Dear Aspirants,
Welcome to Mentor for Bank Exams. One
section that can help you bagging graceful marks in these examinations is
General Awareness, that comprises of numerous sections like Banking Awareness,
Static GK, and Current Affairs. Here is the General Awareness Quiz to help you practice with the best
of latest pattern questions for the upcoming SBI PO 2019, SBI Clerk, IBPS PO,
IBPS Clerk and other bank and Insurance Exams.
1. The maximum period for which Gilt funds can avail the reverse repo
facility is –
a) 14 days
b) 7 days
c) 21 days
d) 28 days
e) 30 days
Answer: A)
Explanation:
Gilt Funds are such that the amount
is invested in only government securities and that is why the returns are
assured but low as compared to equity linked mutual fund schemes. Gilt funds
can avail the reverse repo facility from the RBI for a maximum period of 14
days.
2. In case of the Sovereign Gold Bonds, the interest will be credited to
the account every –
a) One month
b) Three months
c) Six months
d) Nine months
e) Twelve months
Answer: C)
Explanation:
SGBs are government securities
denominated in grams of gold. They are substitutes for holding physical gold.
Investors have to pay the issue price in cash and the bonds will be redeemed in
cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of
India. The interest on these bonds is credited semi-annually to the savings
account of the bond holder.
3. Which among the following will be issued to the investors of Sovereign
Gold Bonds on the day on investment?
a) Certificate of holding
b) Certificate of deposit
c) Bond holding certificate
d) Bond deposit certificate
e) None of the above
Answer: A)
Explanation:
The customers of the Sovereign Gold
Bonds will be issued Certificate of Holding on the date of issuance of the SGB.
Certificate of Holding can be collected from the issuing banks/SHCIL
offices/Post Offices/Designated stock exchanges/agents or obtained directly
from RBI on email, if email address is provided in the application form.
4. The Inflation Indexed Bonds can be traded in which among the following
just like the government securities as described by SEBI in this regard?
a) Primary market
b) Secondary market
c) Capital equity market
d) Grey market
e) None of the above
Answer: B)
Explanation:
Daily inflation-indexed bonds (also
known as inflation-linked bonds or colloquially as linkers) are bonds where the
principal is indexed to inflation or deflation on a daily basis in terms of the
official Daily CPI or monetized daily indexed unit of account. In India, they
can be traded in the secondary market just as the other government securities.
5. The minimum net worth of the Infrastructure Finance Company should be
–
a) Rs. 100 crores
b) Rs. 200 crores
c) Rs. 300 crores
d) Rs. 400 crores
e) Rs. 500 crores
Answer: C)
Explanation:
Infrastructure Finance Companies are
such that they give loans to the infrastructure projects in the country and
according to RBI guidelines, at least 75 per cent of the assets of such
companies should be invested in infrastructure projects. The minimum net worth
of such companies should be Rs 300 crores.
6. Which among the following refers to the condition in which the
investor is not able to sell the securities because of non-availability of
buyers in the market?
a) Market risk
b) Liquidity risk
c) Capital risk
d) Interest risk
e) None of the above
Answer: B)
Explanation:
Liquidity risk is the risk stemming
from the lack of marketability of an investment that cannot be bought or sold
quickly enough to prevent or minimize a loss. With liquidity risk, typically
reflected in unusually wide bid-ask spreads or large price movements, the rule
of thumb is that the smaller the size of the security or its issuer, the larger
the liquidity risk.
7. Which among the following is the market for uncollateralized market
for borrowing of funds?
a) Capital market
b) Call money market
c) Notice money market
d) Repo market
e) Reverse repo market
Answer: B)
Explanation:
The call money market (CMM) the
market where overnight (one day) loans can be availed by banks to meet
liquidity. Banks who seeks to avail liquidity approaches the call market as
borrowers and the ones who have excess liquidity participate there as lenders.
The CMM is functional from Monday to Friday. Banks can access CMM to meet their
reserve requirements (CRR and SLR) or to cover a sudden shortfall in cash on
any particular day.
