GK Quiz on Banking Awareness

1.    Which of the following had appointed the Raghu Ram Rajan committee to recommend steps to modernize the financial sector?
(1) RBI                 
(2) Planning Commission
(3) Ministry of Finance
(4) National Development Council
(5) None of these

2.    In context with the falling rupees, many news paper wrote that” RBI has used up most of the available ammunition to prevent the rupee’s slide in the over the counter market, but without much success”.
Which among the following steps was taken by RBI, that has referred to available ammunition in this statement?
(1) RBI sold foreign currency in market
(2) RBI purchased the foreign currency from the market
(3) RBI purchased the stocks form the various stock exchanges in India
(4) RBI reevaluated the Indian rupee
(5) None of these

3.    The formal or institutional credit delivery system in rural India comprises except which of the following?
(1)  Cooperative Credit Institutions
(2) Commercial Banks
(3) Regional Rural Banks
(4) Self Help Groups
(5) None of these

4.    A customer wishes to purchase some US dollars in India. He/She should go to:
(1) Public Debt Division of the RBI only
(2) American Express Bank Only
(3) RBI or any branch of a bank which is authorized for such business
(4) Ministry of Foreign Affairs
(5) None of these

5.    What is the main objective to launch a medium term note (MTN) ____.
(1) To provide loans
(2) To raise funds
(3) To sell equity
(4) To purchase shares
(5) None of these

6.    Many Times we read in the newspaper that: “There is a lot of dollar demand due to import of oil, gold and defence equipment. The Euro is also volatile due to persisting concern in the Eurozone: Which among the following is the correct conclusion derived from the above information:
(1) These factors will keep the rupee weak against the dollar
(2) These factors will keep the dollar weak against the rupee
(3) These factors will reduce the supply of euro
(4) The RBI would print more money
(5) None of these

7.    From the given options, bring out the one which is not a function/power of Reserve Bank of India?
(1) To assume the responsibility of meeting directly or indirectly all reasonable demands for accommodation
(2) To hold cash reserves of the commercial banks and make available financial accommodation to them
(3) To enjoy monopoly of the note issue
(4) To assume responsibility of all banking operations of the government
(5) To assume the responsibility of statistical analysis of data related to macro economy of India

8.    The best alternative banking service to branch banking to be the part of ‘financial inclusion’?
1) Establishment of small branches
2) Setting up of ATMs
3) Issuing ATM cards
4) Giving credit cards
5) Mobile banking

9.    The Narsimham Committee for financial sector reforms suggested reduction in:
1) SLR and CRR
2) SLR, CRR and Priority Sector Financing
3) SLR and Financing to capital goods sector
4) CRR, Priority Sector Financing and Financing to capital goods sector
5) None of these

10.  Which of the following is not a negotiable instrument?
1) Promissory note
2) Bill of exchange
3) Cheque
4) Bank draft
5) Share certificate