Important Banking Awareness Quizzes (Topic Wise) for Upcoming IBPS Exams 2017

Important Banking Awareness Quizzes (Topic Wise) for Upcoming IBPS Exams 2017:

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 Exams 2017 can make use of it.

Money Market Instruments (Part-2)

1. Commercial Paper (CP), a money market instrument which was introduced in _________.

1).
Answer: C

2. What does F stands for in FIMMDA?

2). FIMMDA stands for the Fixed Income Money Market and Derivatives Association of India. It is an Association of Commercial Banks, Financial Institutions and Primary Dealers. FIMMDA is a voluntary market body for the bond, Money and Derivatives Market.
Answer: C

3. The minimum denomination for which Commercial Paper can be issued is Rs _________.

3). CP can be issued in denominations of Rs.5 lakh or multiples thereof.
Answer: E

4. The maximum maturity period of Commercial Paper (CP) is _________.

4).
Answer: A

5. What is the minimum maturity period of Commercial Paper ?

5).
Answer: C

6. The headquarter of FIMMDA is in _________.

6).
Answer: A

7. Corporate’s with minimum net worth of _________ only allowed to issue Commercial Paper.

7). The net worth for a corporate to be able to issue it is 4 crore.
Answer: B

8. The minimum credit rating required by corporates and other issuer to issue Commercial Paper is _________.

8). The minimum credit rating shall be A-3 as per Securities and Exchange Board of India (SEBI).
Answer: B

9. Which of the following institutions cannot issue Commercial Paper (CP)?

9). Corporates, primary dealers and the All-India Financial Institutions are eligible to issue CP.
Answer: C

10. For issuance of CP , only Scheduled Banks allowed to act as _________.

10). Only a scheduled bank can act as an Issuing and Paying Agent (IPA) for issuance of CP.
Answer: D

11. The minimum deposit under Certificate of Deposit (CD) is Rs _________.

11). CDs are issued in denominations of Rs. 1 Lac and in the multiples of Rs. 1 Lac thereafter.
Answer: C

12. What is the maximum amount for which CDs can be issued?

12).
Answer: E

13. The minimum maturity period of a CD issued by a bank is _________.

13).
Answer: C

14. What is the maximum maturity period of a CD issued by a bank?

14). The maturity period of CDs issued by banks should not be less than 7 days and not more than one year, from the date of issue.
Answer: C

15. The minimum maturity period of a CD issued by the Financial Institution is_________.

15).
Answer: E

16. The maximum maturity period of a CD issued by the Financial Institution is_________.

16). The FIs can issue CDs for a period not less than 1 year and not exceeding 3 years from the date of issue.
Answer: D

17. Which of the following cannot issue the Certificate of Deposit (CD)?

17). CDs can be issued by (i) scheduled commercial banks {excluding Regional Rural Banks and Local Area Banks} and (ii) select All-India Financial Institutions (FIs) that have been permitted by RBI to raise short-term resources within the umbrella limit fixed by RBI.
Answer: E

18. What does B stands for in ABCP?

18). Asset-backed commercial paper (ABCP) is a form of commercial paper that is collateralized by other financial assets. Institutional investors usually purchase such instruments in order to diversify their assets and generate short-term gains.
Answer: D

19. Find the false statement.

19).
Answer: B

20. Identify the true statement.

20).
Answer: E

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