Quiz 492 : Finance, Business & Economy for Bank PO and Bank Officers Examinations

1.Society for worldwide Inter-bank Financial Telecommunication or SWIFT enables member banks to send funds and statements to each other. In 1977, it was created under the law of which among the following countries?

2.Which among the following is correct about the Vostro Account?
(A)It is an account maintained by a foreign bank with a Bank in India in Indian Rupees.
(B)It is an account maintained by an Indian bank with a Bank in Foreign country in Foreign Currency.
(C)It is an account maintained by a Indian Bank Branch with a Foreign Bank in Foreign Currency.
(D)It is an account maintained by a Foreign Bank Branch with a Indian Bank in Foreign Currency.

3.Which among the following body promoted Securities Trading Corporation of India Limited (STCI) jointly with the Public Sector Banks?
(A)Securities Exchange Board of India
(B)Reserve Bank of India

4.Which among the following is the only correct statement?
(A)Money market meets long term financing needs
(B)Recession in industrial sector in India is normally due to fall in exports
(C)Ways and means advances is given by RBI are nowhere related to State’s revenue
(D)Exchange rate is fixed by RBI

5.We read in the newspapers that the Foreign Direct Investments are preferred over the Capital Inflow. In this context, please consider the following :
1. FDI brings in latest technology
2. FDI does not involve large outflow
3. FDI Improves efficiency of the economy
Which among the above is / are most suitable reasons for the given statement?
(A)Only 1
(B)Only 1 & 3
(C)Only 1 & 2
(D)All 1, 2 & 3

6.Consider the following statements in context with Treasury Bills?
1. They are issued by Government of India on behalf of Reserve Bank of India
2. They are mostly for Short term borrowings
3. Treasury Bills can not be purchased by any person resident of India
Which among the above is / are correct ?
(A)All are correct
(B)2 & 3 are correct
(C)Only 2 is correct
(D)Only 3 is correct

7.Bring out the only incorrect statement:
(A)Reverse Repo operation by RBI aims at injecting/increasing liquidity
(B)SDR refers to special drawing rights
(C)Rupee appreciation results in decrease in imports
(D)Increase in inflation rate leads to decline in real interest rate

8.Consider the following statements:
1. Increase in deposit rate results in Higher savings
2. Increase in deposit rate results in fall in credit off takes
3. Increase in deposit rate results in increase in investment
Which among the above statements is / are correct?
(A)1 & 2
(B)1 & 3
(C)1, 2, 3
(D)Only 1

9.Which among the following correctly defines the Net Interest Income?
(A)Interest earned on advances
(B)Interest earned on investments
(C)Total interest earned on advances and investment
(D)Difference between interest earned and interest paid

10.In which among the following types comes the Interest Rate Risk?
(A)Credit risk
(B)Market risk
(C)Operational risk
(D)All the above categories

11.When there is an inflationary trend in the economy, what would be trend in the pricing of the Bank Products?
(A)Increasing Trend
(B)Decreasing Trend
(C)Constant Trend
(D)There is no relevance of the inflation in pricing of the Banking Products

12.Which among the following is the correct character of the Foreign Exchange Markets?
(A)Foreign Exchange markets are localized markets
(B)Foreign Exchange markets operate within a country’s time zone
(C)Foreign Exchange markets are dynamic and round the clock markets
(D)Foreign Exchange markets are used only for trade related transactions

13.The currency market on a particular day is quoting USD/INR as 45.61/63. At what rate you could by USD?

14.From time to time, which among the following body publishes the “Exchange Control Manual” in context with the Foreign Exchange in India?
(A)Foreign Trade Promotion Board
(B)Department of Commerce
(C)Reserve Bank of India

15.What do we call an arrangement whereby an issuing Bank at the request of the Importer (Buyer) undertakes to make payment to the exporter (Beneficiary) against stipulated documents?
(A)Bill of Exchange
(B)Letter of Exchange
(C)Letter of Credit
(D)Bill of Entry

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  • Anonymous

    please do add a general quiz along with this one plzzzzz

  • Nikhil Pavan Kalyan

    i am little doubtful whether Treasury Bills can be bought by any person. In USA and few other countries, individual can buy the T-bills directly from the Govt of India. But I think in India, it is not so.
    Is there any change in this recently?

  • Ravi.K.Varma

    for question 7

    Reverse repo helps in sucking excess liquidity from the market.It is the interest paid by RBI to commercial banks for their funds deposited with them.

    So i guess there are two incorrect statements


    In question number-7 option C. I think rupee appreciation affects export because devaluation of home currency happens in such case…
    Vindhyachal Praxis Business school(2009-11)

  • Anonymous

    little confused about ques. 6&7.put some more ques on banking awareness

  • Abhishek

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  • Omi

    Good 4 various exam, omi

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  • pranav

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