Wednesday, September 23, 2015

Mission IBPS Exam: Banking Awareness Quiz

1. The Basic Committee has defined capital in two Tiers (Tier-I and Tier-II). Tier-I capital is known as 
(a) Net capital
(b) Gross capital
(c) Working capital
(d) Core capital
(e) None of these
2. Tier-II capital consists of
(a) undisclosed reserves and cumulative perpetual preference shares.
(b) general provisions, loss reserves and revaluation reserves.
(c) subordinated debt, hybrid debt capital instruments.
(d) All of the above
(e) None of the above

3. The main objective of Land Development Bank is:
(a) Providing investment credit for agriculture.
(b) Providing crop loans to the farmers.
(c) Developing allied activities in rural and semi-urban areas.
(d) Creating good social relations in the residents of rural and semi-urban areas.
(e) None of the above

4. Who issues treasury bills?
(a) Reserve Bank of India, as the agent of the Central Government
(b) Any govt. deptt. of state and central
(c) Any Commercial Bank
(d) All of the above p
(e) None of the above

5. Commercial paper
(a) fully secured instrument
(b) unserved money market instrument
(c) partly secured paper
(d) All of the above
(e) None of the above

6. Bill of Exchange, Promissory Notes and Cheques are defined as
(a) Negotiable Instruments
(b) Trust Receipts
(c) Documents of Title to goods
(d) None of the above
(e) Stamped Instruments

7. Which of the following do not enjoy scheduled bank status with RBI?
(a) State co-operative banks
(b) Regional rural banks 
(c) Foreign banks in India
(d) District Cooperative banks
(e) None of these

8. The Reserve Bank of India has decided to help banks, as a temporary measure, by providing additional liquidity support under LAF. What is the full form of LAF?
(a) Loan Adjustment Fund
(b) Liquidity Adjustment Facility
(c) Long Awaited Funds
(d) Loan Against Funds
(e) None of these

9. Consider the following statements:
1. Increase in deposit rate results in higher savings
2. Increase in deposit rate results in fall in credit off takes 
3. Increase in deposit rate results in increase in investment
which among the above statement/statements is /are correct?
(a) 1 & 2
(b) 1 & 3
(c) 1, 2 & 3
(d) Only 2
(e) None of these

10. Which of the following is a measure of ‘narrow money’ in India?
(a) M0
(b) M1
(c) M2
(d) M3 
(e) M4


Answers

1.   D
2.   D
3.   A
4.   A
5.   B
6.   A
7.   d
8.   b
9.   b

10. b

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