Saturday, 3 September 2016

Banking and Financial Awareness for RBI/IBPS Exams

Q1. In which stage, illegitimate money comes back to the mainstream economy as a legitimate money? 
(a) Placement 
(b) Layering 
(c) Integration
(d) All of the above
(e) None of the above 

Q2. What is the full form of PMLA? 
(a) Provision of Money Laundering Act 
(b) Prevention of Money Laundering Act
(c) Prescription of Money Laundering Act 
(d) Proposition of Money Laundering Act
(e) None of the above

Q3. RBI has the legal right to issue bank notes, under which act? 
(a) Coinage Act
(b) RBI Act 
(c) Banking Regulation Act 
(d) Companies Act
(e) None of the above

Q4. Who is responsible for minting coins in India, and under which act? 
(a) RBI, Coinage Act 
(b) RBI, RBI Act 
(c) Government of India, Coinage Act 
(d) Government of India, Banking Regulation Act
(e) None of the above 

Q5. What is the maximum denomination of currency note that can be issued by RBI? 
(a) Rs. 1,000 
(b) Rs. 5,000 
(c) Rs. 10,000
(d) Rs. 50,000
(e) None of the above

Q6. Small Coins are - 
(a) Coins with denominations of Re. 1 
(b) Coins with denominations of more than Re. 1 
(c) Coins with denominations of less that Re. 1
(d) All of the above
(e) None of the above

Q7. Which of the following is a Money Market Instrument? 
(a) Call Money 
(b) T-Bills 
(c) Collateralized Borrowing and Lending Obligations (CBLO) 
(d) All are Money Market Instruments
(e) None of the above

Q8. Repo borrowings by commercial banks from RBI generally have a tenure of - 
(a) 1 day to 30 days 
(b) 1 day to 90 days 
(c) 1 day to 180 days 
(d) 1 day to 365 days 
(e) None of the above

Q9. Which of the following instrument can be issued by any corporate? 
(a) Certificate of Deposits (CDs) 
(b) Commercial Papers (CPs) 
(c) Inter-Corporate Deposits (ICDs)
(d) Gilt-edged securities 
(e) None of the above

Q10. Which financial entities can issue Certificate of Deposits (CDs)?
(a) Scheduled Commercial Banks, excluding RRBs 
(b) Financial Institutions permitted by RBI 
(c) Both (a) and (b)
(d) BSNL
(e) None of the above

Q11. The term “capitalisation of reserves” is used to denote?
(a) the use of reserves for the acquisition of additional capital  
(b) the use of reserves for paying-off loans raised for building up fixed assets 
(c) the use of reserves for issuing bonus shares to the existing shareholders
(d) the use of reserves for the replacement of depreciated assets 
(e) None of the above

Q12. “Multi-currency basket” means?
(a) a number of international currencies to which the value of SDRs is linked  
(b) selected international currencies to which the value of Asian Monetary Unit is linked 
(c) number of major international currencies to which the external value of the Indian rupee is linked
(d) the name given to a group of West European currencies.
(e) None of the above

Q13. The term “hyper-inflation” is used to denote?
(a) a situation with moderate rise in price level  
(b) an inflationary situation where the external forces are the primary contributing factors 
(c) a “runway” or “galloping” inflationary situation where the monetary unit becomes almost worthless
(d) a situation where the cost of living index is rising alarmingly 
(e) None of the above

Q14. The term “hyper-employment” means?
(a) a situation where machines are used to intensify utilisation of labour 
(b) a situation where plant is used without any rest
(c) a situation where the demand for labour far exceeds its supply
(d) a situation where machines are substituted for labour
(e) None of the above 

Q15. “Hot money” means?
(a) money earned through illegal transactions  
(b) money earned through speculative transactions 
(c) money used to hoard scarce commodities
(d) capital which is frequently transferred between financial institutions in an attempt to maximize interest or capital gain
(e) None of the above 


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