Banking Awareness-5 For BOM, IBPS PO, Clerk

Dear Readers, Banking Awareness Questions play important role in Banking exams. Around 50-60% of questions come from Banking Awareness which includes recent Banking updates also.

Try to Answer Banking Awareness questions given in this post. We will provide you more questions in next post.

1).The Money Market in India Consist of two sector namely, the organized and the unorganized sector, among the following which is NOT comes under unorganized sector?
a) Unit Trust of India
b) RBI, Commercial banks and SBI
c) LIC and GIC
d) Indigenous Banks

2).Which of the following statement is true about to money market?
a) The single most influential participant in the US money market is the US Treasury Department
b) Not all commercial banks deal for their customers in the secondary market
c) Money Market are used extensively by businesses both to warehouse surplus funds and to raise short term funds
d) Both b) and c) are true

3).Money lent for more than one day but less than 15 days in the money market is known as______.
a) Notice Money
b) Term Money
c) Call Money
d) None of these

4).What is the name of the government security that is a claim on the government and is a secure financial instrument which guarantees of both capital and interest?
a) Bank Security
b) Corporate Security
c) Coupon Security
d) Gilt-Edge Security

5).Among the following types of institutions which operate in the call money market only as lender?
a) Primary Dealers
b) Insurance Companies
c) Commercial Banks
d) Private Banks

6).What is the name of the market for bankers acceptance which or out of trade transactions, both domestic and foreign?
a) Security Market
b) Money Market
c) Bank Acceptance Market
d) Capital Market

7).An unsecured loan extended by one corporate to another is called________.
a) Inter-Corporate Deposits
b) Commercial Papers
c) Treasury Bill
d) Certificates of Deposits

8).While discussing investments there is mention of short term government security. What is this type of investment known as________.
a) Mutual Funds
b) Treasury Bill
c) Share
d) Debenture

9).NBFC stands for_________.
a) New- Bank Financial Corporation
b) Non- Banking Federal Corporation
c) New- Banking Financial Corporations
d) Non- Banking Financial Companies

10).Which of the following schemes available in the financial markets in not meant for investment purposes?
a) Infrastructure Bonds
b) National Savings Certificates
c) Letter of Credit
d) Mutual Funds

Answers
1-D
2-D
3-A
4-D
5-B
6-C
7-A
8-B
9-D
10-C