank of India (RBI) for the first half of the financial year 2019-20?
    A. Rs.90000 crore B. Rs.75000 crore C. Rs.25000 crore D. Rs.50000 crore E. None of these

Answer: Option B
Explanation: The Reserve Bank of India has set the limits for Ways and Means Advances (WMA) to Rs. 75000 crore for the first half of the financial year 2019-20 (April 2019 to September 2019). As and when the government of India utilises 75% of the WMA limit, the central bank would activate fresh floatation of market loans. The rate of interest issued on the Ways and Means Advances (WMA) will be Repo Rate while the overdraft will exceed the Repo Rate by flat 2%. The WMA needs to be vacated after 90 days.
3. Under which project, Indian Navy has initiated the process to build six lethal submarines worth over Rs.50000 crore?
    A. Project – 75I B. Project – 50I C. Project – 06I D. Project – 70I E. None of these

Answer: Option A
Explanation: Under the ambitious Project75-India, the Indian Navy desires to build 6 standard diesel-electric submarines. These submarines would be 50% massive in size than the Scorpene-class submarines which are under construction at the Mazagon Dockyards Limited. This would incur an overall cost of Rs. 50,000 crore. Since the maritime force needs the boats to have a minimum 12 Land Attack Cruise Missiles (LACM) and Anti-Ship cruise missiles (ASCM), it wants the diesel-electric submarines to be furnished with heavy-duty firepower.
4. How much dividend will be paid by RBI to the government this year?
    A. Rs 28000 crore B. Rs 25000 crore C. Rs 27000 crore D. Rs 31000 crore E. Rs 45000 crore

Answer: Option A
Explanation: RBI will pay an interim dividend of Rs 28000 crore to the government, a move that will help the Centre keep fiscal deficit in check.
5. Recently, the central government infused how much amount into 12 Public Sector Banks?
    A. Rs 47521 crore B. Rs 48239 crore C. Rs 45125 crore D. Rs 51254 crore E. Rs 58254 crore

Answer: Option B
Explanation: The Central Government approved recapitalisation of 12 public sector banks with an infusion of Rs 48,239 crore.
1. Each subscriber under APY shall receive a Central Government guaranteed minimum pension of-
    A. Rs. 2000 per month B. Rs. 3000 per month C. Rs. 4000 per month D. Rs. 1000 per month E Rs. 5000 per month

Answer: Option D
Explanation: Each subscriber under APY shall receive a Central Government guaranteed minimum pension of Rs. 1000 per month or Rs. 2000 per month or Rs. 3000 per month or Rs. 4000 per month or Rs. 5000 per month, after the age of 60 years until death.
2. SCSS offers regular income, highest safety, and tax saving, making it a popular product for those over years of age.
    A. 64 years B. 62 years C. 60 years D. 65 years E. 80 years

Answer: Option C
Explanation: The Senior Citizens Savings Scheme (SCSS) offers regular income, highest safety and tax saving, making it a popular product for those over 60 years of age.
3. Credit rating is -----
    A. is used to rate the borrowers while giving advances B. is used to work out the performance of the employees C. is used to calculate the number of excellent audits rated branches D. is not used in any bank E. is necessary before giving promotion to employees

Answer: Option A
Explanation: Credit rating is an analysis of the credit risks associated with a financial instrument or a financial entity. An assessment of the creditworthiness of a borrower with respect to a particular debt or financial obligation.
4. Which of the following is defined as the difference between current assets and current liabilities?
    A. Venture Capital B. Working Capital C. Equitable Mortgage D. Loss Assets E. Profit and Loss Account

Answer: Option B
Explanation: The capital of a business (working capital) which is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities.
5. 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

Answer: Option D
Explanation: Funds of Fund is an investment strategy in which a fund invests in other types of funds

Financial Awareness - Related Information
Financial Awareness Quiz 29
Financial Awareness Quiz 30
Financial Awareness Quiz 31
Book for Financial Awareness