Economic and Financial Terminology Part 6 Quiz – III by Mr. Veeraragavan Ex. RBI officer
Economic and Financial Terminology Part 6
Quiz – III
1) Which is a short term security money market instrument to be sold by Government of India to raise temporary money for cash management needs?
(a) Certificate of deposit
(b) Commercial paper
(c) Cash management bills
(d) T-Bills
(e) Cheque
2) What is the maturity period for ‘Treasury Bills’?
(a) 91 days
(b) 182 days
(c) 364 days
(d) All the above
(e) none of the above
3) Land development banks grant medium term loan for Land development etc. against the mortgage of lands. In some states these banks are known as
(a) Regional Rural banks
(b) Cooperative banks
(c) Land mortgage banks
(d) NBFC
(e) Financial Institution
4) Exchange fluctuation risk in case of an NRE account remains with____
(a) RBI
(b) Bank with whom the account is opened
(c) Account holder
(d) All the above
(e) None of these
5) Payment of a cheque may be countermanded by the—–?
(a) Payee
(b) Drawer
(c) True owner
(d) Drawee
(e) both a and b
6) Pledge means?
(a) advance against goods
(b) open working capital limits
(c) bailment of goods as security for payment of a debt or performance of a promise
(d) none of the above
(e) both a and c
7) In NRE account, rate of interest is linked to?
(a) LIBOR
(b) Bank
(c) PLR
(d) RBI
(e) NIBOR
8) To meet a significant increase in demand for bank credit, a bank may?
(a) make use of excess reserves
(b) borrow from other banks
(c) borrow from the Reserve Bank of India
(d) All of the above
(e) Both a and b
9) Financial Market consists of markets for —–?
(a) Foreign exchange
(b) Debt Instruments
(c) Equities
(d) All of these
(e) both c and b
10) Consider the following statements in context with Treasury Bulls?\
I. They are issued by Government of India on behalf of RBI
II. They are mostly for short term borrowings
III. Treasury Bills cannot be purchased by any person resident of India
Which among the above is/are correct?
(a) All are correct
(b) 2 & 3 are correct
(c) Only 2 is correct
(d) Only 3 is correct
(e) Only 1 and 2 is correct
11) Expand the term CAMELS
(a) Capital Adequacy Management Quality Expenditure Liquidity Sensitivity to Market Risk
(b) Capital Adequacy Management Quality Earnings Liquidity Sensitivity to Market Risk
(c) Capital Accuracy Management of Earning Liquidity Securitization
(d) Capital Adequacy Mismatch of Earning Liquidity and Securitization
(e) None of these
12) What does the lowering of Bank Rate by the Reserve Bank of India leads to
(a) More liquidity in the market
(b) Less liquidity in the market
(c) Stability liquidity in the market
(d) None of these
(e) It is dependent on other factors also
13) Which private sector bank has started a campaign on social media, Twitter to allow the applicants to sell themselves to become an employee of the bank?
(a) HDFC bank
(b) Yes Bank
(c) DCB Bank
(d) IDFC Bank
(e) Bandhan Bank
14) RBI has launched new restructuring tool ‘S4A’ to raise banks’ moral hazard risk. What is it?
(a) Scheme for Systematic Structuring of Stressed Assets
(b) Scheme for Sustainable Structuring of Stressed Assets
(c) Scheme for Sustainable Structuring of Scholastic Assets
(d) Scheme for Sustainable Strength of Stressed Assets
(e) None of these
15) Recently an Indian bank launched next generation features on its app ‘iMobile’ which will enable customers to instantly pay taxes and book railway tickets within the app. Name the bank.
(a) Federal Bank
(b) Punjab National Bank
(c) Kotak Mahindra Bank
(d) ICICI Bank
(e) Bandhan Bank
16) The following statements are related to Micro Finance System. Locate the wrong option ?
(a) It provides micro credit having scope for small savings and remittance of funds
(b) It based on the principle of livelihood creation
(c) The livelihood mission means engaging in activities in a routine fashion to generate cash or non-cash income
(d) High volumes of low transactions done through this system.
(e) None of these
17) Indian Micro Finance Institutes (MFI) usually adopt the group-based lending models, which are of two types. SHG model and JLG model. SHG means Self Help Group and JLG means ?
(a) Joint Liability Game
(b) Josh Liability Group
(c) Joint Loan Group
(d) Joint Liability Group
(e) None of these
18) SWIFT means ?
(a) Society for World Wide Interbank Financial Telecommunication
(b) Social Formality World Wide Internet Functional Telecommunication
(c) Society for World Wide International Financial Telecommunication
(d) Society for World Wide Interbank Functionality Telecommunication
(e) Society for World Wide Interbank Financial Technologies
19) _____ is regarded as the fourth element of the financial system?
(a) Financial services
(b) Financial markets
(c) Financial instruments
(d) Financial institutions
(e) None of these
20) Nainital Bank is a subsidiary of which of the following banks?
(a) Bank of Baroda
(b) SBI
(c) Syndicate Bank
(d) RBI
(e) None of these
21) Which one of the following is called as initial repayment holiday given to a borrower for repayment of loan?
(a) Amortization
(b) Moratorium
(c) Subvention
(d) Mortagerer
(e) None of these
22) What is the full form of FIMMDA?
(a) Fixed Income Money Markets & Derivatives Association
(b) Foreign Income Money Markets & Derivatives Association
(c) Floating Income Money Markets & Derivatives Association
(d) Fixed Income Money Markets & Derivatives Affiliation
(e) None of these
23) What is an Indian Depository Receipt?
