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. Which of the following is a statistic that measures how the returns of two risky assets move together?
[A] Correlation
[B] Standard deviation
[C] Variance
[D] None of the above
Show Answer
Correct Answer: A [Correlation]
Notes:
Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient.
92. The depreciation on an asset purchased through hire purchase should be which of the following?
[A] Should be straight line only
[B] Based on the cost price of the asset only
[C] Based on the total cost including interest
[D] No depreciation should be provide until the final payment is made
Show Answer
Correct Answer: B [Based on the cost price of the asset only]
Notes:
The depreciation on an asset purchased through hire purchase should be based on the cost price of the asset only.
93. The profit on interest charged on the hire purchase should appear in the profit and loss account in what manner?
[A] The interest charged in that period only should be included
[B] Interest should be apportioned in proportion to the repayment totals
[C] The total interest levied should be divided equally over the total period the for purchase agreement
[D] Interest should instead be capitalised on the balance sheet
Show Answer
Correct Answer: A [The interest charged in that period only should be included]
Notes:
The profit on interest charged on the hire purchase should appear in the profit and loss account in the interest charged in that period only.
