Bank of Baroda PO Exam, 2008 - General Socio-Economic & Banking Awareness - Part 1

1. RBI’s open market operation transactions are carried out with a view to regulate-
Liquidity in the economy  Prices of essential commodities  Inflation  Borrowing power of the banks  All the above
 



2. When more than one banks are allowing credit facilities to one party in coordination with each other
under a formal arrangement, the arrangement is generally known as-

Participation  Consortium  Syndication  Multiple banking  None of these
 



3. Open market operations, one of the measures taken by RBI in order to control credit expansion in the
economy means -
Sale or purchase of Govt. securities  Issuance of different types of bonds  Auction of gold  To make available direct finance to borrowers  None of these
 


4. The bank rate means-

Rate of interest charged by commercial banks from borrowers  Rate of interest at which commercial banks discounted bills of their borrowers  Rate of interest allowed by commercial banks on their deposits  Rate at which RBI purchases or rediscounts bills of exchange of commercial banks  None of these
 


5. What is an Indian Depository Receipt ?

A deposit account with a Public Sector Bank  A depository account with any of Depositories in India  An instrument in the form of depository receipt created by an Indian depository against underlying  An instrument in the form of deposit receipt issued by Indian depositories  None of these
 

6. An instrument that derives its value from a specified underlying (currency, gold, stocks etc.) is
known as-
Derivative  Securitisation Receipts  Hedge Fund  Factoring  Venture Capital Funding
 

7. Fiscal deficit is-
total income less Govt. borrowing  total payments less total receipts  total payments less capital receipts  total expenditure less total receipts excluding borrowing  None of these
 

8. In the Capital Market, the term arbitrage is used with reference to-
purchase of securities to cover the sale  sale of securities to reduce the loss on purchase  simultaneous purchase and sale of securities to make profits from price  variation in different markets  Any of the above
 

9. Reverse repo means-
Injecting liquidity by the Central Bank of a country through purchase of Govt. securities  Absorption of liquidity from the market by sale of Govt. securities  Balancing liquidity with a view to enhancing economic growth rate  Improving the position of availability of the securities in the market  Any of the above
 

10. The stance of RBI monetary policy is-
inflation control with adequate liquidity for growth  improving credit quality of the Banks  strengthening credit delivery mechanism  supporting investment demand in the economy  Any of the above
 

Part I        Part II        Part III        Part IV       Part V

Bank of Baroda PO Exam, 2008 - General Socio-Economic & Banking Awareness - Part 2

11. Currency Swap is an instrument to manage-
Currency risk  interest rate risk  currency and interest rate risk  cash flows in different currencies  All of the above
 

12. ‘Sub-prime’ refers to-
lending done by banks at rates below PLR  funds raised by the banks at sub-Libor rates  Group of banks which are not rated as prime banks as per Banker’s Almanac  lending done by financing institutions including banks to customers not meeting with normally  All of the above
 

13. Euro Bond is an instrument-
issued in the European market  issued in Euro Currency  issued in a country other than the country of the currency of the Bond  All of the above  None of these
 

14. Money Laundering normally involves-
placement of funds  layering of funds  integration of funds  All of (A), (B) and (C)  None of (A), (B) and (C)
 

15. The IMF and the World Bank were conceived as institutions to-
strengthen international economic co-operation and to help create a more stable and prosperous  IMF promotes international monetary cooperation  The World Bank promotes long term economic development and poverty reduction  All of (A), (B) and (C)  None of (A), (B) and (C)
 


16. Capital Market Regulator is-
RBI  IRDA  NSE  BSE  SEBI
 

17. In the term BRIC, R stands for-
Romania  Rajithan  Russia  Regulation  None of these
 

18. FDI refers to-
Fixed Deposit Interest  Fixed Deposit Investment  Foreign Direct Investment  Future Derivative Investment  None of these
 

19. What is Call Money ?
Money borrowed or lent for a day or over night  Money borrowed for more than one day but upto 3 days  Money borrowed for more than one day but upto 7 days  Money borrowed for more than one day but upto 14 days  None of these
 

20. Which is the first Indian company to be listed in NASDAQ ?
Reliance  TCS  HCL  Infosys  None of these
 

Part I        Part II        Part III        Part IV       Part V