Banking Awareness Quiz – Set 160

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. Sovereign Gold Bond(SGB) is issued by ______ on behalf of ________.
   A. RBI, NABARD
   B. NABARD, RBI
   C. RBI, GOI
   D. GOI, RBI
   E. SEBI, GOI
   
   Answer & Explanation

   C. RBI, GOI
   Explanation:
   Sovereign Gold Bond (SGB) is issued by Reserve Bank on behalf of Government of India.
   
   
2. Sovereign Gold Bonds(SGB) are sold through ______
   A. SHCIL
   B. Post Office
   C. Scheduled Commercial Banks
   D. All of these
   E. None of these
   
   Answer & Explanation

   D. All of these
   Explanation:
   Bonds are sold through scheduled commercial banks (excluding RRBs), SHCIL offices and designated Post Offices either directly or through their agents.
   
   
3. SGB Bonds bear interest at the rate of _______ (fixed rate) per annum on the amount of initial investment.
   A. 2.75%
   B. 3.75%
   C. 4.25%
   D. 5.25%
   E. None of these
   
   Answer & Explanation

   A. 2.75%
   Explanation:
   The Bonds bear interest at the rate of 2.75 per cent (fixed rate) per annum on the amount of initial investment.
   
   
4. Interest will be credited _______ to the bank account of the investor.
   A. Semi – monthly
   B. Semi – annually
   C. Quarterly
   D. All of these
   E. None of these
   
   Answer & Explanation

   B. semi-annually
   Explanation:
   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.
   
   
5. Which of the following is the tenor of SGBs?
   A. 3 years
   B. 4 years
   C. 5 years
   D. 8 years
   E. None of these
   
   Answer & Explanation

   D. 8 years
   Explanation:
   The tenor of Sovereign Gold Bond(SGB) is 8 year.
   
   
6. Sovereign Gold Bond(SGB) will be tradable on ______
   A. SEBI
   B. RBI
   C. NABARD
   D. Stock Exchange
   E. None of these
   
   Answer & Explanation

   D. Stock Exchange
   Explanation:
   Sovereign Gold Bond(SGB) will be tradable on stock exchange.
   
   
7. Persons resident in India as defined under _______ are eligible to invest in SGB.
   A. RBI Act 1934
   B. Foreign Exchange Management Act, 1999
   C. Negotiable Instrument Act–1881.
   D. Income-tax Act, 1961
   E. None of these
   
   Answer & Explanation

   B. Foreign Exchange Management Act, 1999
   Explanation:
   Persons resident in India as defined under Foreign Exchange Management Act, 1999 are eligible to invest in SGB
   
   
8. Interest on the Bonds will be taxable as per the provisions of which of the following Act?
   A. RBI Act 1934
   B. Foreign Exchange Management Act, 1999
   C. Negotiable Instrument Act–1881.
   D. Income-tax Act, 1961
   E. None of these
   
   Answer & Explanation

   D. Income-tax Act, 1961
   Explanation:
   Interest on the Bonds will be taxable as per the provisions of the Income-tax Act, 1961
   
   
9. Who among the following is an eligible investor in SGBs?
   A. Individuals
   B. HUFs
   C. Trusts
   D. Universities
   E. All of these
   
   Answer & Explanation

   E. All of these
   Explanation:
   Eligible investors include individuals, HUFs, trusts, universities, charitable institutions, etc.
   
   
10. The customers will be issued _______ on the date of issuance of the SGB.
    A. Certificate of Deposit
    B. Commercial Paper
    C. Certificate of Holding
    D. All of these
    E. None of these
    
    Answer & Explanation

    C. Certificate of Holding
    Explanation:
    The customers will be issued Certificate of Holding on the date of issuance of the SGB.