Banking & Finance Awareness – GK Questions and Answers (MCQs)

A. A report on the financial performance of a bank

B. A report containing the credit history of a borrower

C. A report on the monetary policy stance of the RBI

D. A report on the performance of the stock market

A. It does not exist; housing finance is regulated directly by the RBI

B. To regulate Housing Finance Companies (HFCs) in India

C. To provide refinancing to banks for housing loans

D. To provide direct housing loans to individuals

A. To promote digital transactions

B. To provide insurance cover to all citizens

C. To enhance financial inclusion by providing access to banking, credit, and insurance services

D. To subsidize loans for small businesses

A. Selling the bank's assets to another bank

B. Selling multiple financial products to the same customer

C. Selling products of a third-party through the bank's network

D. Selling the bank's shares to the public

A. Promissory Note

B. Bill of Exchange

C. Cheque

D. Fixed Deposit Receipt

A. To regulate the interest rates charged by banks

B. To provide a forum for the redressal of grievances against banks

C. To facilitate the recovery of bad loans

D. To promote digital banking services

A. Focusing on high-volume, standardized transactions

B. Building long-term, personalized relationships with customers

C. Offering only basic banking products

D. Primarily serving corporate clients

A. Managing the bank's profitability by optimizing income and expenses

B. Managing the risks associated with the bank's assets and liabilities, particularly interest rate and liquidity risk

C. Managing the bank's branch network and human resources

D. Managing the bank's investments in government securities

A. To provide direct loans to MSMEs

B. To offer credit guarantees to banks and financial institutions for loans extended to MSMEs

C. To regulate the interest rates charged to MSMEs

D. To provide equity funding to start-up MSMEs

A. Maximizing short-term profits at all costs

B. Ensuring transparency, accountability, and effective oversight by the board of directors

C. Concentrating decision-making power in the hands of the CEO

D. Minimizing regulatory compliance to reduce costs

A. The difference between the bank's total revenue and total expenses

B. The difference between the interest income earned on assets and the interest expense paid on liabilities, expressed as a percentage of total assets

C. The bank's profit after tax

D. The bank's return on equity

A. Cybersecurity Risk

B. Operational Risk

C. Credit Risk

D. Branch Expansion Risk

A. To regulate the banking sector

B. To oversee the auditing profession and enhance the quality of financial reporting

C. To manage the government's debt

D. To regulate the insurance industry

A. Primarily focusing on maximizing profits in the short term

B. Integrating environmental, social, and governance (ESG) factors into banking operations and lending decisions

C. Solely focusing on lending to renewable energy projects

D. Avoiding any form of risk in lending activities

A. The ratio of a bank's liquid assets to its total deposits

B. The ratio of a bank's capital to its risk-weighted assets

C. The ratio of a bank's profits to its revenue

D. The ratio of a bank's loans to its capital

A. To promote investment in the stock market

B. To educate people about various financial products and services and encourage financial inclusion

C. To regulate the fees charged by banks

D. To provide loans at subsidized rates

A. Lack of technological adoption

B. Low levels of financial inclusion

C. Rising levels of Non-Performing Assets (NPAs)

D. Over-regulation by the RBI

A. Banking activities conducted by unregulated or less regulated entities outside the traditional banking system

B. Illegal banking operations

C. Banking services offered exclusively online

D. Banking for high-net-worth individuals

A. To regulate the functioning of credit rating agencies

B. To provide a framework for the regulation of credit information companies

C. To specify the rights and obligations of credit information companies and credit institutions

D. To protect the rights of borrowers regarding their credit information

A. To raise funds for general corporate purposes

B. To finance projects with environmental benefits, such as renewable energy and energy efficiency

C. To provide tax benefits to investors

D. To fund infrastructure projects in urban areas

A. Increasing the number of physical branches

B. Automating processes, enhancing online and mobile banking services, and leveraging data analytics

C. Reducing the use of technology to focus on personalized customer service

D. Primarily targeting rural customers with digital offerings

A. The spread of financial distress from one institution or market to others

B. The rapid adoption of new financial technologies

C. Increased competition among financial institutions

D. The overall growth of the financial sector

A. To finance the personal expenses of individuals

B. To facilitate international and domestic trade transactions by providing credit and other financial instruments

C. To fund the government's import requirements

D. To speculate on currency exchange rates

A. They have an extensive network of physical branches

B. They operate entirely online without physical branches

C. They are primarily focused on serving large corporations

D. They are not subject to banking regulations

A. The percentage of the collateral's value that the lender will not advance as a loan

B. The interest rate charged on the loan

C. The processing fee for the loan

D. The penalty for early repayment of the loan

A. Low adoption of digital banking services

B. Lack of awareness among customers about online fraud

C. Increasing sophistication of cyber threats and data breaches

D. Insufficient investment in IT infrastructure by banks

A. A committee formed by the Indian government to oversee banks

B. An international committee that develops global standards for the regulation of banks

C. A committee within the RBI responsible for monetary policy

D. A committee of CEOs of major global banks

A. Money Market

B. Capital Market

C. Commodity Market

D. Labor Market

A. To replace traditional banks entirely

B. To leverage technology to provide innovative and efficient financial products and services

C. To focus solely on serving unbanked populations

D. To operate without any regulatory oversight

A. Mandating the use of chip-based debit and credit cards

B. Promoting the use of mobile wallets

C. Regulating the fees charged for digital transactions

D. Encouraging the adoption of blockchain technology