SBI Clerk

What is ‘Bear Market’? Banking Awareness for SBI Clerks

1. The Reserve Bank of India will shortly issue Rs. 10 denomination banknotes in the Mahatma Gandhi (New) Series, bearing signature of Dr. Urjit R. Patel, Governor, Reserve Bank of India. On the reverse of this note, which temple’s photo is printed? Give details. 
a) The new denomination has motif of Sun Temple, Konark on the reverse, depicting the country’s cultural heritage.
b) The base colour of the note is Chocolate Brown.
c) The note has other designs, geometric patterns aligning with the overall colour scheme, both at the obverse and reverse.
d) All the above
e) None of these

2. Which are called as ‘Capital Instruments’ of an Indian company? 
a) Equity shares
b) Debentures
c) Preference shares
d) Share warrants
e) All the above

3. What is ‘Convertible Note’? Give details. 
a) It is an instrument issued by a startup company evidencing receipt of money initially as debt
b) It is repayable at the option of the holder, or which is convertible into such number of equity shares of such startup company
c) Within a period not exceeding five years from the date of issue of the convertible note, upon occurrence of specified events as per the other terms and conditions agreed to and indicated in the instrument
d) All the above
e) None of these

4. What is ‘E-commerce’? 
a) It is buying and selling of goods and services including digital products over digital & electronic network.
b) Economy commerce
c) Event Commerce
d) Energy Commerce
e) None of these

5. Which can be called as ‘e-commerce entities’ conducting the e-commerce business? 
a) A company incorporated under the Companies Act, 2013 or
b) A foreign company covered under section 2 (42) of the Companies Act, 2013 or
c) An office, branch or agency in India owned or controlled by a person resident outside India
d) All the above
e) None of these

6. What is ‘Foreign Direct Investment’ (FDI)? a) It is the investment through capital instruments by a person resident outside India
b) It will be in an unlisted Indian company
c) It will be in 10 percent or more of the post issue paid-up equity capital on a fully diluted basis of a listed Indian company
d) All the above
e) None of these

7. What is ‘Foreign Portfolio Investment’ (FPI)? Give details. 
a) It is any investment made by a person resident outside India in capital instruments
b) Such investment is less than 10 percent of the post issue paid-up equity capital on a fully diluted basis of a listed Indian company
c) It may be less than 10 percent of the paid up value of each series of capital instruments of a listed Indian company
d) All the above
e) None of these

8. What is ‘Investment Vehicle’? Give details. 
a) It is an entity registered and regulated under relevant regulations framed by SEBI or any other authority designated for the purpose and
b) It may be Real Estate Investment Trusts (REITs) governed by the SEBI (REITs) Regulations, 2014,
c) It may be Infrastructure Investment Trusts (InvIts) governed by the SEBI (InvIts) Regulations, 2014 and Alternative Investment Funds (AIFs) governed by the SEBI (AIFs) Regulations, 2012.
d) All the above
e) None of these

9. What is called as a ‘Listed Indian Company’? 
a) It is an Indian company which has any of its capital instruments listed on a recognized stock exchange in India and the expression ‘Unlisted Indian Company’ shall be construed accordingly
b) Private Company
c) Sole Proprietorship
d) Partnership
e) None of these

10. Which are called as ‘Share Warrants’? 
a) They are those issued by an Indian Company in accordance with the Regulations issued by the Securities and Exchange Board of India in this regard
b) Cheques
c) Demand Drafts
d) FDs
e) None of these

11. What is ‘Automatic Route’ for FDIs? Give details 
a) Automatic Route is the entry route through which investment by a person resident outside India does not require the prior Reserve Bank approval or Government approval.
b) It is Government Route
c) It may also be ‘Government approval’
d) All the above
e) None of these

12) IDRs shall be denominated in which currency only? 
a) Indian Rupees
b) British Pounds
c) Japanese yens
d) Russian Roubles
e) None of these

13. The Fixed Income Money Market and Derivatives Association of India (FIMMDA), is an association of whom? 
a) Scheduled Commercial Banks
b) Public Financial Institutions
c) Primary Dealers and Insurance Companies
d) All the above. It is a voluntary market body for the bond, money and derivatives markets. It has members representing all major institutional segments of the market
e) None of these

