Banking Quiz – 96

BANKING QUIZ

1. What is the objective of introduction of ‘Marginal Standing Facility’ by RBI?
a) To contain volatility in the overnight inter-bank rates
b) To contain volatility in MIBOR
c) To contain volatility in LIBOR
d)To match with standard Tier 1 capital Ratio

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Answer a) To contain volatility in the overnight inter-bank rates

2. Which country has largest shadow banking market in the world?
a) China
b) UK
c) Netherlands
d) USA

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Answer d) USA
Shadow banking refers to the activities of financial institutions that operate outside government-regulated banking systems. United States has the largest shadow banking market followed UK and China.

3. Which of the following appears in the balance sheet of a company?
a) Subscribed Capital
b) Authorized Capital
c) Partner’s Capital
d) Paid up Capital

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Answer d) Paid up Capital

4. Nainital Bank is a subsidiary of which of the following banks?
a) Bank of Baroda
b) SBI
c) Syndicate Bank
d) RBI

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Answer a) Bank of Baroda

5. Buying and selling of eligible securities by RBI in the money market can be termed as
a) Open Economy Operations
b) Open Market Operations
c) Credit Control Measures
d) Credit Creation Measures

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Answer b) Open Market Operations

6. The main foreign exchange reserves in the country are:
a) Foreign Currency assets
b) Gold Stock
c) Special Drawing Rights
d) All of the above

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Answer d) All of the above

7. What is the share of the Foreign Banks in the branch network in India?
a) Less than 1%
b) Less than 13%
c) Less than 6%
d) Less than 10%

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Answer a) Less than 1%

8. The owners of the cooperative bank are also its ______
a) All of the below
b) Creditors
c) Debters
d) Customers

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Answer d) Customers

9. Find out the mismatch of nationalized bank and its headquarter.
a) Bank of India -Mumbai
b) Dena bank- Hyderabad
c) Syndicate bank -Manipal
d) United Bank of India- Kolkata

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Answer b) Dena bank- Hyderabad. Explanation:Dena Bank – Mumbai

10. Deficit financing can, 
a) Cause inflation
b) Bring rise in fiscal deficit
c) Bring rise in credit creation in banks
d) All above

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Answer d) All above

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