Banking and Financial Awareness for RBI/IBPS Exams

Q1. High-powered money is produced by?
(a) Commercial Banks 
(b) Co-operative Banks 
(c) Ministry of Finance 
(d) Reserve Bank of India

Q2. Which of the following Indian Act has been replaced by the enactment of FEMA in 1999?
(a) FERA
(b) Indian Copyright Act
(c) Indian Patent Act 
(d) Both (b) and (C)

Q3. VAT is imposed on.........?
(a) Directly on consumer  
(b) On all stages between production and final stage
(c) On first stage of production 
(d) On final stage of production 

Q4. Increase in net RBI credit for Central Government represents?
(a) Monetised Deficit
(b) Fiscal Deficit 
(c) Revenue Deficit 
(d) Budgetary Deficit 

Q5. What is ‘Hawala’?
(a) Illegal transactions of foreign exchange 
(b) Full details of a subject 
(c) Illegal trading of shares 
(d) Tax evasion 

Q6. ‘Closed Economy’ is that economy in which ............?
(a) Neither export nor import takes place
(b) Deficit financing takes place 
(c) Only export takes place 
(d) None of the above 

Q7. The SDR was created by the IMF in ____________ as a supplementary international reserve asset, in the context of the Bretton Woods fixed exchange rate system.
(a) 1945
(b) 1969
(c) 1980
(d) 1991

Q8. The headquarters of SIDBI is in?
(a) Lucknow
(b) New Delhi
(c) Mumbai 
(d) None of the above 

Q9. LIC of India was established in?
(a) 1897
(b) 1956
(c) 1970
(d) 1965

Q10. 2nd Narasimham Committee Report relates to?
(a) Insurance Sector Reform 
(b) Banking Sector Reform
(c) Agricultural Sector Reform 
(d) Industrial Sector Reform