Banking Awareness Questions

1. Fiscal deficit is?
A) Total income less Govt. borrowing
B) Total payments less total receipts
C) Total payments less capital receipts
D) Total expenditure less total receipts excluding borrowing

2. In the capital market, the term arbitrage is used with reference to?
A) Purchase of securities to cover the sale
B) Sale of securities to reduce the loss on purchase
C) Simultaneous purchase and sale of securities to make profits from price
D) All of the above

3. The stance of RBI monetary policy is?
A) Inflation control with adequate liquidity for growth
B) Improving credit quality of the Banks
C) Strengthening credit delivery mechanism
D) All of the above

4. Currency Swap is an instrument to manage?
A) Currency risk
B) Interest rate risk
C) Currency and interest rate risk
D) Cash flows in different currency

5. “Sub-prime” refers to?
A) Lending done by banks at rates below PLR
B) Funds raised by the banks at sub-Libor Rates
C) Group of banks which are not rates as prime banks as per Banker’s Almanac
D) Lending done by financing institutions including banks to customers not meeting with normally required credit appraisal standards

6. Euro Bond is an instrument?
A) Issued in the European market
B) Issued in Euro currency
C) Is a bond denominated in a currency not native to the issuer's home country
D) All of the above

7. Money laundering normally involves?
A) Placement of funds
B) Layering of funds
C) Integrating of funds
D) All of the above

8. The IMF and the World Bank were conceived as institutions to?
A) Strengthening international economic co-operations and to help create a more stable and prosperous global economy
B) IMF promotes international monetary cooperation
C) The World Bank promotes long term economic development and poverty reduction
D) All of the above

9. Capital Market Regulator is?
A) RBI
B) IRDA
C) NSE
D) SEBI

10. FDI refers to?
A) Fixed Deposit Interest
B) Fixed Deposit Investment
C) Foreign Direct Investment
D) Future Derivative Investment