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Banking and Financial Awareness Quiz

Q1. The central banking functions in India are performed by the...........?
1. Central Bank of India
2. Reserve Bank of India
3. State Bank of India
4. Punjab National Bank
(a) 1, 2 and 3
(b) 2
(c) 1
(d) 2 and 4
(e) None of the above

Q2. If the cash reserve ratio is lowered by the RBI, its impact on credit creation will be to
(a) increase it
(b) decrease it
(c) no impact 
(d) constant
(e) None of the above

Q3. RBI has reduce by one percentage point the Statutory Liquidity Ratio required to be maintained by banks to 23%. In what form is this stipulation reacquired to be fulfilled?
(a) Banks are required to keep the amountin approved government securities of the appropriate value
(b) The amount to be maintained in cash and securities with RBI
(c) The required amount is to be maintained in gold with RBI
(d) All of the above
(e) None of the above

Q4. The financial year for banks is April-March, but what is the financial year for RBI?
(a) January - December
(b) April - March
(c) July - June
(d) October - September
(e) June-May

Q5. Which of the following rates/ratios is not covered under the RBI monetary and credit policy?
(a) Bank rate
(b) Exchange rate of foreign currencies
(c) Repo rate
(d) Reverse repo rate
(e) Cash reserve ratio

Q6. Proposals for setting up of new banks are under active consideration. Which organisation gives the permission?
(a) RBI
(b) Indian Banks Association
(c) Finance Ministry
(d) Cabinet Committee on Economic Affairs
(e) None of the above

Q7. Which of the following rates is decided by the market conditions and not by RBI?
(a) Bank rate 
(b) SLR
(c) CRR 
(d) Inflation rate
(e) None of the above

Q8. An average citizen cannot open a Savings account in which of the following?
(a) Commercial bank
(b) Post office
(c) Co-operative bank
(d) RBI
(e) None of the above

Q9. As per the existing policy, the Cash Reserve Ratio (CRR) of scheduled banks is fixed at a certain percentage of their NDTL. What is full form of NDTL?
(a) New Demand and Tenure Liabilities
(b) Net Demand and Time Liabilities
(c) National Deposits and Total Liquidity
(d) Net Duration and Total Liquidity
(e) New Deposits and Term Liquidity

Q10. Which of the following rates signals the RBI’s long-term outlook on interest rates?
(a) Repo rate
(b) Reverse repo rate
(c) Bank rate
(d) SLR
(e) CRR

Q11. Which of the following organisation release World Economic Outlook report?
(a) World Bank 
(b) IMF
(c) UNDP
(d) WTO
(e) None of the above

Q12. ICRA, CRISIL and Standard and Poor’s (S&P) are?
(a) Credit rating agencies
(b) NGOs
(c) Financial Institutions 
(d) NBFCs
(e) None of the above

Q13. The Nippon Ginko is the Central Bank of?
(a) South Korea 
(b) Japan
(c) China
(d) Taiwan
(e) None of the above 

Q14. “Primary Deficit”refers to?
(a) Fiscal Deficit minus Interest Payments
(b) Budget Deficit minus Interest Payments 
(c) Monetary Deficit minus Interest Payments 
(d) Deficit Financing by 91 day ad hoc treasury bills 
(e) None of the above

Q15. Open market operations are mainly used as ______?
(a) A fiscal device which assists Government borrowing 
(b) A monetary measure to regulate quantity of money in circulation and the cash reserves of the commercial banks
(c) A measure to counteract extreme trends in business    
(d) A measure to influence the balance of payments position
(e) None of the above

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