Indian Business And Finance Knowledge Quiz
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Questions and Answers
- 1.
How many companies are included in the SENSEX?
- A.
30
- B.
50
- C.
111
- D.
25
Correct Answer
A. 30Explanation
The SENSEX is a stock market index in India that consists of 30 well-established and financially sound companies. These companies are selected based on various factors such as market capitalization, liquidity, and trading volume. Therefore, the correct answer is 30.Rate this question:
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- 2.
Which of the following is responsible for the fluctuations in the Sensex?
- A.
Rain
- B.
Monetary policy
- C.
Political instability
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
The fluctuations in the Sensex, which is the stock market index of the Bombay Stock Exchange in India, can be attributed to various factors. Rain can affect certain sectors of the economy, such as agriculture, which in turn can impact the overall market sentiment. Monetary policy decisions, such as changes in interest rates, can have a significant influence on investor behavior and market performance. Political instability, including changes in government policies or political unrest, can create uncertainty and volatility in the stock market. Therefore, all of the mentioned factors can contribute to the fluctuations in the Sensex.Rate this question:
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- 3.
Which of the following words does not belong to the stock exchange?
- A.
NAV
- B.
NSE
- C.
IPO
- D.
KPO
Correct Answer
D. KPOExplanation
The words NAV, NSE, and IPO are commonly associated with the stock exchange. NAV stands for Net Asset Value, which is a measure of the value of a mutual fund's assets minus its liabilities. NSE stands for National Stock Exchange, which is a stock exchange in India. IPO stands for Initial Public Offering, which is the first sale of a company's shares to the public. On the other hand, KPO does not belong to the stock exchange. KPO stands for Knowledge Process Outsourcing, which is a form of outsourcing where knowledge-intensive tasks are outsourced to specialized companies.Rate this question:
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- 4.
What is called "Blue Chip"?
- A.
Companies which are run by large corporate houses
- B.
A company, whose share always provides profit
- C.
A multinational company
- D.
A company which is listed on a foreign stock exchange
Correct Answer
B. A company, whose share always provides profitExplanation
A "Blue Chip" company refers to a company whose shares consistently provide profit. These companies are typically well-established, financially stable, and have a strong reputation in the market. They are considered reliable investments as they have a history of generating consistent returns for their shareholders.Rate this question:
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- 5.
When was Nifty established?
- A.
1952
- B.
1965
- C.
1991
- D.
1995
Correct Answer
D. 1995Explanation
Nifty, also known as the National Stock Exchange Fifty, was established in 1995. This answer indicates that Nifty was founded in that particular year.Rate this question:
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- 6.
India has highest foreign debt in the form of...
- A.
Non Resident Indian deposits
- B.
Commercial borrowing
- C.
Loans taken from International Monetary Fund
- D.
None of the above
Correct Answer
B. Commercial borrowingExplanation
India has the highest foreign debt in the form of commercial borrowing. This means that the Indian government and corporations have borrowed money from foreign entities such as banks, financial institutions, and other countries to finance their activities. Commercial borrowing is a common method for countries to raise funds for development projects, infrastructure, and other economic initiatives. This answer suggests that India has relied heavily on external borrowing to support its economic growth and development.Rate this question:
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- 7.
In which foreign currency, India has largest foreign debt?
- A.
US Dollar
- B.
Indian Rupee
- C.
Euro
- D.
SDRs
Correct Answer
A. US DollarExplanation
India has the largest foreign debt in US Dollars because the US Dollar is widely accepted as the global reserve currency and is extensively used for international trade and financial transactions. As a result, many countries, including India, borrow in US Dollars to finance their imports and investments. Additionally, the US Dollar is considered a stable and reliable currency, which makes it an attractive choice for foreign borrowing. Therefore, it is not surprising that India's largest foreign debt is denominated in US Dollars.Rate this question:
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- 8.
The Indian Stock Market is Regulated By:
- A.
Reserve Bank Of India (RBI)
- B.
Government of India (GoI)
- C.
The Securities and Exchange Board (SEBI)
Correct Answer
C. The Securities and Exchange Board (SEBI)Explanation
SEBI is the correct answer because it is the regulatory authority for the Indian stock market. It was established in 1988 and is responsible for regulating and supervising the activities of stock exchanges, brokers, and other participants in the market. SEBI's main objective is to protect the interests of investors and ensure the smooth functioning of the stock market. It formulates rules and regulations, conducts inspections and audits, and takes enforcement actions against any violations. RBI and GoI are not directly responsible for regulating the stock market, although they may have some indirect influence on its functioning.Rate this question:
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- 9.
Which state is called the "Cradle of Banking" in India, As seven leading banks of India have originated from the state?
