Exercise Quiz & Test – 20


1. Which of the following is NOT banking related terms?
a. SME Finance
b. Overfrafts
c. Drawing Power
d. Equinox

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2. Bad loans in banking terminology are generally known as:
a. Prime loans
b. Prime assets
c. BPOs
d. NPAs

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3. Which of the following organization is not associated with the financial banking sector in India ?
a. NABARD
b. BSE
c. ISRO
d. SEBI

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4. Which of the following terms is not used in the field of banking and finance?
a. Overdraft
b. Baseline
c. RTGS
d. GBC

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5. Which of the following is the name of the bank founded by the winner of the Nobel Peace Prize 2006 Mr. Muhammad Yunus
a. Bank for the poor
b. Swadeshi bank
c. Rashtriya bank
d. Grameen bank

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6. The foreign exchange reserves of India are kept in the custody of:
a. World bank
b. RBI
c. SBI
d. Prime minister

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7. When more than one bank is allowing credit facilities to one party in coordination with each other under a formal arrangement, the arrangement is generally known as:
a. Participation
b. Consortium
c. Syndication
d. Multiple Banking

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8. Reverse Repo Rate means:
a. Injecting liquidity by the central bank of a country through purchase of government securities
b. Absorption of liquidity from the market by sale of government securities
c. Balancing liquidity with a view to enhance economic growth rate
d. Any of above

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9.The bank rate means:
a. Rate of interest charged by commercial banks from borrowers
b. Rate of interest which commercial banks discounted bills of their borrowers
c. Rate of interest allowed by commercial banks on their deposits
d. Rate at which RBI purchases or rediscounts bill of exchange of commercial banks

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10.Open market operations, one of the measures taken by RBI in order to control credit expansion in the economy means :
a. Sale or purchase of government securities
b. Issuance of different types of bonds
c. Auction of gold
d. All of these

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