Banking & Financial Awareness Quiz – Set 179

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.

1. Which section of the RBI Act 1934 defines the business which the Central Bank may not transact?
   A) Section 8
   B) Section 28
   C) Section 19
   D) Section 32
   
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   Option C
   Explanation: Section 19
2. The main objective of introducing KYC norms by banks is__________
   A) Ensure that the money deposited in the bank has come from genuine sources
   B) Bring more number of people under banking system
   C) Identify people who do not pay income tax
   D) Determine whether money deposited is of an Indian or foreign national
   
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   Option A
   Explanation: Ensure that the money deposited in the bank has come from genuine sources
3. The authorised capital of the EXIM Bank is ________
   A) Rs 100 crore
   B) Rs 200 crore
   C) Rs 500 crore
   D) Rs 300 crore
   
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   Option B
   Explanation: The authorised capital of the EXIM Bank is Rs. 200 crore and paid up capital is Rs. 100 crore. It is a wholly subscribed by the Central Government
4. ___________ is a situation where the inflation rate is high, the economic growth rate slows down and unemployment remains steadily high
   A) Stagnation
   B) Reflation
   C) Stagflation
   D) Hyper-Inflation
   
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   Option C
   Explanation: Stagflation is a combination of inflation and stagnation
5. Which of these measures are taken by the government to control inflation?
   A) Increase in taxes
   B) Delay in payment of old debt
   C) Decrease in public expenditure
   D) All the above
   
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   Option D
   
6.  DOW is a stock market index based in
   A) China
   B) United States
   C) Germany
   D) Japan
   
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   Option B
   
7. The simultaneous buying and selling of securities in different markets in order to take advantage of differing prices for the same asset is known as_____________
   A) Arbitrage
   B) Speculations
   C) Market Trend
   D) Stub
   
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   Option A
   
8. The main purpose of currency swap is to manage
   A) Interest rate risk
   B) Currency risk
   C) Cash flows in different countries
   D) Both A and B
   
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   Option C
   
9. The New Foreign Trade Policy announced by the government in 2015 has been launched for a period of how many years?
   A) 7 years
   B) 6 years
   C) 10 years
   D) 5 years
   
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   Option D
   Explanation: The Government of India, Ministry of Commerce and Industry announced New Foreign Trade Policy on 01st April 2015 for the period 2015-2020
10. The total net worth of any business establishment is known as
    A) Share
    B) Capital
    C) Debt
    D) Asset
    
    View answer

    Option B
    

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