Dear Aspirants,
Banking Awareness for Dena Bank PO Exam 2018
With the increased competition in the field of banking examinations, it has now become very important to cover up all the sections efficiently. One subject that can help you bagging graceful marks in the minimum time in these examinations is Banking Awareness. Banking Awareness Quiz not only helps you deal with the General Awareness Section of Banking Exams but also, the Personal Interview round of Banking Recruitment.
Q1. Which of the following is not considered as a means of foreign capital inflow into the country?
(a) FDI
(b) FCNR accounts
(c) FII
(d) No frills accounts
(e) None of the given options is true
S1. Ans.(d)
Sol. No frills accounts is not considered as a means of foreign capital inflow into the country.
Sol. No frills accounts is not considered as a means of foreign capital inflow into the country.
Q2. Which of the following is a depository in the country for handling shares in the demat from?
(a) NSDL
(b) RBI
(c) MCX
(d) SEBI
(e) NABARD
S2. Ans.(a)
Sol. NSDL, the first and largest depository in India, established in August 1996 and promoted by institutions of national stature has established a state-of-the-art infrastructure that handles most of the securities held and settled in dematerialized form in the Indian capital market. Although India had a vibrant capital market which is more than a century old, the paper-based settlement of trades caused substantial problems like bad delivery and delayed transfer of title, etc. The enactment of Depositories Act in August 1996 paved the way for establishment of NSDL.
Sol. NSDL, the first and largest depository in India, established in August 1996 and promoted by institutions of national stature has established a state-of-the-art infrastructure that handles most of the securities held and settled in dematerialized form in the Indian capital market. Although India had a vibrant capital market which is more than a century old, the paper-based settlement of trades caused substantial problems like bad delivery and delayed transfer of title, etc. The enactment of Depositories Act in August 1996 paved the way for establishment of NSDL.
Q3. Which of the following is not a term associated with the stock markets directly?
(a) Bear hug
(b) Dividend
(c) Insider trading
(d) Interest rate
(e) Sensex
S3. Ans.(d)
Sol. Interest Rate is not a term associated with the stock markets directly.
Sol. Interest Rate is not a term associated with the stock markets directly.
Q4. Facebook has listed its shares on which stock exchange?
(a) NYSE
(b) NASDAQ
(c) NSE
(d) BSE
(e) None of the given options is true
S4. Ans.(b)
Sol. Face book has listed its shares on which stock exchange in NASDAQ. The NASDAQ Stock Market is an American stock exchange. It is the second-largest exchange in the world by market capitalization, behind only the New York Stock Exchange located in the same city.
Sol. Face book has listed its shares on which stock exchange in NASDAQ. The NASDAQ Stock Market is an American stock exchange. It is the second-largest exchange in the world by market capitalization, behind only the New York Stock Exchange located in the same city.
Q5. SEBI is the regulatory body for the stock markets. When was it formed?
(a) 1990
(b) 1999
(c) 1992
(d) 1996
(e) 1998
S5. Ans.(c)
Sol. SEBI was formed in 12th April 1992.
Sol. SEBI was formed in 12th April 1992.
Q6. Forward Markets Commission was the regulator for which of the following?
(a) Futures market
(b) Currency market
(c) Commodities futures market
(d) Bullion market
(e) None of the given options is true
S6. Ans.(c)
Sol. Forward Markets Commission was the regulator for Commodities futures market. In 2015 the FMC was merged with the Securities and Exchange Board of India (SEBI).
Sol. Forward Markets Commission was the regulator for Commodities futures market. In 2015 the FMC was merged with the Securities and Exchange Board of India (SEBI).
Q7. Money markets are meant for trading in which of the following?
(a) Short-term financial instruments
(b) Currency
(c) Shares of blue-chip companies
(d) Debentures
(e) Trading
S7. Ans.(a)
Sol. The money market is where financial instruments with high liquidity and very short maturities are traded. It is used by participants as a means for borrowing and lending in the short term, with maturities that usually range from overnight to just under a year.
Q8. When Indian companies raise funds overseas what is the process known as?
