[Solved] Banking MCQ [Free PDF] - Objective Question Answer for Banking Quiz - Download Now! (2024)

1. State Bank of India (SBI)
2. Canara Bank
3. City Union Bank Limited
4. All of the Above

The correct answer isAll of the Above

In News

• State Bank of India (SBI),Canara Bank, andCity Union Bank Limitedfaced penalties from the Reserve Bank of India (RBI) for regulatory violations in Feb 2024.

Key Points

• The penalties imposed by the RBI were based on deficiencies in regulatory compliance.
• State Bank of India (SBI) faced a penalty of Rs 2 crore for contravening norms related to the Depositor Education Awareness Fund Scheme, 2014.
• Canara Bank was penalized for non-compliance with certain directions, amounting to Rs 32.30 lakh.
• City Union Bank Limited faced penalties of Rs 66 lakh for non-compliance with directions related to 'Prudential Norms on Income Recognition, Asset Classification and Provisioning Pertaining to Advances' and 'Know Your Customer Directions.'
• Ocean Capital Market Ltd, a non-banking financial company, was fined Rs 16 lakh for non-compliance with certain provisions.
• The penalties do not imply judgment on the validity of transactions or agreements with customers, as stated by the RBI.

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1. Increased the repo rate to 6.5%
2. Reduced the repo rate to 6.5%
3. Maintained the repo rate at 6.5%
4. Reducedthe repo rate to 4.5%
5. Increased the repo rate to 4.5%

The correct answer isMaintained the repo rate at 6.5%

In News

• The Monetary Policy Committee decided to maintain the repo rate at 6.5%.

Key Points

• The committee, with a majority vote of 5:1, opted to remain focused on the "withdrawal of accommodation," indicating a cautious stance towards monetary policy.
• The decision to keep the repo rate unchanged suggests that the RBI is still grappling with persistently high inflation, particularly in essential food items.
• The central bank's decision reflects its assessment of the economic landscape, which includes factors such as global economic uncertainties and the emergence of new flashpoints.
• This marks the sixth consecutive policy review where the repo rate has remained unchanged at 6.5%, indicating a continuation of the RBI's monetary policy stance.
• Professor Jayanth R. Varma, an external member of the MPC, voted to reduce the policy repo rate by 25 basis points and advocated for a change in stance to neutral, suggesting differing views within the committee.

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1. Increased the repo rate by 6.5%
2. Reduced the repo rate to 6.5%
3. Maintained the repo rate at 6.5%
4. Decreased the repo rate by 4.5%

The correct answer isMaintained the repo rate at 6.5%

In News

• The Monetary Policy Committee decided to maintain the repo rate at 6.5%.

Key Points

• The committee, with a majority vote of 5:1, opted to remain focused on the "withdrawal of accommodation," indicating a cautious stance towards monetary policy.
• The decision to keep the repo rate unchanged suggests that the RBI is still grappling with persistently high inflation, particularly in essential food items.
• The central bank's decision reflects its assessment of the economic landscape, which includes factors such as global economic uncertainties and the emergence of new flashpoints.
• This marks the sixth consecutive policy review where the repo rate has remained unchanged at 6.5%, indicating a continuation of the RBI's monetary policy stance.
• Professor Jayanth R. Varma, an external member of the MPC, voted to reduce the policy repo rate by 25 basis points and advocated for a change in stance to neutral, suggesting differing views within the committee.

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1. 100 shares for every 155 shares held
2. 1 share for every 2 shares held
3. 10 shares for every 15 shares held
4. 155 shares for every 100 shares held
5. None of the above

The correct answer is155 shares for every 100 shares held.

In News

• An IDFC shareholder received 155 shares for every 100 shares held under the proposed reverse merger scheme with IDFC First Bank

Key Points

• Under the proposed reverse merger scheme, an IDFC shareholder will receive 155 shares for every 100 shares held in the bank.
• Both stocks have a face value of Rs 10 each.
• The Reserve Bank of India (RBI) has given its approval for the reverse merger of IDFC Ltd with its banking subsidiary IDFC First Bank.
• As part of the composite scheme of amalgamation, IDFC Financial Holding Company (IDFC FHCL) would first merge with IDFC, and then IDFC would merge into IDFC First Bank Ltd.
• The scheme is subject to other statutory and regulatory approvals, including those from the National Company Law Tribunal and the respective shareholders and creditors of the companies involved under applicable laws.

