Banking and Financial Awareness Quiz

Q1. Which of the following norms/practices adopted by the banks is/are launched to ensure that the money from illegal activities/sources does/do not come to banks and therefore, the economic health of the nation does not get affected?

I. Know your Customer 

II. Financial Inclusion 

III. Branchless Banking  

(a) Only I

(b) Only II

(c) Only III

(d) All of the above

 Q2. 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 

Q3. Federal Reserves is the Central Bank of?

(a) Britain 

(b) USA

(c) Japan 

(d) Canada 

Q4. The Reserve Bank of India (RBI) keeps on modifying various rates/ratios to keep the flow of liquidity in the market in balanced situation. Which of the following rates/ratios/indexes is NOT directly controlled by the RBI?

(a) Cash Reserve Ratio (CRR)

(b) Repo Rate (RR)

(c) Reserve Repo Rate (RRR)

(d) Wholesale Price Index (WPI)

Q5. Many Banks have adopted/launched “Core Banking Solution (CBS)”. Core Banking Solution is..........?

(a) A marketing strategy adopted by the Banks 

(b) A new type of ATM useful for rural population 

(c) A delivery channel for quick and fast delivery

(d) A new product launched to help senior citizens only as they are not able to visit branches/ATMs frequently

Q6. Which of the following is NOT the part of the structure of the financial System in India?

(a) Industrial Finance 

(b) Agricultural Finance 

(c) Government Finance 

(d) Personal Finance

Q7. Grameen Bank and Micro Credit are associated with which person?

(a) Manmohan Singh 

(b) Bill Gates 

(c) Md. Yunus

(d) Aung San Su Ki 

Q8. As we all know Govt. of India collects tax revenue on various activities in the country. Which of the following is a part of the tax revenue of the Govt.?

I. Tax on Income 

II. Tax on Expenditure 

III. Tax on property of Capital Asset 

IV. Tax on Goods and Services 

(a) Both I and III only 

(b) Both II and IV only 

(c) All of the above

(d) None of the above 

Q9. We very frequently read about Special Economic Zones (SEZs) in newspapers. These SEZs were established with which of the following objectives?

I. To attract foreign investment directly 

II. To protect domestic market from direct competition from multinationals 

III. To provide more capital to agriculture and allied activities 

(a) Only I

(b) Only II

(c) Only III

(d) All of the above 

Q10. Many times we read about Future Trading in newspapers. What is Future Trading?

I. It is nothing but a trade between any two stock exchanges where in it is decided to purchase the stocks of each other on a fixed price throughout the year 

II. It is an agreement between two parties to buy and sell an underlying asset in the future at a predetermined price 

III. It is agreement between Stock Exchanges that they will not trade the stocks of each other under any circumstances in future or for a given period of time 

(a) Only I

(b) Only II

(c) Only III

(d) All of the above