Financial Awareness Questions

1. The definition of the priority sector was first formalized in 1972 by?
(a) Planning Commission
(b) National Development Council
(c) Reserve Bank of India
(d) Ministry of Finance, Government of India

2. Liquidity ratio is fixed by the Reserve Bank of India under the powers conferred on it by?
(a) Reserve Bank of India Act, 1934
(b) Companies Act, 1956
(c) Banking Regulation Act, 1949
(d) Special Powers given by the Union Ministry of Finance


3. The largest number of commercial banks’offices are located in?
(a) Karnataka
(b) Maharashtra
(c) Tamil Nadu
(d) Uttar Pradesh

4. Which of the following is not a member of the World Bank Group?
(a) International Bank of Reconstruction and Development
(b) International Development Association
(c) Bank of International Settlement
(d) International Finance Corporation

5. Every bank wishing to commence banking business in India is required to obtain a licence from?
(a) Government of India, Ministry of Finance
(b) Government of India, Company Law Board
(c) Reserve Bank of India
(d) Registrar of Companies

6. The Differential Rates of Interest (DRI) Scheme is operative since?
(a) 1969
(b) 1972
(c) 1975
(d) 1976

7. Which of the following is an apex-institution in the field of industrial finance?
(a) Industrial Credit and Investment Corporation of India
(b) Industrial Finance Corporation of India
(c) Industrial Development Bank of India
(d) Industrial Reconstruction Bank of India

8. When a country decides to conduct trade on favorable terms with another country for mutual benefits, this is called?
(a) FTA System
(b) MFN Status
(c) Bilateral Trade
(d) Counter Trade

9. Kisan Credit Card can be used for financing?
(a) Production needs
(b) Consumption needs
(c) Both (a) and (b)
(d) None of the above

10. When was the Imperial Bank of India nationalised?
(a) 1948
(b) 1950
(c) 1955
(d) 1969