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1. 100 shares for every 155 shares held
2. 1 share for every 2 shares held
3. 10 shares for every 15 shares held
4. 155 shares for every 100 shares held

The correct answer is155 shares for every 100 shares held.

In News

• An IDFC shareholder received 155 shares for every 100 shares held under the proposed reverse merger scheme with IDFC First Bank

Key Points

• Under the proposed reverse merger scheme, an IDFC shareholder will receive 155 shares for every 100 shares held in the bank.
• Both stocks have a face value of Rs 10 each.
• The Reserve Bank of India (RBI) has given its approval for the reverse merger of IDFC Ltd with its banking subsidiary IDFC First Bank.
• As part of the composite scheme of amalgamation, IDFC Financial Holding Company (IDFC FHCL) would first merge with IDFC, and then IDFC would merge into IDFC First Bank Ltd.
• The scheme is subject to other statutory and regulatory approvals, including those from the National Company Law Tribunal and the respective shareholders and creditors of the companies involved under applicable laws.

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Banking Question 6

1. Mahbub Khan
2. Apara Sen
3. Syed-ul-Haq
4. Mahbub-ul-Haq and Amartya Sen

Banking Question 6 Detailed Solution

• Human Development Indexis a statistical tool used to measure a country's overall achievement in its social and economic dimensions.
• It was developed byPakistani economist Mahbub-ul-Haq and Indian economist Amartya Sen.
• Every year United Nation Development Program (UNDP) ranks countries based on the HDI report.

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Banking Question 7

1. Article 88
2. First Schedule
3. Article 352
4. Seventh Schedule

Banking Question 7 Detailed Solution

• The correct answer is option 4, i.e.,Seventh Schedule.
• Seventh Scheduleof the Constitution of India provides Union List, State List, and Concurrent List.
• The Seventh Schedule talks about theallocation of powers and functions between Union & States.
• Article 246 under the Seventh schedule consists of three lists: Union List, State List, and Concurrent List.
• The Union Listoriginally comprises97 subjects. Now, it has 100 subjects
• The State List comprises of 61items in which the respective State Government has the solepowers to legislate.
• The Concurrent List comprises of 52items in which both Central and State Governments jointly have the powers to legislate.

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Banking Question 8

1. Andhra Pradesh
2. Telangana
3. Uttar Pradesh
4. Karnataka

Banking Question 8 Detailed Solution

India produced some 180 Lakh tonnes of Mango with major production in Uttar Pradesh.

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Banking Question 9

1. 61%

2. 49%

3. 41%

4. 55%

Banking Question 9 Detailed Solution

The Correct Answer is Option 4 i.e55%.

• According to the World Bank, 55 percent of new bank accounts, opened globally during the period 2014-2017, are from India.
• World Bank GlobalFindex 2017 stated that Pradhan Mantri Jan Dhan Yojana (PMJDY) has resulted in theopeningfromIndiaof 55%of allnew bank accounts in the world during the period 2014-2017.
• As per the World Bank Global Findex Report, the percentage of adult bank account holders in India increased to 80% in 2017 as compared to 53% in 2014.

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Banking Question 10

1. 2004-2005
2. 2011-2012
3. 2005-2006
4. 2010-2011

Banking Question 10 Detailed Solution

• The base financial year for the calculation of the all India Index of Industrial Production (IIP) is2011-2012.
• IIP index shows the performance ofdifferent industrial sectors of the economy of India.
• It is published on a monthly basis by CSO (Central Statistical Organisation).

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Banking Question 11

1. Rate at which RBI borrows money from foreign banks
2. Rate at which RBI borrows money from commercial banks
3. Rate at which commercial banks borrows money from RBI
4. Rate at which commercial banks borrows money from foreign banks

Banking Question 11 Detailed Solution

The correct answer isRate at which RBI borrows money from commercial banks.Key Points

• Reverse repo rate:
  • It is the rate at which the Reserve Bank of India (RBI) borrows money from commercial banks.
  • It is a tool used by RBI to control the money supply in the economy.
  • Repo rate is usually higher than the Reverserepo rate.
  • A higher reverse repo rate means commercial banks will earn higher returns by lending to RBI, leading to a decrease in lending to customers and a decrease in money supply in the economy.

