GENERAL KNOWLEDGE FOR ALL COMPETITION EXAM

Question1 : When a corporate entity wishes to raise money from the market it can do that by issuing

(A) Treasury Bills
(B) Memorandum of Association
(C) Kisan Vikas Patra
(D) National Saving Certificate
(E) Commercial Papers

Answer : (E) Commercial Papers

Question2 : RBI’s open market operation transactions are carried out with a view to regulate

(A) liquidity in the economy
(B) prices of essential commodities
(C) inflation
(D) borrowing power of the banks
(E) All of the above

Answer : (E) All of the above

Question3 : 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 Govt. securities
(B) issuance of different types of bonds
(C) auction of gold
(D) to make available direct finance to borrowers
(E) None of the above

Answer : (A) sale or purchase of Govt. Securities

Question4 : What is an Indian depository Receipt?

(A) A deposit account with a Public Sector Bank
(B) A depository account with any depositories in India
(C) An instrument in the form of depository receipt equity shares of the issuing company
(D) An instrument in the form of deposit receipt issued by Indian depositories
(E) None of the above

Answer: (C) An instrument in the form of depository receipt equity shares of the issuing company

Question5: An instrument that derives its value from a specified underlying (currency, gold, stocks etc), is known as

(A) Derivative
(B) Securitisation Receipts
(C) Hedge Fund
(D) Factoring
(E) Venture Capital Funding

Answer : (A) Derivative

Question 6: Fiscal deficit is

(A) total income less Govt. borrowing
(B) total payments less total receipts
(C) total payments less capital receipts
(D) total expenditure less total receipts excluding borrowing
(E) None of the above

Answer : (D) total expenditure less total receipts excluding borrowing

Question7 : In which of the following fund transfer mechanisms, can funds be moved from one bank to another and where the transaction is settled instantly without being bunched with any other transaction?

(A) RTGS
(B) NEFT
(C) TT
(D) EFT
(E) MT

Answer : (A) RTGS

Question8 : Currency Swap is an instrument to manage

(A) currency risk
(B) interest rate risk
(C) currency and interest rate risk
(D) cash flows in different currencies
(E) All of the above

Answer : (D) cash flows in different currencies

Question9 : Micro Credit in India belongs to ……. ?

(A) Semi-Commercial Banking
(B) Commercial Banking
(C) Non-Banking Financing
(D) Cooperative Banking
(E) None of these

Answer : (C) Non-Banking Financing

Question10 : Which of the following banks is headed by a woman CEO?

(A) Bank of Baroda
(B) HDFC Bank
(C) Central Bank of India
(D) Punjab National Bank
(E) ICICI Bank

Answer : (E) ICICI Bank

Question11 : What is the Call Money ?

(A) Money borrowed or tent for a day or over night
(B) Money borrowed for more than one day but upto 3 days
(C) Money borrowed for more than one day but upto 7 days
(D) Money borrowed for more than one day but upto 14 days
(E) None of the above

Answer : (A) Money borrowed or tent for a day or over night

Question12 : Which of the following is the Regulator of the credit rating agencies in India?

(A) RBI
(B) SBI
(C) SIDBI
(D) SEBI
(E) None of These

Answer : (D) SEBI

Question13 : Lot of banks in India these days are offering M-Banking Facility to their customers. What is the full form of ‘M’ in M’-Banking’

(A) Money
(B) Marginal
(C) Message
(D) Mutual Fund
(E) Mobile phone

Answer : (E) Mobile phone

Question14 : Which of the following is/are true about the ‘Sub-Prime Crisis”?(The term was very much in news recently)

A) It is a mortgage crisis referring to Credit difficult by the borrowers
B) Sub-Prime borrowers were those borrowers who were rated low and were high risk borrowers
C) This crisis originated because of negligence in credit rating of the borrowers

(A) Only A
(B) Only B
(C) Only C
(D) All A, B and C
(E) None of these

Answer : (D) All A, B and C

Question15 : Base rate is the rate below which no bank can allow their lending to anyone. Who sets up this ‘Base Rate for Banks’?

(A) Individual Banks’ Board
(B) Ministry of Commerce
(C) Ministry of Finance
(D) Reserve Bank of India
(E) Interest Rate Commission of India

Answer : (D) Reserve Bank of India

Question16 : As we all know Govt. of India collects tax revenue on various activities in the country. Which of the following is a part of the tax revenue of the Govt.?

A) Tax on Income
B) Tax on Expenditure
C) Tax on Property of Capital Asset
D) Tax on Goods and services

(A) Both A and C only
(B) Both B and D only
(C) All A, B, C and D
(D) Only B, C and D
(E) None of the above

Answer : (C) All A, B, C and D

Question17 : Many times we read out Future Trading in newspaper. What is ‘Future Trading’?

A) It is nothing but a trade between any tow stock exchanges where in it is decided to purchase the stocks of each other on a fixed price throughout the year
B) It is an agreement between two parties to buy or sell an underlying asset in the future at a predetermined price
C) It is an agreement between stock exchanges that they will not trade the stocks of each other under any circumstances in future or for a given period of time

(A) Only A
(B) Only B
(C) Only C
(D) All A, Band C
(E) None of these

Answer : (B) Only B

Question18 : Inflation in India is measured on which of the following indexes/indicators?

(A) Cost of Living Index (COLI)
(B) Consumer Price Index (CPI)
(C) Gross Domestic Product
(D) Wholesale price Index (WPI)
(E) None of the above

Answer:  (D) Wholesale price Index (WPI)

Question19 : What is a ‘Debit Card’ ?

(A) It is a card issued by a Rating Agency
(B) It is a card which can be used for withdrawing cash or making payment even in the absence of any balance in the account
(C) It is a card which can be used for withdrawing cash or making payment if there is balance in the account
(D) It is a card which carries prepaid balance
(E) It is a card which can be used for making STD calls

Answer: (c) It is a card which can be used for withdrawing cash or making payment if there is balance in the account