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Financial Awareness Test - 4
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Financial Awareness Test - 4
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  • Question 1/10
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    Which of the following is the Central Bank of our country?

    Solutions

    Reserve Bank of India (RBI) is India's central bank. Central bank of a country execute multiple functions such as overseeing monetary policy, issuing currency, managing foreign exchange, working as a bank of government and as banker of scheduled commercial banks, etc.

  • Question 2/10
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    India has different categories of Commercial banks. Which of the following is not one such category?

    Solutions

    Commodity Bank is not any kind of bank or banking services in India.

  • Question 3/10
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    Coins of which of the following denominations are easily available in India and are used by all of us in our day-to-day shopping? 
    (A) Rs. 5 
    (B) Rs. 2 
    (C) Rs. 50

    Solutions

    Coins of Rs.5 & Rs.2 easily available in India and are used by all of us in our day-to-day shopping.

  • Question 4/10
    1 / -0

    Government of India gives subsidy to which of the following products to help farmers indirectly?

    Solutions

    On Chemical Fertilizer Government of India gives subsidy to which of the following products to help farmers indirectly. It is less visible, forms of assistance provided to private enterprise and other institutions. Indirect subsidies may take such forms as favorable tax policies, loans, import quotas, and price supports.

  • Question 5/10
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    In India Union Budget is always presented in the Parliament in the month of _________

    Solutions

    The finance minister submit the Budget to Parliament usually on the last day of February so that the Lok Sabha has one month to review and modify the Budget proposals. If by 1stApril, the beginning of the country's fiscal year, the parliamentary discussion on the Budget has been completed, the Budget as proposed by the finance minister comes into effect.

  • Question 6/10
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    Which of the following carries out ‘Open Market Operations ?

    Solutions

    RBI carries out open market operations (OMO), which means Sale or purchase of government securities.

  • Question 7/10
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    Under provisions of which one of the following Acts, the RBI issues directives to the Banks in India?

    Solutions

    As per the Reserve Bank of India Act, 1934, banks in India are classified into scheduled and non-scheduled banks.

    RBI issues directives to the scheduled Banks in India under Banking Regulation Act.

  • Question 8/10
    1 / -0

    Which of the following rates/ratios is not covered under the RBI monetary and credit policy?

    Solutions

    Exchange rate of foreign currencies is not covered under the RBI monetary and credit policy.

  • Question 9/10
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    In economics it is generally believed that the main objective of a Public Sector Financial Company like Bank is to

    Solutions

    Public sector banks are the major player in India with almost 92% of the total banking system. They are divided into 3 categories: STATE BANK GROUP, NATIONALISED BANKS and RURAL BANKS. As other entities, their functions are to provide the banking services to the people with the view to earn profits.

  • Question 10/10
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    Money laundering means –

    Solutions

    Money laundering refers to the process of concealing the source of illegally obtained money and make it appear to have originated from legitimate sources.
    Hiding the income source is just one purpose of money laundering and not the major purpose; hence option A can be nullified. 

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