Quiz 109 : Finance & Economy Current Affairs for Bank PO

1. Recently, it was reported in the newspapers that in the backdrop of slumping economic growth, Reserve Bank of India is under pressure to cut the Cash Reserve Ratio. Which among the following would follow when RBI cuts the CRR?
[A]Stress on money markets would increase
[B]Stress on money markets would decrease
[C]Banks will need to invest more in Government Securities
[D]Banks will need to increase the interest rates


Explanation
2. Recently, one of the well known market analysts made this statement: “We expect the Reserve Bank of India to continue to ease liquidity"
Which among the following instruments can be used by RBI to continue to ease liquidity?
1. Cutting the frequency of Open Market Operations
2. Cutting the Cash Reserve Ratio
3. Cutting the Repo and Reverse Repo rates
Choose the correct options:
[A]Only 1
[B]Only 1 & 2
[C]Only 2 & 3
[D]1, 2 & 3


Explanation
3. It was recently reported in the Business Newspapers that India's economic growth slumped to its lowest in more than two years while output expansion at key industries tumbled to a six-year low. What has been the lowest GDP growth in these 2 years?
[A]7.3%
[B]7.9%
[C]6.9%
[D]6.2%


Explanation
4. Recently, it has been published in some newspapers that government has kicked off a major reform exercise among regional rural banks. What is the core idea of the reforms in RRB's in India?
[A]Infuse capital in RRB's
[B]Make them independent entities of their sponsor banks
[C]Consolidation of RRB's by amalgamation
[D]All of above


Explanation
5. As per the recently published news in various newspapers, the Indians are investing in which among the following commodities / sectors for hedging against inflation, leading the Government to think about launching the Inflation-Indexed Bonds (IIBs)?
[A]Gold
[B]Real Estate
[C]G-Secs
[D]Share Markets


6. Which among the following has been discontinued recently after the Cabinet decision in small saving schemes?
[A]National Saving Certificates (NSC)
[B]Kisan Vikas Patras (KVP)
[C]Monthly Income Scheme (MIS)
[D]Recurrent Deposit Schemes


7. The Financial Stability Board (FSB) came into existence in the G-20 summit that was held in____ ?
[A]London
[B]Pittsburg
[C]Toronto
[D]Seoul


8. Consider the following countries:
1. Cambodia
2. Malaysia
3. Indonesia
4. Myanmar
Which among the above are members of Both ASEAN and East Asia Summit?
[A]1 & 2
[B]2 & 3
[C]1, 2 & 3
[D]1, 2, 3 & 4


9. Which among the following gives a precise definition of " Arbitrage" in Financial World?
[A]To profit from an existing discrepancy among prices, exchange rates, and/or interest rates on Different Markets without risk of these changing
[B]to profit from an existing discrepancy among prices, exchange rates, and/or interest rates on Same market without risk of these changing
[C]To profit from an existing discrepancy among prices, exchange rates, and/or interest rates on new techniques or products in same market.
[D]All of above


10. RBI uses the policy instrument Reverse Repo for which of the following reasons?
1. To increase the liquidity of commercial banks
2. To absorb liquidity from commercial banks
3. To reduce the fiscal deficit of central Government
Choose the correct option:
[A]1 & 2
[B]2 & 3
[C]1, 2 & 3
[D]1 & 3


11. Exchangeable Bonds are Bonds which can be exchanged with________?
[A]Equity Shares of a single company
[B]Equity shares of a Group Company
[C]Both of them
[D]None of them


12. Which of the following is / are traded on National Spot Exchange of India?
1. Shares
2. Commodities
3. Bonds
Choose the correct option:
[A]1 & 2 Only
[B]2 & 3 Only
[C]2 Only
[D]1 & 3 Only


13. Which among the following defines Hyperinflation?
[A]Cumulative inflation rate over three years approaching 100% to "inflation exceeding 50% a month
[B]Cumulative inflation rate over five years approaching 100% to "inflation exceeding 50% a month
[C]Growth in Inflation Level of 100 % in 3 years
[D]Growth in Inflation Level of 100 % in 1 year


14. TANKAN is revision of the Industry Classification of the Short-term Economic Survey of Enterprises (usually quarterly ) is used in following country ?
[A]Japan
[B]South Korea
[C]China
[D]All of them


15. Which among the following organizations organized the annual India Economic Summit in India?
[A]FICCI
[B]CII
[C]World Economic Forum
[D]Times Group