Bank And Finance General Studies Quiz (India)

48 Questions | Total Attempts: 43

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Finance Quizzes & Trivia

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Questions and Answers
  • 1. 
    If RBI wants to limit the capital outflows and control currency depreciation, which of the following would be the most viable action?
    • A. 

      Increase interest rates

    • B. 

      Decrease interest rates

    • C. 

      Purchase government bonds

    • D. 

      Decrease statutory liquidity ratio

  • 2. 
    Bank rate is defined as the:
    • A. 

      Rate of interest charged by commercial banks from borrowers

    • B. 

      Rate of interest at which RBI lends money to banks against government securities

    • C. 

      Rate of interest allowed by commercial banks on their deposits

    • D. 

      Rate at which RBI purchases or rediscounts bills of exchange of commercial banks

  • 3. 
    What does the term Open Market Operations refer to? 
    • A. 

      Selling of equities in the open market

    • B. 

      Selling of commodities in the open market

    • C. 

      Buying and selling of government securities in the open market

    • D. 

      Buying and selling of products in the wholesale market

  • 4. 
    Which of the statements mentioned below is/are correct?1. T-bills are issued by the Government of India on behalf of the RBI2. T-bills are short-term money market instruments3. T-bills cannot be purchased by a resident of India
    • A. 

      All are correct

    • B. 

      2 & 3 are correct

    • C. 

      Only 2 is correct

    • D. 

      Only 3 is correct

  • 5. 
    Which among the following is true regarding Forex (Foreign Exchange) markets? 
    • A. 

      Foreign exchange markets are a type of localized markets

    • B. 

      Foreign exchange markets operate within the time zone of region

    • C. 

      Foreign exchange markets are dynamic and round-the-clock markets

    • D. 

      Foreign exchange markets are used only for business transactions

  • 6. 
    When RBI sells government securities, its result is that
    • A. 

      The liquidity in the banking system increases

    • B. 

      The liquidity in the banking system remains unchanged

    • C. 

      The liquidity in the banking system gets diminished

    • D. 

      None of the above

  • 7. 
    ‘Fiat Money’ is defined as the money which is
    • A. 

      Accepted internationally

    • B. 

      Accepted temporarily in lieu of gold

    • C. 

      Issued by keeping gold or silver as deposit

    • D. 

      Decreed as money by the government

  • 8. 
    What is understood by Fiduciary Issue of currency?  
    • A. 

      The issue of currency notes without keeping gold or silver as deposit

    • B. 

      The issue of currency notes keeping gold or silver as deposit

    • C. 

      The issue of currency notes with partial gold or silver deposits

    • D. 

      The issue of currency notes with comparative gold or silver deposits

  • 9. 
    What does liquidity mean?It means how cash is converted into gold(b) It means how cheaply and quickly an asset is converted into cash(c) It means how cash is converted into SDR (Special Drawing Rights)(d) It means how uncertain the money market conditions are 
    • A. 

      It means how cash is converted into gold

    • B. 

      It means how cheaply and quickly an asset is converted into cash

    • C. 

      It means how cash is converted into SDR (Special Drawing Rights)

    • D. 

      It means how uncertain the money market conditions are

  • 10. 
    The buying of shares and bonds of Indian firms by foreign institutional investors is known as 
    • A. 

      FDI

    • B. 

      Portfolio investment

    • C. 

      NRI investment

    • D. 

      Foreign indirect investment

  • 11. 
    A Eurobond is 
    • A. 

      A bond released in a currency of the European countries

    • B. 

      A bond released in an Indian currency in European nations

    • C. 

      A bond released in Euro in our country

    • D. 

      A bond released in a currency other than the currency of the country in which it is issued

  • 12. 
    ____________is the duty applied by a government to control the exports of an article of trade, so that the article of trade can be used by the local markets rather than in foreign countries.
    • A. 

      Customs duty

    • B. 

      Excise duty

    • C. 

      Anti-dumping duty

    • D. 

      Dumping duty

  • 13. 
    The Financial Sector Assessment Program (FSAP) is a comprehensive and in-depth analysis of a country’s financial sector. Which among the following bodies conducts this programme? 
    • A. 

      International Monetary Fund

    • B. 

      G-20

    • C. 

      World Economic Forum

    • D. 

      World Bank

  • 14. 
    Which of the following statement is incorrect about SEBI? 
    • A. 

      SEBI is a capital market regulator

    • B. 

      SEBI is the mutual fund regulator

    • C. 

      SEBI also regulates the credit rating agencies in India

    • D. 

      None of them

  • 15. 
    If there is an inflationary trend in the economy, what would be the trend in the pricing of banking services? 
    • A. 

      Increasing trend

    • B. 

      Decreasing trend

    • C. 

      Constant trend

    • D. 

      There is no relevance of inflation in pricing of the banking products

  • 16. 
    Consider following statementsi) Planning commission works under guidance of National Development Council.ii) Deputy Chairman of Planning commission has rank equal to cabinet minister. Among these TRUE statements are
    • A. 

      I only

    • B. 

      ii only

    • C. 

      Both

    • D. 

      None

  • 17. 
    Which of the following is an extra Constitutional and non-statutory body?
    • A. 

      Union Public Service Commission

    • B. 

      Planning Commission

    • C. 

      Election Commission

    • D. 

      Finance Commission

  • 18. 
    Under which of the following, the five Zonal Councils were established ?
    • A. 

      States Reorganisation Act, 1956

    • B. 

      A resolution passed by the Lok Sabha

    • C. 

      Article 263 of the Constitution

    • D. 

      National Development Council

  • 19. 
    Planning in India derives its objectives from
    • A. 

      Directive Principles

    • B. 

      None of these

    • C. 

      Fundamental Rights

    • D. 

      Fundamental Duties

  • 20. 
    Grants - in - aid of revenue to the states is recommended by the
    • A. 

      National Development Council

    • B. 

      Finance Commission

    • C. 

      Inter - State Council

    • D. 

      Planning Commission

  • 21. 
    The Zonal Councils discuss matters relating to
    • A. 

      Inter - State transport

    • B. 

      Economic and Social Planning

    • C. 

      Border disputes

    • D. 

      All of the above

  • 22. 
    Chief Ministers of all the states are ex-officio members of the
    • A. 

      Planning Commission

    • B. 

      National Development Council

    • C. 

      Inter State Council

    • D. 

      Finance Commission

  • 23. 
    The chemical (ethyl mercaptan) added to the otherwise odourless LPG cooking gas for imparting a detectable smell to the gas is a compound of
    • A. 

      Bromine

    • B. 

      Fluorine

    • C. 

      Chlorine

    • D. 

      Sulphur

  • 24. 
    Among the various allotropes of carbon,
    • A. 

      Coke is the hardest, graphite is the softest

    • B. 

      Diamond is the hardest, coke is the softest

    • C. 

      Diamond is the hardest, graphite is the softest

    • D. 

      Diamond is the hardest, lamp black is the softest

  • 25. 
    Consider the following statements:(i) Objects that emit heat and light are called luminous.(ii) If we cannot see through an object it is opaque.(iii)Objects through which we can see but not clearly are called translucent* Which of the above are true?
    • A. 

      I,ii

    • B. 

      I

    • C. 

      Ii,iii

    • D. 

      All of the above