Online Test-8 General Awareness (Banks)

20 Questions | Total Attempts: 222

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General Awareness Quizzes & Trivia

Questions and Answers
  • 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

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