Banking and Financial Awareness MCQ Quiz - Objective Question with Answer for Banking and Financial Awareness - Download Free PDF

The correct answer is Chennai.

Reserve Bank Staff College is situated in Chennai.

Key Points

• Reserve Bank Staff College
  • It was established on July 03, 1963.
  • It is in Chennai.
  • It is the apex training college of the Reserve Bank of India, actively contributing to the knowledge enhancement endeavours of the Bank. 

Additional Information

• The Reserve Bank of India
  • India's central bank.
  • It is a regulatory body.

The correct answer is option 4 i.e. IMF.

The International Monetary Fund (IMF) resolves all balance of payments issues around the world by lending money to fix the issue.

• The IMF is a world organization to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic process, and reduce poverty round the world.
• Countries contribute funds to a pool through a quota system from which countries experiencing balance of payments problems can borrow money.
• These loan conditions make sure that the borrowing country are ready to repay the IMF which the country won't try to solve their balance-of-payment problems during a way that might negatively impact the international economy.
• The IMF was established on December 27^th, 1944 and is headquartered in Washington D.C. USA.

The correct answer is Kolkata.Key Points

• Bandhan Financial Services is headquartered in Kolkata.
• Bandhan Financial Services was granted in-principal approval by RBI to start a universal bank in 2014, which means that they were given permission to set up a new bank, subject to fulfilling certain conditions laid down by the RBI.
• Bandhan Bank, the universal bank started by Bandhan Financial Services, began operations in August 2015 and has since expanded to become one of India's largest banks.

Additional Information

• Bandhan Financial Services was founded in 2001 by Chandra Shekhar Ghosh, a former field officer with BRAC, the Bangladesh-based microfinance organization.
• The organization provides microfinance services to women in rural and semi-urban areas of India, helping them start and grow small businesses.
• Mumbai is the financial capital of India and home to the Reserve Bank of India.
• Pune is a major center for IT and manufacturing industries.
• Lucknow is the capital city of the northern state of Uttar Pradesh.

The correct answer is 2.

• The Government of Uttar Pradesh has proposed to establish two “Chandrashekhar Azad Grameen Vikas Sachivalaya” in each Nyaya panchayat of the state. 

Key Points

• The government has allocated 10 cr rupees in the Budget 21-22 for establishing “Chandrasekhar Azad Grameen Vikas Sachivalaya” in each Naya Panchayat of the state. 
• It is a step to boost the justice system of the state and reduce the number of cases in the court.
• It will also enhance the functioning of the Panchayat System.
• As most of the population of India resides in villages, a healthy “Panchayat system” is key to a healthy democracy in India.

Confusion Points

• Nyaya Panchayats are considered a unit of the Panchayati Raj System of India. They function at the village or district level to deliver justice and thus are considered as the most basic level of the Indian Judiciary.

The Correct Answer is Option 3 i.e A.

• Bank of Hindustan:
  • The Bank of Hindostan (1770-1832), set up by the agency house of Alexander and Company in the year 1770 was the first bank established in India.
  • It was no longer exists now.
• Imperial Bank:
  • The Imperial Bank was formed in 1921 as a joint-stock bank by amalgamating the Presidency Banks of Bombay, Calcutta, and Madras.
  • State Bank of India was created in 1806, in Calcutta, Called the Bank of Calcutta, 
    • In 1809 It became the Bank of Bengal when the bank was granted a charter to serve all of Bengal.
    • The imperial government by the middle of the century created two more regional banks. 
    • The Bank of Bombay was created in 1840, and was soon joined by the Bank of Madras in 1843. Together with the Bank of Bengal, they became known as the "presidency" banks.
  • Imperial Bank of India was nationalized by the Government of India in the year 1955 with the Reserve Bank of India taking a 60% stake and the name was changed to State Bank of India.
• SBI Bank:
  • It is the largest public sector banks in India.
  • It began with the establishment of the Bank of Calcutta in Calcutta, on 2 June 1806.
  • It was the first-ever joint-stock bank of British India, established under the sponsorship of the Government of Bengal.
  • Tagline: "The banker to every Indian".
• Reserve Bank of India:
  • The Reserve Bank of India was set up on the basis of the recommendations of the Hilton Young Commission
  • The Reserve Bank of India was established on April 1, 1935, in accordance with the provisions of the Reserve Bank of India Act, 1934.
  • It acts as a Banker to the Government as well as banker to banks.

The correct answer is option 1 i.e., 1990

• SIDBI is the principal development financial institution for promotion, financing, and development of Micro, Small, and Medium Enterprises (MSME) sector in India.
• It was established on April 2, 1990, through an Act of Parliament.
• The headquarters of the SIDBI is located in Lucknow, Uttar Pradesh.
• It aims to facilitate and strengthen credit flow to MSMEs and address both financial and developmental gaps in the MSME eco-system across the country.
• It coordinates the functions of institutions engaged in similar activities.

The correct answer is Allahabad Bank.

• Allahabad Bank (nationalized bank) is the oldest joint stock bank in India.
• It was founded in Allahabad in 1865 and its headquarters in Kolkata, India.

