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IBPS

Explore popular questions from Financial Awareness for IBPS. This collection covers Financial Awareness previous year IBPS questions hand picked by experienced teachers.

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Q 1. As per the RBI housing loans given by RRBs and SFBs to individuals up to what amount in metropolitan centers (with population of 10 lakh and above) and INR 25 lakh in other centers, will be eligible for classification under priority sector lending?

35 lakhs

B

30 lakhs

C

45 lakhs

D

40 lakhs

E

None of these

Explanation

The Reserve Bank of India has decided to enhance the housing loan limits for Regional Rural Banks (RRBs) and Small Finance Banks (SFBs) for eligibility under priority sector lending, in a bid to give them a level-playing field with other Scheduled Commercial Banks.
Henceforth, housing loans given by RRBs and SFBs to individuals up to ₹35 lakh in metropolitan centres (with population of 10 lakh and above) and ₹25 lakh in other centres, provided the overall cost of the dwelling unit in the metropolitan centres and at other centres does not exceed ₹45 lakh and ₹30 lakh, respectively, will be eligible for classification under priority sector lending.

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Q 2. The Modi government approved a new scheme, which assures minimum monthly pension of Rs _________ to all shopkeepers, retail traders and self-employed persons after attaining the age of 60 years.

A

Rs. 2,000

Rs. 3,000

C

Rs. 4,000

D

Rs. 5,000

E

None of these

Explanation

The newly-inducted Union Cabinet, in its first meeting, approved a mega pension scheme to provide a minimum assured pension of ₹3000 per month to all small shopkeepers and retail traders.
The new scheme is a part of Prime Minister Narendra Modi's universal social security programme. Under the scheme, all shopkeepers, retail traders and self-employed persons are guaranteed a monthly pension amount of ₹3,000 once they attain the age of 60 years. It aims at benefiting over 3 crore traders and shopkeepers.

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Q 3. Which think tank has indicated that India lost $13 billion in revenue collections due to trade mis invoicing in 2016?

A

Task Force on Financial Integrity and Economic Development

Global Financial Integrity

C

Global Development Network

D

Center for International Policy

E

None of these

Explanation

India lost a staggering $13 billion, over ₹90,000 crore, to trade misinvoicing, equivalent to 5.5% of the value of the country's total revenue collections in 2016, according to a report by the US-based think tank Global Financial Integrity.

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Q 4. How much amount has India pledged to contribute to the UN Palestine refugee agency in 2019?

A

USD 1 Million

USD 5 Million

C

USD 9 Million

D

USD 6 Million

E

None of these

Explanation

India has pledged to contribute USD 5 million in 2019 to the UN Palestine refugee agency, even as it voiced concern over the agency's difficult financial situation due to voluntary contributions from a limited donor base and called for ensuring sustained fiscal support for its work.

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Q 5. How much amount has been invested by Japanese company SoftBank in Ola Electric Mobility after which Ola Electric has become the newest unicorn of India, joining the list of companies like Flipkart, Zomato and Paytm?

A

$300 million

B

$225 million

$250 million

D

$350 million

E

None of these

Explanation

Japanese conglomerate SoftBank has invested around $250 million in Ola Electric Mobility. With this, the electric vehicle unit of ride sharing aggregator Ola has become the newest unicorn from India, at par with the likes of Flipkart, Zomato, Paytm, as well as its parent company.

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Q 6. The Bharat Sanchar Nigam Limited (BSNL) and Vihaan Networks Limited (VNL) have signed MoU to launch __________ service to provide disaster management in India.

A

“Relief 111”

B

“Relief 181”

“Relief 123”

D

“Relief 99”

E

“Relief 100”

Explanation

Domestic telecom equipment provider Vihaan Networks Limited (VNL) signed a Memorandum of Understanding (MoU) with Bharat Sanchar Nigam Limited (BSNL) to launch "Relief 123" service to provide disaster management in India.

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Q 7. Name the bank that has recently launched ‘Project Nishchay’ in partnership with the Boston Consulting Group (BCG) to accelerate its turnaround program and improve financial performance.

A

Canara Bank

B

IndusInd Bank

C

PNB

D

ICICI Bank

IDBI Bank

Explanation

IDBI Bank has launched ‘Project Nishchay’ in partnership with The Boston Consulting Group (BCG) to accelerate its turnaround programme and improve financial performance.

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Q 8. The Insolvency and Bankruptcy Board of India (IBBI) has registered National E-Governance Services Limited (NeSL) as a/an ________________ under the IBBI Regulations, 2017.

A

Service Provider

B

Technical Assistance Unit

C

Internal Utility Service

D

Artificial Intelligence Unit

Information Utility

Explanation

For the first time, the Insolvency and Bankruptcy Board of India (IBBI) registered National e-Governance Services Limited (NeSL) as an information utility. This registration is valid for five years from the date of registration, the ministry of corporate affairs said in a statement.

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Q 9. The U.S. Federal Reserve fined HSBC Holdings PLC _________ million for “unsafe and unsound practices” in its foreign exchange trading business.

$175 million

B

$150 million

C

$100 million

D

$200 million

E

None of these

Explanation

The US Federal Reserve has fined HSBC Holdings PLC and HSBC North America Holdings Inc USD175 million for "unsafe and unsound practices" in its foreign exchange trading business.

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Q 10. The Asian Development Bank has announced to increase its annual lending to India to a maximum of ______________ between 2018 and 2022 to help fasten inclusive economic transformation.

