banking, security market & insurance section 4 MCQ Questions & Answers Detailed Explanation

Question : 1

Consider the following statements in regard to ‘RESIDEX’:

1. The index is prepared to track the prices of residential properties in India on the basis of actual transaction prices.
2. The index is prepared from the secondary data available from various sources like housing, finance companies and banks.

a) Both 1 and 2

b) 2 only

c) 1 only

d) Neither 1 nor 2

Question : 2

The alphabet ‘D’ in the abbreviation ‘NDTL’, commonly used in banking world, stands for

a) Debt

b) Debenture

c) Demand

d) Deposit

Question : 3

Which of the following banks is the World’s largest bank by assets?

a) BNP Paribas

b) Industrial and Commercial Bank of China (ICBC)

c) Bank of America

d) Bank of China

Question : 4

The financial instrument, through which Indian companies can raise money from overseas market in Rupees, is known as

a) Overseas Bonds

b) Gold Bonds

c) Masala Bonds

d) RBI Bonds

Question : 5

SLR can be defined as—

a) $SLR = \text"ER + IS - CAB"/\text"L"$

b) $SLR = \text"ER + IS - CAB"/\text"L"$

c) $SLR = \text"ER + I - CB"/\text"L"$

d) $SLR = \text"L + CB - ER"/\text"IS"$

Question : 6

An economy with very low rate of interest and where economic agents expect the interest rate to rise in future and consequently bond prices to fall, causing capital loss in the economy is going through a situation known as

a) Slow down in the economy

b) Double dip recession

c) Hyperinflation

d) Liquidity trap