banking, security market & insurance section 3 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 1

Consider the following statements in regard to devaluation and depreciation of a currency:

1. Devaluation is an activity conducted by central government whereas depreciation happens due to market forces.
2. In both the devaluation and depreciation currency loses value against other currencies in a floating currency exchange market.

a) Both 1 and 2

b) 2 only

c) 1 only

d) Neither 1 nor 2

Question : 2 [UP-PCS 2009]

Non - performing assets in commercial banks means

a) loans in which interest or principal amount is not recovered.

b) capital assets not in use.

c) bank deposits which are not invested.

d) low - interest rate loans.

Question : 3

Consider the following statements :

1. Fiat money is a term used for Gold coins
2. Currency Deposit Ratio is the proportion of the total deposits commercial banks keep as reserves.

a) Both 1 and 2

b) 2 only

c) 1 only

d) Neither 1 nor 2

Question : 4 [BOM-PO 2016]

In case of Small Finance Banks (SFB), the loan size and investment limit exposure to single

a) 15 per cent of capital funds

b) 10 per cent of capital funds

c) 15 per cent of total advances

d) 10 per cent of total advances

Question : 5 [BOM-PO 2016]

The last six characters of the alphanumeric IFSC printed on the cheque helps in identifying the

a) Bank name

b) Type of account

c) Bank branch

d) Business or profession