Banking Awareness Quiz - 2

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Banking Awareness Quiz - 2 - Quiz

A person’s credit worthiness is actually a good way to estimates someone’s worth. If a person has a high credit score they are presumed to have more money than their counterparts. The banking quiz below is designed to test how much you know about the banking sector. Give it a try!


Questions and Answers
  • 1. 

    India has planned to introduce Plastic Notes soon, which country first launched plastic notes ever ?  

    • A.

      USA

    • B.

      Australia

    • C.

      Russia

    • D.

      Japan

    Correct Answer
    B. Australia
    Explanation
    Australia was the first country to introduce plastic notes. In 1988, the Reserve Bank of Australia issued the world's first polymer banknotes as a response to counterfeiting issues with paper currency. These plastic notes are made from a polymer material that is more durable, secure, and resistant to wear and tear compared to traditional paper notes. The introduction of plastic notes by Australia has since been followed by several other countries around the world.

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  • 2. 

    As per the news published in major newspapers in India Banks in India need about 12 lakh business correspondents for rural areas. What will be the role of these correspondents ?

    • A.

      They will help rural people in their day-to-day banking activities

    • B.

      They will work as a link between banks and the customers

    • C.

      They will ascertain eligibility of rural people so that relief packages can be provided to them

    • D.

      They will market insurance products for banks

    Correct Answer
    A. They will help rural people in their day-to-day banking activities
    Explanation
    The role of these correspondents will be to assist rural people in their day-to-day banking activities. This can include tasks such as opening bank accounts, depositing and withdrawing money, providing information on various banking products and services, and facilitating transactions for the rural population who may not have easy access to traditional bank branches. These correspondents will act as a bridge between the banks and the customers, ensuring that banking services are accessible and convenient for rural communities.

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  • 3. 

    The Reserve Bank of India has asked all the banks to install ‘Note Sorting Machines’ in the branches. How will this help banks and the general public ?

    • A.

      The machines will check for counterfeit notes and drop these from circulation

    • B.

      This will help banks to count the notes quickly and accurately

    • C.

      This will help in sorting out soiled notes so that they are not reissued by the banks

    Correct Answer
    B. This will help banks to count the notes quickly and accurately
    Explanation
    The installation of Note Sorting Machines in banks will help them count the notes quickly and accurately. These machines are designed to efficiently and accurately count large volumes of currency, reducing the time and effort required for manual counting. This will not only save time for bank employees but also improve the overall efficiency of banking operations. Additionally, the use of these machines will minimize the chances of human error in counting, ensuring accurate results.

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  • 4. 

    At present the trade between India and China is in a state of ‘Payment imbalance’. What does this mean in real terms ?

    • A.

      China does not import many items from India whereas India imports more from China

    • B.

      China does not pay India in time and a lot of delay is reported by the exporters

    • C.

      India wants all payments to be made in US Dollars whereas China pays in its own currency

    Correct Answer
    C. India wants all payments to be made in US Dollars whereas China pays in its own currency
    Explanation
    India wants all payments to be made in US Dollars whereas China pays in its own currency. This means that India prefers to receive payments in US Dollars, while China prefers to pay in its own currency, which is the Renminbi (RMB). As a result, there is a payment imbalance between the two countries, with India importing more from China but not receiving payments in the desired currency. This can lead to challenges in managing trade and currency exchange rates between the two countries.

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  • 5. 

    Which of the following terms is not used in Banking and Finance ?

    • A.

      Bid Price

    • B.

      Jacksonian Seizure

    • C.

      Call Option

    • D.

      Blue chip

    Correct Answer
    B. Jacksonian Seizure
  • 6. 

    Which of the following terms is not used in Economics ?

    • A.

      Exogenous

    • B.

      Depreciation

    • C.

      Deep Market

    • D.

      Zero Sum Game

    Correct Answer
    A. Exogenous
    Explanation
    Exogenous is not used in Economics. This term is mainly used in the field of biology and refers to factors or variables that are external to a system or model. In Economics, terms like depreciation, deep market, and zero-sum game are commonly used to describe concepts related to the economy and market dynamics.

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  • 7. 

    Nowadays we frequently read news items about ‘Derivatives’ as used in the world of finance and money market. Which of the following statement correctly describes what a derivative is and how it affects money/finance markets ?

    • A.

      Derivatives enable individuals and companies to insure themselves against financial risk

    • B.

      Derivatives are like fixed deposits in a bank and are the safest way to invest one’s idle money lying in a bank

    • C.

      Derivatives are the financial instruments which were used in India even during the British Raj

    Correct Answer
    B. Derivatives are like fixed deposits in a bank and are the safest way to invest one’s idle money lying in a bank
  • 8. 

    Constitutionally, which one of the following can levy Service Tax ?

    • A.

      Union Govt. only

    • B.

      State Govt. only

    • C.

      Union Territory Govt. only

    • D.

      All of these

    Correct Answer
    D. All of these
    Explanation
    All of these can levy Service Tax because according to the Indian Constitution, both the Union Government, State Governments, and Union Territory Governments have the power to impose and collect taxes. Service Tax is a type of indirect tax that is levied on the provision of certain services. Therefore, all three levels of government have the authority to impose Service Tax within their respective jurisdictions.

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  • 9. 

    Which one of the following is implication of large inflow of foreign exchange into the country ?

    • A.

      It makes monetary management difficult for RBI

    • B.

      It creates money supply, asset bubbles and inflation

    • C.

      It weakens the competitiveness of Indian exports

    Correct Answer
    B. It creates money supply, asset bubbles and inflation
    Explanation
    A large inflow of foreign exchange into the country can lead to an increase in the money supply, which in turn can create asset bubbles and inflation. When there is a surplus of foreign currency, the central bank may intervene by purchasing it, thereby increasing the domestic money supply. This excess liquidity can lead to an increase in demand for assets such as stocks and real estate, causing their prices to rise rapidly and potentially creating asset bubbles. Additionally, the increase in money supply can also lead to inflationary pressures in the economy, as there is more money chasing the same amount of goods and services.

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  • 10. 

    Which of the following terms is not used in the world of economics/finance ?

    • A.

      Sinking Fund

    • B.

      Third World

    • C.

      Open Door Policy

    • D.

      Privilege Motion

    Correct Answer
    B. Third World
    Explanation
    The term "Third World" is not used in the world of economics/finance. It is a term that was coined during the Cold War to classify countries that were not aligned with either the capitalist or communist blocs. It is a political and sociological term rather than an economic or financial one.

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Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 22, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Jun 28, 2011
    Quiz Created by
    Dbal4u
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