Instruction
- Total number of questions : 20
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Banking Awareness [ Question No: 1 To 20 ] :
A rapid skimming strategy is associated with
Which is the largest foreign bank in India?
The basis of European Union begun with the signing of
In Monetary Review on 8th Feb 2017, RBI has kept repo rate _________
Which department will RBI open from April 3 to oversee breaches of rules and their violation?
In context of Indian economy , ‘Open Market Operations’ refers to?
The Indian economy is
One of the economic laws says that as income increases, the proportion of starchy staples in the food basket decline relative to the share of more expensive sources of calories. Recent NSSO data showing a significant increase in the share of protein rich items in total food expenditure, both in rural and urban areas of India to confirm this hypothesis.
What this hypothesis is known as?
The functions of SFCs include
Which of the following banks created history in August 2015 by launching India’s first Mobile App for Bank Account opening?
How much percentage of its funds is required to be invested by payments banks in government securities or T-bills with maturity up to 1 year?
As a defensive maneuver, a firm issues deep-discount bonds that are redeemable at par in the event of an unfriendly takeover. These bonds are an example of:
Which of the following is not a major item of US antitrust legislation?
(I) Garn-St. Germain Act
(II) Clayton Act
(III) Hart-Scott-Rodino Act
Firm A has 100 shares outstanding at a market price of $100 each and total earnings of $600. Firm B has 100 shares outstanding at a market price of $16 each and total earnings of $200. The merger is expected to produce synergies with a present value of $600.
Calculate the post-merger price-earnings ratio assuming cash is used in the acquisition at $20 per share for Firm B.
Firm A has a value of $200 million, and B has a value of $120 million. Merging the two would allow a cost savings with a present value of $30 million. Firm A purchases B for $130 million. What is the gain from this merger?
What is the full form of "UCN"?
What is the full form of "HDFC"?
UPI stands for _____
_____are issued by a company to a consumer for buying goods and services exclusively from that company.
I in LEI ?
Total number of questions : 20
Number of answered questions : 0
Number of unanswered questions : 20
Banking Awareness [ Question No: 1 To 20 ] :
A rapid skimming strategy is associated with
Your Answer : (Not Answered)
Correct Answer : B
Correct answer: Very high price with high promotion level
Rapid skimming combines a high price with heavy promotion: the price recovers development costs quickly from buyers who value the product most, and the promotion builds awareness fast before competitors arrive. It suits a genuinely new product in a market where most buyers do not yet know of it and are not price sensitive.
Which is the largest foreign bank in India?
Your Answer : (Not Answered)
Correct Answer : D
Correct answer: Standard Chartered Bank
Standard Chartered has long had the largest branch network of any foreign bank in India - a legacy of the Chartered Bank of India, Australia and China, which has operated here since 1858.
The basis of European Union begun with the signing of
Your Answer : (Not Answered)
Correct Answer : A
Correct answer: Maastricht Treaty
The Maastricht Treaty of 1992 created the European Union as such, adding the political and monetary union - and the commitment to a single currency - to what had been an economic community. The Treaty of Rome (1957) had established the earlier European Economic Community, and Lisbon (2007) reformed the EU’s institutions.
In Monetary Review on 8th Feb 2017, RBI has kept repo rate _________
Your Answer : (Not Answered)
Correct Answer : A
Correct answer: Unchanged
At the review of 8 February 2017 the Monetary Policy Committee held the repo rate unchanged at 6.25 per cent and shifted its stance from accommodative to neutral.
The stance change was the substantive move: it signalled that the easing cycle had ended and that the Committee would respond to data in either direction. Both options offering 7.25 and 8.25 per cent are far above the prevailing rate, which had been reduced to 6.25 in October 2016.
Which department will RBI open from April 3 to oversee breaches of rules and their violation?
Your Answer : (Not Answered)
Correct Answer : A
Correct answer: Enforcement department
The RBI opened a dedicated Enforcement Department from 3 April 2017 to deal with breaches of regulations by banks and other supervised entities.
The point of separating enforcement from supervision is institutional: the supervisor identifies a problem, the enforcement function decides the penalty, and neither is compromised by the other's role. It also makes the process more consistent and more transparent, since penalties follow a defined framework rather than case-by-case supervisory discretion.
In context of Indian economy , ‘Open Market Operations’ refers to?
Your Answer : (Not Answered)
Correct Answer : C
Purchase and sale of govt securities by RBI. OMOs are conducted by the RBI via the sale/purchase of government securities (G-Sec) to/from the market with the primary aim of modulating rupee liquidity conditions in the market.
The Indian economy is
Your Answer : (Not Answered)
Correct Answer : C
Correct answer: Mixed
India adopted a mixed economy, in which a public sector holding the commanding heights operates alongside private enterprise. The Industrial Policy Resolutions of 1948 and 1956 gave it form, reserving defined industries to the State while leaving others to private capital.
It is therefore neither capitalist nor socialist in the pure sense, though the balance has shifted markedly towards the private sector since the liberalisation of 1991. "Federal" is not an answer to this question at all: it describes the constitutional distribution of power between the Union and the states, not the ownership structure of the economy.
One of the economic laws says that as income increases, the proportion of starchy staples in the food basket decline relative to the share of more expensive sources of calories. Recent NSSO data showing a significant increase in the share of protein rich items in total food expenditure, both in rural and urban areas of India to confirm this hypothesis.
What this hypothesis is known as?
Your Answer : (Not Answered)
Correct Answer : C
We need to turn to the lesser known Bennet’s law for an explanations of food inflation. Bennet’s law suggests that as income increase, the proposition of starchy staples in the food basket declines relating to the share of more expensive source of calories. Recent NSSO data showing a significant increase in the share of protein rich items in total find expenditure, both in rural and urban areas confirm this hypothesis.
