Financial Awareness Quiz Answer 1

Q 1. What is the duration(years) after which a savings account will be treated as inoperative/dormant if there are no transactions in the account?
A) One
B) Two
C) Three
D) Four
E) Five

Answer: Dormant means inactive and inoperative means which is not being operated i.e. no transactions have been undertaken recently. In terms of RBI guidelines "A savings as well as current account should be treated as inoperative/dormant if there are no transactions in the account for over a period of two years".

Q 2. Who among the following Bank has recently signed an agreement with Reliance Jio Money for one-click payment service?
A) Yes Bank
B) Union Bank of India
C) Federal Bank
D) HDFC Bank
E) None of these

Recently, Federal Bank has signed an agreement with Reliance Jio Money for one-click payment service. Reliance Jio Money is a wallet application that will be launched soon for mobile devices where Federal Bank will enable a direct payment option for its customers.

Q 3. Interest on Public Provident Fund (PPF) has been reduced to _____.
A) 8.3%
B) 7.5%
C) 8.2%
D) 8.5%
E) 8.1%

Answer: The interest rate on PPF scheme will be cut from 8.7 per cent to 8.1 per cent from 1st of April. The decision was aimed at aligning these administered interest rates closer to the market rates.

Q 4. The total amount of loan sanctioned by WB to support the central government’s rooftop solar electricity programme is
A) $500 million
B) $625 million
C) $750 million
D) $900 million
E) $725 million

Answer: The World Bank has approved a $625 million loan to support the central government’s programme to generate electricity from rooftop solar power plants in India.

Q 5. Current Service Tax rate stands at
A) 1D)25%
B) 1D)5%
C) 15%
D) 12%
E) 1B)5%

Answer: Budget 2016 has proposed to impose a Cess, called the Krishi Kalyan Cess, @ 0.5% on all taxable services. The new effective service tax is 15%. Service tax is a tax levied by the government on service providers on certain service transactions, but is actually borne by the customers. It is categorized under Indirect Tax and came into existence under the Finance Act, 1994 

Q 6. An NBFC wanting to collect public deposits will be governed by which of the following acts?
A) RBI Act, 1934
B) Banking companies Act
C) Companies Act, 1956
D) Central Government
E) Indian Partnership Act

Answer: A Non-Banking Financial Company is a company registered under the Companies Act, 1956 of India, engaged in the business of loans and advances, acquisition of shares, stock, bonds hire-purchase, insurance business or chit business but does not include any institution whose principal business is that includes agriculture or industrial activity or the sale, purchase or construction of immovable property. The working and operations of NBFCs are regulated by the Reserve Bank of India (RBI) within the framework of the Reserve Bank of India Act, 1934 (Chapter III B) and the directions issued by it.

Q 7. Which of the following is/are the elements of the Union Budget?

I. Estimates of revenue and capital receipts
II. Ways and means to raise the revenue
III. Estimates of expenditure
Select the correct answer using the codes given below:
A) Only I
B) I and II
C) Only III
D) I, II and III
E) None of these

Answer: The Union Budget of India also referred to as the Annual financial statement in the Article 112 of the Constitution of India, is the annual budget of the Republic of India. It is presented each year on the last working day of February by the Finance Minister of India in Parliament.

Q 8. United Nations Conference on Trade and Development is headquartered at
A) Vienna
B) Washington DC
C) London
D) Paris
E) Geneva

Answer:The headquarters of the United Nations Conference on Trade and Development are located in Geneva, Switzerland. The United Nations Conference on Trade and Development (UNCTAD)  was established in 1964 as a permanent intergovernmental body.

Q 9. The rate at which banks borrow funds overnight from the Reserve Bank of India (RBI) against approved government securities is called

A) Marginal Standing Facility Rate
B) Repo Rate
C) Cash Reserve Ratio
D) Statutory Liquidity Ratio
E) Bank Rate

Answer: Marginal Standing Facility(MSF) is a new scheme announced by the Reserve Bank of India (RBI) in its Monetary Policy (2011-12) and refers to the penal rate at which banks can borrow money from the central bank over and above what is available to them through the LAF window.

Q 10. Which of the following is true regarding the NAV of a mutual fund
A) is always constant
B) keeps going up at a steady ratecan never go down
C) can never go down
D) fluctuates with market price movements
E) none of the above

Answer: The NAV of a mutual fund is linked to the assets it invests in - these assets may include equity, debt or other such securities. The NAV changes with changes in the market value of these assets.



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