Banking Awareness – 2020 for IBPS, RBI, SBI, NABARD and other Bank Examinations
Welcome to GKToday’s Banking Awareness Section. This section shows 100 random questions from GKToday’s Banking Awareness MCQs.
A chapterwise course of all the 925 questions divided into 88 Chapters in Banking Awareness is Available in
GKToday’s Academy app for android mobiles.
91. What happens to corporate bond with a fixed interest rate, if interest rates in nation increase?
[A] decrease in value
[B] Be returned to corporation
[C] remain unchanged
[D] increase in value
Show Answer
Correct Answer: A [decrease in value]
Notes:
If interest rates in nation increase, a corporate bond with a fixed interest rate will decrease in value.
92. Political constancy is chief aspect concerning which of the following risks?
[A] exchange risk
[B] systematic risk
[C] non-systematic risk
[D] country risk
Show Answer
Correct Answer: D [country risk]
Notes:
Country risk1 comprises the various risks of investing in a foreign country that can lead to either investment impairments or reductions in returns on investment. The primary objective of managing country risk is to protect company investments in foreign markets and sustain acceptable investment returns.
93. The rules for how to deal with leases and hire purchase contracts is dealt with in which accounting standard?
[A] FRS 16
[B] FRS 19
[C] SSAP 21
[D] SSAP 20
Show Answer
Correct Answer: C [SSAP 21]
Notes:
SSAP 21 distinguishes finance leases from operating leases and sets out standard practice for each.
