General Awareness Quiz

1. RBI's open market operation transactions are carried out with a view to regulate
(1) Liquidity in the economy
(2) Prices of essential commodities
(3) Inflation
(4) Borrowing power of the banks
(5) All the above

2. Open market operations, means
(1) Sale or purchase of Govt. securities
(2) Issuance of different types of bonds
(3) Auction of gold
(4) To make available direct finance to borrowers
(5) None of these

3. When more than one bank is allowing credit facilities to one party in coordination with each other under a formal arrangement, this is generally known as
(1) Participation
(2) Consortium
(3) Syndication
(4) Hedging
(5) None of these

4. The bank rate means
(1) Rate of interest charged by commercial banks from borrowers
(2) Rate of interest at which commercial banks discounted bills of their borrowers
(3) Rate of interest allowed by commercial banks on their deposits
(4) Rate at which RBI purchases or rediscounts bills of exchange of commercial banks
(5) None of these

5. What is an Indian Depository Receipt?
(1) A deposit account with a Public Sector Bank
(2) A depository account with, any of the Depositories in India
(3) An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company
(4) An instrument in the form of deposit receipt issued by Indian depositories
(5) None of these

6. An instrument that derives its value from a specified underlying (currency, gold, stocks etc.) asset is known as
(1) Derivative
(2) Securitisation Receipts
(3) Hedge Fund
(4) Factoring
(5) Venture Capital Funding

7. The term Arbitrage is used with reference to:
(1) purchase of securities to cover the sale
(2) sale of securities to reduce the loss on purchase
(3) simultaneous purchase and sale of securities to make profits from price
(4) variation in different markets
(5) Any of the above

8. "Sub-prime Lending" refers to
(1) lending done by banks at rates below PLR
(2) funds raised by the banks at sub-Libor rates
(3) group of banks which are not rated as prime banks as per Banker's Almanac
(4) lending done by financing institutions including banks to customers not meeting with normally required credit appraisal standards
(5) All of the above

9. Capital Market Regulator is
(1) RBI
(2) IRDA
(3) NSE
(4) BSE
(5) SEBI

10. What is Call Money?
(1) Money borrowed or lent for a day or overnight
(2) Money borrowed for more than one day but up to 3 days
(3) Money borrowed for more than one day but up to 7 days
(4) Money borrowed for more than one day but up to 14 days
(5) None of these

11. Which of the following is the regulator of the credit rating agencies in India?
(1) RBI
(2) SBI
(3) SIDBI
(4) SEBI
(5) None of these

12. The branding line of Bank of Baroda
(1) International Bank of India
(2) India's International Bank
(3) India's Multinational Bank
(4) World's local Bank
(5) None of these

13. Which of the following acts/norms are launched by the banks to prevent money laundering in general?
(1) Know Your Customer Norms
(2) Banking Regulation Act
(3) Negotiable Instrument Act
(4) Narcotics and Psychotropic Substance Act
(5) None of these

14. Expand the term IFRS
(1) International Financial Reporting Standard
(2) International Financial Reporting System
(3) Indian Financial Reporting Standard
(4) Indian Financial Reporting System
(5) Indian Financial Report & Survey

15. Many a time we see a term in newspapers 'IPO'. What is the full form of the same?
(1) Indian Public Offer
(2) Institutional Purchase Offer
(3) Industrial Purchase Order
(4) Indian Purchase Offer
(5) Initial Public Offer


Answer
1. (5)
2. (1)
3. (2)
4. (4)
5. (3)
6. (1)
7. (3)
8. (4)
9. (5)
10. (1)
11. (4)
12. (2)
13. (1)
14. (1)

15. (5)