Banking and Financial Awareness for SBI, IBPS RRB & NABARD Exam 2021
Banking and Financial Awareness for SBI, IBPS RRB & NABARD Exam 2021
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Banking and Financial Awareness for Bank PO Exams 2021

Current Banking Awareness PDF 2021. Important Banking and Financial Awareness Questions for SBI Clerk Mains, IBPS RRB & NABARD Grade-A Exam. If you are preparing for upcoming SBI Clerk Mains, IBPS PO/Clerk, and IBPS RRB Officer Scale-I and Office Assistant, NABARD Grade-A 2021, you will come across a section on Banking Awareness. Here we are providing you “Banking and Financial Awareness Questions” for upcoming Banking and Insurance Exams based on the latest pattern for your daily practice.

Banking and Financial Awareness Questions will help you learn concepts on important topics in Banking Awareness Section. These Banking and Financial Awareness Questions are also important for other banking exams such as IBPS PO, IBPS Clerk, SBI Clerk, IBPS RRB Officer, IBPS RRB Office Assistant, IBPS SO, SBI SO, NABARD Grade-A, RBI Assistant, LIC, and other competitive exams.

Banking and Financial Awareness Questions 2021

1. Under the call money market, funds are transacted on what basis?

A. 15 days basis
B. 7 days basis
C. Overnight basis
D. One Day basis
E. None of these

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Correct Answer – C. Overnight basis

Explanation: The call/notice money market forms an important segment of the Indian Money Market. Under call money market, funds are transacted on an overnight basis and under notice money market, funds are transacted for a period between 2 days and 14 days.

2. Name the facility under which scheduled commercial banks can borrow additional amount of overnight money from the Reserve Bank by dipping into their Statutory Liquidity Ratio (SLR) portfolio up to a limit at a penal rate of interest?

A. Bank Rate
B. Reverse Repo Rate
C. Repo Rate
D. Marginal Standing Facility (MSF)
E. None of these

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Correct Answer – D. Marginal Standing Facility (MSF)

Explanation:Marginal Standing Facility is a new Liquidity Adjustment Facility (LAF) window created by Reserve Bank of India in its credit policy of May 2011. MSF is the rate at which the banks are able to borrow overnight funds from RBI against the approved government securities.

3. Market Stabilisation Scheme (MSS), the instrument for monetary management was introduced in?

A. 2007
B. 2006
C. 2005
D. 2004
E. None of these

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Correct Answer –D. 2004

Explanation: Market Stabilization scheme (MSS) is a monetary policy intervention by the RBI to withdraw excess liquidity (or money supply) by selling government securities in the economy. The MSS was introduced in April 2004.

4. Name the Indian public sector bank, which was launched Working Capital demand Loan for agriculture sector (WCDL-Agri).

A. PNB
B. State Bank of India
C. Indian Overseas Bank
D.  Indian Bank
E. None of these

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Correct Answer – C. Indian Overseas Bank

Explanation: Public sector lender Indian Overseas Bank (IOB) was launched an exclusive credit facility for agriculture and allied activities. Titled WCDL-Agri (working capital demand loan – agriculture), these loans were available to all existing borrowers enjoying cash credit/OD facilities, from sectors such as agriculture, poultry, dairy, fisheries and allied activities.

5. Name the negotiable money market instrument which is issued in dematerialised form or as a Usance Promissory Note against funds deposited at a bank or other eligible financial institution for a specified time period?

A. Call money
B. Commercial Paper (CP)
C. Cash Management Bills
D. Certificate of Deposit (CD)
E. None of the above

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Correct Answer –D. Certificate of Deposit (CD)

Explanation: A certificate of deposit (CD) is a product offered by banks and credit unions that offers an interest rate premium in exchange for the customer agreeing to leave a lump-sum deposit untouched for a predetermined period of time.

6. The cheap credits through appropriately designed loans for poor and low-income households and small entrepreneurs are called?

A. finance inclusion
B. current inclusion
C. Financial inclusion
D. savings inclusion
E. None of these

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Correct Answer – C. Financial inclusion

Explanation: Financial inclusion is an effort to make everyday financial services available to more of the world’s population at a reasonable cost.

7. Indian Mutual Fund industry is well regulated by__________?

A. SEBI
B. RBI
C. Finance ministry
D. Particular State governments
E. None of these

  1. Power Grid Corporation of India Limited

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Correct Answer – A. SEBI

Explanation: Mutual funds in India are regulated and monitored by the Securities and Exchange Board of India (SEBI), which strives to protect the interests of investors.

8. An investment company that issues a fixed number of shares that can only be resold in the open stock market is called _____ fund.

A.  Semi-open -end
B. Semi Closed-end
C. Open- end
D. Closed-end
E. None of these

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Correct Answer – D. Closed-end

Explanation: A closed-end fund is a portfolio of pooled assets that raises a fixed amount of capital through an initial public offering (IPO) and then lists shares for trade on a stock exchange. Like a mutual fund, a closed-end fund has a professional manager overseeing the portfolio and actively buying and selling holding assets.

9. The government has decided to extend the Atmanirbhar Bharat Rojgar Yojana from 30th of June, 2021 to ____________.

A. 30th June, 2022
B. 31st December, 2022
C. 1st January, 2022
D. 31st March, 2022
E. None of these

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Correct Answer –D. 31st March, 2022

Explanation: The government has decided to extend the Atmanirbhar Bharat Rojgar Yojana from 30th of June, 2021 to 31st of March, 2022.

10. RBI has decided to open up which of the following Centralised Payment Systems (CPS) facility for payment system operators?

A. National Electronic Fund Transfer (NEFT)
B. Real Time Gross Settlement (RTGS)
C. Cheque Truncation System (CTS)
D. Both A & B
E. Both B & C

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Correct Answer – E. Both B & C

Explanation: In a major move in the online payments segments, the Reserve Bank of India (RBI) has decided to allow payment system operators to take direct membership of Centralised Payment Systems (CPS), such as RTGS and NEFT. Membership in Centralised Payment Systems (CPS) RTGS and NEFT for entities other than banks are so far limited to banks, with a few exceptions, such as specialized entities like clearing corporations and select development financial institutions.

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