Banking Awareness Quiz – Set 161(Glit Funds)

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Welcome to Banking Awareness Quiz in AffairsCloud.com. Here we are creating quiz covering important questions which are common for all the bank exams and other competitive exams.

1. Which of the following schemes are also referred to as mutual funds dedicated exclusively to investments in government securities?
   A. Gift Funds
   B. Gilt Funds
   C. Glit Funds
   D. All of these
   E. None of these
   

   Answer & Explanation

   B. Gilt Funds
   Explanation:
   Gilt Funds are also referred to as mutual funds dedicated exclusively to investments in government securities
   
   
2. The first gilt fund in India was set up in _____
   A. 1992
   B. 1996
   C. 1998
   D. 1994
   E. None of these
   

   Answer & Explanation

   C. 1998
   Explanation:
   The first gilt fund in India was set up in December 1998.
   
   
3. In SGL Account, SGL stands for ______
   A. Subsidiary General Lender
   B. Subsidiary General Ledger
   C. Subscriber General Ledger
   D. Subscriber General Lenger
   E. None of these
   

   Answer & Explanation

   B. Subsidiary General Ledger
   Explanation:
   Subsidiary General Ledger.
   
   
4. The gilt funds are given the facility of transfer of funds from one center to another under the Remittance Facility Scheme of the _______
   A. GOI
   B. Reserve Bank
   C. SEBI
   D. NABARD
   E. None of these
   

   Answer & Explanation

   B. Reserve Bank
   Explanation:
   The gilt funds are given the facility of transfer of funds from one center to another under the Remittance Facility Scheme of the Reserve Bank.
   
   
5. Gilt funds can access the ________ market as lenders.
   A. Term Money
   B. Call Money
   C. Repurchase Agreements
   D. All of these
   E. None of these
   

   Answer & Explanation

   B. Call Money
   Explanation:
   Gilt funds can access the call money market as lenders.
   
   
6. __________ with the Reserve Bank are in eligible central government dated securities and treasury bills of all maturities.
   A. Term Money
   B. Call Money
   C. Repurchase Agreements
   D. All of these
   E. None of these
   

   Answer & Explanation

   C. Repurchase Agreements
   Explanation:
   Repurchase Agreements with the Reserve Bank are in eligible central government dated securities and treasury bills of all maturities.
   
   
7. The prices of the securities for reverse repo transactions are determined by the ______
   A. GOI
   B. Reserve Bank
   C. SEBI
   D. NABARD
   E. None of these
   

   Answer & Explanation

   B. Reserve Bank
   Explanation:
   The prices of the securities for reverse repo transactions are determined by the Reserve Bank of India.
   
   
8. Gilt funds can avail the reverse repo facility for a maximum period of ____ days.
   A. 15
   B. 10
   C. 14
   D. 20
   E. None of these
   

   Answer & Explanation

   C. 14
   Explanation:
   Gilt funds can avail the reverse repo facility for a maximum period of 14 days.
   
   
9. The gilt funds cannot use the funds raised through the reverse repos facility for on-lending in the ______ money market.
   A. Term Money
   B. Call Money
   C. Repurchase Agreements
   D. All of these
   E. None of these
   

   Answer & Explanation

   B. Call Money
   Explanation: The gilt funds cannot use the funds raised through the reverse repos facility for on-lending in the call/notice money market.
   
   
10. All gilt funds – public and private sector, open-ended or close – ended – are eligible to avail liquidity support and other facilities from the ________.
    A. GOI
    B. Reserve Bank
    C. SEBI
    D. NABARD
    E. None of these
    

    Answer & Explanation

    B. Reserve Bank
    Explanation:
    All gilt funds – public and private sector, open-ended or close- ended – are eligible to avail liquidity support and other facilities from the Reserve Bank of India.