FINANCIAL AWARENESS 1 TO 60
1 TO 30 already posted. reposted to retain question nos for 31 to 60
1.
CIBIL launches _______ for catering to
non-individuals viz., Corporate, SMEs and other type of business entities.
a) Consumer Bureau b)
Corporate Bureau c) Commercial Bureau
d) Convenience Bureau e)
None of these
2.
Interest rates being charged by Banks in India
has shown______ trend in recent year.
a) Falling b)
Rising c) Stable
d) Volatile e)
None of these
3.
Which of the following NBFC converted itself
into a commercial Bank?
a) Tata Finance b)
Reliance Capital Trust
c) Birla Mutual
d) Kotak Mahindra e)
None of these
4.
Which
finance company has been given banking licence by RBI recently
a) Kotak Mahindra b)
Ashok Leyland & Finance
c) TVS Finance
d) Tata Finance e)
None of these
5.
Commercial
Papers :
a) are sold by the banks for short term
purposes
b) are like coupon bonds which carry fixed
interest
c) can develop a secondary market
d) None of the above e)
All of the above
6.
Presently,
participants in the call market :
a) include some NBFIs b)
borrow and lend at fixed rates
c) also include primary dealers d)
None of the above e) All of the above
7.
CPs
:
a) were launched in the Indian money market
before CDs.
b) are issued by scheduled commercial banks.
c) can be bought by banks as well.
d) None of the above e)
All of the above
8.
CDs
:
a) cannot be transacted in the secondary market
b) can be issued only by scheduled banks c)
are subjected to CRR and SLR
d) None of the above e)
All of the above
9.
CDs :
a) have a lock-in period b)
have a minimum issue size of Rs.5 lakhs
c) are mainly issued by corporate companies d)
None of the above
e) All of the above
10. In recent years
:
a) the 364-day bill has been the most
popular
b) the 182-day bill has been the most popular
c) the 91-day bill has been the most
popular d) None of the above
e) All of the above
11. Year-end
implicit yield :
a) of all TBs are very similar b)
of TBs very greatly across different maturity
c) of TBs do not have much difference d)
None of the above
e) All of the above
12. The RBI repo market :
a) will not exist if there are no CRR or SLR obligations
of banks.
b) is complementary to the inter-bank call
market.
c) transacts various types of securities other
than government securities
d) None of the above e)
All of the above
13. The LAF Repo market always has :
a) the Repo rate higher than the R-Repo rate
b) the R-Repo rate higher than the Repo rate
c) both are equal d)
None of the above e) All of the above
14. Which among the
following was set up by RBI in 1988 jointly with public sector banks and all
India Financial Institutions to develop the money market & provide
liquidity to money market instruments as sequel to Vaghul Working Group
recommendations?
a) Discount and Finance House of India Ltd
(DFHI)
b) Central Depository Services (India) Limited
(CDSL)
c) Financial Intelligence Unit India (FIU-IND)
d) None of these e)
All of these
15. Which among the
following correctly defines Hundi?
a) They are slips on paper presented to the
customer while purchasing goods
b) They are accounts of unorganized sector in
India
c) They are key instruments of credit in the
unorganized money market in India
d) None of these e)
All of these
16. Recently we came
to know that Treasury Bills which are short term (up to one year) borrowing
instruments of the Government of India are also being issued frequently under
the Market Stabilization Scheme (MSS). They are available for minimum amount of
……?
a) Rs.25000 b)
Rs.40000 c) Rs.50000
d) None of these
e) All of the these
17. Which among the
following helps RBI to manage liquidity conditions in the economy with banks
having an avenue to surplus funds or avail funds?
a) Repos
b) Reverse repos c)
Money market Mutual Funds
d) None of these e)
All of these
18. Which among the
following sentence is true?
a) RBI introduced Repos & Reverse Repos in
1992
b) RBI introduced Repos in 1992 & Reverse
Repos in 1996
c) RBI Introduced Repos & Reverse Repos in
1996
d) None of these e)
All of these
19. As we know that RBI has two departments Issue
Department and Banking Department. Which among them is responsible for
maintaining a Minimum reserve system against printing of currency notes?
a) Issue Department b)
Banking Department c) Both of them
d) None of these e)
All of these
20. What is the main function of banking
department of Reserve Bank of India?
a) To do banking business with customers
b) To provide liquidity to the economy and
absorb liquidity
c) To issue the currency in circulation and its
withdrawal from circulation
d) None of these e)
All of these
21. Which among the following is correct regarding
“Progressive tax”?
a) surcharge levied on taxes for development
works
b) rate of tax increased for increased value or
volume
c) getting burden of tax passed on to general
customers
d) None of these e)
All of these
22. Which among the following coined the term
“Second generation Reforms”?
a) World Bank b)
International Monetary Fund c) Reserve Bank of India
d) None of these e)
All of these
23. Which among the
following is world’s largest foreign exchange market?
a) New York
b) London c)
Tokyo d) None of these e)
All of these
24. What is REPO rate:
a) It is a rate at which RBI sells Govt.
securities to banks
b) It is a rate at which bank borrows from RBI
c) It is a rate at which RBI allows small loans
in the market
d) None of these e)
All of these
25. Which of the
following cannot be called as a debt instrument as referred in financial
transactions.
a) Certificate of deposits b)
Bonds c) Stocks d)
Commercial papers
e) None of these
26. Whenever RBI
does some open market operation transaction, actually it wishes to regulate
which of the following
a) Inflation Only b)
Liquidity in economy
c) Borrowing powers of the bank
d) Flow of foreign direct investment e)
None of these
27. What is call money?
a) Money borrowed or lent for a day or over
night
b) Money borrowed for more than one day but
upto 3 days
c) Money borrowed for more than one day but
upto 14 days
d) None of these e)
All of these
28. Which of the following is not considered as a
money market instrument
a) Treasury bills b)
Repurchase agreements c) Commercial paper
d) Shares and Bonds e)
None of these
29. While discussing investments, there is a
mention of short term Government security. What is this investment?
