Banking and Financial Awareness Quiz

1. Which of the following is an example of cash less purchase?

I.  Internet Banking

II. Credit Card

III.Debit Card

(a) Only I

(b) Only II

(c) Only I and II

(d) All of the above

2. Through which of the following Indians are not authorised for banking?

(a) Online

(b) Mobile 

(c) Phone

(d) Video Conferencing

3. The term “Balance of Trade” means?

(a) A point where the values of imports and exports are equal  

(b) the term is used with reference to bilateral trade agreements with countries of CIS Block

(c) the difference between the value of the imports and exports of a country

(d) the difference between the total of transactions with foreign countries in trade, services and capital 

4. The term “bank money” is used to denote?

(a) loans and advance granted by the commercial banks 

(b) demand deposits used as money, i.e. deposits withdrawable by cheques

(c) loans granted by the Reserve Bank of India to the commercial banks

(d) money provided by the Reserve Bank of India to the Government 

5. Which of the following is NOT the name of a multinational bank?

(a) BNP Paribas 

(b) British Bank of Middle East

(c) Standard Chartered Bank

(d) Cathay Pacific

6. The term “capitalisation of reserves” is used to denote?

(a) the use of reserves for the acquisition of additional capital  

(b) the use of reserves for paying-off loans raised for building up fixed assets 

(c) the use of reserves for issuing bonus shares to the existing shareholders

(d) the use of reserves for the replacement of depreciated assets 

7. “Multi-currency basket” means?

(a) a number of international currencies to which the value of SDRs is linked  

(b) selected international currencies to which the value of Asian Monetary Unit is linked 

(c) number of major international currencies to which the external value of the Indian rupee is linked

(d) the name given to a group of West European currencies.

8. The term “hyper-inflation” is used to denote?

(a) a situation with moderate rise in price level  

(b) an inflationary situation where the external forces are the primary contributing factors 

(c) a “runway” or “galloping” inflationary situation where the monetary unit becomes almost worthless

(d) a situation where the cost of living index is rising alarmingly 

9. The term “hyper-employment” means?

(a) a situation where machines are used to intensify utilisation of labour 

(b) a situation where plant is used without any rest

(c) a situation where the demand for labour far exceeds its supply

(d) a situation where machines are substituted for labour 

10. “Hot money” means?

(a) money earned through illegal transactions  

(b) money earned through speculative transactions 

(c) money used to hoard scarce commodities

(d) capital which is frequently transferred between financial institutions in an attempt to maximize interest or capital gain.