Banking and Financial Awareness - Online Test
Q1. The process of money creation or credit creation IS done by
Answer : Option B
Explaination / Solution:
No Explaination.
Q2. The Reserve Bank relaxed norms for issuance of rupee-denominated overseas bonds, popularly known as masala bonds, saying they will be treated as external commercial borrowings from October 3. It will major impact on-
Answer : Option B
Explaination / Solution:
The Reserve Bank relaxed norms for issuance of rupee-denominated overseas bonds, popularly known as masala bonds, saying they will be treated as external commercial borrowings from October 3, thereby freeing up more investments by FPIs. Masala bonds will no longer form part of the limit for FPI investments in corporate bonds. Foreign portfolio investment (FPI) consists of securities and other financial assets passively held by foreign investors. FPI does not provide the investor with direct ownership of financial assets and is relatively liquid depending on the volatility of the market.
Q3. Money is something that is
Answer : Option D
Explaination / Solution:
Money is widely accepted as a medium of exchange. It can be used to buy a commodity.
Q4. The Insolvency and Bankruptcy Board of India (IBBI) handles cases using-
Answer : Option D
Explaination / Solution:
The Insolvency and Bankruptcy Board of India (IBBI) is the regulator for overseeing insolvency proceedings and entities like Insolvency Professional Agencies (IPA), Insolvency Professionals (IP) and Information Utilities (IU) in India. It handles the cases using two tribunals like NCLT (National company law tribunal) and Debt recovery tribunal. Current chairman of IBBI is M. S. Sahoo.
Q5. Barter system is
Answer : Option A
Explaination / Solution:
No Explaination.
Q6. Recently US Banking Regulators Shut Down Pakistan’s which bank?
Answer : Option B
Explaination / Solution:
Habib Bank, Pakistan’s largest private lender, has been ordered by the US banking regulators to shut down its New York office after nearly 40 years of operation. The order came after Habib Bank repeatedly failed to pay heed to concerns over possible terrorist financing and money laundering.
Q7. One drawback of barter exchange is
Answer : Option C
Explaination / Solution:
No Explaination.
Q8. Which of the following bagged IPL media rights for Rs 16,347.50 crore over the next five years?
Answer : Option B
Explaination / Solution:
Star India bagged IPL media rights for Rs 16,347.50 crore for the next five years.
Q9. What do you mean by credit creation by commercial banks?
Answer : Option A
Explaination / Solution:
No Explaination.
Q10. Which of the following was the fastest expanding State economy in 2015-16, according to data published by CSO?
Answer : Option A
Explaination / Solution:
Jammu and Kashmir and Arunachal Pradesh were the fastest expanding State economies in 2015-16, according to a new series of gross State domestic product data with 2011-12 as the base year published by the Central Statistics Office. Arunachal Pradesh’s gross State domestic product (GSDP) expanded 16.5 percent and that of Jammu and Kashmir 14.7 percent.