- A.
Gujarat
- B.
Karnataka
- C.
Maharashtra
- D.
West Bengal
Correct Answer
B. KarnatakaExplanation
Karnataka is called the "Cradle of Banking" in India because seven leading banks of India have originated from the state. This suggests that Karnataka has played a significant role in the development and growth of the banking sector in India.Rate this question:
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- 10.
Which among the following is worlds fastest stock exchange with median trade speed of 6 micro-seconds?
- A.
New York Stock Exchange
- B.
London Stock Exchange
- C.
Bombay Stock Exchange
- D.
Shanghai Stock Exchange
Correct Answer
C. Bombay Stock ExchangeExplanation
The Bombay Stock Exchange is considered the world's fastest stock exchange with a median trade speed of 6 micro-seconds. This means that trades on this exchange are executed at an incredibly fast pace, allowing for efficient and quick transactions. The speed of the stock exchange is crucial in today's fast-paced financial markets, as it ensures that investors can buy and sell securities without delay, reducing the risk of price fluctuations and maximizing market efficiency.Rate this question:
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- 11.
Stock Trading Involves:
- A.
Capital Risk
- B.
Guaranteed Return
- C.
Low sales because the product is new
Correct Answer
A. Capital RiskExplanation
The correct answer is Capital Risk. Stock trading involves the risk of losing the capital invested. There is no guarantee of returns in stock trading, and the potential for loss is always present. This is because the value of stocks can fluctuate based on various factors such as market conditions, economic trends, and company performance. Therefore, investors need to be aware of the risks involved and make informed decisions while trading stocks.Rate this question:
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- 12.
Which among the following has become the top mobilizer under Gold Monetization scheme, which was launched by Prime Minister Narendra Modi in November 2015?
- A.
BOB
- B.
SBI
- C.
IOB
- D.
PNB
Correct Answer
D. PNBExplanation
PNB, or Punjab National Bank, has become the top mobilizer under the Gold Monetization scheme. This scheme was launched by Prime Minister Narendra Modi in November 2015. The scheme aims to mobilize the idle gold in the country and put it to productive use. PNB's success in mobilizing the highest amount of gold under this scheme indicates its effectiveness in attracting individuals and institutions to deposit their gold and earn interest on it.Rate this question:
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- 13.
What is the minimum paid up capital requirement for small banks?
- A.
Rs.1,000 crore
- B.
Rs.600 crore
- C.
Rs.100 crore
- D.
Rs.500 crore
Correct Answer
C. Rs.100 croreExplanation
Small banks in India are required to have a minimum paid-up capital of Rs.100 crore. This means that the bank must have at least Rs.100 crore as its initial capital investment. This requirement ensures that small banks have sufficient financial resources to operate effectively and meet regulatory standards. Having a minimum paid-up capital also helps to safeguard the interests of depositors and maintain stability in the banking sector.Rate this question:
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- 14.
Infusion of Liquidity, by RBI is done through _____ to banks under a ______ transaction.
- A.
Borrowing, Repo
- B.
Lending, Repo
- C.
Borrowing, Reverse Repo
- D.
Lending, Reverse Repo
Correct Answer
B. Lending, RepoExplanation
The correct answer is Lending, Repo. The RBI infuses liquidity into banks by lending money to them under a repurchase agreement (Repo). In a Repo transaction, the central bank lends money to the banks against government securities, with an agreement to repurchase the securities at a later date. This helps the banks to meet their short-term liquidity needs while the RBI maintains control over the money supply in the economy.Rate this question:
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- 15.
Money Market is divided into how many types?
- A.
3
- B.
5
- C.
4
- D.
2
Correct Answer
A. 3Explanation
The correct answer is 3 because the Money Market is divided into three types: the Treasury Bills Market, the Commercial Paper Market, and the Certificate of Deposit Market. Each of these markets serves a specific purpose and caters to different types of investors.Rate this question:
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- 16.
. An Non-Resident Ordinary Rupee Account for Non-Resident Indians has a limit of _____.
- A.
$50,000
- B.
$1,00,000
- C.
$25,00,000
- D.
$10,00,000
Correct Answer
D. $10,00,000Explanation
The correct answer is $10,00,000. A Non-Resident Ordinary Rupee Account is a type of bank account for Non-Resident Indians. It allows them to hold and manage their foreign income in Indian Rupees. The account has a limit of $10,00,000, which means that the maximum amount that can be deposited or held in the account is $10,00,000.Rate this question:
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- 17.
Paytm has a tie-up with which company for its payment banks core software?
- A.
HCL
- B.
Tata
- C.
Infosys
- D.
