IBPS RRB Officer Scale I 2019 – Financial Awareness Questions (Day – 94)

Dear Aspirants, IBPS RRB Officer Scale 1 is one of the most important exam in the competitive examination. IBPS RRB Officer Scale 1 mains exam consists of three sections i.e. Reasoning ability and Numerical Ability, General knowledge & Current affairs & Financial Market Awareness. IBPS RRB Officer Scale I General Awareness & Financial Market Awareness section comprises of 50 questions. IBPS RRB Officer Scale I Financial Awareness Questions 2019 play an important role in boosting up the score in mains examination and also helps in the interview. Here we are providing a new series of IBPS RRB Officer Scale I Financial Awareness Questions 2019. Aspirants can make use of this IBPS RRB Officer Scale I Financial Awareness Questions 2019, to improve score in the General Awareness & Financial Market Awareness section.

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IBPS RRB Officer Scale I 2019 – Financial Awareness Questions (Day – 94)

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1) The minimum denomination in which the Treasury Bills can be issued in India is:

a) Rs 10,000

b) Rs 25,000

c) Rs 50,000

d) Rs 1 lakh

e) None of these

2) The agency which is related to mutual funds is

a) SEBI

b) IRDA

c) RBI

d) AMFI

e) None of the above

3) ________is an unsecured money market instrument issued in the form of a promissory note.

a) Commercial paper

b) Treasury Bills

c) Call Money

d) Notice Money

e) All of the above

4) In the context of risk management, PML refers to –

a) Probable Maximum Loss

b) Possible Maximum Loss

c) Positional Maximum Loss

d) Prompt Maximum Loss

e) None of the above

5) Which of the following is not included in government securities?

a) Promissory notes

b) Debentures

c) Bearer bonds

d) All of the above

e) None of the above

6) _________ also known as Deep discount bonds.

a) Corporate Bonds

b) Sovereign Bonds

c) Zero-coupon Bonds

d) Convertible Bonds

e) Both (a) & (b)

7) The maximum amount of insurance that can be taken under micro insurance policies is –

a) Rs 25000

b) Rs 75000

c) Rs 1 lakh

d) Rs 50000

e) Rs 2 Lakhs

8) Fiscal policy is formulated by which of the following ministry?

a) Ministry of Corporate Affairs

b) Ministry of Urban Planning

c) Ministry of Finance

d) Ministry of Commerce

e) None of the above

9) Derivatives are financial instruments whose value is derived from other underlying assets. Which of the following derivatives are not traded in the Indian stock market?

a) Futures

b) Forwards

c) Options

d) Swaps

e) Both (a) & (c)

10) The period between the commencement of a pension policy and the date on which the first pension is received is –

a) Deferment Period

b) Free Look Period

c) Annuity Period

d) Grace Period

e) None of the Above

Answers:

1) Answer: b)

The Treasury bills are available for a minimum denomination of Rs 25,000 and in multiples of Rs. 25,000. They are issued at a discount and are redeemed at par.

2) Answer: d)

The Association of Mutual Funds in India is an industry standards organisation in India in the mutual funds sector. It was formed in 1995. Most mutual funds firms in India are its members.

3) Answer: a)

Commercial Paper (CP) is an unsecured money market instrument issued in the form of a promissory note. Corporate, primary dealers (PDs) and the All-India Financial Institutions (FIs) are eligible to issue CP. It can be issued for maturities between a minimum of 7 days and a maximum of up to one year from the date of issue. It can be issued in denominations of Rs.5 lakh or multiples thereof.

4) Answer: a)

In the context of risk management, the total loss that may happen in the event of any peril is known as the Maximum Possible Loss. If we multiply the same with the Probability of striking the peril, we shall arrive at the Probable Maximum Loss.

Maximum Possible Loss (MPL) × Probability of Peril striking = Probable Maximum Loss (PML).

These two measures are undertaken for the estimation of risk.

5) Answer: c)

The following are the form of government securities

i. A Government promissory note payable to or to the order of a certain persons; or

ii. A bearer bond payable to bearer; or

iii. A stock; or

iv. A bond held in a bond ledger account.

6) Answer: c)

Zero-coupon Bonds are also known as Deep discount bonds.

A zero-coupon bond is a debt security that doesn’t pay interest (a coupon) but is traded at a deep discount, rendering profit at maturity when the bond is redeemed for its full-face value.

7) Answer: d)

Micro Insurance policies are such that they provide insurance cover to low-income people for covering various kinds of risks such as fire, health etc. The maximum amount of coverage can be Rs 50000 under this policy. These policies are governed by the IRDA (Micro Insurance) Regulations 2005.

8) Answer: c)

Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation’s economy. It is the sister strategy to monetary policy through which a central bank influences a nation’s money supply. While monetary policy is prepared by RBI, fiscal policy is prepared by ministry of finance.

9) Answer: d)

Swaps are complex instruments that are not traded in the Indian stock market.

Swap is a derivative contract made between two parties to exchange cash flows in the future. Interest rate swaps and currency swaps are the most popular swap contracts, which are traded over the counters between financial institutions.

10) Answer: a)

Deferment Period: It is the period between the commencement of an insurance-cum-pension policy and the date of receipt of the first installment of the pension amount. Such policies have a prescribed maximum and minimum deferment period.

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