Banking and Financial Awareness Quiz

Q1. High-powered money is produced by?
(a) Commercial Banks
(b) Co-operative Banks
(c) Ministry of Finance
(d) Reserve Bank of India
(e) None of the above

Q2. Which of the following Indian Act has been replaced by the enactment of FEMA in 1999?
(a) FERA
(b) Indian Copyright Act
(c) Indian Patent Act
(d) Both (b) and (C)
(e) None of the above

Q3. VAT is imposed on.........?
(a) Directly on consumer
(b) On all stages between production and final stage
(c) On first stage of production
(d) On final stage of production
(e) None of the above

Q4. Increase in net RBI credit for Central Government represents?
(a) Monetised Deficit
(b) Fiscal Deficit
(c) Revenue Deficit
(d) Budgetary Deficit
(e) None of the above

Q5. What is ‘Hawala’?
(a) Illegal transactions of foreign exchange
(b) Full details of a subject
(c) Illegal trading of shares
(d) Tax evasion
(e) None of the above

Q6. 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
(e) None of the above

Q7. The Reserve Bank of India has asked all the banks to install ‘Note Sorting Machines’ in the branches. How will this help banks and the general public?
I. The machines will check for counterfeit notes and drop these from circulation.
II. The will help banks to count the notes quickly and accurately.
III. This will help in sorting out soiled notes so that they are not reissued by the banks.
(a) Only II
(b) Only I
(c) Only III
(d) Only I and II
(e) None of the above

Q8. As per the guidelines issued by the RBI, banks are preparing for a service which will allow customers to withdraw upto Rs.1,000 using their debit cards from notified shops/stores all over the country. All such shops/stores will have ‘POS’ terminals for the same. What is full form of the ‘POS’?
(a) Payment on Sale
(b) Power of Sale
(c) Point of Sale
(d) Payment Order Service
(e) None of the above

Q9. Which of the following is considered as the financial capital of India?
(a) New Delhi
(b) Kolkata
(c) Ahmedabad
(d) Mumbai
(e) None of the above

Q10. One of the major emphasis of Basel II is that banks should have?
(a) Adequate Capital Adequacy Ratio
(b) Only few braches in urban centres
(c) More and more branches in rural areas
(d) Core banking mode of operation
(e) None of the above

Q11. ‘Closed Economy’ is that economy in which ............?
(a) Neither export nor import takes place
(b) Deficit financing takes place
(c) Only export takes place
(d) All of the above
(e) None of the above

Q12. The SDR was created by the IMF in ____________ as a supplementary international reserve asset, in the context of the Bretton Woods fixed exchange rate system.
(a) 1945
(b) 1969
(c) 1980
(d) 1991
(e) None of the above

Q13. The headquarters of SIDBI is in?
(a) Lucknow
(b) New Delhi
(c) Mumbai
(d) All of the above
(e) None of the above

Q14. LIC of India was established in?
(a) 1897
(b) 1956
(c) 1970
(d) 1965
(e) None of the above

Q15. 2nd Narasimham Committee Report relates to?
(a) Insurance Sector Reform
(b) Banking Sector Reform
(c) Agricultural Sector Reform
(d) Industrial Sector Reform

(e) None of the above