Test of Money and
Banking by The Scholar Education
1. What is a Repo Rate?
(A) It is a rate
which RBI sell government securities to bank
(B) It is a rate at
which bank borrow rupees from RBI
(C) It is a rate at
which RBI allows small loans in the market
(D) It is a rate at
which is offered by banks to their most valued customers or prime customers
2. In economics it is generally believed that the main
objective of a Public Sector Financial Company like bank is to:
(A) Employ more or
more people
(B)
Maximize total profits
(C) Maximize total
production
(D)
Provide financial service to the people of the nation of its origin across the country.
3. Which of the following cannot be called as a debt
Instrument as referred in financial transaction?
(A) Certificate of
Deposits (B) Bonds
(C) Stocks (D) Commercial papers
4. The govt. formed the panel after many ex-serviceman
returned their medals to protest the rejection of their ‘one rank one person’
demand. Who is heading this panel?
(A) K.M
Chandrasekhar (B)
R Balakrishanan
(C) B S Padmanabham (D)
T. Raja Shekhar
5. Whenever RBI does some Open Market Operation Transaction,
actually it wishes to regulate which of the following?
(A) Inflation only (B)
liquidity in economy
(C) Borrowing
powers of the bank (D)
Flow of Foreign Direct Investment
6. Which was the first Indian Bank to introduce credit card?
(A) State Bank of
India (B)
Central Bank Of India
(C) Union Bank of
India (D)
ICICI
7. Capital Market Regulator is:
(A) RBI (B)
IRDA
(C) NSE (D)
SEBI
8. FDI refers to:
(A) Fixed deposit Interest (B)
Fixed Deposit Investment
(C) Foreign Direct
Investment (D)
Future Derivative Investment
9. What is Call Money?
(A) Money borrowed
or lent money or over night
(B) Money borrowed
for more than one day but upto 3 days
(C) Money borrowed
for more than one day but upto 7 days
(D) Money borrowed
for more than one day but upto 14 days
10. Which is the first Indian Company listed in NASDAQ?
(A) Reliance (B)
TCS
(C) HCL (D)
Infosys
11. SEBI has been imposed a restriction on money flow in
equity through ‘P-notes’. What is the full form of ‘P-notes’?
(A) Permanent notes (B)
purchase notes
(C) Participatory
notes (D)
private notes
12. Which of the following is known as plastic money?
(A) Bearer Cheque (B)
credit card
(C) Demand draft (D)
gift Cheque
13. Who is known as
the ‘Father of economics’?
(A) Adam smith (B)
Marshall
(C) J.M. Keynes (D)
Pareto
14. Which Sister organisation of the World Bank provides
long term loans at zero interest to the poorest developing countries?
(A) Asian
Development Bank (B)
IMF
(C) International
Development Association (D)
International Finance Corporation
15. When the rate of inflation increases?
(A) Purchasing
power of money is increases
(B)
purchasing power of money decreases
(C) Value of money
increases
(D)
Purchasing power of money remain unaffected
16. A centralized database with online connectivity to
branches, interest as well as ATM-network which has been adopted by almost all
major banks of our country is known as?
(A) Investing
Banking (B)
Core Banking
(C) Mobile Banking
(D)
National Banking
17. Which of the following is NOT considered a money market
instrument?
(A) Treasury Bills
(B)
Commercial Paper
(C) Certificate of
Deposit (D)
Shares and Bonds
18. Which of the following is not a banking term?
(A) Letter of
credit (B)
MIBOR
(C) Factoring
services (D)
Entry Load
19. Which of the following organisations issue the rules of
global trade?
(A) IMF (B)
World Trade Organisation
(C) Foreign trade (D)
G-20
20. One single statement that depicts the financial position
of a bank and / or Business enterprise at a given point of time is called:
(A) Statement of
product detail (B)
Foreign exchange
(C) Balance Sheet (D)
Balance Of Payments
21. one of the major challenges banking industries is facing
these days is curbing deliberate efforts of some people to bring money earned
through illegal activities in circulation. Which of the following act is passed
to prevent this activity?
(A) Payments &
Settlements Act (B)
Control money supply Act
(C) Narcotics and
Psychotropic substance Act (D) Prevention of Money laundering Act
22. Basel norms which are important regulatory stipulations
are meant for which sector?
(A) Insurance (B)
Banking
(C) Micro finance (D)
Pension funds
23. Systematic investment Plans related to:
(A) Mutual Funds (B)
Life Insurance Companies
(C) Commercial
Bank (D)
Post Office saving schemes
24. Euro money is the official currency of?
(A) NATO (B)
UN
(C) European (D)
Germany and England
25. Whose signature appears on Indian 100 Rs. Note?
(A) Finance
Minister (B)
RBI Governor
(C) Finance
Secretary (D)
Chairman, Planning Commission
26. While discussing investments there is a mention of short
term government security. What is this investment?
(A) Debenture (B)
Mutual fund
(C) Treasury Bill (D)
Share
27. NBFCs are an important part of the Indian Financial
System. What is meant by this term?
(A) New Banking
Financial Companies (B)
Non-Banking Financial Companies
(C) Neo Banking
Financial Confederation (D)
Non-banking Fiscal Companies
28. RBI stipulates a healthy mix of CASA in the business
figures of banks. What is CASA?
(A) Customer
Analysis and Saving Pattern (B)
Cost Appreciation and selling Analysis
(C) Current Account
And saving Account (D)
Credit and saving Aggregate
29. The rate at which the domestic currency can be converted
into foreign currency and vice-versa is known as the
(A) Exchange rate (B)
MIBOR
(C) LIBOR (D)
Base Rate
30. Electronic Clearing Service in Banks can be availed only
by:
(A) Individuals (B)
Corporates