Additional Information

• Option 1 is incorrect as RBI does not borrow from foreign banks, it only lends to them.
• Option 3 is the repo rate, not the reverse repo rate.
• Option 4 is incorrect as commercial banks borrow from RBI, not foreign banks.
• Reverse repo rate is an important tool in monetary policy as it helps RBI control inflation and maintain economic stability.

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Banking Question 12

1. HDFC Bank
2. Yes Bank
3. Bank Of Baroda
4. SBI Bank

Banking Question 12 Detailed Solution

The correct answer isYes Bank.

Key Points

• YesBankhas announced the launch of an annual startup enabler program,YES BANK Agri Infinity.
• It seeks to co-develop digital financial solutions for the food and agriculture ecosystem by mentoring entrepreneurial ventures in the field.
• As part of the agri-fintech enabler program, early as well as growth-stage startups are invited to apply with their proposals.

Additional Information

• Yes Bank Limitedis an Indian private sector bank headquartered inMumbai, India.
• It was founded byRana Kapoor and Ashok Kapur in 2004.

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Banking Question 13

1. Bank Rate
2. Cash Reserve Ratio
3. Reverse Repo Rate
4. Repo Rate

Banking Question 13 Detailed Solution

The correct answer is Bank Rate.Key Points

• Bank Rate is the rate at which the Reserve Bank of India (RBI) is ready to buy or rediscount bills of exchange or other commercial papers from commercial banks or financial institutions.
• The Bank Rate is used by the RBI to control the money supply in the economy and to stabilize the inflation rate.
• The Bank Rate is also known as the Discount Rate, and it is the highest rate at which the RBI lends money to commercial banks.
• The other options mentioned in the question are also important tools used by the RBI to regulate the economy.

Additional Information

• Cash Reserve Ratio (CRR) is the percentage of deposits that banks have to maintain with the RBI.
• Repo Rate and Reverse Repo Rate are the rates at which banks borrow money from or lend money to the RBI, respectively.

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Banking Question 14

1. Yes Bank
2. ICICI Bank
3. Kotak Mahindra Bank
4. Axis Bank
5. HDFC Bank

Banking Question 14 Detailed Solution

The correct answer is ICICI Bank.

Key Points

• ICICI Bank and GIFT SEZ (special economic zone) have signed an MoUto promote GIFT SEZ to Indian as well as global businesses including IT and financial services.
• GIFT SEZ is the country's first International Financial Services Centre (IFSC) which is being developed as a global financial services hub.
• It is situated in Ahamadabad, Gujarat.

Important Points

• Both of them will jointly work towards attracting global investors and capital market firms to set up operations in GIFT SEZ.
• They will act in a coordinated manner to promote GIFT SEZ as a hub for wealth management business.
• Another objective of the MoU is to promote GIFT SEZ as the destination of choice for offering competitive regime for setting up capital markets business among industry stakeholders such as alternate investment fund (AIF), portfolio management services (PMS), broking entities, venture capital, private equity funds and custodians.

• Further, the bank and GIFT SEZ will collaborate on the preparation of literature and reports to address the requirements of global investors, institutions, and businesses.

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Banking Question 15

1. Negative growth of 8.6%
2. Negative growth of 7.5%
3. Positive growth of 3.4%
4. Positive growth of 0.6%

Banking Question 15 Detailed Solution

The correct answer isPositive growth of 0.6%.

• Positive growth of 0.6%was the contribution of the manufacturing sector in India’s GDP in Q2 of 2020-21.

Additional Information

• The Indian economy is expected to witness a real GDP expansion of9.2%in 2021-22 after contracting in 2020-21.
• The GDPcontracted by7.3%in 2020-21.
• The revenue receipts of the central government fromAprto Nov 2021have gone up by67.2%(YoY).
• India’s Consumer Price Index inflation stood at5.6%YoY in December 2021.
• Production Linked Incentive Scheme was approved for13 sectors.

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