The Indian Financial System Trivia Quiz

20 Questions | By Bishnu1960 | Updated: Nov 16, 2022 | Attempts: 9120

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The Indian Financial System Trivia Quiz - Quiz

Are you ready for the Indian financial system trivia quiz? It is nearly impossible for a business not to have lenders, and the Indian financial system makes it possible for lenders, borrowers, and investors to interact with each other. How well do you understand the money market instruments in this system? Do take the quiz and get a refresher on the Indian financial system and the components within it, and how they help the economy.

Questions and Answers

1.

EEFC Account stands for:
- A.
  
  Export Earning Foreign Currency Account
- B.
  
  External Earnering Foreign Currency Account
- C.
  
  Exchange Earner Foreign Currency Account
- D.
  
  None
2.

ADR Stands for:
- A.
  
  Asset Depository Receipt
- B.
  
  Asian Depository Receipt
- C.
  
  American Depository Receipt
- D.
  
  Adjustable Depository Receipt
- E.
  
  American Demand Receipt
3.

GDR stands for
- A.
  
  Global Demand Receipt
- B.
  
  Global Depository Receipt
- C.
  
  Global Direct Revenue
- D.
  
  Gross Demand Revenue
- E.
  
  None
4.

In --------------- Securities share bond debentures are offered to the public for subscription for the purpose of raising capital or fund.
- A.
  
  Prime Securities
- B.
  
  Public Securities
- C.
  
  Preferred Securities
- D.
  
  Primary Securities
- E.
  
  None
5.

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
- E.
  
  None
6.

Treasury bills are money market instruments.
- A.
  
  True
- B.
  
  False
7.

Commercial paper is a money market instrument.
- A.
  
  True
- B.
  
  False
8.

Commercial paper is a money market instrument.
- A.
  
  True
- B.
  
  False
9.

Bonds issued by Financial Institutions are instruments in the Debt markets.
- A.
  
  True
- B.
  
  False
10.

Registrars maintain a Register of share and debenture holders and process share and debenture allocation when issues are subscribed. Registers need approval from the Regulator. SEBI is the Regulator.
- A.
  
  True
- B.
  
  False
11.

Bonds issued by Financial Institutions are instruments in the Debt markets.
- A.
  
  True
- B.
  
  False
12.

Reserve Bank of India has two distinct roles one is Monetary Control including controlling inflation.
- A.
  
  True
- B.
  
  False
13.

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
14.

Central Bank (RBI) is the lender of the last resort to other Banks.
- A.
  
  True
- B.
  
  False
15.

It will not is responsible for ensuring an efficient payment & settlement system.
- A.
  
  True
- B.
  
  False
16.

Reserve Bank of India has supervision over 1) Commercial Bank, 2) NBFC, 3) Primary dealers 4) Financial institutions.
- A.
  
  True
- B.
  
  False
17.

Capital Market Regulator in India is SEBI.
- A.
  
  True:
- B.
  
  False
18.

The standard rate at which RBI is prepared to buy or re-discount bills of exchange or other eligible commercial papers from Banks is known as Bank Rate.
- A.
  
  True
- B.
  
  False
19.

Central Bank (RBI) is the lender of the last resort to other Banks.
- A.
  
  True
- B.
  
  False
20.

Reserve Bank of India is Banker to Government.
- A.
  
  True
- B.
  
  False