IBPS PO General Awareness: Financial Awareness questions with solutions

Q1. According to the National Strategy for Financial Inclusion (NSFI) report released by the Reserve Bank of India (RBI), what is the radius within which banking access should be provided to every village in hilly areas with 500 households?

1. 3 kilometers
2. 4 kilometers
3. 6 kilometers
4. 5 kilometers

Answer: 5 kilometers

The NSFI sets a relaxed banking access norm for hilly areas with 500 households. In such areas, banking access should be available within a 5-kilometer radius.

Q2. (1) SEBI has amended the Depositories and Participants Regulations. (2) It includes an additional explanation that states that 'pledge' would also refer to 're-pledge' of securities for margin or settlement obligations. (A) SEBI wants to amend the ________ (B) By including an additional ________ (C) In spite of amending ________ (a) Only (A) (b) Only (B) (c) Only (C) (d) Both (A) and (B) (e) Both (B) and (C)

1. Only (A)
2. Only (B)
3. Only (C)
4. Both (A) and (B)
5. Both (B) and (C)

Answer: Both (A) and (B)

Both (A) and (B) are valid because the first sentence is about SEBI amending the regulations, and the second sentence explains the addition of a new clarification. Option (C) does not fit the meaning.

Q3. Advantages of mutual funds for investors are __________.

1. Reduction in transaction cost
2. Liquidity
3. Convenience and flexibility
4. All of the above

Answer: All of the above

Mutual funds help reduce transaction costs by pooling money, offer liquidity through easy redemption, and provide convenience and flexibility in investment choices. Since all three statements are true, the correct option is all of the above.

Q4. Which organization announced relaxation in norms for ‘Muni Bonds’ to help smart cities?

1. RBI
2. SEBI
3. IRDAI
4. TRAI

Answer: SEBI

Municipal bonds are securities, and changes in their issuance norms are typically announced by SEBI, the securities market regulator. Therefore, SEBI is the correct answer.

Q5. In the context of the recent SEBI circular in March 2024 regarding the simplification and streamlining of offer documents for mutual fund schemes, what does the 'S' stand for in SID?

1. Security
2. Savings
3. Scheme
4. Systematic

Answer: Scheme

In mutual fund terminology, SID stands for Scheme Information Document. Hence, the 'S' refers to 'Scheme'. This aligns with SEBI's documentation framework for mutual fund schemes.

Q6. What is the proposed new transaction limit for tax payments through UPI as per the recent RBI statement?

1. ₹1 lakh
2. ₹2 lakh
3. ₹3 lakh
4. ₹5 lakh

Answer: ₹5 lakh

The RBI proposed increasing the transaction limit for tax payments through UPI to ₹5 lakh. This is a policy move aimed at enabling larger tax-related digital payments. Hence, the correct answer is ₹5 lakh.

Q7. What was the market capitalization of Reliance Industries Ltd. in April 2022?

1. 18 lakh crores
2. 17 lakh crores
3. 19 lakh crores
4. 15 lakh crores

Answer: 19 lakh crores

In April 2022, Reliance Industries Ltd. had a market capitalization of about 19 lakh crore rupees. This matches the correct option.

Q8. When an investor takes advantage of price differences in separate markets by simultaneously buying and selling an asset, which financial strategy is being employed?

1. Speculation
2. Hedging
3. Arbitrage
4. Short Selling

Answer: Arbitrage

Arbitrage is the practice of buying and selling the same asset in different markets at the same time to profit from price differences. This is distinct from speculation, hedging, and short selling.

Q9. What is the minimum net worth required for recognition as an IAASB/RAASB under the new rules introduced by SEBI?

1. ₹100 crore
2. ₹150 crore
3. ₹200 crore
4. ₹250 crore

Answer: ₹250 crore

Under the new SEBI rules, the minimum net worth required for recognition as an IAASB/RAASB is ₹250 crore. This is the threshold specified in the question.

Q10. A cash crunch occurs when a company is running low enough on cash that it starts to affect its operations.

1. Cash crunch
2. Cash out
3. Basis Point
4. Bank Rate

Answer: Cash crunch

A cash crunch means a severe shortage of cash that begins to disrupt operations. The other options are unrelated financial terms.

Q11. What is the maximum deposit limit for investing in the National Savings Certificate (NSC) - VIII Issue?

1. ₹1 lakh
2. ₹5 lakhs
3. ₹10 lakhs
4. No upper limit

Answer: No upper limit

The National Savings Certificate (NSC) does not have an upper limit on the amount that can be invested. However, tax deduction benefits under Section 80C are subject to the overall annual limit.