Banking and Financial Awareness for RBI/IBPS Exams

Q1. Liquid assets means? 
(a) Cash only 
(b) Cash and Debtors 
(c) Cash and Debtors (except bad debts) 
(d) Cash and Debtors (except bad debts) and Marketable Securities

Q2. Many a time we read about Rural Indebtedness in various newspapers/magazines. What are the main causes of the rural indebtedness?
II.Inability to repay the loans 
III. Zamindari System which prevents farmers to own the land 
(a) Only I
(b) Only II
(c) Both I and II
(d) All of the above

Q3. The process of the total valuation of the financial capital assets of a country is technically known as?
(a) Market Capitalization
(b) Gross Domestic Product 
(c) Net wealth of the country 
(d) Gross Domestic Resources 

Q4. Which of the following is NOT the part of the organized sector in Indian Money Market?
(a) Mutual Funds 
(b) Non-Banking Financial Companies 
(c) Unit Trust of India 
(d) Chit funds

Q5. The term “dormant accounts” means?
(a) Accounts showing an average balance of less than Rs. 100 during a half year 
(b) Accounts which remains inoperative for an extended period of time
(c) Accounts which have been blocked under the exchange control regulations 
(d) Loan/cash credit/overdraft accounts which are considered irrecoverable

Q6. 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 

Q7. 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

Q8. 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 

Q9. 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

Q10. 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