This quiz works best with JavaScript enabled. Home > Finance > Banking > Banking Affairs > Banking Affairs – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking Affairs Quiz 7 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When examining for deficiencies of stock, a firm would not make allowances for which of the following? A) Changes in market conditions. B) Thefts by employees. C) Stealing by customers. D) Wastage of goods. Show Answer Correct Answer: A) Changes in market conditions. 2. Reason for cost push inflation is A) Increase in wage rate. B) Increase in interest rate. C) Increase in the price of raw material. D) Increase in indirect tax. Show Answer Correct Answer: C) Increase in the price of raw material. 3. Gross Domestic Product is a measure of..... A) A country's foreign trade relation. B) A country's internal trade relation. C) A country's financial position. D) A country's domestic economic activities. Show Answer Correct Answer: A) A country's foreign trade relation. 4. Which of the following markets are open to specific investors who buy securities directly from the issuing company? A) Tertiary markets. B) Primary markets. C) Secondary markets. D) None of the above. Show Answer Correct Answer: B) Primary markets. 5. Expand the term SWIFT. A) Society for Worldwide Interbank Fiscal. B) Society for Worldwide International Financial Telecommunications. C) Society for Worldwide International Financial Transfers. D) Society for Worldwide Interbank Financial Telecommunications. Show Answer Correct Answer: B) Society for Worldwide International Financial Telecommunications. 6. To control inflation the central bank should A) Sell government securities and decrease bank rate. B) Sell government securities and increase bank rate. C) Purchase government securities and increase bank rate. D) Purchase government securities and to decrease bank rate. Show Answer Correct Answer: B) Sell government securities and increase bank rate. 7. By increasing repo rate, the economy may observe the following effects.....[IBPS 2012] A) Rate of interest on loans and advances will be costlier. B) Industrial output would be affected to an extent. C) Banks will increase rate of interest on deposits. D) Industry houses may borrow money from foreign countries. Show Answer Correct Answer: C) Banks will increase rate of interest on deposits. 8. What is a RS.RS.Payment Obligation" ? A) Ontractual obligations of bank to pay an amount owed to another bank. B) Contractual obligations of a Person to pay an amount owed to another. C) Obligations of a Person to pay an amount distributed in a group. D) None of the above. Show Answer Correct Answer: B) Contractual obligations of a Person to pay an amount owed to another. 9. Which is not an example of near money? A) Bill of exchange. B) Govt. bonds and debentures. C) Equity shares of Ranbaxy company limited. D) Treasury bills of the Government of India. Show Answer Correct Answer: C) Equity shares of Ranbaxy company limited. 10. One of the major challenges banking industry is facing these days is money laundering. Which of the following acts/norms are launched by the banks to prevent money laundering in general? A) Banking Regulation Act. B) Know Your Customer Norms. C) Negotiable Instrument Act. D) Narcotics and Psychotropic Substance Act. Show Answer Correct Answer: B) Know Your Customer Norms. 11. With which bank the ING Vysya Bank got merged in 2016? A) Axis Bank. B) Yes Bank. C) Kotak Mahindra Bank. D) HDFC. Show Answer Correct Answer: C) Kotak Mahindra Bank. 12. The market which expects the prices of shares go up in the market is called A) Depressed market. B) Bull market. C) Duck market. D) Bear market. Show Answer Correct Answer: B) Bull market. 13. What was the statutory cash reserves requirement originally when the Banking regulations Act was passed in 1949? A) 2% of demand liabilities and 5% of time liabilities. B) 5% of demand liabilities and 2% of time liabilities. C) 5% of demand liabilities and 5% of time liabilities. D) 5% of demand liabilities and 5% of time liabilities. Show Answer Correct Answer: B) 5% of demand liabilities and 2% of time liabilities. 14. Who among the following issues metallic coins in India? A) RBI. B) Government of India. C) Banks and financial institutions. D) Any of the above can issue it. Show Answer Correct Answer: B) Government of India. 15. Objective of monetary policy of RBI is to A) Control inflation. B) Discourage hoarding of commodities. C) Encourage flow of credit into neglected sector. D) All of the above. Show Answer Correct Answer: D) All of the above. 