Banking Awareness for Upcoming Exams Set 12 (Sovereign Gold Bond)

This set contains banking awareness questions for various upcoming exams like SBI PO, IBPS PO, Clerk and insurance exams. This set contains questions from the topic: Sovereign Gold Bond(SGB)

  1. What is the minimum denomination for which Sovereign Gold Bond(SGB) is issued?
    A) 1 gram
    B) 2 gram
    C) 3 gram
    D) 4 gram
    View Answer
    Option A
    Explanation
    : Minimum is 1 gram (The minimum subscription limit has been reduced from 2 gram to 1 gram with the view to enlarge the subscriber base;)
  2. What is the maximum denomination for which Sovereign Gold Bond is issued in case of joint account?
    A) 1 kg
    B) 2 kg
    C) 4 kg
    D) No limit in joint account
    View Answer
    Option C
    Explanation
    : Maximum linit in SGB is 500 gms. Irrespective of single or joint account.
  3. What is the interest rate in Sovereign Gold Bond (SGB)?
    A) 2.50%
    B) 2.75%
    C) 3.00%
    D) 3.25%
    View Answer
    Option A
    Explanation
    : The Bonds bear interest at the rate of 2.50 per cent (fixed rate) per annum on the amount of initial investment. Interest will be credited semi-annually to the bank account of the investor and the last interest will be payable on maturity along with the principal.
  4. Which of the following agency cannot sell Sovereign Gold Bond (SGB)?
    A) Public Sector Banks
    B) SHCIL offices
    C) Post Offices
    D) Regional Rural Banks
    View Answer
    Option D
    Explanation
    : Bonds are sold through scheduled commercial banks (excluding RRBs), SHCIL offices and designated Post Offices either directly or through their agents.
  5. What is the tenor of bonds issued under Sovereign Gold Bond (SGB)?
    A) 5 years
    B) 3 years
    C) 8 years
    D) 10 years
    View Answer
    Option C
    Explanation
    : 8 years
  6. What is the minimum numbers of year after which premature redemption is allowed under Sovereign Gold Bond (SGB) scheme?
    A) 2 years
    B) 3 years
    C) 5 years
    D) No such limit
    View Answer
    Option C
    Explanation
    : Though the tenor of the bond is 8 years, early encashment/redemption of the bond is allowed after fifth year from the date of issue on coupon payment dates.
  7. What is the maximum limit of cash payment allowed under Sovereign Gold Bond (SGB) scheme?
    A) Rs 15,000
    B) Rs 20,000
    C) Rs 25,000
    D) Rs 30,000
    View Answer
    Option B
    Explanation
    : Payment can be made through cash (upto Rs. 20000)/cheques/demand draft/electronic fund transfer.
  8. What is the maximum limit for banks to purchase Sovereign Gold Bond (SGB)?
    A) 5 kg
    B) 10 kg
    C) 15 kg
    D) No limit
    View Answer
    Option D
    Explanation
    : There is no limit for Banks, as it will qualify for SLR.
  9. Identify the false statement.
    A) Sovereign Gold Bond (SGB) is issued by Reserve Bank on behalf of Government of India.
    B) SGB is free from issues like making charges and purity in the case of gold in jewellery form.
    C) Issuance and redemption price of Bond is fixed on the basis of the price of gold of 998 purity
    D) Sovereign Gold Bond (SGB) can be transferred/gifted to someone.
    View Answer
    Option C
    Explanation
    : Price of bond will be fixed in Indian Rupees on the basis of price for gold of 999 purity published by the India Bullion and Jewellers’ Association Ltd. (IBJA).
  10. Which of the following statement is true?
    A) Minors cannot invest in SGB.
    B) Joint Holding is not allowed under SGB.
    C) SGB can be used as collateral for loans from banks
    D) TDS is applicable on the bond
    View Answer
    Option C
    Explanation
    : Only C is true rest all are false. Correct statements
    A) Minors can invest under SGB. The application on behalf of the minor has to be made by his/her guardian.
    B) Joint Holding is allowed under SGB
    D) TDS is not applicable on SGB.

 

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17 Thoughts to “Banking Awareness for Upcoming Exams Set 12 (Sovereign Gold Bond)”

  1. Trisha

    @surajskt:disqus please explain in q.2, minimum denomination is asked, while in answer, max is given.

    1. Suraj

      typing mistake,, maximum is asked in 2nd,, again sorry for the inconvenience :))

  2. Sachin Shukla

    ty…

  3. prateek

    Interest rate of SGB is 2.5%

    1. Suraj

      yes correct!!!!!
      This one was for the old set/.. Now edited

      1. yo

        @Suraj Sir any mock available for this of updated data for the same topic on sgb

        1. Suraj

          only interest rate is changed rest all data is same.. that too now edited,, u can go through this set

          1. yo

            Thank you sir 😉

    2. yo

      What are the other changes in sgb apart from this?

      1. prateek

        No other change.

  4. Ravi Upadhyay

    dhanyawaad

    1. yes, done.. 4kg. Thankyou
      Earlier it was 500 gm .

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