a) Debenture b)
Mutual Fund c) Treasury bill d)
Share
e) None of these
30. Which of the
following tool is used by RBI to control credit and monetary situations of the
markets?
a) RTGS
b) NEFT c)
ECS d) CRR
e) None of these
31. Reverse Repo
rate has the following characteristic.
a) Borrowing by RBI from banks
b) Borrowing with Government security as
collateral
c) Short term borrowing d)
All of these e) None of these
32. The following is the mechanism of injecting
liquidity by RBI to the financial system.
a) Reverse Repo b)
Hike in CRR c) Hike in interest rate d)
Repo
e) None of these
33. What is MSF?
a) Marginal standing facility b)
Micro and small finance
c) Medium size finance d)
Mid-term sanction facility
e) None of these
34. Which one of the following is not a money
market instrument
a) Repo
b) Negotiable certificate of
deposit c) Commercial paper
d) Treasury bill e)
None of these
35. Which of the following is not a part of
India’s money market
a) Bill market b)
Call money market c) Banks
d) Indian gold council
e) None of these
36. What is the full form of CRR as used in
banking sector?
a) Crucial reserve rate b)
Credit & Reserve ration c)
Cash reserve ratio
d) Compulsory return rate e)
None of these
37. _____________ is money denominated in the
currency of another nation or group of nations.
a) Foreign exchange b)
Subsidies c) Tariffs
d) Quotas
e) None of these
38. The market in which foreign exchange
transactions take place is called:
a) The World bank b)
The foreign exchange market
c) The federal reserve
d) The United Nations e)
None of these
39. A(n) ________ is the number of units of one
currency that buys one unit of another currency, and this number can change
daily.
a) subsidy
b) tariff c)
quota d) exchange rate e)
None of these
40. _______ involve the exchange of currency the
second day after the date on which the two foreign exchange traders agree to
the transaction.
a) Spot transactions b)
Outright forward transactions
c) FX swaps
d) Reverse transactions e)
None of these
41. Outright forward transactions involve the
exchange of currency beyond three days at a fixed exchange rate, known as the :
a) spot rate b)
forward rate c) FX swap rate d)
reverse transaction rate
e) None of these
42. The single purchase or sale of a currency for
future delivery is called:
a) spot transactions b)
FX swaps c) outright forward transactions
d) reverse transactions e)
None of these
43. The ________ is the most widely traded
currency in the world.
a) peso
b) yen c)
Deutsche mark d) U.S.dollar e)
None of these
44. Which of the following is FALSE regarding the
U.S. dollar? The U.S. dollar is :
a) the third most widely traded currency in the
world
b) a reserve currency held by many central
banks
c) a transaction currency in many international
commodity markets.
d) an invoice currency in many contracts
45. Which of the following is NOT one of the four
largest centres for foreign exchange trading?
a) the United Kingdom b)
the United States c) Japan
d) China
e) None of these
46. The ________ is
the price at which the trader is willing to buy foreign currency.
a) offer
b) bid c)
spread d) cross rate e)
None of these
47. Which of the following is the price at which
the trader is willing to sell foreign currency?
a) bid
b) spread c)
offer d) cross rate e)
None of these
48. In the spot market, the _________ is the
difference between the bid and offer rates and is the trader’s profit margin.
a) bid
b) offer c)
cross rate d) spread e)
None of these
49. The relationship between two non-dollar
currencies is known as the :
a) cross rate b)
spot rate c) forward rate d)
backward rate
e) None of these
50. The _______ is
the rate quoted for transactions that call for delivery after two business
days.
a) spot rate b)
forward rate c) backward rate d)
cross rate
e) None of these
51. In the spot market, the ________ is the
difference between the spot and forward rate.
a) bid
b) offer c)
spread d) cross rate e)
None of these
52. If the forward rate for a foreign currency is
less than the spot rate, the foreign currency is selling at a :
a) forward premium b)
backward discount c) backward premium
d) forward discount e)
None of these
53. If the forward rate is greater than the spot
rate, the foreign currency is selling at a :
a) forward premium b)
backward discount c) backward premium
d) forward discount e)
None of these
54. The difference between the spot and forward
rates is either the _______ or the _______.
a) forward discount; reverse premium b)
forward discount; forward premium
c) reverse discount; forward premium d)
reverse discount; reverse premium
e) None of these
55. In a _______ system, a government sets
different rates for different types of transactions,
a) variable income b)
fixed income c) bonded rate
d) multiple exchange-rate e)
None of these
56. Countries with ________ often have very high
exchange rate for luxury goods and financial flows, such as dividends.
a) multiple exchange-rate b)
variable income c) fixed income
d) bonded rate e)
None of these
57. The government determines which kinds of
transactions are to be conducted at which exchange rates in which of the
following systems?
a) single exchange rate system b)
multiple exchange rate system
c) partial exchange rate system d)
broad exchange rate system
e) None of these
58. Most foreign exchange transactions stem from
the international departments of commercial banks, which perform all of the
following essential financial functions EXCEPT:
a) buy and sell foreign exchange
b) collect and pay money in transactions with
foreign buyers and sellers
c) raise interest rates among selected
companies
d) lend money in foreign currency e)
None of these
59. The most obvious reason companies use the
foreign-exchange market is for:
a) divestment b)
subsidies c) privatization
d) import and export transactions e)
None of these
60. Companies use the foreign-exchange market for
all of the following reasons EXCEPT:
a) government privatization b)
import transactions c) export transactions
d) financial transactions, such as those in
FDI e) None of these
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