Financial Awareness Questions and Answers

1. As per Section 8 of the Reserve Bank of India Act, 1934, the Central Government has nominated whom, as directors on the Central Board of the Reserve Bank of India for a period of four years ?
a) Dr. Rajiv Kumar
b) Dr. Ashok Gulati
c) Shri Manish Sabharwal
d) All the above
e) None of these

2. Effective February 20, 2017, the limits on cash withdrawals from the Savings Bank accounts will be enhanced to how much per week? (from the current limit of Rs.24,000 per week)
a) Rs.1,00,000
b) Rs. 50,000
c) Rs.75,000
d) Rs.60,000
e) None

3. The definition of 'counterfeiting' is given in which of the following?
a) In the Indian Penal Code. IPC covers currency notes issued by a foreign government authority as well.
b) Indian Contract Act
c) Negotiable Instruments Act
d) Transfer of Property Act
e) None

4. What is a credit card?
a) A plastic card which contains identification information
b) It authorizes named person to charge purchases /services
c) It charges for which person will be billed periodically
d) All the above
e) None of these

5. What is the purpose of credit scoring for banks?
a) Price for risk + speed up credit decisions and disbursement
b) Prepare customer information reports
c) To know the reason about differentiation in rates of interest
d) Any person can access his / her credit report directly
e) None of these

6. A 'derivative' has traditionally been defined aswhat ?
a) Contract whose value is derived from and is dependent on the value of an underlying asset, such as, a commodity, currency, or security.
b) Share
c) Bank Note
d) Coin
e) None

7. Which of the following are called as 'Bretton Woods institutions'?
a) IMF and World Bank
b) ILO
c) WTO
d) I C J
e) IAEA

8. "Poverty anywhere is a threat to prosperity everywhere". Where it was declared ?
a) League of Nations
b) This was a very important declaration by the International Labor Organization in their convention held at Philadelphia in the year 1944, which had a very significant and remarkable sentence.
c) United Nations
d) USSR
e) None

9. FERA in India has been replaced by which of the following ?
a) FEMA
b) REER
c) NEER
d) NSE
e) None

10. What is International Banking?
a) Banking activities mainly among the foreign countries persons
b) Visiting foreign countries
c) Helping foreign nations
d) Business in Indian Government Offices
e) None of these

11. What is UPI?
a) Unified Payments Interface (UPI). It is an instant payment system developed by the National Payments Corporation of India (NPCI), an RBI regulated entity.
b) UPI is built over the IMPS infrastructure and allows you to instantly transfer money between any two parties' bank accounts
c) Both (a) and (b)
d) Internet chatting
e) None of these

12. What is a Payment Address?
a) Payment Address is an Address which uniquely identifies a person's bank a/c.
b) Post address
c) e-mail address
d) SMS
e) None of these

13. How is better UPI ?
a) Provides for a P2P Pull functionality
b) Simplifies Merchant Payments
c) Single APP for money transfer
d) Single click two factor authentication
e) All the above

14. What are the different channels for transferring funds using UPI?
a) Transfer through Virtual ID
b) Account Number + IFSC
c) Mobile Number + MMID
d) Aadhaar Number; and Collect / Pull money basis Virtual ID
e) All the above