Banking and Financial Awareness

Banking and Financial Awareness

Banking and Financial Awareness
| Banking and Financial Awareness |
Q.1
Recently IDRBT, an arm of the Reserve Bank of India, is going to launch a model platform for blockchain technology. Here IDRBT stands for-
A. Indian Research and development in Banking Technology
B. Board for Development and Research in Indian Banking
C. Institute for Development and Research in Banking Technology
D. Body for Development and Research in Indian Banking
E. None of the above
Answer : Option C
Explaination / Solution:

The Institute for Development and Research in Banking Technology (IDRBT), an arm of the Reserve Bank of India, is going to launch a model platform for blockchain technology.

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Q.2
The Insurance Regulatory Development Authority of India (IRDAI) is examining the possibility of allowing PE firms to buy stake in insurance companies. Here PE stands for?
A. Private equity
B. People equity
C. Personal equity
D. Private Enterprises
E. None of the above
Answer : Option A
Explaination / Solution:

The Insurance Regulatory Development Authority of India (IRDAI) is examining the possibility of allowing private equity (PE) firms to buy stake in insurance companies. Private equity is capital that is not noted on a public exchange. Private equity is composed of funds and investors that directly invest in private companies, or that engage in buyouts of public companies, resulting in the delisting of public equity.

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Q.3
Which of the following type of unemployment happens at the time of switching of the job?
A. Frictional
B. Structural
C. Cyclical
D. Disguised
E. None
Answer : Option A
Explaination / Solution:

It’s the frictional type of unemployment which happens when an individual changes from one job to another. Therefore to avoid this, individual resign from their current job only after getting employment elsewhere.

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Q.4
Which of the following is not allowed to trade in over-night borrowing market? 
A. Scheduled commercial banks 
B. Regional rural bank 
C. Cooperative banks 
D. Primary dealers
A. Only A and B
B. Only B
C. Only A, B, And D
D. OnlyA And D
E. Only C And D
Answer : Option B
Explaination / Solution:

Overnight borrowing market, also known as call market, generally involves borrowing and lending of funds for one day, and generally takes place against government securities. Although in such market, maximum period of borrowing is that for 14 days.

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Q.5
P2P lending is regulated by-
A. Ministry of Finance
B. RBI
C. SEBI
D. SIDBI
E. NABARD
Answer : Option B
Explaination / Solution:

All peer-to-peer lending (P2P) platforms will be regulated by the Reserve Bank of India (RBI). The government stated that all the P2P loan platforms will be treated as non-banking financial companies (NBFCs) and will be brought under the ambit of the banking regulator.

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Q.6
The Reserve Bank relaxed norms for issuance of rupee-denominated overseas bonds, popularly known as masala bonds, saying they will be treated as external commercial borrowings from October 3. It will major impact on-
A. FDI
B. FPI
C. Forex Reserve
D. SDR
E. Exchange Rate
Answer : Option B
Explaination / Solution:

The Reserve Bank relaxed norms for issuance of rupee-denominated overseas bonds, popularly known as masala bonds, saying they will be treated as external commercial borrowings from October 3, thereby freeing up more investments by FPIs. Masala bonds will no longer form part of the limit for FPI investments in corporate bonds. Foreign portfolio investment (FPI) consists of securities and other financial assets passively held by foreign investors. FPI does not provide the investor with direct ownership of financial assets and is relatively liquid depending on the volatility of the market.

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Q.7
The Insolvency and Bankruptcy Board of India (IBBI) handles cases using-
A. National company law tribunal
B. Debt recovery tribunal
C. Securities Appellate Tribunal
D. Only a and b
E. All the above
Answer : Option D
Explaination / Solution:

The Insolvency and Bankruptcy Board of India (IBBI) is the regulator for overseeing insolvency proceedings and entities like Insolvency Professional Agencies (IPA), Insolvency Professionals (IP) and Information Utilities (IU) in India. It handles the cases using two tribunals like NCLT (National company law tribunal) and Debt recovery tribunal. Current chairman of IBBI is M. S. Sahoo.

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Q.8
Recently US Banking Regulators Shut Down Pakistan’s which bank?
A. National Bank of Pakistan
B. Habib Bank
C. United Bank Limited
D. All the above
E. None of the above
Answer : Option B
Explaination / Solution:

Habib Bank, Pakistan’s largest private lender, has been ordered by the US banking regulators to shut down its New York office after nearly 40 years of operation. The order came after Habib Bank repeatedly failed to pay heed to concerns over possible terrorist financing and money laundering.

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Q.9
Which of the following bagged IPL media rights for Rs 16,347.50 crore over the next five years?
A. Sony Sports
B. Star India
C. Ten Sport
D. Sky Sport
E. DD Sport
Answer : Option B
Explaination / Solution:

Star India bagged IPL media rights for Rs 16,347.50 crore for the next five years.

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Q.10
Which of the following was the fastest expanding State economy in 2015-16, according to data published by CSO?
A. Arunachal Pradesh
B. Assam
C. Jammu and Kashmir
D. Sikkim
E. Bihar
Answer : Option A
Explaination / Solution:

Jammu and Kashmir and Arunachal Pradesh were the fastest expanding State economies in 2015-16, according to a new series of gross State domestic product data with 2011-12 as the base year published by the Central Statistics Office. Arunachal Pradesh’s gross State domestic product (GSDP) expanded 16.5 percent and that of Jammu and Kashmir 14.7 percent.

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