Banking and Financial Awareness - Online Test
Q1. Which one of the following is not a secondary function of money
Answer : Option D
Explaination / Solution:
No Explaination.
Q2. The purchase of shares and bonds of Indian companies by Foreign Institutional Investors is called?
Answer : Option D
Explaination / Solution:
Direct investments are when companies make physical investments and purchases in buildings, factories, machines, and other equipment outside of their home country. Indirect investments are when companies or financial institutions purchase positions or stakes in companies on a foreign stock exchange.
Q3. Which one of the following is not a secondary functions of money
Answer : Option C
Explaination / Solution:
No Explaination.
Q4. The power of the commercial banks to expand deposits through expanding their loans and advances is known as:
Answer : Option C
Explaination / Solution:
The power of commercial banks to expand deposits through loans, advances and investments is known as “credit creation.” Process of Credit Creation. The banking system as a whole can create credit which is several times more than the original increase in the deposits of a bank.
Q5. Which one of the following is not a primary functions of money
Answer : Option C
Explaination / Solution:
No Explaination.
Q6. What is the limit of fund transfer using Unified Payment Interface (UPI)?
Answer : Option B
Explaination / Solution:
At present, the upper limit per UPI transaction is Rs. 1 Lakh.
Unified Payments Interface (UPI) is an instant payment system developed by the National Payments Corporation of India (NPCI), an RBI regulated entity. UPI is built over the IMPS infrastructure and allows you to instantly transfer money between any two parties' bank accounts.
Q7. The narrow definition of money is based on
Answer : Option A
Explaination / Solution:
No Explaination.
Q8. What is the RBI’S treasury bill tenure ___
Answer : Option A
Explaination / Solution:
91 days, 182 days, 364 days.
Q9. The broad definition of money is based on
Answer : Option C
Explaination / Solution:
No Explaination.
Q10. Which of these statement is not correct about ‘Payment Bank’?
Answer : Option D
Explaination / Solution:
Payments banks are a new model of banks conceptualised by the reserve bank of India. These banks can accept a restricted deposit which is currently limited to 1 lakh per customer account. These banks cannot issue loans and credit cards. Both current account and savings accounts can be operated by such banks. Payments banks can issue services like ATM cards, debit cards online banking and mobile banking.