Wipro
Correct Answer
C. InfosysExplanation
Paytm has a tie-up with Infosys for its payment banks core software. This means that Paytm has partnered with Infosys to use their software for the core operations of its payment banks. This partnership allows Paytm to leverage Infosys' expertise in software development and banking solutions to enhance its payment banking services.Rate this question:
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- 18.
In which year was SEBI(Securities and Exchange Board of India) formed?
- A.
1992
- B.
1990
- C.
1978
- D.
1991
Correct Answer
A. 1992Explanation
SEBI (Securities and Exchange Board of India) was formed in the year 1992. This regulatory body was established to protect the interests of investors in the securities market and to regulate the functioning of stock exchanges and other intermediaries. The formation of SEBI was a significant step towards ensuring transparency, fairness, and efficiency in the Indian capital market.Rate this question:
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- 19.
At which rate the RBI lends money to a Public Sector Bank on a long term basis?
- A.
Repo Rate
- B.
Cash Reserve Ratio
- C.
Statutory Liquidity Ratio
- D.
Bank Rate
Correct Answer
D. Bank RateExplanation
The correct answer is Bank Rate. The Bank Rate is the rate at which the Reserve Bank of India (RBI) lends money to Public Sector Banks on a long-term basis. This rate is set by the RBI and is used to control the cost of borrowing for banks. By adjusting the Bank Rate, the RBI can influence the interest rates charged by banks, which in turn affects the borrowing and lending rates in the economy.Rate this question:
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- 20.
What does the term "Reverse Repo" mean?
- A.
Injecting Liquidity by the central bank of a country through purchases of Government Securities
- B.
Balancing Liquidity with a view of enhance economic growth rate
- C.
Absorption of liquidity from the market by sale of Government Securities
- D.
Improving the position or availability of the securities in the market.
Correct Answer
C. Absorption of liquidity from the market by sale of Government SecuritiesExplanation
The term "Reverse Repo" refers to the absorption of liquidity from the market by the central bank through the sale of Government Securities. This is done to reduce the amount of money in circulation and control inflation. By selling government securities, the central bank removes money from the market, thereby reducing liquidity. This helps in maintaining stability in the financial system and preventing excessive inflation.Rate this question:
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- 21.
Many times we read in newspapers that the RBI has revised certain Rates/Ratios under LAF. What is the fullform of LAF?
- A.
Liquidity Adjustment Facility
- B.
Legal Adjustment Facility
- C.
Long-Term Achievement Facility
- D.
Legal Adjustment Formality
Correct Answer
A. Liquidity Adjustment FacilityExplanation
The correct answer is Liquidity Adjustment Facility. The LAF is a monetary policy tool used by the Reserve Bank of India (RBI) to manage liquidity in the banking system. It allows banks to borrow money from the RBI against collateral, either through repo or reverse repo transactions, to adjust their short-term liquidity needs. By revising the rates and ratios under LAF, the RBI can influence the availability of funds in the banking system and control inflation.Rate this question:
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- 22.
Who headed the Committee on Comprehensive Financial Services for small businesses and low income households, that recommended the formation of Payments Bank?
- A.
Urjit Patel
- B.
Rakesh Mohan
- C.
H.R. Khan
- D.
Nachiket Mor
Correct Answer
D. Nachiket MorExplanation
Nachiket Mor headed the Committee on Comprehensive Financial Services for small businesses and low income households, which recommended the formation of Payments Bank.Rate this question:
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- 23.
How much is India's share in the quota of the International Monetary Fund?
- A.
1.5%
- B.
2.7%
- C.
5%
- D.
4%
Correct Answer
B. 2.7%Explanation
India's share in the quota of the International Monetary Fund is 2.7%. This means that India holds 2.7% of the total voting power and has a proportional representation in decision-making within the IMF. The quota system is designed to reflect each member country's relative economic size and importance in the global economy. India's 2.7% share signifies its significant role in the IMF's operations and decision-making processes.Rate this question:
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- 24.
Multi-Commodity Exchange on Dhanteras launched an option's contract in which commodity for the first time?
- A.
Silver
- B.
Platinum
- C.
Gold
- D.
Diamond
Correct Answer
C. GoldExplanation
The correct answer is Gold. On Dhanteras, the Multi-Commodity Exchange launched an options contract for the first time, and the commodity associated with this launch was gold. This means that traders now have the option to buy or sell gold at a predetermined price in the future, providing them with more flexibility and risk management in their trading activities.Rate this question:
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Current Version
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Mar 21, 2023Quiz Edited by
ProProfs Editorial Team -
Dec 22, 2018Quiz Created by
Pratibimb
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