Banking Awareness Quiz - 3

10 Questions | By Dbal4u | Last updated: Mar 20, 2022 | Total Attempts: 217

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This quiz is to test your knowledge about the banking industry and its activities. Find out your score at the end of the quiz.

Questions and Answers

1.

Dual economy is mixture of ?
- A.
  
  Industrial sector and manufacturing sector
- B.
  
  Traditional agricultural sector and a modern industrial sector
- C.
  
  State ownership of the means of production in cooperation of foreign organizations
- D.
  
  Industrial sector and trading of goods obtained through imports
- E.
  
  None of these
2.

A bank normally does not have to deal with an issue related to—
- A.
  
  Payments and settlement systems
- B.
  
  Contractual rights of creditors
- C.
  
  Intellectual property rights
- D.
  
  Cases of insolvency
- E.
  
  Coordination between regulators active in banking/financial sectors
3.

Which of the following is not a function of a bank ?
- A.
  
  Providing project finance
- B.
  
  Selling Mutual Funds
- C.
  
  Deciding policy rates like CRR, Repo Rates/SLR etc
- D.
  
  Settlement of payments on behalf of the customers
- E.
  
  All of these are functions of a bank
4.

As we all know, the limit of exemption on personal income tax has been raised. Whenever a relief in direct taxes is given, the underlying motive is always to make money available for which of the following purposes ? 1. Savings 2. Investment for High returns 3. Personal Consumption
- A.
  
  Only 1
- B.
  
  Only 2
- C.
  
  Only 1 and 3
- D.
  
  Only 1 and 2
- E.
  
  All 1, 2, 3
5.

The Reserve Bank of India (RBI) recently announced a hike in some policy rates and also indicated that there may be another change in near future. Which of the following is/are considered a policy rate(s) in the hands of the RBI? 1. Repo Rate 2. SLR 3. BPLR
- A.
  
  Only 1
- B.
  
  Only 2
- C.
  
  Only 1 and 3
- D.
  
  Only 1 and 2
- E.
  
  All 1, 2, 3
6.

Which of the following is not a bank or finance company ?
- A.
  
  Barclays
- B.
  
  BNP Paribas
- C.
  
  Lufthansa
- D.
  
  HSBC
- E.
  
  All are banks/finance companies
7.

‘Sensitive sector’ as defined by RBI include(s)—
- A.
  
  Capital Market
- B.
  
  Real Estate
- C.
  
  Commodities
- D.
  
  All the above
8.

The index of measuring economic development is—
- A.
  
  Increase in productive assets
- B.
  
  National income
- C.
  
  Per-capita income
- D.
  
  Any of the above
9.

In common meaning, inflation is a condition in which—
- A.
  
  Price of commodity increases
- B.
  
  Value of money decreases
- C.
  
  Price of commodity and value of money both increase
- D.
  
  Price of commodity increases and value of money decreases
10.

Which is the main reason of demand pull inflation ?
- A.
  
  Increase in money supply
- B.
  
  Increase in commercial expenditure
- C.
  
  Increase in foreign demand for goods
- D.
  
  All of the above