Financial Awareness Quiz 3

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. Certificate of Deposit is

A credit created by a commercial bank

A promissory note

Very hard to sell at the market price later

A participatory note

None of the above

2. Commercial Paper is

An unsecured promissory note

A secured promissory note

A negotiable instrument publicly place with investors at a discount rate

A negotiable instrument which the government places to sell it

None of the above

3. What is the minimum maturity period of a Commercial Paper?

It is 5 days

It is 30 days

It is 365 days

It is 7 days

None of the above

4. Which kind of instrument is Zero Coupon Bond?

It is a Money Market Instrument

It is Capital Market Instrument

It is a publicly owned asset

It is a bond take for a short period

None of the above

5. What is the role of a Financial Intermediary?

S/He plays the role of a banking correspondent.

S/He plays the role between a bank and the government

S/He distributes fund from the haves to the have nots

S/He plays the role between the investor and a company

None of the above

6. Which of the following is not correct?

Foreign Exchange Reserves are the assets held on reserve by the Apex bank of India

Foreign Exchange Reserves are also called Foreign Currency Reserves

Most of the Foreign Reserves are held in the US dollar.

Foreign Exchange Reserves help the country to liquidate banks in crisis

None of the above

7. Which of the following are the components of India’s Foreign Exchange Reserves?

Special Drawing Rights

INR

RBI’s Reserve with IMF except golds

All kinds of reserves except SDR

None of the above

8. Which of the following is true to an International Financial Institution (IFI)?

It is not bound to international laws

It includes World bank and IMF not public banks

It provides loans and technical assistance to governments

It provides loans only to developed countries

None of the above

9. Which of the following is not an International Financial Institution?

Islamic Development Bank

Asian Development Bank

International Monetary Fund

WTO

None of the above

10. Which of the following comes under the Primary Sector?

Fishing

Light industries

Heavy industries

Banking and insurance

None of the above