Sunday, May 18, 2014

IBPS BANK EXAMINATIONS – BANKING AWARENESS – PRACTICE TEST-013



01.   Treasury bills are one among the various financial instruments initially sold by___________
To raise funds
a)    Commercial banks; b) development banks; c) the government; d) corporations’ e) representatives belonging to state governments

02.   There are different money market instruments for raising funds from the market and the money lent for 15 days or more in the inter bank market is called as:
a)    Call money; b) notice money; c) term money; d) commercial paper; e) all the above

03.   According to you, the money lent for one day is called as
a)    Call money; b) notice money; c) term money; d) commercial paper; e) none of the above

04.   The specified interest rate on a fixed maturity security fixed at the time of issue is called as:
a)    Market rate of interest; b) call rate; c) repo rate; d) coupon rate; e) discount rate

05.   The money market in our country has been divided into organized sector and unorganized sector and which among the following do not fall under the unorganized sector category?
a)    Reserve Bank of India; b) All commercial banks including SBI group, nationalized banks, foreign banks; c) Life Insurance Corporation of India; d) Indigenous banks; e) General Insurance Corporation of India

06.   The money lent for more than one day; however, not more than fifteen days is called as:
a)    Call money; b) notice money; c) term money; d) commercial paper; e) none of the above

07.   A _________________is an institution which accepts deposits, makes business loans and other related services
a)    Development bank; b) savings bank; c) commercial bank; d) indigenous bank; e) local area bank

08.   _________________are those financial institutions engaged in the promotion and development of industry, agriculture and other key sectors
a)    Commercial banks; b) development banks; c) Reserve Bank of India; d) all the above; e) none of the above

09.   Money lenders and sahukars called as___________________collect deposits from the general public and grant loans to the needy persons out of their own funds as well as from deposits.
a)    Local area banks; b) Indigenous banks; c) commercial banks; d) development banks; e) none of the above

10.   Which among the following are the various functions of exchange banks?
a)    Remitting money from one country to another country; b) discounting of foreign bills; c) buying and selling gold and silver; d) helping import and export trade; e) all the above

11.   The main objective of _________________ is to give loans to consumers for purchasing the durables like motor car, television set, washing machine, furniture etc and the borrowers have to repay the loans in easy instalments
a)    Commercial banks; b) consumer banks; c) development banks; d) special banks; e) none of the above

12.   __________________attracts high rates of interest and longer the period of deposit higher is the rate of interest and it is also called as the time liability of the bank
a)    Fixed deposit; b) time deposit; c) term deposit; d) all the above; e) all the above

13.   A depositor can deposit his funds in ______________________any number of times he likes and can also withdraw the same any number of times he wishes
a)    Savings bank; b) current account; c) recurring deposit; d) both (a) and (b) as mentioned above; e) none of the above

14.   A depositor can deposit his funds in ___________________any number of times as he likes and can also withdraw the same any number of times he likes and as at present he earns no interest for the amount kept in the account
a)    Savings bank; b) current account; c) recurring deposit; d) fixed deposit; e) none of the above

15.   On this account, restrictions are imposed by the bank on the amount to be withdrawn by the depositor and the bank pays interest on this account although the rate of interest is less than the rate of interest payable in fixed deposit
a)    Recurring deposit; b) savings bank; c) current account; d) fixed deposit; e) none of the above
16.   _________________refers to that market wherein short term monetary assets are bought and sold and according to Reserve Bank of India, it is the centre of dealings mainly of short term character in monetary assets
a)    Money market; b) capital market; c) financial market; d) commercial market; e) short term market

17.   _________________is a mechanism that allows people to buy and trade financial securities such as stocks. Bonds, commodities and other fungible items of value at low transaction costs and at prices that reflect the efficient market hypothesis.
a)    Commodity markets; b) financial markets; c) capital market; d) all the above; e) none of the above

18.   When it comes to unorganized sector, which among the following is not true?
a)    Indigenous bankers; b) money lenders; c) chit funds; d) nidhis; e) cooperative bank

19.   Financial instruments provide short term and they include
a)    Commercial paper; b) hundies; c) certificates of deposits; d) promissory notes; e) all the above

20.    Banks borrow in this money market for the following purposes:
a)    To fill the gaps in temporary mismatches in funds
b)    To meet the cash reserve ratio and statutory reserve ratio – the mandatory requirements as stipulated by RBI
c)    To meet sudden demand for funds arising out of larger outflows
d)    All the above; e) none of the above

21.   When it comes to organized sector, which among the following is not true?
a)    Reserve Bank of India; b) Public sector commercial banks; c) private sector commercial banks; d) money lenders; e) cooperative banks

22.   Which among the following are called as financial instruments?
a)    Call money market; b) bill market; c) bank loans; d) all the above; e) none of the above

23.   When it comes to public sector commercial banks, which among the following is not true?
a)    State Bank of India; b) Nationalised banks; c) Regional Rural banks; d) Foreign banks; e) SBI associate banks

24.   Which among the following are participants in call/notice money market?
a)    Banks; b) primary dealers; c) development finance institutions; d) insurance companies; e) all the above

25.   ___________________refers to the market for government and semi government securities, backed by the RBI
a)    Gilt edged market; b) industrial securities market; c) primary market; d) secondary market; e) none of the above

26.   The industries securities market refers to the market which deals in:
a)    Equities; b) debentures; c) treasury bills; d) commercial paper; e) only (a) and (b) as above

27.   Which among the following is called as stock exchange?
a)    Gilt edged market; b) primary market; c) secondary market; d) old issues market; e) both © and (d) as above

28.   The initial public offer is connected to which among the following:
a)    Primary market; b) secondary market; c) old issues market; d) gilt edged securities market; e) none of the above

29.   Which among the following are the basic objectives of Securities and Exchange Board of India?
a)    Protecting the interests of investors in securities
b)    Promoting the development of securities market
c)     Regulating the securities market
d)    All the above; e) none of the above

30.   What are the main functions of Securities and Exchange Board of India?
a)    Regulating the business of the stock market and other securities market
b)    Promoting and regulating the self regulatory organizations
c)     Prohibiting fraudulent and unfair trade practices in securities market
d)    Promoting awareness among investors and training of intermediaries about safety of the market

e)    All the above


ANSWERS:
1-C
2-C
3-A
4-D
5-D
6-B
7-C
8-B
9-B
10-E
11-B
12-D
13-D
14-B
15-B
16-A
17-B
18-E
19-E
20-D
21-D
22-D
23-D
24-E
25-A
26-E
27-E
28-A
29-D
30-E

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