Exercise Quiz & Test – 6


1. 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

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2.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

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3. 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

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4. What was Bancor?
1)Paper
2)Indian Currency
3)International currency
4)Coin

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5. Cheque drawn by a bank is known as…..
1)Customer’s draft
2)Consumer’s draft
3)Banker’s draft
4)Demand draft

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6. 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

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7. World Bank is also known as _______
1)IMF
2)IRBD
3)IBRD
4)DRDB

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8. NABARD gives RRBs ___________ loans.
1)Short term
2)Medium term
3)Long term
4)Both A and B

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9. 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

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10. 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

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