Banking Awareness for Upcoming Exams Set 32

This set contains banking awareness questions for various upcoming exams like SBI PO, IBPS PO, Clerk, NIACL Assistant and various other competitive exams.

1. What is the difference between the value of money and the cost to produce and distribute it called?
   A) Mercantile
   B) Pecuniary
   C) Seigniorage
   D) commissary
   
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   Option C
   Explanation: Seigniorage is the difference between the value of money and the cost to produce it — in other words, it’s the economic cost of producing a currency within a given economy or country.
2. What is a green index?
   A) instrument to measure the nation’s wealth according to GNP per capita
   B) instrument to assess the environmental performance of MFIs
   C) instrument to measure the nation’s wealth according to GDP per capita
   D) instrument to measure the nation’s wealth in terms of coverage area of forest
   
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   Option B
   Explanation: The Green Index aims to support environmental responsibility and environmental management within the microfinance and, more broadly, the inclusive finance sector.
3. Structure of Basel II norm is based on how many pillars?
   A) Five
   B) Two
   C) Four
   D) Three
   
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   Option D
   Explanation: Three Pillars
4. The Twenty Point Programme was launched for the first time in which year?
   A) 1950
   B) 1975
   C) 1982
   D) 2006
   
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   Option B
   Explanation: Initially launched in 2975, restructured in 1982 and again in 1986 then again in 2006
5. SDR is a monetary unit of which of the following organization?
   A) World Bank
   B) IMF
   C) ADB
   D) RBI
   
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   Option B
   Explanation: Special Drawing Right (SDR) is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves.
6. Which of the following organisations issues the rules of global trade?
   A) World Bank
   B) DGFT
   C) World Trade Organisation
   D) None of these
   
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   Option C
7. What does A stands for in ACH?
   A) Account
   B) Automated
   C) Acceptance
   D) Accretion
   
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   Option B
   Explanation: Automated Clearing House
8. _______ is the umbrella organisation for all retail payment systems in India.
   A) CCIL
   B) RBI
   C) Clearing House
   D) NPCI
   
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   Option D
   Explanation: National Payments Corporation of India (NPCI) is an umbrella organization for all retail payments system in India.
9. A bond that is issued at a deep discount to its face value but pays no interest is known as?
   A) Oblivion Bond
   B) Junk Bond
   C) Zero-Coupon Bond
   D) Bottom Bond
   
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   Option C
   Explanation: A zero-coupon bond is a bond that makes no periodic interest payments and is sold at a deep discount from face value.
10. The amount of money that an individual or business must pay for an insurance policy is called?
    A) Assurance
    B) Earning
    C) Premium
    D) Annuity
    
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    Option C
    Explanation: Premium