Banking Awareness Quiz for NIACL AO MAINS|16th February 2019

Banking Awareness Quiz for NIACL AO MAINS

Improve your Banking with Banking quiz. Banking Quiz to help you improve your score for exams like Bank, SSC, Railway, UPSC, UPSSSC, CDS, UPTET, KVS, DSSSB and other Government exams.

Q1. What is an Indian depository receipt?

(a) A deposit account with a public sector bank

(b) A depository account with any of the depositories in India

(c) An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company

(d) An instrument in the form of deposit receipt issued by Indian depositories

(e) None of the given options is true

Q2. Capital market regulator is-

(a) RBI

(b) IRDA

(c) NSE

(d) BSE

(e) SEBI

Q3. Many times, we read about future trading in newspapers. What is ‘future trading’?

  1. It is nothing but a trade between any two stock exchanges, wherein it is decided to purchase the stocks of each other on a fixed price throughout the year.
  2. It is an agreement between two parties to buy or sell an underlying asset in the future at a predetermined price.

III. It is an agreement between stock exchanges that they will not trade the stocks of each other under any circumstances in future or for a given period of time.

Select the correct answer using the codes given below

(a) Only I

(b) Only II

(c) Only III

(d) II and III

(e) None of the given options is true

Q4. Which of the following is the regulator of the credit rating agencies in India?

(a) RBI

(b) IRDAI

(c) TRAI

(d) SEBI

(e) NABARD

Q5. Which of the following cannot be called as a debt instrument as referred in financial transactions?

(a) Certificate of deposits

(b) Bonds

(c) Stocks

(d) Commercial papers

(e) Loans

Q6. When an agent asks a customer to invest in a mutual fund product without telling him/her about the risks involved in the investment, the process is termed as-

(a) mis-selling

(b) undertaking

(c) misappropriation of funds

(d) cross-selling

(e) None of the given options is true

Q7. The stock market index of London, stock market is referred as-

(a) sensex

(b) footsie

(c) nifty

(d) bullish

(e) None of the given options is true

Q8. Which is the first Indian company to be listed on NASDAQ?

(a) Reliance

(b) TCS

(c) HCL

(d) Infosys

(e) None of the given options is true

Q9. In the capital market, the term arbitrage is used with reference to-

(a) purchase of securities to cover the sale

(b) sale of securities to reduce the loss on purchase

(c) The simultaneous purchase and sale of an asset to profit from an imbalance in the price

(d) variation in different markets

(e) All of the above

Q10. Which of the following organisations is known as the market regulator in India?

(a) IBA

(b) SEBI

(c) AMFI

(d) NSDL

(e) None of the given options is true

Solution

Ans.1.(c)

Exp. Indian depository receipt is an instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company.

Ans.2.(e)

Exp. Capital market regulator is SEBI.

Ans.3.(b)

Exp.

Ans.4.(d)

Exp. SEBI is the regulator of the credit rating agencies in India.

Ans.5.(e)

Exp. A debt instrument is a paper or electronic obligation that enables the issuing party to raise funds by promising to repay a lender in accordance with terms of a contract. Types of debt instruments include notes, bonds, debentures, certificates, mortgages, leases or other agreements between a lender and a borrower.

Ans.6.(a)

Exp. Misselling is a significant problem in financial services industry and for financial industry regulators. Brokers, financial advisors, bank representatives or other salespeople of financial products or services who are compensated based on commissions may have significant incentives to sell investments or investment products based on how much they can earn rather than what is suitable or what is needed by a customer. Misselling may occur with insurance products, annuities, investments, mortgages and a variety of other financial products. A financial loss is not necessarily required to meet the definition of misselling; the sale of an unsuitable product is enough.

Ans.7.(b)

Exp. The Financial Times Stock Exchange 100 Index, also called the FTSE 100 Index, FTSE 100, FTSE, or, informally, the “Footsie”, is a share index of the 100 companies listed on the London Stock Exchange with the highest market capitalisation.

Ans.8.(d)

Exp. Infosys Technologies became the first Indian company to be listed on the US NASDAQ in March 1999.

Ans.9.(c)

Exp. Arbitrage is the simultaneous purchase and sale of an asset to profit from an imbalance in the price. It is a trade that profits by exploiting the price differences of identical or similar financial instruments on different markets or in different forms.

Ans.10.(b)

Exp. Capital market regulator is SEBI.

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