BANKING AWARENESS QUIZ - 1

                         

                         Banking awareness Quiz

1. The gilt-edged market refers to the market for
i- Government securities
ii- Semi-government securities
iii- Corporate securities
a) Only I
b) I & II
c) II & III
d) I, II & III
e) only III

2. First share market in India was established in
a) Delhi
b) Mumbai
c) Kolkata
d) Chennai
e) None of these

3. Which one of the following is a capital market instrument?
a) A Treasury bill
b) A negotiable certificate of deposit
c) Commercial paper
d) All of the above
e) None of these

4. T-bills are financial instruments initially sold by ______ to raise funds.
a) Commercial Banks
b) The government
c) corporations
d) agencies of the state Government
e) None of these

5. Commercial paper is a short-term security issued by _____ to raise funds.
a) The Reserve Bank of India
b) Commercial Banks
c) Large and well-known companies
d) National stock exchange
e) State and Local Governments

6. Money market instruments
a) are usually sold in large denominations
b) have low default risk
c) mature in one year or less
d) are characterized by all of the above
e) are characterized by 1 and 2

7. A short-term credit investment created by a non-financial firm and guaranteed by a bank to make payment is called
a) bankers acceptance market
b) collateral loan market
c) treasury bill market
d) call money market
e) repo market

8. An unsecured loan extended by one corporate to another is called
a) Commercial papers
b) Treasury bill
c) Inter-corporate deposits
d) Certificate of deposits
e) All of the above

9. In the term repo, the term of the loan is greater than
a) 30 days
b) 20 days
c) 60 days
d) 90 days
e) None of these

10. Money market securities are
a) short-term
b) low risk
c) very liquid
d) All of the above
e) 1 & 2

Answers: B - B - D - B - C - D - A - C - A - D