(a) Participatory notes
(b) Foreign currency non-resident accounts
(c) Foreign currency convertible bonds
(d) Nostro accounts
(e) None of the given options is true
S8. Ans.(c)
Sol. A foreign currency convertible bond (FCCB) is a type of convertible bond issued in a currency different than the issuer’s domestic currency. In other words, the money being raised by the issuing company is in the form of a foreign currency. A convertible bond is a mix between a debt and equity instrument.
Sol. A foreign currency convertible bond (FCCB) is a type of convertible bond issued in a currency different than the issuer’s domestic currency. In other words, the money being raised by the issuing company is in the form of a foreign currency. A convertible bond is a mix between a debt and equity instrument.
Q9. Which of the following terms is not the terminology of the stock markets?
(a) Application supported by blocked accounts
(b) Rights issue
(c) Red herring prospectus
(d) Takeout financing
(e) None of the given options is true
S9. Ans.(d)
Sol. Takeout financing is an accepted international practice of releasing long-term funds for financing infrastructure projects. It can be used to effectively address Asset-Liability mismatch of commercial banks arising out of financing infrastructure projects and also to free up capital for financing new projects.
Sol. Takeout financing is an accepted international practice of releasing long-term funds for financing infrastructure projects. It can be used to effectively address Asset-Liability mismatch of commercial banks arising out of financing infrastructure projects and also to free up capital for financing new projects.
Q10. Companies declare dividends based on their financial performances/results. However, dividends at times remain unclaimed even after considerable length of time. What happens to such amounts?
(a) Respective companies take it to their reserve account
(b) The unclaimed amount is distributed among the other share holders the next year
(c) Transferred to the Consolidated Fund of India
(d) Transferred to Investors Education and Protection Fund
(e) None of the given options is true
S10. Ans.(d)
Sol. Transferred to Investors Education and Protection Fund.
Sol. Transferred to Investors Education and Protection Fund.
Q11. An investor holding paper securities of a well known company wishes to sell the shares in the stock market. He is unable to do so. What would you suggest to him?
(a) Convert the paper securities to dematerialized form
(b) Sell it to a stock broker
(c) Open a demat account and credit the shares to this account after dematerialization
(d) Wait for the market to improve
(e) None of the given options is true
S11. Ans.(c)
Sol. Open a demat account and credit the shares to this account after dematerialization.
Sol. Open a demat account and credit the shares to this account after dematerialization.
Q12. A retail investor wishes to sell 500 units of his mutual funds holding as he is in need of money. At what price will his mutual funds units be calculated?
(a) At the current NAV prices
(b) The prevailing stock prices of the units
(c) At 10 percent of his buying price plus the original cost
(d) The current NAV price less 2 percent
(e) None of the given options is true
S12. Ans.(a)
Sol. At the current Net Asset Value (NAV) prices.
Q13. SEBI allows retail investors to apply for shares of Initial Public Offerings without actual transfer of their funds from their accounts. What is this facility known as?
(a) Systematic transfer plans
(b) Systematic investment plans
(c) Hedge fund accounts
(d) Applications Supported by Blocked Amount
(e) None of the given options is true
S13. Ans.(d)
Sol. ASBA (Applications Supported by Blocked Amount) is a process developed by the India’s Stock Market Regulator SEBI for applying to IPO. In ASBA, an IPO applicant’s account doesn’t get debited until shares are allotted to them.
Sol. ASBA (Applications Supported by Blocked Amount) is a process developed by the India’s Stock Market Regulator SEBI for applying to IPO. In ASBA, an IPO applicant’s account doesn’t get debited until shares are allotted to them.
Q14. Which of the following are traded on the bullion market?
(a) Cash
(b) Gold
(c) Silver
(d) Diamond
(e) Both (b) and (c)
S14. Ans.(e)
Sol. A bullion market is a market through which buyers and sellers trade gold and silver as well as associated derivatives.
Sol. A bullion market is a market through which buyers and sellers trade gold and silver as well as associated derivatives.
Q15. Which of the following institutions is not directly associated with the financial sector in India?
(a) Bombay Stock Exchange
(b) BIFR
(c) SEBI
(d) Railway Ministry
(e) NABARD
S15. Ans.(d)
Sol. Railway Ministry is not directly associated with the financial sector in India.
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