Key Points

The correct answer is 14.

Key Points

• Nationalisation of Bank in India:
  • On July 19, 1969, Indira Gandhi who was both Prime Minister and Finance Minister at that time decided to nationalise the 14 largest private banks of the country. Hence, Option 1 is correct.
  • The largest and the oldest bank which is still in existence is the State Bank of India (SBI).
    • It originated and started working as the Bank of Calcutta in mid-June 1806.
    • In 1809, it was renamed the Bank of Bengal.
    • This was one of the three banks founded by a presidential government, the other two were the Bank of Bombay in 1840 and the Bank of Madras in 1843.
  • The three banks were merged in 1921 to form the Imperial Bank of India, which upon India's independence, became the State Bank of India in 1955.
  • For many years, the presidency banks had acted as quasi-central banks, as did their successors, until the Reserve Bank of India was established in 1935, under the Reserve Bank of India Act, 1934.
  • In 1960, the State Banks of India was given control of eight state-associated banks under the State Bank of India (Subsidiary Banks) Act, 1959. These are now called associate banks. 
  • In 1969, the Government of India nationalised 14 major private banks; one of the big banks as Bank of India. In 1980, 6 more private banks were nationalised.
  • These nationalised banks are the majority of lenders in the Indian economy.
  • They dominate the banking sector because of their large size and widespread networks. 

• Allahabad Bank is the oldest public-Sector bank of India.
• It was established in the year 1865.
• Its current chairman of the bank is SS Mallikarjuna Rao.

 

Bank of India	Established in 1906.
Andhra Bank	Established in 1923.
Bank of Baroda	Established in 1908.

 

Allahabad Bank has been merged with Indian Bank.

 

 

The correct answer is option 2 i.e Manmohan Singh.

• Manmohan Singh is the only Prime Minister to have also served as the Governor of RBI.
• He was the Governor of RBI from 1982-1985.

Facts to remember about RBI:

• The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934.
• The Central Office of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937. The Central Office is where the Governor sits and where policies are formulated.
• Though originally privately owned, since nationalisation in 1949, the Reserve Bank is fully owned by the Government of India.
• The Reserve Bank of India (RBI) is India's central bank, which controls the issue and supply of the Indian rupee.
• RBI is the regulator of the entire Banking in India.
• Shaktikanta Das is the current governor of RBI.
• RBI's headquarters are in Mumbai. The RBI has four zonal offices at Chennai, Delhi, Kolkata and Mumbai.

Reserve Bank of India was established in the year 1935 after the recommendation of the Royal Commission under the chairmanship of Hilton Young.

• It was set up in 1935 under the Reserve Bank of India Act,1934.
• Until the Monetary Policy Committee was established in 2016, it also controlled monetary policy in India.
• The Reserve Bank of India is India's central bank, which controls the issue and supply of the Indian rupee.
• RBI was established in Calcutta but was moved to Bombay in 1937.

The correct answer Tertiary sector.

Key Points

• Banking comes under the tertiary sector.
• The tertiary sector, also known as the service sector includes transport, banking, storage, communication, etc.
• The primary sector is the one which is dependent on nature and makes use of raw materials. It includes agriculture, fishing, mining, etc.
• The secondary sector is concerned with manufacturing, construction, processing, etc.

The correct answer is ₹2,00,000.

Key Points

• Rs. 2,00,000 is the minimum amount that can be remitted through Real Time Gross Settlement (RTGS).
• The acronym "RTGS" stands for Real-Time Gross Settlement, which can be described as a mechanism where fund transfers are settled continuously and in real-time, individually on a transaction basis (without netting).
• "Real-Time" means the delivery of instructions at the time of receipt; "Gross Settlement" means the settlement of instructions for the transfer of funds happens separately.
• The RTGS system is intended specifically for large-value transactions.

The correct answer is 137%.

Key Points

• The allocation towards health and well-being was increased by 137% over the previous year in Union Budget 2021-22. 
• According to analysts, one of the sectors that have continually been neglected is "health."
• However, in her Budget 2021-22, Union Finance Minister Nirmala Sitharaman announced a 137 percent increase in the allocation for health from the previous year's budget estimate of over Rs. 94,000 crore (Rs. 94,452 crore) and a 118 percent increase from the previous year's revised budget of over Rs. 1.02 lakh crore (Rs. 1,02,873 crore).

Important Points

• The 2.23 lakh crore spending in Budget 2021 comprises allocations to the Ministry of Ayurveda, Yoga and Naturopathy, Unani, Siddha, and Homoeopathy, as well as the Ministry of Health and Family Welfare (MoHFW), which is the country's focal ministry for healthcare (AYUSH).
• To calculate the spending for health and wellness, the Finance Minister combined the amounts given under several categories of other ministries. 

• The National Bank for Agriculture and Rural Development (NABARD) is a financial, development institution and it is headquartered in Mumbai.
• The institution deals with Operations and Policy Planning in the Agriculture sector of rural areas. 
• It was formed on 12 July 1982 on the recommendations of the B. Sivaramman Committee.
• It was established under the National Bank for Agriculture and Rural Development (NABARD) Act 1981.