General Knowledge : Questions Answers : Banking Awareness

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1.

What is/are the main functions of RBI?

(i). Notes Issuance.
(ii). Government's Banker.
(iii). Banker's Bank.
(iv). Bank's Supervision.

   A. Only (i)

   B. Both (ii) and (iii)

   C. Both (iii) and (iv)

   D. All of these.

Answer: Option D

Explanation:

Reserve Bank of India (RBI) is the supreme banking authority of India. All the public & private sector banks or any financial institution in India are controlled by RBI.

RBI is responsible for issuing, exchanging or destroying of currency.

RBI acts as a merchant banker for the Central and State Government. RBI maintains all the banking accounts of the scheduled banks.

RBI operate all the financial and banking operations in India.

2.

In India, Micro finance development and Equity fund is maintained by-

   A. Small industries development Bank of India(SIDBI).

   B. RBI(Reserve bank of India).

   C. Nabard(National bank for Agriculture and rural development).

   D. CII(Confederation of industries in India).

Answer: Option A

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3.

Which are the following rates are decided by the RBI is called "Policy Rate"?

   A. Cash reserve ratio.

   B. Lending rate.

   C. Bank rate.

   D. Deposit rate.

Answer: Option A

Explanation:

Cash reserve ratio (CRR) is the funds that all the scheduled bank have to maintain with RBI, the supreme banking authority of India. By increasing the CRR RBI drain out excessive funds from the scheduled banks.

Example: Suppose the CRR is 5% . A person/customer open a Savings bank account with Rs. 10,000 in Punjab National Bank. So now Punjab National Bank has to park Rs. 500 to Reserve Bank of India (RBI) as per the CRR rate.

5% of 10,000 = 500 (CRR= 5%).

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4.

As per newspaper report,one of the major public sector banks sold out its RS> 500 Cr. loan to IIFCL. This type of buying and selling of loans in banking sector is popularly known as,

   A. Teaser rate financing.

   B. Take out financing.

   C. Infrastructure financing.

   D. Development financing.

Answer: Option B

Explanation:

Take out financing is a kind of long term financing by the banks. Like 15-20 years. It is also called as 'Take out Loan'. Usually Take out financing is  used for real property and commercial purposes.

5.

'kfw' group released another installment of its financial aid to India.'kfw' is an organisation/bank base in;

   A. France.

   B. Japan.

   C. Germany

   D. China.

Answer: Option C

Explanation:

'Kfw' is financial and banking group of Germany. It is Government owned group/bank founded on 1948.

                                                             

         

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