(a) An instrument in the form of deposit receipt issued by Indian depositories
(b) A deposit account with a Public Sector Bank
(c) An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company
(d) A depository account with any of Depositories in India
(e) None of these
24) What is a Lease?
(a) A rental agreement between owner of a flat/house and the Tenant, whereby the Tenant pays specified amount on specified dates to the owner
(b) A legal contract between the owner of an asset and its user, containing many conditions including payment of a specified amount by the user to the Owner for use of the asset
(c) Both (a) and (b)
(d) Rental documents\ between two people
(e) None of these
25) Arbitrage is?
(a) Buying and selling in two markets simultaneously
(b) A rate of interest
(c) A Fee
(d) Arbitrage is a dispute
(e) None of these
26) ‘Subprime lending’ is a term applied to the loans made to ________.
(a) Those borrowers who do not have a good credit history
(b) Those borrowers who have a good credit history
(c) Those borrowers who do not have a good debit history
(d) Those borrowers who have a good debit history
27) Which of the following Acts is specially launched to facilitate banks in recovery of bad loans?
(a) RBI Act
(b) Banking Regulation Act
(c) SARFAESI Act
(d) Companies Act
(e) Income Tax Act
28) Which of the following is/are the parameters for computing Gross National Happiness?
(a) Higher real per capita income
(b) Good Governance
(c) Environmental Protection
(d) Cultural Promotion
(e) All of the above
29) The Human Poverty Index (HPI) concentrates on the deprivation in which of the following essential elements of human life that is already reflected in the HDI?
(A) Longevity
(b) Knowledge
(c) Decent standard of living
(d) Only B and C
(e) All of the above
30) The Multidimensional Poverty Index (MPI) is often accused of neglecting which of the following dimensions of poverty?
(a)Moral Dimension
(b) Spiritual Dimension
(c) Emotional Dimension
(d) All of the above given as options
(e) Only c
31) Which one of the following is not regarded as characteristic of a less developed country (LDC)?
(a) Low real income per capita
(b)Low population growth rate
(c) Large-scale unemployment and under employment
(d) Large but neglected agricultural sector
(e) Substantial inequality in the distribution of income
32) The most significant single measure of comparison for different economies is
(a) Per capita
(b) Mass poverty
(c) Occupation pattern
(d) Chronic unemployment
(e)None of these
33) What is the main reason behind ‘Mass Poverty’ in developing economies?
(a)Poor natural resources
(b)Inadequate development of natural resources
(c) Exploitative social structure
(d) Both b and c
(e) All of the above
34) Economic development is generally defined to include
I. Improvements in material welfare, especially for persons with the lowest incomes
II. Eradication of mass poverty with its correlates of illiteracy, diseases and early death
III. Changes in the composition of inputs and outputs that generally include shifts in the underlying structure of production away from agricultural growth.
Select the correct answer using code given below:
(a) Only A
(b) Both A and B
(c) Only C
(d) Both B and C
(e) All of the above
35) Development is conceived of as a process that involves major changes in
(a)Social Structures
(b)Popular attitudes
(c)National Institutions
(d)Both B and C
(e) All of the above
36) Which of the following core values should serve as a conceptual basis and practical guidelines for understanding the “inner” meaning of development?
(a) Sustenance
(b) Self-esteem
(c) Freedom from servitude
(d) Both a and b
(e) All of the above
37) Development in all societies must have which of the following objectives?
I. To increase the availability and widen the distribution of basic life-sustaining goods.
II. To raise levels of living, including addition to higher incomes, the provision of more jobs.
III. To expand the range of economic and social choices available to individuals and nations.
Select the correct answer using the codes given below:
(a) Only C
(b) Both B and C
(c) Both A and C
(d) Only A
(e) All of the above
38) Which of the following statements is /are correct regarding underdeveloped countries?
(a) They are marked by low levels of per capita income and low giving standard of their masses.
(b) They are known as developing economies
(c) They are known as Third World
(d) Both a and c
(e) All of the above
39) Consider the following statements regarding the classification of countries:
I. The Organisation for Economic Cooperation and Development (OECD) and the United Nations, offer classifications of countries by their economic status.
II. The International Bank for Reconstruction and Development (IBRD) classify countries on the basis of Purchasing Power Parity (PPI) per capita.
III. UNDP classifies countries according to their level of human development.
Select the correct answer using the codes given below;
(a) Both A and B
(b) Only B
(c) Both A and C
(d) Only A
(e)Only C
40) Which of the following observations is / are not correct?
I. All high income countries are necessarily developed countries.
II. The high income economies compromising less than 20 percent of world population, contribute more than 50 per cent to world PPP GNI.
III. The developing countries are those with low, lower-middle, or upper-middle incomes.
Select the correct answer using the codes given below
(a) Only A
(b) Only B
(c) Both A and C
(d) Both B and C
(e) All of the above
41) As per the definition given by the Planning Commission of India in the Fifth Five Year Plan, an underdeveloped country’s economy is characterized by the existences, in greater or lesser degree of
I. Unutilized manpower
II. Underutilized manpower
III. Unexploited natural resources
Select the correct answer using the codes given below:
(a) Both A and B
(b) Only C
(c) Both A and C
(d) Both B and C
(e) All of the above
42) Development economists use which concept to represent a specific minimum level of income needed to satisfy the basic physical needs?
(a) Equilibrium growth
(b) Sustainable development
(c) Absolute poverty
(d) Purchasing Power Parity
(e) None of these
43) What does NOFHC stand for?
(a) New Operational Financial Hedge Company
(b) Northern Ontario Heritage Fund Corporation
(c) Non-Operative Financial Holding company
(d) New Outsourcing Fund of Hedge companies
(e) None of the above