8. The period which is remaining till the date of maturity of a security
is known as –
a) Residual maturity
b) Remaining maturity
c) Rectified maturity
d) End maturity
e) Real time maturity
Answer: A)
Explanation:
Residual maturity is the time
remaining till the maturity date of the security. It is often observed in case
of investments if the investor wants to sell the same so that the surrender
value may be calculated.
9. The market in which outstanding securities are traded is known as –
a) Primary market
b) Secondary market
c) Equity market
d) Notice money market
e) None of the above
Answer: B)
Explanation:
The secondary market, also called the
aftermarket and follow on public offering is the financial market in which
previously issued financial instruments such as stock, bonds, options, and
futures are bought and sold. This is the market for outstanding securities.
10. In any market, the standard value of the trades that take place in
the market is known as –
a) Market value
b) Market capitalization
c) Market lot
d) Market volume
e) None of the above
Answer: C)
Explanation:
Market lot is used in stock futures
which are traded in lots in stock exchanges, there may be different quantity in
1 lot (i.e. 50–25k stocks) depends on stock price high price stock has less
volume and low price has high volume in 1 standard lot. It implies the standard
value of trades that take place in the market.
11. The face value for any security is also known as –
a) Real value
b) Par value
c) Adjusted value
d) Common value
e) None of the above
Answer: B)
Explanation:
Par value, in finance and accounting,
means stated value or face value. From this come the expressions at par (at the
par value), over par (over par value) and under par (under par value).A bond
selling at par is priced at 100% of face value. Par can also refer to a bond's
original issue value or its value upon redemption at maturity.
12. The maximum amount that can be insured by Deposit Insurance and
Credit Guarantee Corporation for an individual including of principal and
interest is –
a) Rs. 1 lakh
b) Rs. 2 lakhs
c) Rs. 3 lakhs
d) Rs. 4 lakhs
e) Rs. 5 lakhs
Answer: A)
Explanation:
Deposit Insurance and Credit
Guarantee Corporation (DICGC) is a subsidiary of Reserve Bank of India. It was
established on 15 July 1978 under Deposit Insurance and Credit Guarantee
Corporation Act, 1961 for the purpose of providing insurance of deposits and
guaranteeing of credit facilities. DICGC insures all bank deposits, such as
saving, fixed, current, Recurring Deposit for up to the limit of Rs. 100,000 of
each deposit in a bank.
13. The balance in small accounts should not ever exceed the amount of
………….. at any point of time.
a) Rs 50000
b) Rs 1 lakh
c) Rs 2 lakhs
d) Rs 3 lakhs
e) Rs 4 lakhs
Answer: A)
Explanation:
Basic Savings Bank Deposit Account
(BSBDA) is the standard account launched by the RBI and provided by banks that
contains basic banking services to the financially excluded population. They
have replaced the no-frills accounts in 2012. Before the BASBDA, the type of
basic bank account for promoting financial inclusion was the zero balance or
no-frill accounts which were launched in 2005. However the balance in such
accounts should not ever exceed Rs 50000 at any point of time.
14. The transaction involving sending money by migrant workers to their
families in their home countries is known as –
a) Inward remittance
b) Foreign remittance
c) Local remittance
d) Trans-money remittance
e) None of the above
Answer: B)
Explanation:
A transfer of money from a migrant
worker to their families or other individuals in their home countries is known
as the foreign remittance transaction. In many countries, remittance
constitutes a significant portion of the GDP (up to a third in some cases).
15. The first ever industrial finance and development organization set up
by the government post-independence is
a) IDFC
b) IFCI
c) IFFC
d) SFCI
e) None of the above
Answer: B)
Explanation:
IFCI, previously Industrial Finance
Corporation of India, is an Indian government owned development bank to cater
to the long-term finance needs the industrial sector. It was the first
development finance institution established by the Indian government after
independence. It was established in 1948 by the government in order to bridge
the gap in industrial finance.
