General Awareness Quiz for Bank Mains Exams 2024-06th february

Q1. When was the Financial Stability and Development Council (FSDC) officially set up by the government with a view to strengthening and institutionalizing the mechanism for maintaining financial stability?

(a) 2010
(b) 2005
(c) 2012
(d) 2008
(e) 2015

Q2. Under what circumstances can partial withdrawal from a Public Provident Fund (PPF) account be made before the end of the sixth financial year?

(a) For higher education expenses
(b) In case of a medical emergency
(c) Upon the death of the account holder
(d) For the purchase or construction of a house
(e) No partial withdrawals are allowed before the end of the sixth financial year

Q3. Which of the following services is not typically offered by credit bureaus?

(a) Creating credit reports
(b) Calculating credit scores
(c) Offering legal advice on financial matters
(d) Providing credit information to financial institutions
(e) Assisting in identity theft protection

Q4. How is the interest on a fixed deposit typically taxed?

(a) It is exempt from tax
(b) It is taxed as capital gains
(c) It is taxed at a special fixed deposit rate
(d) It is added to the depositor’s income and taxed according to their income tax slab
(e) It is subject to a flat tax rate irrespective of the depositor’s income

Q5. Regarding the capital structure of NABARD, which of the following statements is true?

(a) Initially, the entire capital was held by the private sector.
(b) Currently, the entire capital is held by the Government of India.
(c) The Reserve Bank of India holds the majority of the capital.
(d) State Governments jointly hold the capital with the Central Government.
(e) Foreign investors hold a significant portion of the capital.

Q6. What is the minimum paid-up equity capital requirement for Small Finance Banks, as per RBI guidelines?

(a) ₹100 crore
(b) ₹200 crore
(c) ₹500 crore
(d) ₹50 crore
(e) ₹300 crore

Q7. The primary objective of MUDRA Bank is to provide refinancing to small and micro-business units. Which scheme was launched by the government to provide loans under MUDRA Bank?

(a) Stand-Up India Scheme
(b) Start-Up India Scheme
(c) Pradhan Mantri Jan Dhan Yojana
(d) Pradhan Mantri Mudra Yojana
(e) Pradhan Mantri Rozgar Yojana

Q8. What does ‘Substandard Asset’ signify in the context of NPAs?

(a) An asset that has remained NPA for a period less than or equal to 12 months
(b) A loan with high profitability
(c) An asset that has been written off completely
(d) A high-value loan given to corporate entities
(e) An asset with a fluctuating market value

Q9. How do Self-Help Groups (SHGs) typically manage their financial operations?

(a) Through government funding
(b) By pooling member savings and contributions
(c) Relying solely on non-governmental organization (NGO) donations
(d) Issuing shares to the public
(e) Using profits from corporate sponsorships

Q10. Indian Banks’ Association was formed with the objective of promoting and developing sound and progressive banking principles, practices, and conventions in the country. When was the Indian Banks’ Association (IBA) established?

(a) 1946
(b) 1955
(c) 1969
(d) 1980
(e) 1991

Solutions

S1. Ans. (a)
Sol. With a view to strengthening and institutionalizing the mechanism for maintaining financial stability, enhancing inter-regulatory coordination and promoting financial sector development, the Financial Stability and Development Council (FSDC) was set up by the Government as the apex level forum in December 2010.

S2. Ans. (e)
Sol. No partial withdrawals are allowed before the end of the sixth financial year.
PPF rules state that partial withdrawals are only permissible from the seventh financial year onwards.
This rule is in place to encourage long-term savings and prevent premature withdrawal.
The rationale behind the PPF scheme is to provide a long-term savings avenue, which is why such restrictions on early withdrawals exist.

S3. Ans. (c)
Sol. Credit bureaus do not typically offer legal advice on financial matters.
Their services primarily include creating credit reports, calculating credit scores, providing credit information to lenders, and assisting in identity theft protection.

S4. Ans. (d)
Sol. The interest earned on a fixed deposit is typically added to the depositor’s total income and is taxed according to their applicable income tax slab.
This means that the tax rate on FD interest income varies depending on the depositor’s total income and the tax laws in their country. There is no special or separate tax rate for interest from fixed deposits.

S5. Ans. (b)
Sol. Initially, NABARD’s capital was held by both the Government of India and the Reserve Bank of India.
However, as of 1st January 2013, the entire capital is owned by the Government of India.
This change signifies the government’s commitment to ensuring adequate funding for agriculture and rural development.

S6. Ans. (b)
Sol. The correct minimum paid-up equity capital requirement for Small Finance Banks, as per the Reserve Bank of India’s guidelines, is ₹200 crore.
This increase from the initial requirement of ₹100 crore is designed to ensure that these banks have a robust capital base to support their operations, especially in the context of their focus on small and marginal customers and micro and small enterprises.

S7. Ans. (d)
Sol. The Pradhan Mantri Mudra Yojana (PMMY) was launched to provide loans under MUDRA Bank. Under this scheme, loans are given to micro and small enterprises in three categories: ‘Shishu’ (loans up to ₹50,000), ‘Kishore’ (loans above ₹50,000 and up to ₹5 lakh), and ‘Tarun’ (loans above ₹5 lakh and up to ₹10 lakhs).

S8. Ans. (a)
Sol. In the context of NPAs, a ‘Substandard Asset’ is a classification used for a loan or advance that has been a Non-Performing Asset for a period of less than or equal to 12 months.
This classification indicates a loan that shows signs of weakness due to the non-payment of interest or principal but has not been non-performing long enough to be fully categorized as doubtful or loss.

S9. Ans. (b)
Sol. Self-help groups (SHGs) typically manage their financial operations by pooling savings and contributions from their members.
This collective savings mechanism forms the basis of the group’s microfinancing activities, allowing members to lend and borrow money within the group. This approach promotes financial discipline, savings, and credit at a local level.

S10. Ans. (a)
Sol. The Indian Banks’ Association was established in 1946.
It was formed with the objective of promoting and developing sound and progressive banking principles, practices, and conventions in the country.
Its formation also aimed at maintaining standards of efficiency and professionalism within the banking industry.