Quiz on Banking Awareness

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Number of Questions: 10

1. Commercial Paper (CP) can be issued in the denominations of _______ and multiples thereof?
   A) Rs 5 lakh
   B) Rs 2 lakh
   C) Rs 1 lakh
   D) Rs 3 lakh
   
   View answer

   Option A
   Explanation: CP can be issued in denominations of Rs.5 lakh or multiples thereof.
2. Venture Capital is also known as __________
   A) Debt Capital
   B) Risk Capital
   C) Variable Capital
   D) Equity Capital
   
   View answer

   Option B
3. The PAID-UP Capital and Reserves of Scheduled Commercial Banks must not be less than ___________
   A) Rs 1 lakh
   B) Rs 3 lakhs
   C) Rs 5 lakhs
   D) Rs 10 lakhs
   
   View answer

   Option C
   Explanation: Commercial Banks which conduct the business of banking in India and which (a) have paid up capital and reserves of an aggregate real and exchangeable value of not less than Rs.5 lakhs and (b) satisfy the Reserve Bank of India that their affairs are not being conducted in a manner detrimental to the interest of their depositors, are eligible for inclusion in the Second Schedule to the Reserve Bank of India Act, 1934, and when included are known as “Scheduled Commercial Banks”.
4. A contract which gives the buyer the right, but not obligation, to buy or sell an underlying asset or instrument at a specified strike price prior to or on a specified date is known as________
   A) Futures
   B) Swaps
   C) Forwards
   D) Option
   
   View answer

   Option D
   
5. The value of an entity’s assets minus the value of its liabilities is known as NAV. Expand NAV
   A) Net Asset Value
   B) Net Asset Variable
   C) Net Account Value
   D) Net Annual Variable
   
   View answer

   Option A
6. Which of the following is used to denote “Narrow Money”?
   A) M2
   B) M1
   C) M3
   D) M4
   
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   Option B
   Explanation:Narrow money is a category of money supply that includes all physical money such as coins and currency, demand deposits and other liquid assets held by the central bank.
7. IFCI Ltd is the first financial institution set up in India with the main object of making medium and long term credit to industrial needs. It was set up in which year?
   A) 1935
   B) 1952
   C) 1948
   D) 1926
   
   View answer

   Option C
   Explanation: The oldest of the term lending institutions, Industrial Finance Corporation of India was set up by the Government of India in 1948 
8. The action of combining two or more transactions so as to achieve a risk-reducing position is known as____________
   A) Escrow Cash
   B) Factoring
   C) Interest Rate Risk
   D) Hedging
   
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   Option D
9. A statement that contains details of all the economic transactions of a country with the rest of the world, for a given time period, usually one year is known as___________.
   A) Balance of Payment
   B) Balance Sheet
   C) Accommodation Bill
   D) Sensitive Index
   
   View answer

   Option A
10. The LSE is a stock exchange located in the city of_________
    A) Tokyo
    B) Paris
    C) London
    D) Hong Kong
    
    View answer

    Option C
    Explanation: LSE- London Stock Exchange 

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