14. The Reserve Bank of India, in consultation with the State Governments, announces that the quantum of total market borrowings by the State Governments and the Union Territory of Puducherry, for the quarter January – March 2018, is expected to be in which range?
a) In the range of Rs. 1,26,200 crore to Rs. 1,38,200 crores
b) Rs.10,000 Crores and Rs.12,000 Crores
c) Rs.5,000 Crores and Rs.6,000 Crores
d) Rs.1,000 Crores and Less
e) None of these

15. What is ‘Adjustable Peg’ in FE market? 
a) Term for an exchange rate regime where a country’s exchange rate is pegged (i.e. fixed) in relation to another currency (normally the dollar), but where the rate may be changed from time to time.
b) It is a term in wineries
c) It is a term in government office
d) It is relating to Public Administration
e) None of these

16. What is American Depository Receipts (ADR) (U.S.)? 
a) A certificate issued in the United States in lieu of a foreign security.
b) The original securities are lodged in Bank/Custodian abroad
c) The American Depository Receipts (ADRs) are traded in the US for all intents and purposes as if they were a domestic stock
d) All the above
e) None of these

17. What is ‘ Baby Bond (U.S)’? 
a) A bond with a face value of less than $1000 usually in $100 denominations (in share market )
b) Love for new born babies
c) Baby’s smile
d) Advertisement
e) None of these

18. What is ‘Bear Market’? 
a) A weak or falling market characterized by the dominance of sellers (in share market )
b) Non-Veg market
c) Gold market
d) Diamond market
e) None of these

19. ‘Behavioral economics’ deals with which of the following?
a) Combination of psychology and economics that investigates what happens in markets in which some of the agents display human limitations and complications (i.e. irrational behavior).
b) Chemistry
c) Physics
d) Botany
e) None of these

20. What is ‘Bench Mark’ in financial terminology? 
a) Security used as the basis for interest rate calculations and for pricing other securities.
b) Also denotes the most heavily traded and liquid security of a particular class
c) Both (a) & (b)
d) Written on a table
e) None of these

21. What is ‘Blue Chip’ in terms of share market?
a) The best rated shares with the highest status as investment based on return, yield, safety, marketability and liquidity.
b) Micro chip
c) Potato chip
d) Microprocessor
e) None of these

22. What is ‘Bond’ in share market ? Give details. 
a) A negotiable certificate evidencing indebtedness – a debt security or IOU, issued by a company, municipality or government agency.
b) A bond investor lends money to the issuer and, in exchange, the issuer promises to repay the loan amount on a specified maturity date.
c) The issuer usually pays the bondholder periodic interest payments over the life of the loan.
d) All the above
e) None of these

23. What is ‘Break Even Point’? Give details. 
a) The stock price (or price) at which a particular strategy of transaction neither makes nor loses money.
b) In options, the result is at the expiration date in the strategy.
c) A dynamic break-even point changes as time passes.
d) All the above
e) None of these

24. “A system to curb excessive speculation in the stock market, applied by the Stock Exchange authorities, when the index spurts or plunges by more than a specified per cent. Trading is then suspended for some time to let the market cool down.” This system is called as what?
a) Circuit Breaker
b) Beaker
c) Current Flow
d) Fluid flow
e) None of these

25. For personal loan eligibility, which requirements are required to be completed? 
a) Minimum Net monthly increase
b) Customer should tender provision 3 months salary slips
c) Processing fee
d) Loan eligibility
e) All the above

26. For which of the following ‘Educational loan studies in India’ are sanctioned in banks? 
a) Professional courses
b) Computer courses
c) Courses like CA/ICWA
d) Degrees approved by UGC/ICMR
e) All the above

27. Which of the following is correct about ‘Retail Banking – products’? 
a) Retail loans are those loans given to individuals to meet their needs
b) Those loans may be unsecured or secured personal loans
c) Secured loans are educational loans, loan repayment and self employed persons
d) All the above
e) None of these

28. ‘Corporate Banking or Wholesale Banking include’ which of the following? 
a) Getting their current balance or getting statement of accounts for any pre-defined period
b) Ordering cheque books c) International remittances
d) Opening letter of credits
e) All the above

29) Who have aggressively entered and active in the ‘bottom of the pyramid’ segment and posing a big threat to the conventional banking players ? 
a) cinema houses
b) NBFCs
c) TV shows
d) Plays
e) None of these

30) Which of the following ‘remittances’ are fee based services in banks ? 
a) issue of demand drafts
b) bank orders
c) banker’s cheque
d) NEFT/RTGS e) All the above

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