Banking awareness - 8 | SBI | IBPS

1. A bank draft can be defined as a/an
a)Letter from commercial bank
b)Cheque drawm on itself
c)Direction to a banker to collect a customer's debt
d)Instruction to dishonour a stop payment

2.When RBI sells government securities, its result is that
a)The liquidity in the banking system increases
b)The liquidity in the banking system remains unchanged
c)The liquidity in the banking system gets diminished
d)None of the above

3.Which of the following is not an instrument in the hands of RBI to check inflation in our country?
a)OMO (Open market Operations)
b)SDR (Special Drawing Rights)
c)Bank Rate (BR)
d)CRR (Cash Reserve Ratio)

4.In India, which among the following is/are a part of Legal Tender Money?
a)Both coins and currency notes
b)Both coins and bank drafts
c)Both currency notes and SDRs
d)Only currency notes issued by RBI.

5.In which among the following types occurs the Interest Rate Risk?
a)Credit risk
b)Market risk
c)Operational risk
d)All the above

6.Which among the following is true regarding Forex (Foreign Exchange) Market?
a)Foreign Exchange markets are a type of localized markets
b)Foreign Exchange markets operate within the time zone of the region
c)Foreign Exchange markets are dynamic and round the clock markets
d)Foreign Exchange markets are used only for business transactions

7.Securities Trading Corporation of India Limited (STCI) has been promoted jointly by __________ and Public Sector Banks
a)SEBI
b)RBI
c)SIDBI
d)ICICI ltd

8.__________ is an agreement under which an issuing bank at the request of the importer undertakes to make payment to the exporter against certain specified documents
a)Bill of exchange
b)Letter of exchange
c)Letter of credit
d)Bill of entry

9.___________ is the duty applied by a government to control the exports of an article of trade, so that the article of trade can be used by the local markets rather than in foreign countries.
a)Customs duty
b)Excise duty
c)Anti-dumping duty
d)Dumping duty

10.Which among the following is not incorrect?
a)Money market provides long term source of finance
b)Recession in the industrial sector in India is normally due to a fall in exports
c)Ways and means advances given by RBI are nowhere related to the state's revenue
d)Exchange rate is fixed by RBI.

Answers

1.(b)
2.(c)
3.(b)
4.(a)
5.(b)
6.(c)
7.(b)
8.(c)
9.(a)
10.(c)