General Banking Awareness - MCQs with answers - Part III

General Banking Awareness - MCQs with answers - Part III


1. Where is NDB headquartered?

a) Beijing
b) Chengdu
c) Hong Kong
d) Shanghai

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ANSWER: d) Shanghai

The New Development Bank is multilateral development bank. It is operated by BRICS states (Brazil, Russia, India, China and South Africa).



2. Who signs on 1 Rupee currency note?

a) Governor of RBI
b) Finance Secretary
c) Finance Minister
d) The President

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ANSWER: b) Finance Secretary

The Ministry of Finance concerns itself with taxation, financial legislation, capital markets, centre and state finances, and the Union Budget.



3. Which country started first plastic notes?

a) Afghanistan
b) Argentina
c) Australia
d) Austria

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ANSWER: c) Australia

The Reserve Bank of Australia released the world's first long lasting and counterfeit resistant polymer (plastic) banknotes in 1988.



4. Who regulate monetary policy?

a) IRDA
b) RBI
c) SEBI
d) SIDBI

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ANSWER: b) RBI

Monetary policy is the process by which the monetary authority of a country controls the supply of money.



5. Whose signature does Indian currency note bear?

a) Finance Minister
b) Finance Secretary
c) RBI Governor
d) The President

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ANSWER: c) RBI Governor

The Reserve Bank derives its role in currency management from the Reserve Bank of India Act, 1934.



6. How many Deputy Governors are there in RBI?

a) 2
b) 4
c) 5
d) 10

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ANSWER: b) 4

The general superintendence and direction of the RBI is entrusted with the 21-member Central Board of Directors. They are the Governor, 4 Deputy Governors, 2 Finance Ministry representatives, 10 government-nominated directors, and 4 directors to represent local boards headquartered at Mumbai. Kolkata, Chennai and New Delhi.



7. What is the full form of TIBOR?

a) Tokyo Interbank Offered Rate
b) Tokyo-India Bureau Of Regulations
c) The Interbank Offered Rate
d) None

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ANSWER: a) Tokyo Interbank Offered Rate

It is a daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks.



8. What is the full form of FCCB?

a) Foreign Currency Convertible Bond
b) Foreign Currency Convertible Bank
c) Foreign Currency Convertible Board
d) Foreign Convertible Currency Board

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ANSWER: a) Foreign Currency Convertible Bond

Corporates issue Foreign Currency Convertible Bonds (FCCBs) to raise money in foreign currencies.



9. Which one of the following belongs to Bank Capitalization?

a) Basel II norms
b) Basel III norms
c) Basel I norms
d) Solvency II norms

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ANSWER: b) Basel III norms

Basel III or the Third Basel Accord is a global, voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity risk.



10. What is the full form of CDS?

a) Call Detail Swap
b) Corporate Debt Swap
c) Credit Default Swap
d) None

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ANSWER: c) Credit Default Swap

The first Credit Default Swap (CDS) contract was introduced by JP Morgan in 1997.


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