Financial Awareness One Liners - Set 1

Mentor 4 CA

Dear Readers,

Welcome to Mentor for Current Affairs. Here I am presenting Financial Awareness One Liners for upcoming bank exams like IBPS/BOB. Aspirants preparing for those exams can make use of these questions. Please do like my Facebook Page. Thank you.

1. The provision of a wide range of financial services by an organization, under one roof is called as “Universal Banking”.

2. An “Investment Banking” is a specific division of banking related to raising capital for companies, governments & other entities. It is also known as “Merchant Banking”.

3. A system of banking in which a banking organization works at more than one place is called as “Branch Banking".

4. Oudh Commercial Bank (1881) is the India’s first limited liability bank in India.

5. ICICI Bank is the first Universal Bank in India.

6. Bank of India is the first Indian Bank to open overseas branch. It established a branch in London in 1946.

7. State Bank of India has the total number of maximum branches (nearly 16,000) and holds 1st position in the world.

8. 74% is the maximum ceiling on FDI in equity of Private Sector Bank.

9. Indian Banks have the maximum foreign branches in United Kingdom (UK).

10. Finance Commission is a statutory body & It is constituted under Article 280 of Indian Constitution.

11. Money issued by the Central Bank of the country is High Powered Money.

12. Disguised Unemployment generally relates with Agriculture Sector. Disguised unemployment is a condition where productivity is low and where too many workers are filling too few jobs. It is a kind of unemployment in which some people look like being employed but are actually not employed fully.

13. Primary Deficit is obtained by Subtracting Interest Payments from fiscal deficit i.e. (Fiscal Deficit – Interest Payments).

14. Real Time Gross Settlement (RTGS) System is a funds transfer system where transfer of money take place from one bank to another on a real time and on gross basis.

15. As on date, fifteen Banking Ombudsmen have been appointed with their offices located mostly in state capitals.

16. Muhammed Yunus is a Bangladesh Banker, Economist and Nobel Peace Prize recipient. As a professor of Economics, he developed the concepts of Micro Credit / Micro Finance.

17. Amount of Interest accrued / payable is more than ₹ 10, 000 per annum. Income Tax required to be deducted by the bank at source on interest accrued and paid by them on the fixed deposit.

18. Usually the Equated Monthly Instalment (EMI), used to repay a loan or an advance, comprises of Principal and Interest.

19. Foreign Currency Non – Resident (FCNR) accounts can be opened and maintained as Recurring Deposits. In FCNR Accounts the payment of interest is effected in same currency in which deposit stands.

20. In 1957, RBI was adopted Minimum Reserve System (MRS), while issuing currency notes in India.