Banking and Financial Awareness Quiz

1. The DICGC operates the Credit Guarantee Scheme for small scale industries on behalf of the?

(a) LIC

(b) IBA

(c) Union Government 

(d) None of the above

2. Working capital means?

(a) Cash-in hand and at bank

(b) Current assets 

(c) Current liabilities and provisions 

(d) Current assets minus current liabilities

3. “Window dressing” means?

(a) The modern way of decorating a branch office 

(b) A decorative way of presenting the Balance Sheet and Profit and Loss Account of a bank at its annual general meeting

(c) Manipulation of accounts with a view not to give the share holders a true and fair view 

(d) Is a strategy used by mutual fund and portfolio managers near the year or quarter end to improve the appearance of the portfolio/fund performance before presenting it to clients or shareholders

4. The term-“co-obligant” means?

(a) A person who has guaranteed the account of another person(s)

(b) A person who has executed an indemnity bond in a bank’s favour

(c) A person who has assumed obligations of contract jointly with other person(s)

(d) A person/business undertaking opening a documentary letter of credit

5. The term “dormant accounts” means?

(a) Accounts showing an average balance of less than Rs. 100 during a half year 

(b) Accounts which remains inoperative for an extended period of time

(c) Accounts which have been blocked under the exchange control regulations 

(d) Loan/cash credit/overdraft accounts which are considered irrecoverable

6. In the Money market operations, the item widely accepted is?

(a) Inter Bank Participation Certificates 

(b) Certificate of Deposits 

(c) Treasury Bills

(d) None of the above 

7. To meet a significant increase in demand for bank credit, a bank may?

(a) make use of excess reserves 

(b) borrow from other banks 

(c) borrow from the Reserve Bank of India 

(d) All of the above

8. The "bank rate" is?

(a) free to fluctuate according to the forces of demand and supply 

(b) set by the Reserve Bank of India

(c) set by the Reserve Bank of India as directed by the Union Ministry of Finance 

(d) set by the Reserve Bank of India as directed by the Indian Banks' Association

9. Pledge means? 

(a) advance against goods 

(b) open working capital limits 

(c) bailment of goods as security for payment of a debt or performance of a promise

(d) none of the above 

10. What are the RBI guidelines for the development of Interest Rate Swaps (IRS)? 

(a) Banks can use IRS for hedging and Trading both 

(b) MIFOR is a benchmark for IRS

(c) Under ISDA agreement Banks can opt for dual jurisdiction i.e., Indian as well as common law

(e) All of the above