1. Which of the following is the most liquid money?
A. M1
B. M2
C. Securities
D. M3
E. Call Money

2. Which of the following can issue commercial paper for raising short term funds?
A. Corporates
B. Primary Dealers
C. All-India Financial Institutions
D. Both (B) and (C)
E. All of the Above

3. Alterations, if any, on cheques are required to be authenticated by the signature of _______
A. Payee
B. Depositor
C. Drawer
D. Endorse
E. All of the above

4. What is the purpose of KYC in banking?
A. It is used for customer identication
B. It is used for increasing the CRR of banks
C. It is used against money laundering
D. It is used by the central bank to control liquidity
E. Both (A) and (C)

5. Which of the following types of cards is free from credit risk?
A. Credit card
B. Debit Card
C. Prepaid Cards
D. Charge Cards
E. Both (C) and (D)

6. Which of the following types of economy is an example of sustainable economy?
A. Capitalist Economy
B. Mixed Economy
C. Socialist Economy
D. Traditional Economy
E. None of the Above

7. In the eld of banking, what does ADF stand for?
A. Additional Dearness Allowance
B. Automated Data Flow
C. Additional Deposit Allowance
D. Automated Deposit Allowance
E. None of the Above

8. Section 80E of the Income Tax Act provides for deduction of interest paid on Education or study loan taken for higher education. Deduction under section 80E is available for _____
A. 2 years
B. 4 years
C. 8 years
E. 10 years

9. A nancial contract that derives its value from another asset or an index of asset values is known as __________
A. Insurance Policy
B. Security
C. Derivative
D. Share
E. None of the above

10. Ination refers to a fall in the value of money. Which of the following is the key measure of inflation in India?
A. Consumer Price Index
B. Wholesale Price Index
C. Personal Consumption Expenditures Price Index
D. GDP Deator
E. All of the above


1)A. M1
2)E. All of the Above
3)C. Drawer
4)E. Both (A) and (C)
5)B. Debit Card
6)D. Traditional Economy
7)B. Automated Data Flow
8)C. 8 years
9)C. Derivative
10)B. Wholesale Price Index



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