Online Test-8 General Awareness (Banks)

1. 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

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

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

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 deposit receipt issued by Indian depositories

None of these

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

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

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

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

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

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

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

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

All of the above

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

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

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

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

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

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

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

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