General Awareness Questions for Bank Exams - 9

General Awareness Questions for Bank Exams - 9

1.       First share market in India established in
(a) Delhi               (b) Mumbai          (c) Kolkata         (d) Chennai        (e) None of these
Ans: (b)

2.       Consider the following statements:
(i) Securities that have an original maturity that is greater than one year are traded in capital markets.
(ii) The best known capital market securities are stocks and bonds.
Select the correct answer
(a) (i) is true and (ii) is false          (b) (i) is false and (ii) is true         (c) Both are true

(d) Both are false             (e) None of the above

Ans: (c)

3.       Consider the following statements:
(i) Securities that have an original maturity that is greater than one year are traded in money markets.
(ii) The best known money market securities are stocks and bonds.
Select the correct answer.

(a) (i) is true and (ii) is false          (b) (i) is false and (ii) is true         (c) Both are true

(d) Both are false             (e) None of the above
Ans: (d)

4.       The primary issuers of capital market securities include
(a) the Central Government       (b) the local Government             (c) corporations

(d) the Central and Local Governments and corporations                              (e) Local Government and corporations

Ans: (d)

5.       Which of the following is a characteristic of a capital market instrument?
(a) Liquidity        (b) Marketability              (c) Long maturity              (d) Liquidity premium

(e) All of the above

Ans: (e)

6.       Which one of the following is a money market instruments?
(a) A Treasury bill  
(b) A negotiable certificate of deposit was
(c) Commercial paper
(d) All of the above
(e) None of the above
Ans: (d)

7.       T-bills are financial instruments initially sold by ________ to raise funds.
(a) Commercial Banks
(b) the government
(c) corporations  
(d) agencies of the State Government
(e) None of the above
Ans: (b)

8.       Commercial paper is a short-term security issued by ________ to raise funds.
(a) the Reserve Bank of India
(b) Commercial Banks
(c) large and well-known companies
(d) National Stock Exchange
(e) State and Local Governments
Ans: (c)

9.       Which of the following statements is true regarding a corporate bond?
(a) A corporate callable bond gives the holder the right to exchange it for a specified number of the company’s common shares
(b) A corporate debenture is a secured bond
(c) A corporate indenture is a secured bond
(d) A corporate convertible bond gives the holder the right to exchange the bond for a specified number of the company’s common shares 
(e) Holders of corporate bonds have voting rights in the company
Ans: (d)

10.   Which one of the following is not a money market instrument?
(a) A Treasury bill             (b) A negotiable certificate of deposit    (c) Commercial paper

(d) Treasury bond            (e) Repo

Ans: (d)

11.   Money lent for 15 days or more in Inter-bank market is called
(a) call money                    (b) notice money             (c) term money                                (d) All of these

(e) None of these
Ans: (c)

12.   Money lent for one day is called
(a) call money                    (b) notice money             (c) term money                                (d) All of these

(e) None of these
Ans: (a)

13.   Specified interest rate on a fixed maturity security fixed at the time of issue is called
(a) market rate of interest           (b) call rate         (c) repo rate       (d) coupon rate

(e) discount rate

Ans: (d)

14.   A short-term credit investment created by a non-financial firm and  guaranteed by a bank to make payment is called
(a) banker’s acceptance market                                (b) collateral loan market             (c) treasury bill market                  (d) call money market           (e) repo market

Ans: (a)