Banking & Financial Services

34 Questions | Total Attempts: 181

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Banking & Financial Services - Quiz


Questions and Answers
  • 1. 
    The structure that is available in an economy to mobilize the capital from various surplus sectors of the economy and allocate and distribute the same to the various needy sectors is known as   ----------
    • A. 

      Economic Environment

    • B. 

      Financial Environment

    • C. 

      Financial System

    • D. 

      Financial Market

  • 2. 
    The Active role played by the financial system in India help transformation of Savings into Investment & Consumption
    • A. 

      True

    • B. 

      False

  • 3. 
    Commercial paper is a money market instrument 
    • A. 

      True

    • B. 

      False

  • 4. 
    G Securities issued by Central and State Government are instruments in Debt Market. 
    • A. 

      True

    • B. 

      False

  • 5. 
    Reserve Bank of India is exercising Monetary Control through 1) cash  Reserve Ratio, 2) Statutory Liquidity Ratio 3) REPO rate and  Bank Rate
    • A. 

      True

    • B. 

      False

  • 6. 
    Reserve Bank of India has supervision over 1) Commercial Bank 2) NBFC 3) Primary dealers 4) Financial institution
    • A. 

      True

    • B. 

      False

  • 7. 
    Commercial Banks require some amount for the overnight and it could be drawn from RBI in order to fullfill the demand liabilities and liquidity requirements. What do you call this?
    • A. 

      MSF

    • B. 

      MCLR

    • C. 

      Repo Rate

    • D. 

      LAF

  • 8. 
    Bill receivables under export import arrangement can be discounted under factoring facility?
    • A. 

      True

    • B. 

      False

  • 9. 
    Leasing is an arrangement of rental payment for acquiring commercial assets. which of the following are the type of lease (Multiple options could be correct)
    • A. 

      Operating Lease

    • B. 

      Financial Lease

    • C. 

      Wet Lease

    • D. 

      Dry Lease

    • E. 

      Hello Lease

    • F. 

      All of the Above

  • 10. 
    Which one of the following is a financial ratio that gives a measure of a company's ability to meet its financial losses?
    • A. 

      Cash Reverse Ratio

    • B. 

      Leverage Ratio

    • C. 

      Statutory Liquidity Ratio

    • D. 

      Loan to Value Ratio

  • 11. 
    Instrument used by RBI to smooth money supply and interest rates include
    • A. 

      Treasury notes

    • B. 

      Repurchase Agreements

    • C. 

      Commercial payable notes

    • D. 

      Commercial receivable notes

  • 12. 
    What is the maximum time period available for call money 
    • A. 

      91 days

    • B. 

      182 days

    • C. 

      365 days

    • D. 

      None of the above

  • 13. 
    Gross NPA is
    • A. 

      Total NPA to Total Gross NPA

    • B. 

      Total NPA to Gross Advances

    • C. 

      Total NPA-Provisions to Gross Advances

    • D. 

      Any one of the Above

  • 14. 
    GNP is arrived by adding the net factor income from abroad to the GDP at factor cost.
    • A. 

      True

    • B. 

      False

  • 15. 
    RK Industries wish to acquire packaging machine worth Rs 1,30,00,000. They had an option of lease the same at Rs 1,20,000 per month ( incremental value of 10% per year) for 5 years, with a upfront deposit of Rs 5,00,000. What should they do?
    • A. 

      Purchase machine

    • B. 

      Lease Machine

    • C. 

      Any of the above

    • D. 

      Information inadequate

  • 16. 
    Jet Airways looking to reduce their man power and cost of handling the flights. They are looking to lease their flights along with the full crew and engineers and some of them without crew. Both the cases are termed as 
    • A. 

      Dry Lease

    • B. 

      Wet Lease

    • C. 

      Dry Lease for case-1 & wet lease for case-2

    • D. 

      Wet Lease for Case-1 & Dry Lease for Case-2

  • 17. 
    Forfaiting enables exporter to avoid following risks:
    • A. 

      Interest rate risk

    • B. 

      Currency Risk

    • C. 

      Credit Risk & Political Risk

    • D. 

      All of the above

  • 18. 
    Under domestic Factoring, the payment of the bills that the seller gets from the factor is
    • A. 

      100% of the value of the bills immediately on the submission

    • B. 

      Nearly 80% of the bill amount upon tendering the bill and balance on due date

    • C. 

      Nearly 80% of the bill amount upon tendering the bill and balance on due date after collecting it from the buyer

    • D. 

      100% of the value of the bill only after collection from the buyer

  • 19. 
    Decrease in Statutory Liquidity Ratio contracts the credit creation
    • A. 

      True

    • B. 

      False

  • 20. 
    In call money market the following participants are allowed to trade:
    • A. 

      All corporates

    • B. 

      All banks, primary dealers and mutual funds

    • C. 

      Only Banks

    • D. 

      None

  • 21. 
    What is installment purchase system?
    • A. 

      Credit sale in which buyer gives seller and option to pay the money in agreed installments

    • B. 

      Credit Sale in which seller gives the facility to the buyer to pay the money in agreed installments

    • C. 

      Cash sale in which buyer gives seller and option to pay the money in agreed installments

    • D. 

      Cash Sale in which seller gives the facility to the buyer to pay the money in agreed installments

  • 22. 
    Forfaiting has emerged as an important instrument for short to long term financing of international trade
    • A. 

      True

    • B. 

      False

  • 23. 
    Beneficiary of Factoring are
    • A. 

      Client

    • B. 

      Customers

    • C. 

      Banks 

    • D. 

      All of the above

  • 24. 
    Reverse repo is a tool to
    • A. 

      Infuse liquidity

    • B. 

      Maintain liquidity

    • C. 

      Absorb liquidity

    • D. 

      None of the above

  • 25. 
    CRR as on today is
    • A. 

      3.90%

    • B. 

      4.00%

    • C. 

      4.10%

    • D. 

      4.20%

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