Match the items of
List-I with those in
List-II and select the correct answer.
List-I List-II
a. Bank Rate Policy
1. Involving the shortening of the currency of bills eligible for rediscount
b. Credit Rationing
2. Involving the Purchase and sale of securities in the open market
c. Variable Reserve System
3. Involving the alteration of discount rate
d. Open Market Operations
4. Involving the variation of the minimum reserves
A. a-3, b-1, c-2, d-4
B. a-1, b-2, c-3, d-4
C. a-4, b-2, c-1, d-3
D. a-3, b-1, c-4, d-2
Select an option to see the answer and solution.
Why a retail investor is recommended to invest through a mutual fund in a stock exchange?
A. 3 only
B. 2 and 3 only
C. 1 and 2 only
D. 1, 2 and 3
Select an option to see the answer and solution.
Which of the statements are correct in context of forward markets?
A. Forward markets facilitate the exchange of forward and futures contracts, setting the price of a delivered asset or financial instrument
B. Forward contract pricing is based on the difference in interest rates between two currencies being traded, particularly within FX. Otherwise,
it would be based on the yield curve
C. Forward contracts differ from futures because they are customizable on offer size and maturity date, while the other tends to be standardized
D. All of the above
Select an option to see the answer and solution.
Application from investors are to be received by mutual funds only at the
A. head office or branch offices of the mutual fund
B. designated RTAs
C. official points of acceptance
D. designated banks
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Suppose Party A has a right to buy USD 6,000 from Party B, 1 month down the line, at Rs. 46 = 1 USD (US Dollar).However, after 1 month Party A does not exercise the right. This is possible in which contract?
A. Swap
B. Futures
C. Forward
D. Options
Select an option to see the answer and solution.
Which of the following discounts the treasury bills?
A. RBI
B. Commercial banks
C. SEBI
D. Finance Ministry
Select an option to see the answer and solution.
Reserve Bank of India is
A. an extension wing of Ministry of Finance, Government of India
B. a body corporate, having perpetual succession and a common seal
C. an institution owned by Indian Banks Association
D. a private sector bank
Select an option to see the answer and solution.
In terms of Section 24 of the RBI Act, 1934, RBI may issue bank notes for the maximum denomination of:
A. Rs. 500
B. Rs. 5000
C. Rs. 10000
D. Rs. 1000
Select an option to see the answer and solution.
Defective electrical wiring that may lead to fire is an example of
A. pure risk
B. non-diversifiable risk
C. speculative risk
D. physical hazard
Select an option to see the answer and solution.
Which of the following Insurance is best suited to risk?
A. High frequency and low loss everity
B. Low frequency and high loss severity
C. Minimum frequency and no loss severity
D. High frequency and high loss severity
Select an option to see the answer and solution.
According to traditional approach of money in normal sense includes
A. Currency
B. Currency and demand deposits
C. Currency and bank deposits
D. All liquid assets
Select an option to see the answer and solution.
Which of the following banks launched country's first automated teller machine (ATM) which can be operated independently by a visually impaired person, known as 'Talking ATM'?
A. State Bank of India
B. Union Bank of India
C. Bank of Baroda
D. Bank of India
Select an option to see the answer and solution.
In stock exchange operations, when the speculator buys the right to sell a certain number of shares on an agreed amount at a specified time it is known as
A. no option
B. put option
C. call option
D. double option
Select an option to see the answer and solution.
Export - Import (EXIM) bank of India was set up on.
A. 1st January, 1982
B. 1st April, 1991
C. 1st March, 1970
D. 1st July, 1987
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Which of the following statement is not true with respect to wilful defaulter?
A. Financially capable to repay and yet does not do so
B. One who diverts the funds for purposes other than the fund was availed for
C. With whom funds are not available in the form of assets as funds have been siphoned off
D. All are true
Select an option to see the answer and solution.
As per RBI guidelines, the RRBs have to provide the minimum of which of the following per cent of their total credit under priority sector lending?
Select an option to see the answer and solution.
Which one is not under the three pillars of BASELI II norms in banking industry?
A. Market Discipline
B. Minimum Capital Requirement
C. Risk oriented Supervision
D. Supervisory Review Process
Select an option to see the answer and solution.
Gresham's law operates when
A. When there is a developed banking system
B. The people have full faith in the government
C. When it is transient
D. The demand for money is dominated by the supply
Select an option to see the answer and solution.
Which of the following is not the plastic money?
A. Smart Card
B. Cheque
C. Debit Card
D. Credit Card
Select an option to see the answer and solution.
Which one of the following statement is incorrect?
A. A bank interacts directly with customers, but NBFI interacts with banks and governments
B. Credit creation is one of the primary functions of commercial bank in India
C. Banks generally grant long-term loans to industries
D. To purchase and sell securities is also one of the function of scheduled bank
Select an option to see the answer and solution.
