Banking & Financial Awareness Quiz – Set 124

Banking & Financial Awareness Quiz: We have created many quizzes on Banking Awareness and this set is one of them. These questions are most important for banking and insurance exams. The question asked in the Banking Awareness section are based both on static banking and that to current banking in news. These Banking Awareness sets will guide you in all banking exams like IBPS Clerk, IBPS PO, SBI Clerk, SBI PO, RRB Clerk and PO and other exams.  The set will be beneficial for the Banking and financial awareness section of LIC AAO. So attempt all the sets now.

Banking & Financial Awareness Questions

1. When the exchange rates of two currencies are adjusted in such a manner that an identical good in two countries has same price when expressed in respective currency is known as__________
   A) Purchasing Power Parity
   B) Bank Rate
   C) Foreign Exchange Reserve
   D) Wage Rate
   
   View answer

   Option A
   
2. Which country’s $10 bank note has been adjudged as the best bank note for 2018 by the International Bank Note Society (IBNS)?
   A) Germany
   B) Singapore
   C) Canada
   D) Australia
   
   View answer

   Option C
   Explanation: $10 bill of Canada has been adjudged as the best bank note for 2018 by the International Bank Note Society (IBNS). 
3. The Punjab National Bank acquired New Bank of India in which year?
   A) 1999
   B) 2000
   C) 1989
   D) 1993
   
   View answer

   Option D
   Explanation: 4 September 1993
4. Which of these is the first commercial bank in India on limited liability basis to be fully owned and operated by Indians?
   A) Punjab National Bank
   B) Oudh Commercial Bank
   C) Allahabad Bank
   D) Imperial Bank of India
   
   View answer

   Option B
   Explanation:It was the first commercial bank in India having limited liability and an entirely Indian board of directors
5. Which of the following is not a component of M2?
   A) Demand deposits
   B) Currency & Coins
   C) Corporate bonds held by firms & individuals
   D) Money market mutual fund shares
   
   View answer

   Option C
   Explanation: M1 = coins and currency in circulation + checkable (demand) deposit + traveler’s checks. M2 = M1 + savings deposits + money market funds + certificates of deposit + other time deposits.
6. The External Commercial Borrowings (ECB) is a part of_____
   A) Capital Account
   B) Balance of Payment
   C) Balance of Trade
   D) Current Account
   
   View answer

   Option A
   
7. The payment of which of these cheques cannot be made on a cash counter of bank?
   A) Bearer
   B) Cross
   C) Order
   D) None
   
   View answer

   Option B
   Explanation: A common instruction is for the cheque to be deposited directly to an account with a bank and not to be immediately cashed by the holder over the bank counter.
8. Which of these best defines Stagflation?
   A) Inflation after Deflation
   B) Inflation with Growth
   C) Deflation with growth
   D) Inflation with recession
   
   View answer

   Option D
   
9. The subprime lending is a loan offered to borrowers who ___________
   A) Do not have good credit history
   B) Take loan against mortgage o tangible assets
   C) Have good credit history and is known to banks since past 10 years
   D) Are most preferred customers of banks
   
   View answer

   Option A
   Explanation: Subprime lending means making loans to people who may have difficulty maintaining the repayment schedule, sometimes reflecting setbacks, such as unemployment, divorce, medical emergencies, etc.
10. Which of the given is referred as ‘Paper Gold’?
    A) Legal Tender of a Country
    B) Dollar
    C) SDR
    D) Bitcoins
    
    View answer

    Option C
    

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