16. Which of the following is not the name of a Banking Organisation? A) SEBI. B) IDBI. C) HDFC. D) YES. Show Answer Correct Answer: A) SEBI. 17. The tax on Import and Export is known as A) Custom duty. B) Commercial Tax. C) Income Tax. D) Trade Tax. Show Answer Correct Answer: A) Custom duty. 18. What is the objective of the government behind setting up a Minimum Export Price (MEP) for a particular commodity? A) To promote import. B) To check price rise. C) To help exporters. D) To promote exports. Show Answer Correct Answer: B) To check price rise. 19. Travellers cheque is A) A supplementary credit card. B) A cheque issued by a bank or finance institution which functions as capital. C) A certificate issued by a bank or finance institution in lieu of cash. D) A prepaid instrument issued by a bank or finance institution which can be substitute of cash. Show Answer Correct Answer: D) A prepaid instrument issued by a bank or finance institution which can be substitute of cash. 20. RuPay debit card is similar to which of the following? A) Singapore's NETS. B) China's UnionPay. C) Both A and B. D) None of The Above. Show Answer Correct Answer: C) Both A and B. 21. Which of the following is not a component of foreign aid of a country? A) Commercial borrowing. B) Bilateral grant. C) Loans from international financial institutions. D) Multilateral grant. Show Answer Correct Answer: A) Commercial borrowing. 22. As we all know, the Bank Rate at present is fixed at 6% . What does it mean in context to the banking operations? A) No bank will be able to give loan to any patron at a rate lower than the Bank Rate. B) Bank should give loan to their priority sector customers/borrowers at the rate of 6% only. They cannot charge less or more than this from their priority sector clients. C) Banks are required to invest 6% of their total capital on financial inclusion and inclusive banking operations. D) Banks will be required to give 6% of their total deposits to the Govt. of India for meeting its Balance of Trade requirements. Show Answer Correct Answer: A) No bank will be able to give loan to any patron at a rate lower than the Bank Rate. 23. Which one of the following groups of items is included in India's foreign exchange reserves? A) Foreign-currency assets, Special Drawing Rights (SDRs) and Loans from foreign countries. B) Foreign-currency assets, Gold holdings of RBI and Special Drawing Rights (SDRs). C) Foreign-currency assets, Loans from the World Bank and Special Drawing Rights (SDRs). D) Foreign-currency assets, Gold holdings of RBI and Loans from the World Bank. Show Answer Correct Answer: B) Foreign-currency assets, Gold holdings of RBI and Special Drawing Rights (SDRs). 24. The headquarters of IMF and World Bank are located at A) Geneva and Montreal. B) Geneva and Vienna. C) New York and Geneva. D) Washington DC. Show Answer Correct Answer: D) Washington DC. 25. 'Open Market operation' is a part of..... A) Labour Policy. B) Fiscal Policy. C) Monetary and Credit Policy. D) Income Policy. Show Answer Correct Answer: C) Monetary and Credit Policy. 26. Basel-II norms are associated with sector. A) Banking. B) Insurance. C) Share. D) All of the above. Show Answer Correct Answer: A) Banking. 27. According to the Banking Regulation Act, nationalized bank can release a share of total paid up capital up to maximum ceiling of..... A) 40%. B) 73%. C) 51%. D) 49%. Show Answer Correct Answer: A) 40%. 28. Many times we see in newspapers that some projects are launched by the Govt authorities on 'PPP' basis. What is the full form of 'PPP'? A) Public Private Partnership. B) Partial Payment Project. C) Preferential Payment Plan. D) Popular Private Project. Show Answer Correct Answer: A) Public Private Partnership. 29. What is an Indian Depository Receipt? [BOB 2008] A) An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company. B) A depository account with any of the Depositories India. C) A deposit account with a public Sector Bank. D) An instrument in the form of deposit receipt issued by Indian depositories. Show Answer Correct Answer: A) An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company. 30. How many Credit Rating Agencies are there in India? A) 9. B) 7. C) 3. D) 6. Show Answer Correct Answer: D) 6. ← PreviousNext →Related QuizzesBanking QuizzesFinance QuizzesBanking Affairs Quiz 1Banking Affairs Quiz 2Banking Affairs Quiz 3Banking Affairs Quiz 4Banking Affairs Quiz 5Banking Affairs Quiz 6Banking Affairs Quiz 8Banking Affairs Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books