Quiz on Banking Awareness

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Number of Questions: 10

1. Legal uses of tax regime to one’s own advantage, to reduce the amount of tax that is payable by means that are within the law can be termed as _____ ?
   A) Tax shifting
   B) Tax havens
   C) Tax Evasion
   D) Tax avoidance
   
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     Option D
   Explanation: Tax avoidance is the use of legal methods to modify an individual’s financial situation to lower the amount of income tax owed
2. ______ Policy is a part of government policy, which is concerned with raising revenue through taxation & with deciding on the amount and purpose of government spending.
   A) Revenue Policy
   B) Fiscal Policy
   C) Income Policy
   D) Surplus Policy
   
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     Option B
   Explanation: Fiscal policy influences growth performance of economy mainly by influencing the resource mobilisation and influencing the efficiency of resource allocation. Its major objective is improving the growth proper performance of economy and ensuring Social justice to people.
3. Money laundering is a process which involves-
   A) placement of funds
   B) layering of funds
   C) integration of funds
   D) all of the above
   
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   Option D
4. Union Budget firstly presented in
   A) Rajya sabha
   B) State Assemblies
   C) Lok Sabha
   D) At meeting of cabinet ministers
   
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   Option C
   Explanation:
5. Bank rate policy , open market operations, Cash reserve ratio, Statutory liquidity ratio are the requirements employed by Reserve Bank of India as measures of ____ credit control?
   A) Qualitative credit control
   B) Quantitative credit control
   C) Both of the above
   D) None of the above
   
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   Option B
   Explanation:
6. Coins are minted by Government of India at four mints in the country. Which one of the following is not among four mints?
   A) Nashik
   B) Kolkata
   C) Noida
   D) Hyderabad
   
   View answer

   Option A
   Explanation: In India, Indian coins are minted through four mints located in Kolkata, Mumbai, Hyderabad & Noida.
7. _____ deficit is the difference between what government earns and its total expenditure.
   A) Revenue deficit
   B) Fiscal deficit
   C) Budgetary deficit
   D) Monetary deficit
   
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   Option B
   Explanation: A fiscal deficit occurs when a government’s total expenditures exceed the revenue that it generates, excluding money from borrowings. Fiscal Deficit = Revenue receipts (Net tax revenue + Non-tax revenue) + Capital receipts – Total expenditure (plan and Non-plan)
8. Union Budget is presented by _____ every year in last week of February.
   A) Prime Minister
   B) Minister of Home Affairs
   C) Finance Minister
   D) Minister of Corporate Affairs
   
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   Option C
   Explanation: Union Budget contains India’s revenue and expenditure for one fiscal year, from 1st April to 31st March.
9. The Board of Financial Supervision (BFS) was constituted in November 1994 by RBI to supervise-
   A) Commercial Banks
   B) Financial Institutions
   C) Non Banking Finance Companies (NBFC’s)
   D) All of the above
   
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   Option D
10. The use of Smart Cards/ Debit Cards/ Credit Cards for purchase of an item, or for physical cash payment at a Merchant Store, the card has to be swiped in a terminal known as ______ ?
    A) Credit card terminal
    B) Point of sale or POS terminal
    C) EFTPOS
    D) PDQ (Process Data Quickly) terminal
    
    View answer

    Option B

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