Banking Awareness Quiz – Set 183

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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. 1. 1. Section 4 of Negotiable Instruments Act, 1881 deals with _____
         A. Bill of Exchange
         B. Cheque
         C. Promissory Note
         D. Negotiable Instruments
         E. None of these
         
         Answer & Explanation

         C. Promissory Note
         Explanation:
         Section 4 of Negotiable Instruments Act, 1881 deals with Promissory Note
         
         
      2. Which of the following section of Reserve Bank of India Act, 1934 defines the business of RBI?
         A. Section 17
         B. Section 18
         C. Section 22
         D. Section 24
         E. Section 26
         
         Answer & Explanation

         A. Section 17
         Explanation:
         Section 17 of Reserve Bank of India Act, 1934 defines the business of RBI
         
         
      3. Which of the following section of Reserve Bank of India Act, 1934 deals with emergency loans to Banks?
         A. Section 17
         B. Section 18
         C. Section 22
         D. Section 24
         E. Section 26
         
         Answer & Explanation

         B. Section 18
         Explanation:
         Section 18 of Reserve Bank of India Act, 1934 deals with emergency loans to Banks.
         
         
      4. Which of the following section of Reserve Bank of India Act, 1934 states the RBI must conduct the banking affairs for the central government and manage public debt?
         A. Section 17
         B. Section 18
         C. Section 22
         D. Section 24
         E. Section 21
         
         Answer & Explanation

         E. Section 21
         Explanation:
         The Section 21 of Reserve Bank of India Act, 1934 states the RBI must conduct the banking affairs for the central government and manage public debt.
         
         
      5. The _______ of Reserve Bank of India Act, 1934 says that only RBI has the exclusive rights to issue currency notes in India.
         A. Section 17
         B. Section 18
         C. Section 22
         D. Section 24
         E. Section 21
         
         Answer & Explanation

         C. Section 22
         Explanation:
         The Section 22 says that only RBI has the exclusive rights to issue currency notes in India.
         
         
      6. The Section 24 of Reserve Bank of India Act, 1934 states that the maximum denomination of a note can be ________
         A. Rs. 15000
         B. Rs. 10000
         C. Rs. 5000
         D. Rs. 2000
         E. None of these
         
         Answer & Explanation

         C. UPI
         Explanation:
         The Section 24 of Reserve Bank of India Act, 1934 states that the maximum denomination of a note can be Rs. 10000.
         
         
      7. The ________ of Reserve Bank of India Act, 1934 describes the legal tender character of Indian bank notes.
         A. Section 17
         B. Section 18
         C. Section 22
         D. Section 24
         E. Section 26
         
         Answer & Explanation

         E. Section 26
         Explanation:
         The Section 26 of Reserve Bank of India Act, 1934 describes the legal tender character of Indian bank notes.
         
         
      8. Which of the following of Reserve Bank of India Act, 1934 allows the RBI to form rules regarding the exchange of damaged and imperfect notes?
         A. Section 17
         B. Section 18
         C. Section 22
         D. Section 24
         E. Section 28
         
         Answer & Explanation

         E. Section 28
         Explanation:
         Section 28 – Allows the RBI to form rules regarding the exchange of damaged and imperfect notes.
         
         
      9. According to Section 31 of Reserve Bank of India Act, 1934, Who only can issue and accept promissory notes that are payable on demand in India?
         A. Section 21
         B. Section 31
         C. Section 22
         D. Section 24
         E. Section 28
         
         Answer & Explanation

         B. Section 31
         Explanation:
         Section 31 – Only the RBI or the central government can issue and accept promissory notes that are payable on demand in India.
         
         
      10. According to ________ of Reserve Bank of India Act, 1934 every scheduled bank must have an average daily balance with the RBI.
          A. Section 21(1)
          B. Section 41(1)
          C. Section 42(1)
          D. Section 24(2)
          E. Section 28(2)
          
          Answer & Explanation

          C. Section 42(1)
          Explanation:
          Section 42(1) of Reserve Bank of India Act, 1934 every scheduled bank must have an average daily balance with the RBI.