The functions of SFCs include
Your Answer : (Not Answered)
Correct Answer : C
Correct answer: Both (a) and (b)
The State Financial Corporations Act 1951 gives SFCs both powers, and the twenty-year limit applies to each.
They may lend to or subscribe to the debentures of an industrial concern, repayable within twenty years and convertible at option into shares or stock; and they may guarantee loans that the concern raises elsewhere on the same maximum term. The guarantee power matters as much as the lending power, since a small concern's difficulty is often access to credit rather than the absence of a lender. Both are subject to the size limits that confine SFCs to small and medium units.
Which of the following banks created history in August 2015 by launching India’s first Mobile App for Bank Account opening?
Your Answer : (Not Answered)
Correct Answer : B
In August 2015, creating history, Federal Bank launched India’s first Mobile App for Bank Account Opening. Bank introduced this unique facility of Mobile based Bank Account Opening as an upgrade to FedBook, its e-Passbook App.
With the new avatar of FedBook, anyone having an Aadhaar Card and PAN Card, can open a Savings Bank Account and get their Account Number instantly using a mobile from anywhere.
How much percentage of its funds is required to be invested by payments banks in government securities or T-bills with maturity up to 1 year?
Your Answer : (Not Answered)
Correct Answer : D
Correct answer: 75%
At least 75 per cent of demand deposits must be held in Statutory Liquidity Ratio-eligible government securities or treasury bills of maturity up to one year. The short maturity limits interest rate risk, and the requirement together with the 25 per cent that may sit with scheduled commercial banks accounts for the whole of the deposit base - which is precisely why no lending is possible.
As a defensive maneuver, a firm issues deep-discount bonds that are redeemable at par in the event of an unfriendly takeover. These bonds are an example of:
Your Answer : (Not Answered)
Correct Answer : D
Correct answer: A poison put
A poison put gives bondholders the right to demand redemption at par on a change of control. Because the bonds were issued at a deep discount, redemption at par means an immediate and substantial cash demand precisely when the acquirer is least able to meet it. The defence works by making the target expensive to buy rather than by preventing the purchase.
Which of the following is not a major item of US antitrust legislation?
(I) Garn-St. Germain Act
(II) Clayton Act
(III) Hart-Scott-Rodino Act
Your Answer : (Not Answered)
Correct Answer : A
Correct answer: I only
The Garn-St. Germain Act of 1982 was banking deregulation, chiefly concerning savings and loan institutions, and has nothing to do with competition law. The Clayton Act and the Hart-Scott-Rodino Act are both antitrust statutes - the first prohibiting acquisitions that substantially lessen competition, the second requiring pre-merger notification so that the authorities can review a deal before it closes.
Firm A has 100 shares outstanding at a market price of $100 each and total earnings of $600. Firm B has 100 shares outstanding at a market price of $16 each and total earnings of $200. The merger is expected to produce synergies with a present value of $600.
Calculate the post-merger price-earnings ratio assuming cash is used in the acquisition at $20 per share for Firm B.
Your Answer : (Not Answered)
Correct Answer : A
Correct answer: 12.75
The merged firm earns 600 + 200 = $800 on 100 shares, so earnings per share are $8, and the price is $102. The ratio is 102/8 = 12.75. Note that it has fallen from A’s pre-merger 16.7, because A has bought a firm on a much lower multiple - the arithmetic that lies behind the bootstrap effect.
Firm A has a value of $200 million, and B has a value of $120 million. Merging the two would allow a cost savings with a present value of $30 million. Firm A purchases B for $130 million. What is the gain from this merger?
Your Answer : (Not Answered)
Correct Answer : A
Correct answer: $30 million
The gain is the synergy, the present value of the cost savings the merger makes possible - $30 million. As before it is independent of the price paid, which affects only how the $30 million is shared between the two sets of shareholders.
What is the full form of "UCN"?
Your Answer : (Not Answered)
Correct Answer : A
Correct answer: Uniform Code Number
A uniform code number is an identifier allotted so that a bank or an office can be referred to consistently across the Reserve Bank's returns and reporting systems.
Codes of this kind are the backbone of financial reporting, because names are neither unique nor stable while a code allotted once and never reused is both. The same principle produces IFSC for a bank branch, MICR for a cheque-processing location and SWIFT BIC for an institution internationally - each solving the identification problem in its own domain.
What is the full form of "HDFC"?
Your Answer : (Not Answered)
Correct Answer : B
Correct answer: Housing Development Finance Corporation
HDFC is the Housing Development Finance Corporation, founded in 1977 as India’s first specialised mortgage lender. It promoted HDFC Bank in 1994, and the two merged in 2023.
UPI stands for _____
Your Answer : (Not Answered)
Correct Answer : C
Correct answer: Unified Payments Interface
UPI is the Unified Payments Interface. "Unified" is the operative word: it merges several banking services and account addresses behind a single interface, so one app can operate accounts across banks.
_____are issued by a company to a consumer for buying goods and services exclusively from that company.
Your Answer : (Not Answered)
Correct Answer : A
Correct answer: Closed System Payment Instruments
Closed system instruments are issued by a company for buying goods and services from that company alone. Cash withdrawal and redemption elsewhere are not permitted, and because no third party is exposed, the RBI does not require authorisation to issue them.
I in LEI ?
Your Answer : (Not Answered)
Correct Answer : B
Correct answer: Identifier
LEI is the Legal Entity Identifier, a 20-character code that identifies a party to a financial transaction anywhere in the world. The whole purpose of the scheme is identification, which is what the I carries.
Marks
Total number of questions : 20
Number of answered questions : 0
Number of unanswered questions : 20