Banking Awareness Quiz – Set 190

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. Who is the issuer of Sovereign Gold Bond (SGB)?
   A. RBI
   B. State Governments
   C. Finance Ministry
   D All of these
   E. None of these
   
   Answer & Explanation

   A. RBI
   Explanation:
   Sovereign Gold Bond (SGB) is issued by Reserve Bank on behalf of Government of India.
   
   
2. What is the rate of interest of SGBs?
   A. 1.75%
   B. 2.50%
   C. 2.75%
   D. 3.25%
   E. None of these
   
   Answer & Explanation

   C. 2.75%
   The Bonds bear interest at the rate of 2.75 per cent (fixed rate) per annum on the amount of initial investment.
   
   
3. Loan to Value will be the same as applicable to ordinary ___ loan prescribed by RBI from time to time.
   A. Vehicle
   B. Gold
   C. Home
   D. Education
   E. None of these
   
   Answer & Explanation

   B. Gold
   Explanation:
   Loan to Value will be the same as applicable to ordinary gold loan prescribed by RBI from time to time.
   
   
4. Interest on the SGB Bonds will be taxable as per the provisions of the _______ Income-tax Act, 1961.
   A. Section 42
   B. Section 43
   C. Section 41
   D. Section 45
   E. All of these
   
   Answer & Explanation

   B. Section 43
   Explanation:
   Interest on the SGB Bonds will be taxable as per the provisions of the section 43 of Income-tax Act, 1961.
   
   
5. Nomination facility is available as per the provisions of the Government Securities Act 2006 and ______
   A. Government Securities Regulations, 2007
   B. Government Securities Regulations, 2008
   C. Government Securities Regulations, 2005
   D. Government Securities Regulations, 2009
   E. None of these
   
   Answer & Explanation

   A. Government Securities Regulations, 2007
   Explanation:
   Nomination facility is available as per the provisions of the Government Securities Act 2006 and Government Securities Regulations, 2007
   
   
6. Persons resident in India as defined under _______ are eligible to invest in SGB
   A. Banking Regulation Act 1949
   B. Foreign Exchange Management Act, 1999
   C. Government Securities Act 2006
   D. Government Securities Regulations, 2007
   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.
   
   
7. Minimum investment in SGBs is _____
   A. One gram
   B. Two grams
   C. Four grams
   D. Five grams
   E. None of these
   
   Answer & Explanation

   A. One gram
   Explanation:
   Minimum investment in SGBs is One gram.
   
   
8. Maximum investment in SGBs is _______
   A. 100 grams
   B. 200 grams
   C. 500 grams
   D. 400 grams
   E. All of these
   
   Answer & Explanation

   C. 500 grams
   Explanation:
   Maximum investment in SGBs is 500 grams.
   
   
9. SGBs can be held in _____
   A. SB Account
   B. Current Account
   C. Fixed Deposit
   D.Demat Account
   E. None of these
   
   Answer & Explanation

   D.Demat Account
   Explanation:
   SGBs can be held in Demat Account.
   
   
10. SGBs will qualify for _____
    A. CRR
    B. SLR
    C. MSF
    D. All of these
    E. None of these
    
    Answer & Explanation

    B. SLR
    Explanation:
    SGBs will qualify for SLR.