📊 Practice daily MCQs to improve your finance knowledge.
Q1. What is the full form of RBI?
A. Reserve Bank of India
B. Regional Bank of India
C. Revenue Bank of India
D. Reserve Bureau of India
Answer: A
Explanation: RBI stands for Reserve Bank of India, which is the central bank of the country.
Q2. RBI was established in which year?
A. 1930
B. 1935
C. 1947
D. 1950
Answer: B
Explanation: The Reserve Bank of India was established in 1935 under the RBI Act, 1934.
Q3. Which is the central bank of India?
A. SBI
B. ICICI Bank
C. RBI
D. HDFC Bank
Answer: C
Explanation: RBI is the central authority that regulates and controls the banking system in India.
Q4. What is the primary function of a bank?
A. Printing currency
B. Accepting deposits and giving loans
C. Selling insurance
D. Trading stocks
Answer: B
Explanation: Banks mainly accept deposits from customers and provide loans to individuals and businesses.
Q5. What does ATM stand for?
A. Automated Teller Machine
B. Automatic Transfer Machine
C. Any Time Money
D. Auto Transaction Method
Answer: A
Explanation: ATM allows customers to withdraw cash and perform basic banking transactions anytime.
Q6. Which type of account earns the highest interest?
A. Savings Account
B. Current Account
C. Fixed Deposit Account
D. Salary Account
Answer: C
Explanation: Fixed deposits offer higher interest rates compared to savings or current accounts.
Q7. What is CRR in banking?
A. Cash Reserve Ratio
B. Credit Reserve Ratio
C. Cash Revenue Return
D. Credit Risk Rate
Answer: A
Explanation: CRR is the percentage of total deposits that banks must keep with RBI as reserves.
Q8. What is KYC in banking?
A. Keep Your Cash
B. Know Your Customer
C. Know Your Credit
D. Keep Your Credit
Answer: B
Explanation: KYC is a process used by banks to verify the identity of their customers.
Q9. Which is the largest public sector bank in India?
A. Punjab National Bank
B. Bank of Baroda
C. State Bank of India
D. Canara Bank
Answer: C
Explanation: State Bank of India (SBI) is the largest public sector bank in India.
Q10. What is NEFT used for?
A. Cash withdrawal
B. Online money transfer
C. Loan approval
D. Account opening
Answer: B
Explanation: NEFT is used for transferring money electronically from one bank account to another.
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