Banking Awareness Quiz – Set 54

Hello Aspirants,
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. A bond which is not secured by any asset or collateral is known as ________
   A. equity
   B. debenture.
   C. certificate of deposit
   D. None of the Above
   
   Answer & Explanation

   B. debenture.
   Explanation:
   Debenture is the primary source of long term capital for companies to fulfil their financial requirements. It is a type of debt instrument that is not secured by physical assets or collateral.
   
   
2. The availability of cash and other cash like marketable instruments that are useful in purchases and investments are commonly known as __________
   A. Liquidity
   B. Credit
   C. Marketability
   D. None of the Above
   
   Answer & Explanation

   A. Liquidity
   Explanation:
   Liquidity is the term used to describe how easy it is to convert assets to cash.
   
   
3. Which was the first Indian company listed in National Association of Securities Dealers Automated Quotation System(NASDAQ)?
   A. TCS
   B. HCL
   C. Infosys
   D. Reliance
   
   Answer & Explanation

   C. Infosys
   Explanation:
   NASDAQ stands for the National Association of Securities Dealers Automated Quotations. It is an online trading system of America where national and international companies are registered. The first Indian company to be listed at NASDAQ was Infosys, followed by Satyam Infoway, Reliance, Wipro, ICICI etc.
   
   
4. _________ are the debentures that can be converted into stock by the holder and, under certain circumstances, the issuer of the bond.
   A. Convertible Debentures
   B. Registered Debentures
   C. Bearer Debentures
   D. Non Convertible Debentures
   
   Answer & Explanation

   A. Convertible Debentures
   Explanation:
   A type of debt security where the whole value of the debenture is convertible into equity shares at the issuer’s notice. The ratio of conversion is decided by the issuer when the debenture is issued.
   
   
5. _________ are the debentures that can not convert their debentures into shares of the company.
   A. Convertible Debentures
   B. Registered Debentures
   C. Bearer Debentures
   D. Non Convertible Debentures
   
   Answer & Explanation

   D. Non Convertible Debentures
   Explanation:
   Non convertible debentures are unsecured bonds that cannot be converted to company equity or stock.
   
   
6. Special Drawing Rights (SDR) are supplementary foreign exchange reserve assets defined and maintained by ______
   A. Asian Development Bank (ADB)
   B. Reserve Bank of India (RBI)
   C. World Bank (WB)
   D. International Monetary Fund (IMF)
   
   Answer & Explanation

   D. International Monetary Fund (IMF)
   Explanation:
   The Special Drawing Right (SDR) is an international reserve asset, created by the IMF in 1969 to supplement the existing official reserves of member countries.
   
   
7. Invisible Exports refers the export of _________
   A. Goods through smuggling
   B. Prohibited Goods
   C. Services
   D. None of the Above
   
   Answer & Explanation

   C. Services
   Explanation:
   Exports such as financial services that are not physical goods or products.
   
   
8. Which of the following economic concepts is categorized on the basis of current account or capital account or both?
   A. Gross National Product (GDP)
   B. Gross National Income (GNI)
   C. Balance of Payments
   D. None of the Above
   
   Answer & Explanation

   C. Balance of Payments
   Explanation:
   The difference in total value between payments into and out of a country over a period is called Balance of Payments.
   
   
9. The difference between Visible Exports and Visible Imports is defined as ________
   A. Gross National Product (GDP)
   B. Gross National Income (GNI)
   C. Balance of Payments
   D. Balance of Trade
   
   Answer & Explanation

   D. Balance of Trade
   Explanation:
   The difference in value between a country’s imports and exports is called Balance of Trade.
   
   
10. Non Banking Financial Company – Micro Finance Institutions (NBFC-MFIs) are regulated by _________
    A. Securities and Exchange Board of India(SEBI)
    B. Reserve Bank of India (RBI)
    C. Export Credit Guarantee Corporation(ECGC)
    D. IRDAI
    
    Answer & Explanation

    B. Reserve Bank of India (RBI)
    Explanation:
    An NBFC-MFI is defined as a non-deposit taking NBFC (other than a company licensed under Section 25 of the Indian Companies Act, 1956) with Minimum Net Owned Funds of Rs.5 crore, regulated by RBI.