Banking Awareness Quiz – Set 51

Hello Aspirants, 
Welcome to Banking Awareness Quiz in AffairsCloud.com. Here we are creating quiz covering important questions which are common for all the bank exams and other competitive exams.

1. Security Printing and Minting Corporation of India, was incorporated under the Companies Act, 1956 with its headquarters at ______
   A. Mumbai
   B. Kolkata
   C. Bangalore
   D. New Delhi
   
   Answer & Explanation

   D. New Delhi
   Explanation:
   SPMCIL is an Indian government-owned corporation that engages in the production of bank notes, coins, non–judicial stamps, postage stamps, and other government related documents for India. It was formed in 2006 as the result of corporatisation of security presses and mints functioning under the India Ministry of Finance. It contains nine units, which include four presses, four mints, and a paper mill.
   
   
2. Security Paper Mill(SPM) located at ________
   A. Mumbai
   B. Kolkata
   C. Bangalore
   D. Hoshangabad
   
   Answer & Explanation

   D. Hoshangabad
   Explanation:
   Security Paper Mill was established in 1968 at Hoshangabad, Madhya Pradesh. It produces papers for banknotes and non–judicial stamps.
   
   
3. All coins that are minted in kolkata has _______
   A. Dot
   B. Star
   C. Diamond
   D. No mark
   
   Answer & Explanation

   D. No mark
   Explanation:
   Each coin minted in India has a special mint mark on it to identify the mint. kolkata mint has no mark under the date of the coin.
   
   
4. All coins that are minted in Hyderabad has _______
   A. Dot
   B. Star
   C. Diamond
   D. No mark
   
   Answer & Explanation

   B. Star
   Explanation:
   Each coin minted in India has a special mint mark on it to identify the mint. Hyderabad mint has a Star symbol under the date of the coin.
   
   
5. Under Section 19 of the Reserve Bank of India Act, 1934, the RBI has been prohibited from ________
   A. making loans or advances
   B. drawing or accepting bills payable otherwise than on demand
   C. allowing interest on deposits or current accounts
   D. All of the above
   
   Answer & Explanation

   D. All of the above
   Explanation:
   In terms of section 19 of Reserve Bank of India Act, 1934 the central bank may not make loans or advances, draw or accept bills payable otherwise than on demand and allow interest on deposits or current accounts.
   
   
6. Under Section 24 of the Reserve Bank of India Act, 1934 the RBI may issue bank notes for the maximum denomination of ________
   A. 5000
   B. 10000
   C. 1000
   D. 500
   
   Answer & Explanation

   B. 10000
   Explanation:
   The Section 24 of Reserve Bank of India Act 1934 states that the maximum denomination a note can be 10000.
   
   
7. Section 18 of Reserve Bank of India Act, 1934 deals with _______
   A. Selling of Government Securities
   B. Issuing & accepting of Promissory notes
   C. Emergency loans to banks
   D. Issuing of Currency notes
   
   Answer & Explanation

   C. Emergency loans to banks
   Explanation:
   Under Section 18 of RBI Act 1934, the central bank can provide deals emergency loans to banks.
   
   
8. Under Section 31 of Reserve Bank of India Act, 1934 the Government or central bank involves in the _______
   A. Selling of Government Securities
   B. Issuing & accepting of Promissory notes
   C. Emergency loans to banks
   D. Issuing of Currency notes
   
   Answer & Explanation

   B. Issuing & accepting of Promissory notes
   Explanation:
   RBI or the central government can issue and accept promissory notes that are payable on demand. But cheques that are payable on demand, can be issued by anyone in the country.
   
   
9. Section 22 of Reserve Bank of India Act, 1934 deals with _______
   A. Selling of Government Securities
   B. Issuing & accepting of Promissory notes
   C. Emergency loans to banks
   D. Exclusive rights to issue of Currency notes
   
   Answer & Explanation

   D. Exclusive rights to issue of Currency notes
   Explanation:
   Section 22 of Reserve Bank of India Act, 1934 states that RBI has the exclusive rights to issue currency notes in the country.
   
   
10. Under Section 17 of Reserve Bank of India Act, 1934 the central bank involves in _______
    A. Selling of Government Securities
    B. Issuing & accepting of Promissory notes
    C. Emergency loans to banks
    D. Issuing of Currency notes
    
    Answer & Explanation

    A. Selling of Government Securities
    Explanation:
    According to section 17 of RBI Act 1934, RBI can accept deposits from the central and state governments without interest. It can purchase and discount bills of exchange from commercial banks. It can buy or sell government securities.