Banking Awareness Quiz - 1

1.Which of the following is not a reason for demand pull inflation? 

 (1)Shortage of consumer goods 

(2)More exports 

(3)Economic growth  

(4)Less import 

(5)More exports and less imports 

2.Money that a government has required to be accepted in settlement of debts is 

(1)Barter money  

(2)Commodity money 

(3)Legal tender 

(4)Currency value  

(5)None of these 

3.According to the norms prescribed by RBI for setting up of white label ATMs, what is the minimum net worth the NBFCs should have?

(1)Rs. 50 crore

(2)Rs. 75 crore 

(3)Rs. 100 crore 

(4)Rs. 200 crore 

(5)Rs. 150 crore 

4.Government securities with terms of more than 1 year are called 

(1)Government bonds  

(2)Treasury bills 

(3)Bills of exchange  

(4)Capital bills  

(5)All of the above

5.Shares of companies notified by SEBI can be traded only when these are in ………. form ?

1.physical 

2.dematerialized 

3.either A or B

4.None of these

6.Settlement risk can be avoided only if ?

1.settlements are made on real time basis 

2.there is a global settlement agency 

3.foreign exchange transactions are traded in Derivatives 

4.All of the above

7.Reserve Bank of India has not authorized banks to approve limits relating to ?

1.Cash Reserve Ratio 

2.Statutory Liquidity Ratio 

3.Foreign Exchange Operations 

4.None of the above 

8. Securitization is : 

1.non-performing loans are acquired from banks and financial institutions at a discounted value and security receipts issued to them so that these loans are removed from their balance sheet enabling them to reduce the provision in respect of such loans improve profitability

2.converting the illiquid loans of banks and financial institutions by Securitization company into tradable securities, after they are acquired and sold to the investors

3.a process of acquisition of non-performing loans from banks by a Securitization company and covert them into tradable securities and sold to the investors 

4.all of the above

9.TDR offered as security for an advance is transferred to the bank by way of ?

1.pledge 

2.charge 

3.assignment 

4.all of these

10.What is Yield Curve Risk ?

1.It is a line of graph plotting the yield of all maturities of a particular instrument 

2.Yield curve changes its slope and shape from time to time 

3.Yield curve can be twisted to the desired direction through the intervention of RBI 

4.All of the above