Thursday, July 21, 2016

1. Nowadays we frequently read news items about “Derivatives” as used in the world of finance and money market. Which of the following statement(s) correctly describes what a derivative is and how it affects money/finance markets?
I. Derivatives enable individuals and companies to insure themselves against financial risk.
II. Derivatives are like fixed deposits in a bank and are the safest way to invest one’s idle money lying in a bank.
III. Derivatives are the financial instruments which were used in India even during the British Raj.
(a) Only III
(b) Only II
(c) Only I
(d) All of the above

2. Prior to the establishment of the Reserve Bank of India, the Government banking business was conduct by? 
(a) Bank of India
(b) Central Bank of India
(c) National Bank of India 
(d) Imperial Bank of India

3. Which of the following is not a general credit control measure?
(a) bank rate  
(b) variable reserve ratios
(c) open market operations 
(d) regulation of margin requirements on advances against agricultural commodities

4. Which one of the following is/are implication(s) of large inflow of foreign exchange into the country?
I. It makes monetary management difficult for RBI.
II.It creates money supply, asset bubbles and inflation.
III.It weakens the competitiveness of Indian exports.
(a) Only I
(b) Only II
(c) Only III
(d) All of the above

5. In India, which of the following agency is responsible for announcing the Foreign Trade Policy?
(a) RBI
(b) EXIM-Bank 
(c) Foreign Ministry 
(d) Ministry of Commerce and Industry

6. Euro Bond is an instrument?
(a) Issued in the European market  
(b) Issued in Euro currency 
(c) Is a bond denominated in a currency not native to the issuer's home country
(d) All of the above

7. Money laundering normally involves?
(a) Placement of funds 
(b) Layering of funds 
(c) Integrating of funds
(d) All of the above

8. The IMF and the World Bank were conceived as institutions to?
(a) Strengthening international economic co-operations and to help create a more stable and prosperous global economy 
(b) IMF promotes international monetary cooperation 
(c) The World Bank promotes long term economic development and poverty reduction 
(d) All of the bove

9. Capital Market Regulator is?
(a) RBI
(b) IRDA
(c) NSE
(d) SEBI

10. FDI refers to?
(a) Fixed Deposit Interest 
(b) Fixed Deposit Investment 
(c) Foreign Direct Investment
(d) Future Derivative Investment


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