Money & Banking

Exchange rates state the value of one currency in terms of other currencies. Which one of the following statements with respect to the exchange rate of currency is correct ?

[amp_mcq option1=”Floating exchange rates are rates in which the Governments interfere by buying or selling their currencies.” option2=”Fixed exchange rates are rates set by Government decisions and maintained by Government actions.” option3=”Under the Bretton Woods System, the exchange rates are floated in terms of rise or fall in price of gold.” option4=”Under the classical gold standard, the exchange rates are fixed in terms of price of dollar.” correct=”option2″]

The asset or assets that a borrower pledges in order to guarantee repayment of a loan is called as

[amp_mcq option1=”Cheque” option2=”Collateral” option3=”Guarantee card” option4=”Bond” correct=”option2″]

Recently the Reserve Bank of India has imposed limitations, initially for a period of six months, on the withdrawal of amount by account holders of which one of the following banks?

[amp_mcq option1=”IndusInd Bank” option2=”Dhanlaxmi Bank” option3=”Punjab and Maharashtra Cooperative Bank” option4=”South Indian Bank” correct=”option3″]

The Cash Reserve Ratio refers to

[amp_mcq option1=”the share of Net Demand and Time Liabilities that banks have to hold as liquid assets” option2=”the share of Net Demand and Time Liabilities that banks have to hold as balances with the RBI” option3=”the share of Net Demand and Time Liabilities that banks have to hold as part of their cash reserves” option4=”the ratio of cash holding to reserves of banks” correct=”option2″]

Which one of the following is not correct about Repo rate?

[amp_mcq option1=”It is the interest rate charged by the Central Bank on overnight loan.” option2=”It is the interest rate paid by the commercial banks on overnight borrowing.” option3=”It is the interest rate agreed upon in the loan contract between a commercial bank and the Central Bank.” option4=”It is the cost of collateral security.” correct=”option4″]

‘Sub-prime crisis’ is a term associated with which one of the following events?

[amp_mcq option1=”Economic recession” option2=”Political instability” option3=”Structural adjustment programmes” option4=”Growing social inequality” correct=”option1″]

Which one of the following events is not correctly matched with the year in which it happened?

[amp_mcq option1=”Inauguration of the SWIFT system of electronic interbank fund transfers worldwide—1985″ option2=”Conclusion of the Uruguay Round of GATT—1994″ option3=”Inauguration of the World Trade Organization—1995″ option4=”Establishment of the first wholly electronic stock exchange (Nasdaq)—1971″ correct=”option1″]

Which of the following statements about the India Post Payments Bank (IPPB) is/are correct?

• It has been incorporated as a Public Limited Company.
• It started its operation by establishing two pilot branches at Hyderabad and Varanasi.

Select the correct answer using the code given below.

[amp_mcq option1=”1 only” option2=”2 only” option3=”Both 1 and 2″ option4=”Neither 1 nor 2″ correct=”option1″]

The Reserve Bank of India has recently constituted a high-level task force on Public Credit Registry (PCR) to suggest a road map for developing a transparent, comprehensive and near-real-time PCR for India. The task force is headed by

[amp_mcq option1=”Sekar Karnam” option2=”Vishakha Mulye” option3=”Sriram Kalyanaraman” option4=”Y. M. Deosthalee” correct=”option4″]

Which one of the following statements about Exchange-Traded Fund (ETF) is not correct?

[amp_mcq option1=”It is a marketable security.” option2=”It experiences price changes throughout the day.” option3=”It typically has lower daily liquidity and higher fees than mutual fund shares.” option4=”An ETF does not have its net asset value calculated once at the end of every day.” correct=”option3″]