Financial Awareness Quiz 1

The following is a quiz on Financial Awareness for NABARD, RBI, SEBI, SBI, IBPS. The quiz comprises 10 questions each carrying 1 mark. For any wrong answer, you will be awarded -.25 marks.

1. What is Finance?

It is the management of credit flow in the market

It is the management of money flow in the market

It is the management of public wealth in the market

It is how to use human resource and its economic status

2. How can the resources be utilized efficiently?

By proper control of the human resource and its economic activities

By exploiting natural resources as much as possible

By proper planning and controlling of money flow in the market

By promoting the foreign flow of money in the country

3. What is a Corporation or Business Finance?

The finance practiced by MSMEs

The finance practiced by MNCs

The finance practiced by small business firms

The finance practiced by business firms

4. What is Financial Management?

It is the procurement of funds and their effective utilization in a business

It is the management done by the apex body of finance in the country

It is what RBI does in its monetary policies

It deals with domestic money management

5. Which among the following is not the objective of Financial Management?

Maximizing profit

Surviving a company

Maximizing capital cost

Maximizing wealth

6. Who is a Financial Manager?

S/He maximizes capital cost

S/He saves the company from bankruptcy

S/He shapes the fortune of the employees of the company

S/He does all finance related functions except investment related decision

7. Which of the following is not the function of a Financial Manager?

S/He takes investment related decision

S/He analyses whether additional financing is required or not

S/He functions how profit can be maximized.

S/He takes decisions only in connection with short-financing.

8. What are Doubtful Assets?

These are NPAs for a period of less than 12 months

These are NPAs for a period of more than 12 months

These are the assets which do not carry any risk.

These are the assets which cannot be collected

9. What is Prime Lending Rate?

It is a Bank Rate pegged by RBI

It is an interest rate used by commercial banks for favoured customers.

It is an interest rate used by commercial banks for a short period.

It is an overnight interest rate used by the Apex Bank for Commercial banks

10. Which organization defines and controls Special Drawing Rights (SDRs)?

It is WTO

It is IMF

It is IBRD

It is World Bank