Monday, 18 July 2016

Banking and Financial Awareness for SBI / IBPS Exams

1. Fiscal deficit is?
(a) Total income less Govt. borrowing 
(b) Total payments less total receipts 
(c) Total payments less capital receipts 
(d) Total expenditure less total receipts excluding borrowing

2. In the capital market, the term arbitrage is used with reference to?
(a) Purchase of securities to cover the sale 
(b) Sale of securities to reduce the loss on purchase 
(c) Simultaneous purchase and sale of securities to make profits from price
(d) All of the above 

3. The stance of RBI monetary policy is?
(a) Inflation control with adequate liquidity for growth 
(b) Improving credit quality of the Banks 
(c) Strengthening credit delivery mechanism 
(d) All of the above 

4. Currency Swap is an instrument to manage?
(a) Currency risk 
(b) Interest rate risk 
(c) Currency and interest rate risk 
(d) Cash flows in different currency

5. “Sub-prime” refers to?
(a) Lending done by banks at rates below PLR
(b) Funds raised by the banks at sub-Libor Rates 
(c) Group of banks which are not rates as prime banks as per Banker’s Almanac 
(d) Lending done by financing institutions including banks to customers not meeting with normally required credit appraisal standards

6. Many a time we read a term MSS in relation to banking transactions. What is the full form of MSS?
(a) Money Stabilization Scheme 
(b) Market Stabilization Scheme
(c) Maturity and Standardization Service 
(d) Money Stabilization Service 

7. RBI’s open market operation transactions are carried out with a view to regulate?
(a) Liquidity in the economy 
(b) Prices of essential commodities 
(c) Inflation 
(d) All of the above

8. Open market operations, one of the measures taken by RBI in order to control credit expansion in the economy means?
(a) Sale or purchase of Govt. securities
(b) Issuance of different types of bonds 
(c) Auction of gold 
(d) None of the above 

9. The bank rate means?
(a) Rate of interest charged by commercial banks from borrowers 
(b) Rate of interest at which commercial banks discounted bills of their borrowers 
(c) Rate of interest allowed by commercial banks on their deposits 
(d) Rate at which RBI purchases or rediscounts bills of exchange of commercial banks

10. What is an Indian Depository Receipt?
(a) A deposit account with a Public Sector Bank 
(b) A deposit account with any of depositories in India 
(c) A denominated in Indian currency and are issued by a domestic depository and the underlying    equity shares are secured with a custodian
(d) None of the above 

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