• Finance Quiz – 20

    191 In project Finance or Loan approval, Credit rating helps in measuring the credit risk and facilitates?
      A) Considering higher credit limits
      B) Making loan provisioning at an early stage
      C) Accurately calculate the probable loan losses
      D) Pricing of a loan
       
    192 The Reverse Repo has the following characteristic?
      A) Borrowing by RBI from banks
      B) Borrowing with government security as collateral
      C) Short term borrowing
      D) All of these
       
    193 The system of note issue followed by the RBI is?
      A) Proportional reserve system
      B) Minimum reserve system
      C) Maximum reserve system
      D) Maximum fiduciary system
       
    194 RBI carries out open market operations (OMO), which means?
      A) Issuance of different types of bonds
      B) Sale or purchase of government securities
      C) Sale of US Dollars
      D) Issuance of currency notes
       
    195 Sub-prime refers to?
      A) Lending done by banks at rates below PLR
      B) Lending to the people who are high value customers
      C) Lending to those who are not regular customers of a bank
      D) Lending done by banks to customers not meeting with normally required credit appraisal standards
       
    196 The ability of an asset to be converted into cash quickly is called?
      A) Credit
      B) Cash crunch
      C) Liquidity
      D) Marketability
       
    197 If the RBI increases CRR, what immediate impact will it have on the functioning of banks?
      A) Banks will have to give more funds to priority sector
      B) Banks will have to give less funds to corporate sector
      C) Banks will have to raise their capital base by taking money from the government
      D) Banks will have to lock some additional funds with the RBI
       
    198 Which in the below list represents a decrease in the Owner’s equity?
      A) Issue of Bonus Shares
      B) Redemption of the Debentures
      C) Redemption of the Preference Shares
      D) Purchase of the Building
       
    199 When we talk about economies of scale , Increase in the production must be accompanied by ______?
      A) Reduction in Total Cost
      B) Reduction in Average Cost
      C) Reduction in Prices of Inputs
      D) Increase in Marginal Profit
       
    200 Total Cost is a total of __________ ?
      A) Fixed Cost  Variable Cost
      B) Fixed Cost , Variable Cost  Marginal Cost
      C) Fixed Cost, Variable Cost , Marginal Cost  Real Cost
      D) Fixed Cost, Variable Cost   Real Cost

     

    Check below for Answers:

     

     

     

     

     

     

     

     

    Answers:

    191 Ans) Pricing of a loan
    192 Ans) All of these
    193 Ans) Minimum reserve system
    194 Ans) Sale or purchase of government securities
    195 Ans) Lending done by banks to customers not meeting with normally required credit appraisal standards
    196 Ans) Liquidity
    197 Ans) Banks will have to lock some additional funds with the RBI
    198 Ans) Redemption of the Debentures
    199 Ans) Reduction in Average Cost
    200 Ans) Fixed Cost  Variable Cost

     

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