Important Banking Awareness Quizzes (Topic Wise) Day-172

Dear Readers, Here we have provided the Important Banking Awareness Quizzes based on particular topic, which will help to understand and prepare in a better way. Candidates those who are preparing for upcoming IBPS/SBI Exams 2018 can make use of it.

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1. An arrangement in which a security is sold and later bought back at an agreed price and time is called ______________

a) Future agreement

b) Pre agreement

c) Repurchase agreement

d) Pre sale agreement

e) None of these

2. The contract governing your open-end credit account is known as ____________

a) Card agreement

b) Account agreement

c) Account Details

d) Account shares

e) None of these

3. Bonds which have no maturity date are called ___________

a) Perpetual Bonds

b) Maturity Bonds

c) Discount Bonds

d) Currency Bonds

e) None of these

4. __________ is an agreement by the underwriter to buy on a fixed date and at a fixed rate, the unsubscribed portion of shares or debentures or other issues

a) Contract

b) Letter of Credit

c) Letter of Understanding

d) Underwriting

e) None of these

5. The rate at which banks lend to their best customers is called ___________

a) Bank rate

b) Repo rate

c) Reverse repo rate

d) Interest rate

e) None of these

6. Buying a financial instrument in one market in order to sell the same instrument at a higher price in another market is called _________

a) Mortgage

b) Arbitrage

c) Pledge

d) Pre Sale

e) None of these

7. Process by which an investor determines the worth of a security using risk and return concept is known as __________

a) Listing

b) Index

c) Calculation

d) Valuation

e) None of these

8. Quotation of the Initial Public Offering company’s shares on the stock exchange for public trading is called ____________

a) Listing

b) Prospectus

c) Offering

d) Discounting

e) None of these

9. The process of reducing debt through regular instalment payments of principal and interest that will result in the payoff of a loan at its maturity is called __________

a) Inflation

b) Deflation

c) Amortization

d) Demonetization

e) None of these

10. The total profits of a company after taxation and interest is called ____________

a) Sharing

b) Divided

c) Capital

d) Bonds

e) None of these

11. ____________ is a person who is unable to pay his debts as they mature, as his liabilities are more than the assets.

a) Pre Payer

b) Debtor

c) Insolvent

d) Creditor

e) None of these

12. A bailment of goods as security for payment of a debt or performance of a promise is called ____________

a) Mortgage

b) Pledge

c) Charge

d) Hypothecation

e) None of these

13. An option for a longer period of time giving the buyer the right to buy a number of shares of common stock in company at a specified price for a specified period of time is called _________

a) Offer

b) Guarantee

c) Service

d) All of the above

e) None of these

14. A collection of investment vehicles assembled to meet one or more investment goals is called ____________

a) Multi Investment

b) Manual

c) Index

d) Portfolio

e) None of these

15. A detailed report published by the Initial Public Offering company, which includes all terms and conditions, application procedures, IPO prices etc, for the IPO is called __________

a) Prospectus

b) Memorandum

c) Ledger

d) Balance Sheet

e) None of these

Answers:

1. Repurchase agreement – An arrangement in which a security is sold and later bought back at an agreed price and time

Correct Answer is: c)

2. Account agreement – The contract governing your open-end credit account, it provides information on changes that may occur to the account.

Correct Answer is: b)

3. Perpetual Bonds – Bonds which have no maturity date.

Correct Answer is: a)

4. Underwriting is an agreement by the underwriter to buy on a fixed date and at a fixed rate, the unsubscribed portion of shares or debentures or other issues

Correct Answer is: d)

5. The rate at which banks lend to their best (prime) customers is called Prime Lending Rate (PLR)

Correct Answer is: e)

6. Arbitrage – Buying a financial instrument in one market in order to sell the same instrument at a higher price in another market

Correct Answer is: b)

7. Valuation – Process by which an investor determines the worth of a security using risk and return concept

Correct Answer is: d)

8. Listing – Quotation of the Initial Public Offering company’s shares on the stock exchange for public trading

Correct Answer is: a)

9. Amortization – The process of reducing debt through regular instalment payments of principal and interest that will result in the payoff of a loan at its maturity

Correct Answer is: c)

10. Earnings – The total profits of a company after taxation and interest

Correct Answer is: e)

11. Insolvent is a person who is unable to pay his debts as they mature, as his liabilities are more than the assets.

Correct Answer is: c)

12. Pledge – A bailment of goods as security for payment of a debt or performance of a promise

Correct Answer is: b)

13. Warrant – An option for a longer period of time giving the buyer the right to buy a number of shares of common stock in company at a specified price for a specified period of time

Correct Answer is: e)

14. A collection of investment vehicles assembled to meet one or more investment goals is called Portfolio

Correct Answer is: d)

15. Prospectus – A detailed report published by the Initial Public Offering company, which includes all terms and conditions, application procedures, IPO prices etc, for the IPO

Correct Answer is: a)

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