Banking Quiz

1. LAF is an indirect instrument of monetary policy, which is used by RBI to regulate the liquidity in banking system. ‘LAF’ stands for:
(a) Liquidity Adjustment Facility  
(b) Liquidity Account Facility
(c) Liquidity Allotment Facility    
(d) Long Adjustment Facility

2. On the basis of which commission was RBI established?
(a) Hilton Young Commission  
(b) British Commission
(c) Federal Commission          
(d) Federation Commission

3. Life insurance and general insurance companies like LIC, ICICI Prudential, ICICI Lombard, National Insurance etc. are regulated by which organisation?
(a) RBI  
(b) PFRDA  
(c) IRDA  
(d) IBA

4. Bank rate is defined as the
(a) Rate of interest charged by commercial banks from borrowers
(b) Rate of interest at which RBI lends money to banks against government securities
(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

5. An IDR (Indian Depository Receipt) is 
(a) An instrument of monetary policy used by RBI
(b) A deposit account with a depository in India
(c) An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company
(d) An instrument in the form of deposit receipt issued by an Indian depository

6. Fiscal deficit is_______ 
(a) total income less government borrowing
(b) total payments less total receipts
(c) total payments less capital receipts
(d) total expenditure less total receipts excluding borrowing

7. _____________are NOT a part of the Scheduled Banking structure in India. 
(a) Money lenders          
(b) Public sector banks
(c) Private sector banks  
(d) Regional rural banks

8. ‘MAT’ is an acronym which stands for
(a) Maximum Alternate Tax  
(b) Minimum Alternate Tax
(c) Minimum Affordable Tax  
(d) Maximum Affordable Tax

9. Often, we read in the newspapers that several Indian companies are taking the FCCB route to raise capital. What does the term FCCB stand for? 
(a) Foreign Currency Convertible Bond  
(b) Foreign Convertible Credit Bond
(c) Financial Consortium and Credit Bureau
(d) Future Credit and Currency Bureau

10. Which of the following interest rates signifies RBI’s long term stance of monetary policy?
(a) Repo Rate  
(b) CRR  
(c) Bank Rate  
(d) Reserve Repo Rate

11. As per RBI instructions, places having a population of 2000 and above have to be provided with banking facilities by 
(a) March 2011  
(b) March 2012  
(c) March 2013  
(d) March 2015

12. ________________was the main objective of the Fiscal Responsibility and Budget Management Act, 2003.
(a) Achieving fiscal surplus      
(b) Eliminating revenue deficit
(c) Eliminating fiscal deficit    
(d) Stopping money laundering

13. DEPB (Duty Entitled Passbook) scheme which ended in September 2011 was related to
(a) Foreign direct investment  
(b) Foreign institutional investment
(c) Export promotion              
(d) Import substitution

14. Recently, the Ministry of commerce has introduced a new “Niryat Bandhu” scheme for the guidance and mentoring of first generation entrepreneurs. Who are the “Niryat Bandhus”?
(a) Entrepreneurs  
(b) Officers  
(c) Agents  
(d) Export assistants

15. In capital markets, the term arbitrage is used in reference to the 
(a) purchase of securities to cover the sale
(b) sale of securities to reduce the loss on purchase
(c) concomitant sale and purchase of securities to make profits from price
(d) variation in different markets