Banking and Financial Awareness - Online Test

Q1. Recently, which of the following bank has been added to the Financial Stability Board’s list of global systematically important banks (G-SIB) deemed ‘too big to fail’?
Answer : Option B
Explaination / Solution:

Royal Bank of Canada (RBC) has become first bank of Canada to be added to the Financial Stability Board’s list of global systematically important banks (G-SIB) deemed ‘too big to fail’. Note: Financial Stability Board is an international body based in Basel, Switzerland which co-ordinates the work of national financial authorities and international standard setting bodies.

Q2. Union Govt. has given approval for India’s membership of European Bank for Reconstruction and Development (EBRD). Where is the headquarters of European Bank for Reconstruction and Development?
Answer : Option C
Explaination / Solution:

The headquarters of European Bank for Reconstruction and Development (EBRD) is at London, United Kingdom. Union Govt. has given approval for India’s membership of European Bank for Reconstruction and Development (EBRD). This membership is expected to enhance the economic interest of our country and also strengthen India’s international profile.

Q3. The Union Finance Minister Arun Jaitley has launched a unified integrated app ‘YONO’ (You Only Need One) of which among the following Bank?
Answer : Option B
Explaination / Solution:

The Union Finance Minister Arun Jaitley has recently launched SBI’s unified integrated app ‘YONO’ (You Only Need One). ‘YONO’ is the first digital banking platform which offers customized products to customers. SBI has tied up with 60 e-commerce players to provide more facility other than banking services.

Q4. Which of the following bank has launched the blockchain-based International Payment Service for retail and corporate customers?
Answer : Option D
Explaination / Solution:

Axis Bank has launched the blockchain-based International Payment Service for retail and corporate customers.

Q5. Government has recently given its nod to set up the country’s first mega Coastal Economic Zone(CEZ). How many such CEZs are expected to set up?
Answer : Option E
Explaination / Solution:

Union Cabinet had approved setting up 14 mega CEZs under the National Perspective Plan of the Sagarmala Programme in 2016. This programme will reduce export-import and domestic trade costs substantially. It would develop port infrastructure in the country and will boost sea transport.

Q6. The Moody’s, a credit rating agency, has upgraded India’s sovereign credit rating to ‘Baa2’ from ‘Baa3’. Which of the following statement is correct regarding the status of ‘Baa2’?
Answer : Option A
Explaination / Solution:

The US-based major credit rating agency has upgraded India’s sovereign credit rating to ‘Baa2’ from ‘Baa3’ and changed its rating outlook to stable from positive as “risks to its credit profile were broadly balanced”. Note: A Credit Rating Agency is simply an institution that allocates Credit Ratings to the borrowers.

Q7. The “Bank of China” has launched its first branch of the bank in South Asia. This branch of the bank has opened in which of the following country?
Answer : Option C
Explaination / Solution:

The “Bank of China” has launched its first branch in Karachi, Pakistan. It is the first branch of the bank in South Asia. The bank would strengthen the ‘brotherly relations’ between the two countries in the financial sector.

Q8. In ‘PCA’ P stands for –
Answer : Option C
Explaination / Solution:

To ensure that banks don't go bust, RBI has put in place some trigger points to assess, monitor, control and take corrective actions on banks which are weak and troubled. The process or mechanism under which such actions are taken is known as Prompt Corrective Action, or PCA.

Q9. RBI has increased the foreign portfolio investment limit for G-secs by how much amount?
Answer : Option A
Explaination / Solution:

RBI, with effect from January 1 2018, has revised the foreign portfolio investment limit in G secs by 6400, which has raised the limit from the earlier, 2, 50,000 lakh Cr to 2, 56,400 lakh Cr. Foreign portfolio refers to the type of foreign investment where the amount of investment doesn’t exceed the 10% of the total paid up capital of the company.

Q10. India has received a loan of 250 million USD from World Bank for which of the following Project?
Answer : Option A
Explaination / Solution:

It’s for the SANKALP scheme, which stands for the “Skills Acquisition and Knowledge Awareness for Livelihood Promotion” that World Bank has sanctioned a loan of 250 million USD. This loan would be used to enhance institutional mechanism for skills development and increase access to market relevant training for the work force.