Banking & Financial Awareness Quiz – Set 125

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. Which of these are not traded in the Indian Stock Market?
   A) Debentures
   B) Mutual Funds
   C) Forward Contracts
   D) All of these are traded
   
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   Option D
   
2. Identify the Direct Instrument of the Monetary Policy
   A) Cash Reserve Ratio
   B) Repo Rate
   C) Bank Rate
   D) Open Market Operation
   
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   Option A
   Explanation: Cash reserve ratio (CRR), statutory liquidity ratios (SLR) and refinance facilities are direct instruments of monetary policy
3. Which of these banks comes under the Commercial Banks category?
   I. Nationalized Banks
   II. SBI Group
   III. RRBs
   IV. Private Banks
   A) I, III & IV
   B) I & III
   C) Only I, II & III
   D) All of the above
   
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   Option D
   
4. Gold, Silver, Copper, Salt, Rice, Large Stones can be categorized as which type of money?
   A) Commodity money
   B) Representative money
   C) Fiat money
   D) Broad money
   
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   Option A
   Explanation: Examples of commodities that have been used as mediums of exchange include gold, silver, copper, salt, peppercorns, tea, large stones (such as Rai stones), decorated belts, shells, alcohol, cigarettes, cannabis, silk, candy, nails, cocoa beans, cowries and barley. 
5. Which Section of the Negotiable Instruments Act, 1881 defines Negotiable Instrument?
   A) Section 2
   B) Section 13
   C) Section 8
   D) Section 17
   
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   Option B
   
6. Which of the following is not true regarding Bank Draft?
   A) Demand Draft (DD) is always honored
   B) DD is backed by bank guarantee
   C) DD can be made payable to bearer
   D) DD can be cleared in a specified branch of issuer bank
   
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   Option C
   Explanation: A Demand Draft can NOT be paid to a bearer
7. Which of these denotes general decline in stock market over a period of time?
   A) Bull market
   B) Blue Chip stock market
   C) Initial Margin market
   D) Bear market
   
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   Option D
   
8. Name the finance minister of India who has presented the Union Budget highest number of times in the country?
   A) CD Deshmukh
   B) Morarji Desai
   C) Manmohan Singh
   D) Yashwant Sinha
   
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   Option B
   
9. Walking Inflation is also known as________
   A) Trotting Inflation
   B) Hyper Inflation
   C) Sporadic Inflation
   D) Suppressed Inflation
   
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   Option A
   
10. What is the objective of Selective Credit Control?
    A) Raise the Cost of Credit
    B) Decrease total supply of credit in the economy
    C) Regulate the manner of channelizing of cash and credit in the economy
    D) Giving large share in the total credit to big capitalists
    
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    Option C
    Explanation: Qualitative method controls the manner of channelizing of cash and credit in the economy. It is a ‘selective method’ of control as it restricts credit for certain section where as expands for the other known as the ‘priority sector’ depending on the situation.

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