FINANCIAL AWARENESS FOR IBPS/RBI/SBI/SEBI EXAMS 1 TO 30
Indian
Financial System (WITH ANSWERS)
PAPER
ONE
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
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