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.
- It occurs through rising prices as a result of inflation, increased scarcity on increasing earning
1)Process.
2)Depreciation
3)Appreciation
4)Inflation
5)None of these
Answer & Explanation
Answer – 2)Depreciation
Explanation: Appreciation is an increase in the value of asset and acronym for depreciation
- Exploitation of differences between the prices of financial assets or currency within or between markets by buying where prices are low and selling prices are higher.
1)Speculation
2)Arbitrage
3)Amortisation
4)None of these
Answer & Explanation
Answer – 3)Amortisation
Explanation:
Arbitrage does not normally involve significant risks. Profits doesn’t depend upon taking a view on future price changes.
- The _______ is made up of visible trade(merchandise exports and imports) and invisible trade(I.e. income and expenditure for services such as Banking and insurance etc.)
1)Capital account
2)Current account
3)Deficit account
4)None of these
Answer & Explanation
Answer – 2)Current account
Explanation:
Capital account made of such items as inward and outward flow of money for investment and international grants and loans.
- What was Bancor?
1)Paper
2)Indian Currency
3)International currency
4)Coin
Answer & Explanation
Answer – 3)International currency
Explanation:
It was proposed by J M Keynes(British economist) to be issued by an international bank foruse in the settlement of international funds. His proposal was rejected at Bretton woods conference in 1944. However, IMF introduced SDR in 1970 similar in concept.
- Cheque drawn by a bank is known as…..
1)Customer’s draft
2)Consumer’s draft
3)Banker’s draft
4)Demand draft
Answer & Explanation
Answer – 3)Banker’s draft
Explanation:
While cheque is drawn by a bank’s customer, banker’s draft is a cheque drawn by a bank.It is drawn at the request of a customer and customer’s account is debited when it is drawn. It is used when a creditor is not willing to accept a personal cheque.
- It is a currency whose exchange rate is tending to fall because of persistent Balance of Payments deficits.
1)Hard currency
2)Soft currency
3)Hot currency
4)None of these
Answer & Explanation
Answer – 2)Soft currency
Explanation:
Exchange rate falls because of the building up of speculative selling of the currency in expectation of a change in its exchange rate. Governments are unwilling to hold a soft currency in their Foreign Exchange Reserves.
- World Bank is also known as _______
1)IMF
2)IRBD
3)IBRD
4)DRDB
Answer & Explanation
Answer – 3)IBRD
Explanation:
International Bank for Reconstruction and Develop(IBRD). Its establishment like the IMF was agreed upon by the representatives of forty four countries at UN Monetary and Financial conference at Bretton Woods in 1944.
- NABARD gives RRBs ___________ loans.
1)Short term
2)Medium term
3)Long term
4)Both A and B
Answer & Explanation
Answer – 4)Both A and B
Explanation:
National Bank for Agricultural and Rural Development is to develop and oversee the entire rural credit system including agricultural credit.
- It is the purchase and sale of government securities by the RBI from/to the public and banks on its own account.
1)Closed market operations
2)Open market operation
3)Core market operations
4)None of these
Answer & Explanation
Answer – 2)Open market operation
Explanation:
In its capacity as the government’s banker and as the manager of public debt, the RBI buys all the unsold stock of new government loans at the end of the subscription period and keeps them on sale in market on its own account.
- Banks always keep a certain proportion of their total assets in the form of cash partly to meet the statutory reserve requirement and partly to meet day to day need for making cash payments.
1)LAF
2)CRR
3)SLR
4)None of these
Answer & Explanation
Answer – 2)CRR
Explanation:
Cash Reserve Ratio(CRR), cash is held partly in the form of cash on hand and party in the form of balances with the RBI.
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