Banking Awareness for Upcoming Exams Set 29

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

1. Which of the following Act governs all the foreign exchange regulations in India?
   A) FCRA
   B) FEMA
   C) FERA
   D) Foreign Trade Act
   
   View Answer

   Option B
   Explanation: Foreign Exchange Management Act, 1999
2. Who administers foreign exchange regulations in India?
   A) RBI
   B) DGFT
   C) Ministry of Finance
   D) Enforcement Directorate
   
   View Answer

   Option A
   Explanation: Reserve Bank of India
3. Which of the following is not a characteristic of foreign exchange?
   A) It is a commodity
   B) Rates are volatile
   C) It has no exact location
   D) It works 7 days in a week
   
   View Answer

   Option D
   Explanation: It works 5 days in a week
4. Foreign Exchange Market operates _____
   A) 24 hours in a day
   B) during business hours of RBI
   C) During business hours of Nationalised Banks
   D) From 10:00 AM to 5:00 PM
   
   View Answer

   Option A
   Explanation: 24 hours in a day
5. NOSTRO Account is a _____
   A) Foreign Account maintaining account with any bank in India
   B) Any Indian bank maintaining account with a bank abroad
   C) Foreign Bank maintaining account with RBI
   D) Indian account maintaining account with RBI
   
   View Answer

   Option B 
6. The electronic mechanism used by banks for transmitting financial messages across the borders is _____
   A) Telex
   B) DOTNET
   C) RTGS
   D) SWIFT
   
   View Answer

   Option D
   Explanation: The Society for Worldwide Interbank Financial Telecommunication (SWIFT) provides a network that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardized and reliable environment.
7. Who determines the commissions and charges associated with the interbank foreign exchange business?
   A) Finance Ministry
   B) RBI
   C) FEDAI
   D) Market forces of demand and supply
   
   View Answer

   Option C
   Explanation: An association of banks specializing in the foreign exchange activities in India. The Foreign Exchange Dealers Association of India, which was created in 1958, regulates the governing rules and determines the commissions and charges associated with the interbank foreign exchange business.
8. Director General of Foreign Trade is working under ____________.
   A) Ministry of Finance
   B) Ministry of Commerce
   C) Ministry of External Affairs
   D) Reserve Bank of India
   
   View Answer

   Option B
   Explanation: Directorate General of Foreign Trade (DGFT) organisation is an attached office of the Ministry of Commerce and Industry
9. For opening Saving Account under e-KYC, Account Holders authentication details are received from _____.
   A) Income Tax Department
   B) Election Commission
   C) UIDAI
   D) None of these
   
   View Answer

   Option C
10. The minimum amount of deposit into/withdrawal from currency chest is ____
    A) Rs 50,000
    B) Rs 1,00,000
    C) Rs 2,00,000
    D) Rs 5,00,000
    
    View Answer

    Option B
    Explanation: The minimum amount of deposit into/withdrawal from currency chest will be Rs.1,00,000/- and thereafter, in multiples of Rs.50,000/-.

Click here to go to Banking Awareness Quiz Section