$4.0 billion

B

$4.5 billion

C

$3.8 billion

D

$3.5 billion

E

$3.2 billion

Explanation

The Asian Development Bank will increase its annual lending to India to a maximum of $4 billion between 2018 and 2022 to help fasten inclusive economic transformation towards upper middle income status.

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Q 11. Which trading individuals has SEBI decided to grant a unified license to operate in commodity derivative and equity markets?

A

Clearing Members

B

Brokers

C

NBFCs

Only a and b

E

All the above

Explanation

Market regulator SEBI decided to grant a unified licence to brokers and clearing members to operate in commodity derivative as well as equity markets.

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Q 12. SEBI has allowed celebs to endorse which products?

A

Insurance

B

Dividends

Mutual funds

D

Stocks and shares

E

None of these

Explanation

The Securities and Exchange Board of India (SEBI) has allowed celebrities to endorse mutual fund products at the industry level.

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Q 13. Which financial body has asked intermediaries and companies to make regulatory payments in digital mode?

A

BSE

B

NSE

C

RBI

SEBI

E

None of these

Explanation

Joining focuses with the government on the post-demonetization cashless drive, market regulator SEBI plans to give option to market intermediaries and companies to make digital payments. Move will help speed and ease of transactions while lowering failures due to payment gateway issues.

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Q 14. Entities under probe for serious violation in which market can seek settlement of the case if they make good on losses suffered by investors to SEBI’s satisfaction?

A

Money market

Capital market

C

Stock market

D

Share Market

E

None of these

Explanation

Entities under probe for “serious violations” in capital markets can seek settlement of case only if they make good on their losses suffered by investors as per the consent of SEBI.
• Regulations provide settlement of cases where proceedings have not been initiated
• Regulations provide for settlement of cases where proceedings are yet to be initiated

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Q 15. What does ASBA stand for?

Application Supported by Blocked Amount

B

Application Sustained by Blocked Amount

C

Application Supported by Brokerage Amount

D

Application Sustained by Brokerage Amount

E

None of these

Explanation

Application Supported by Blocked Amount facility

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Q 16. The RBI sells government securities to control the _______:

A

Flow of Finance in banks

Flow of Credit

C

Flow of Governmental Securities

D

All of these

E

None of These

Explanation

Open market operations is the sale and purchase of government securities and treasury bills by RBI or the central bank of the country.
The objective of OMO is to regulate the money supply in the economy.

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Q 17. A bond that is issued at a deep discount to its face value but pays no interest is known as

A

Appreciation bond

B

Interest bond

Zero coupon bond

D

Depreciated bond

E

None of these

Explanation

Bond issued at a discount and repaid at a face value. No periodic interest is paid. The difference between the issue price and redemption price represents the return to the holder. The buyer of these bonds receives only one payment, at the maturity of the bond.

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Q 18. Short term promissory notes are unsecured and not collateralized against securities, hence it is classified as

Commercial Paper

B

Bond

C

Debentures

D

Treasury Bills

E

None of these

Explanation

A short term promise to repay a fixed amount that is placed on the market either directly or through a specialized intermediary. It is usually issued by companies with a high credit standing in the form of a promissory note redeemable at par to the holder on maturity and therefore, doesn’t require any guarantee. Commercial paper is a money market instrument issued normally for tenure of 90 days.

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Q 19. Maximum maturity days of holding commercial paper are

A

120 days

B

170 days

270 days

D

390 days

E

None of these

Explanation

Commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable and inventories, and meeting short-term liabilities. Maturities on commercial paper rarely range longer than 270 days. Commercial paper is usually issued at a discount from face value and reflects prevailing market interest rates.

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Q 20. Exchange markets and over counter markets are considered as two types of

A

Primary market

Secondary market

C

Risky market

D

Floating market

E

None of these

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Q 21. India has signed __________ million of financial agreement with the World Bank (WB) for Odisha Higher Education Programme for Excellence and Equity (OHEPEE) project

A

$111 million

B

$115 million

$119 million

D

$123 million

E

$129 million

Explanation

India signed a loan agreement with World Bank for $119 million to improve the quality of students' equitable access to selected institutions in Odisha.

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Q 22. Which country has granted financial support of $15 million to Niger for the African Union Summit recently?

A

France

B

Japan

C

Germany

India

E

None of these

Explanation

India has for the first time granted financial support of $15 million for the African Union Summit, which was held in Niger.

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Q 23. Asian Development Bank (ADB) has approved a multi-tranche financing facility (MFF) for the second Rural Connectivity Investment Programme totaling _____ million to improve rural roads in five Indian states.

A

$200 million

B

$300 million

C

$400 million

$500 million

E

$600 million

Explanation

The Asian Development Bank’s (ADB) Board of Directors has approved a multitranche financing facility (MFF) for the Second Rural Connectivity Investment Program totaling $500 million to improve rural roads in five Indian states.

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Q 24. Name the bank that has recently launched its RuPay Select and RuPay Platinum credit cards.

A

Karur Vyasya Bank

Corporation Bank

C

Kotak Mahindra Bank

D

ICICI Bank

E

IDFC Bank

Explanation

Corporation Bank has launched its RuPay Select and RuPay Platinum credit cards.

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Q 25. Name the Payment Bank that has recently rolled out FASTag to enable electronic toll fee collection on highways across the country.

Paytm Payments Bank

B

Airtel Payments Bank

C

India Post Payments Bank

D

Fino Payments Bank

E

Aditya Birla Payment Banks

Explanation

Paytm Payments Bank is rolling out Paytm FASTag across the India, with the government mandating the use of FASTag on every new vehicle sold from December 1.