Online Test-8 General Awareness (Banks)
- 1.RBI’s open market operation transactions are carried out with a view to regulate
- A.
Liquidity in the economy
- B.
Prices of essential commodities
- C.
Inflation
- D.
Borrowing power of the banks
- E.
All the above
- 2.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
- A.
Participation
- B.
Consortium
- C.
Syndication
- D.
Multiple banking
- E.
None
- 3.Open market operations, one of the measures taken by RBI in order to control credit expansion in the economy, means
- A.
Sale or purchase of Govt. securities
- B.
Issuance of different types of bonds
- C.
Auction of gold
- D.
To make available direct finance to borrowers
- E.
None of these
- 4.The bank rate means
- A.
Rate of interest charged by commercial banks from borrowers
- B.
Rate of interest at which commercial banks discounted bills of their borrowers
- 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
- E.
None of these
- 5.What is an Indian Depository Receipt ?
- A.
A deposit account with a Public Sector Bank
- B.
A depository account with an of the Depositories in India
- C.
An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company
- D.
An instrument in the form of deposit receipt issued by Indian depositories
- E.
None of these
- 6.An instrument that derives its value from a specified underlying (currency, gold, stocks etc.) asset is known as
- A.
Derivative
- B.
Securitisation Receipts
- C.
Hedge Fund
- D.
Factoring
- E.
Venture Capital Funding
- 7.Fiscal deficit is
- A.
Total income less Govt. borrowing
- B.
Total payments less total receipts
- C.
Total payments less capital receipts
- D.
Total expenditure less total receipts excluding borrowing
- E.
None of these
- 8.In the Capital Market, the term arbitrage is used with reference to
- A.
Purchase of securities to cover the sale
- B.
Sale of securities to reduce the loss on purchase
- C.
Simultaneous purchase and sale of securities to make profits from price
- D.
Variation in different markets
- E.
Any of the above
- 9.Reverse repo means
- A.
Injecting liquidity by the Central Bank of a country through purchase of Govt securities
- B.
Absorption of liquidity from the market by sale of Govt securities
- C.
Balancing liquidity with a view to enhance economic growth rate
- D.
Improving the position of availability of the securities in the market
- E.
Any of the above
- 10.The stance of RBI monetary policy is
- A.
Inflation control with adequate liquidity for growth
- B.
Improving credit quality of the Banks
- C.
Strengthening credit delivery mechanism
- D.
Supporting investment demand in the economy
- E.
Any of the above
- 11.Currency Swap is an instrument to manage
- A.
Currency risk
- B.
Interest rate risk
- C.
Currency and interest rate risk
- D.
Cash flows in different currencies
- E.
All of the above
- 12.“Sub-prime” refers to
- A.
Lending done by banks at rates below PLR
- B.
Funds raised by the banks at sub-Libor rates
- C.
Group of banks which are not rated as prime banks as per Banker’s Almanac
- D.
Lending done by financing institutions including banks to customers not meeting with normally required credit appraisal standards
- E.
All of the above
- 13.Euro Bond is an instrument
- A.
Issued in the European market
- B.
Issued in Euro Currency
- C.
Issued in a country other than the country of the currency of the Bond
- D.
All of the above
- E.
None of these
- 14.What is Call Money ?
- A.
Money borrowed or lent for a day or overnight
- B.
Money borrowed for more than one day but up to 3 days
- C.
Money borrowed for more than one day but up to 7 days
- D.
Money borrowed for more than one day but up to 14 days
- E.
None
- 15.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 ?
- A.
Know Your Customer Norms
- B.
Banking Regulation Act
- C.
Negotiable Instrument Act
- D.
Narcotics and Psychotropic Substance Act
- E.
None of these
- 16.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.
- A.
Only A
- B.
Only B
- C.
Only C
- D.
All A, B & C
- E.
None of these
- 17.Which of the following is NOT the part of the structure of the Financial System in India ?
- A.
Industrial Finance
- B.
Agricultural Finance
- C.
Government Finance
- D.
Development Finance
- E.
Personal Finance
- 18.Which of the following is NOT the part of the scheduled banking structure in India ?
- A.
Money lenders
- B.
Public Sector Banks
- C.
Private Sector Banks
- D.
Regional Rural Banks
- E.
State Co-operative Banks
- 19.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
- A.
Both A and C only
- B.
Both B and D only
- C.
All A, B, C and D
- D.
Only B, C and D
- E.
None of these
- 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
- A.
Only A
- B.
Only B
- C.
Only C
- D.
All A, B & C
- E.
None of these
Questions: 40 | Attempts: 3528 | Last updated: Mar 20, 2022
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