In this article, we provide an in-depth overview of Important Laws on Finance & Financial Crimes GK MCQs With Answer & Explanation in English. Covering key financial regulations and legal frameworks, this article aims to help you better understand the critical laws related to finance and financial crimes in India.
Each question is followed by detailed explanations, making it an ideal resource for competitive exam preparation.
1. The Aadhaar (Targeted Delivery of Financial and other Subsidies, benefits, and services) Act was enacted in which year?
- 2016
- 2017
- 2018
- 2019
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Answer: 2016
Enacted in 2016, this act was introduced to provide legal support to the Aadhaar unique identification number project. It defines the regulatory framework and legal aspects associated with Aadhaar, ensuring its smooth implementation.
2. Which chapter details the functions and powers of the Unique Identification Authority of India constituted under the Aadhaar (Targeted Delivery of Financial and other Subsidies, benefits, and services) Act, 2016?
- Chapter I
- Chapter II
- Chapter III
- Chapter IV
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Answer: Chapter IV
Chapter IV of the Aadhaar Act elaborates on the functions and powers of the Unique Identification Authority of India (UIDAI), which is responsible for issuing Aadhaar numbers and overseeing their usage.
3. Any fees collected and revenue generated by the UIDAI will be deposited in which of the following?
- Consolidated Fund of India
- Contingency Fund of India
- Public Accounts of India
- None of the above
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Answer: Consolidated Fund of India
As stipulated in Chapter V of the Aadhaar Act, any fees collected and revenue generated by the UIDAI are to be deposited in the Consolidated Fund of India, ensuring transparency and government control over these financial aspects.
4. The Banking Regulation Act was enacted in which year?
- 1947
- 1948
- 1949
- 1950
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Answer: 1949
Enacted in 1949, the Banking Regulation Act serves as the primary legislation regulating all banking companies in India. It provides a comprehensive framework for the supervision and regulation of commercial banking activities.
5. The Banking Regulation Act, 1949 gives which of the following the power to licence banks, have regulation over shareholding, and voting rights of shareholders?
- Reserve Bank of India
- State Bank of India
- National Bank of Agriculture and Rural Development
- None of the above
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Answer: Reserve Bank of India
The Banking Regulation Act, 1949 gives the Reserve Bank of India the power to licence banks, have regulation over shareholding, and voting rights of shareholders. It gives RBI the power to supervise the appointment of the boards and management.
6. The Banking Regulation Act, 1949 was amended in which year to include cooperative banks under its purview?
- 1961
- 1962
- 1964
- 1965
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Answer: 1965
The Banking Regulation Act, 1949 was amended in the year 1965 to include cooperative banks under its purview. Cooperative banks are banks which operate only in one state, are formed and run by the state government only.
7. The Conservation of Foreign Exchange and Prevention of Smuggling Activities Act was passed in which year?
- 1971
- 1972
- 1973
- 1974
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Answer: 1974
The Conservation of Foreign Exchange and Prevention of Smuggling Activities Act was passed in 1974. It was passed during the administration of Indira Gandhi in order to retain foreign currency.
8. The Fiscal Responsibility and Budget Management Act was passed in which year?
- 2002
- 2003
- 2004
- 2005
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Answer: 2003
Enacted in 2003, the FRBM Act was introduced to institutionalize financial discipline in the management of India’s fiscal affairs. It aimed to reduce fiscal deficits, improve macroeconomic management, and enhance the country’s fiscal responsibility.
9. The main purpose of FRBM Act, 2003 was to bring down the fiscal deficit to a manageable limit of how much percentage of the GDP by March 2008?
- 1%
- 2%
- 3%
- 4%
Show Answer
Answer: 3%
The primary objective of the Fiscal Responsibility and Budget Management Act was to reduce the fiscal deficit to a sustainable level of 3% of the Gross Domestic Product (GDP) by March 2008, ensuring prudent financial management.
10. Who is the current chairman of the review committee for the Fiscal Responsibility and Budget Management Act, 2003?
- Raghuram Rajan
- Urjit Patel
- N.K. Singh
- None of the above
Show Answer
Answer: N.K. Singh
N. K. Singh is currently serving as the chairman of the review committee for the Fiscal Responsibility and Budget Management Act, 2003, under the Ministry of Finance, Government of India. The committee plays a crucial role in examining the effectiveness and relevance of the FRBM Act’s provisions and suggesting necessary changes to maintain fiscal discipline.
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