Online Test-8 General Awareness (Banks)

20 Questions | Attempts: 222
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  • 1/20 Questions

    Which of the following is NOT the part of the scheduled banking  structure in India ?  

    • Money lenders
    • Public Sector Banks
    • Private Sector Banks
    • Regional Rural Banks
    • State Co-operative Banks
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  • 2. 

    As we all know Govt of India collects tax revenue on various activities     in the country. Which of the following is a part of the tax revenue   of the Govt ?   A)Tax on Income    B) Tax on Expenditure     C)Tax on Property or       Capital Asset       D) Tax on Goods and Services  

    • Both A and C only

    • Both B and D only

    • All A, B, C and D

    • Only B, C and D

    • None of these

    Correct Answer
    A. All A, B, C and D
  • 3. 

    Open market operations, one of the measures taken by RBI in order to    control credit expansion in the economy, means   

    • Sale or purchase of Govt. securities

    • Issuance of different types of bonds

    • Auction of gold

    • To make available direct finance to borrowers

    • None of these

    Correct Answer
    A. Sale or purchase of Govt. securities
  • 4. 

    What is an Indian Depository Receipt ?  

    • A deposit account with a Public Sector Bank

    • A depository account with an of the Depositories in India

    • An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company

    • An instrument in the form of deposit receipt issued by Indian depositories

    • None of these

    Correct Answer
    A. An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company
  • 5. 

    What is Call Money ?  

    • Money borrowed or lent for a day or overnight

    • Money borrowed for more than one day but up to 3 days

    • Money borrowed for more than one day but up to 7 days

    • Money borrowed for more than one day but up to 14 days

    • None

    Correct Answer
    A. Money borrowed or lent for a day or overnight
  • 6. 

    One of the major challenges banking industry is facing these days is   money laundering. Which of the following acts/norms are launched by the   banks to prevent money laundering in general ?  

    • Know Your Customer Norms

    • Banking Regulation Act

    • Negotiable Instrument Act

    • Narcotics and Psychotropic Substance Act

    • None of these

    Correct Answer
    A. Know Your Customer Norms
  • 7. 

    Which of the following is NOT the part of the structure of the Financial    System in India ?  

    • Industrial Finance

    • Agricultural Finance

    • Government Finance

    • Development Finance

    • Personal Finance

    Correct Answer
    A. Personal Finance
  • 8. 

    The bank rate means

    • Rate of interest charged by commercial banks from borrowers

    • Rate of interest at which commercial banks discounted bills of their borrowers

    • Rate of interest allowed by commercial banks on their deposits

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

    • None of these

    Correct Answer
    A. Rate at which RBI purchases or rediscounts bills of exchange of commercial banks
  • 9. 

    Fiscal deficit  is  

    • Total income less Govt. borrowing

    • Total payments less total receipts

    • Total payments less capital receipts

    • Total expenditure less total receipts excluding borrowing

    • None of these

    Correct Answer
    A. Total expenditure less total receipts excluding borrowing
  • 10. 

    Currency Swap is an instrument to manage  

    • Currency risk

    • Interest rate risk

    • Currency and interest rate risk

    • Cash flows in different currencies

    • All of the above

    Correct Answer
    A. Cash flows in different currencies
  • 11. 

    In the Capital Market, the term arbitrage is used with reference to  

    • Purchase of securities to cover the sale

    • Sale of securities to reduce the loss on purchase

    • Simultaneous purchase and sale of securities to make profits from price

    • Variation in different markets

    • Any of the above

    Correct Answer
    A. Simultaneous purchase and sale of securities to make profits from price
  • 12. 

    “Sub-prime” refers to  

    • Lending done by banks at rates below PLR

    • Funds raised by the banks at sub-Libor rates

    • Group of banks which are not rated as prime banks as per Banker’s Almanac

    • Lending done by financing institutions including banks to customers not meeting with normally required credit appraisal standards

    • All of the above

    Correct Answer
    A. Lending done by financing institutions including banks to customers not meeting with normally required credit appraisal standards
  • 13. 

    Euro Bond is an instrument  

    • Issued in the European market

    • Issued in Euro Currency

    • Issued in a country other than the country of the currency of the Bond

    • All of the above

    • None of these

    Correct Answer
    A. Issued in a country other than the country of the currency of the Bond
  • 14. 

    RBI’s open market operation transactions are carried out with a view to   regulate

    • Liquidity in the economy

    • Prices of essential commodities

    • Inflation

    • Borrowing power of the banks

    • All the above

    Correct Answer
    A. All the above
  • 15. 

    Which of the following is/are true about the “Sub-Prime Crisis” ?(The  term was very much in news recently.)   A) It is a mortgage crises referring to credit default by the borrowers   B) Sub-Prime borrowers were those borrowers who were rated low and were        high-risk borrowers.   C)This crisis originated because of negligence in credit rating of the        borrowers.    

    • Only A

    • Only B

    • Only C

    • All A, B & C

    • None of these

    Correct Answer
    A. All A, B & C
  • 16. 

    When more than one bank is allowing credit facilities  to one party in   coordination with each other under a formal arrangement, the arrangement is     generally known as  

    • Participation

    • Consortium

    • Syndication

    • Multiple banking

    • None

    Correct Answer
    A. Consortium
  • 17. 

    The stance of RBI monetary policy is  

    • Inflation control with adequate liquidity for growth

    • Improving credit quality of the Banks

    • Strengthening credit delivery mechanism

    • Supporting investment demand in the economy

    • Any of the above

    Correct Answer
    A. Any of the above
  • 18. 

    An instrument that derives its value from a specified underlying  (currency, gold, stocks etc.) asset is known as  

    • Derivative

    • Securitisation Receipts

    • Hedge Fund

    • Factoring

    • Venture Capital Funding

    Correct Answer
    A. Derivative
  • 19. 

    Reverse repo means

    • Injecting liquidity by the Central Bank of a country through purchase of Govt securities

    • Absorption of liquidity from the market by sale of Govt securities

    • Balancing liquidity with a view to enhance economic growth rate

    • Improving the position of availability of the securities in the market

    • Any of the above

    Correct Answer
    A. Absorption of liquidity from the market by sale of Govt securities
  • 20. 

    We very frequently read about Special Economic Zones(SEZs) in   newspapers. These SEZs were established with which of the following   objectives ?   A) To attract foreign investment directly   B) To protect domestic market from direct competition from multinationals   C) To provide more capital to agricultural and allied activities    

    • Only A

    • Only B

    • Only C

    • All A, B & C

    • None of these

    Correct Answer
    A. Only A

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  • Current Version
  • Mar 20, 2022
    Quiz Edited by
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  • Feb 29, 2012
    Quiz Created by
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