GA : Banking Awareness Currency

IBPS PO Mains: Banking Awareness Quiz (Currency)

Dear BA'ians, 

Lets check out our knowledge on most important part and value of our Country. Here is a Banking Awareness Quiz based on "Currency".

1. In India, which among the following is/are a part of Legal Tender Money?

a) Both coins and currency notes

b) Both coins and bank drafts

c) Both currency notes and SDRs

d) Only currency notes issued by RBI

e) None of these

2. Any note, which is wholly or partially, obliterated, shrunk, washed, altered or indecipherable is a/an  

a) mutilated note,  

b) imperfect note,

c) soiled note,  

d) mismatched note,

e) none of these

3. Currency notes issued by RBI are fully covered by: 

a) Approved assets,

b) Gold

c) Foreign exchange  

d) All of these     

e) None of the above

4. When a currency is converted into any other currency without any limit and for any purpose, it is called as

a) Fully convertible;

b) partially convertible; 

c) controlled convertible; 

d) not at all convertible; 

e) none of the above

5. What do you mean by money laundering?

a) Washing the currency notes in a good laundery; 

b) converting money obtained through illegal sources in to legal money; 

c) keeping the money in currency chests; 

d) sending excess cash to the other branch; 

e) none of the above

6. Deficit financing implies-

a) Printing new currency notes

b) Replacing new currency with worn out currency

c) Public revenue in excess of public expenditure

d) Public expenditure in excess of public revenue

e) None of these

7. Devaluation of a currency means

a) reduction in the value of a currency vis-a-vis major internationally traded currencies

b) permitting the currency to seek its worth in the international market

c) fixing the value of the currency in conjunction with the movement in the value of a basket of pre-determined currencies

d) fixing the value of currency in multilateral consultation with the IMF, the World Bank and major trading partners

e) None of these

8. The one-rupee note bears the signature of____________.

a) RBI Governor           

b) Deputy Governor

c) Finance Secretary     

d) Finance Minister

e) None of these

9. Which one of the following methods is currently used in India to issue note?

a) Fixed fiduciary System,

b) Maximum fiduciary system 

c) proportional reserve system,

d) percentage Reserve system

e) Minimum Reserve system 

10.Who is authorized to issue coins in India.

a) RBI,

b) Ministry of Finance, 

c) SBI, 

d) none of these

e) all of these

11.What is understood by Fiduciary Issue of currency? 

a) The issue of currency notes without keeping gold or silver as deposit 

b) The issue of currency notes keeping gold or silver as deposit

c) The issue of currency notes with partial gold or silver deposits 

d) The issue of currency notes with comparative gold or silver deposits

e) None of these

12.If RBI wants to limit the capital outflows and control currency depreciation, which of the following would be the most viable action?

a) Increase interest rates             

b) Decrease interest rates

c) Purchase government bonds    

d) Decrease statutory liquidity ratio

e) None of these

13.Which of the following is the sale authority for issue of currency in India?

a) Government of India 

b) Reserve Bank of India 

c) Controller of Currency 

d) All of the above 

e) None of the above 

14.When was the rupee first minted in India?

a) During the reign of Sher Shah

b) During the Governorship of Lord Bentick

c) After Independence 

d) During the reign of Ashoka

e) None of these

15.Who had created the new Rupee symbol in the year 2010?

a) Udaya Kumar Dharmalingam

b) Raj Kumar Barot

c) S Raju

d) Subhash Bhushan

e) None of these

Answers -

Answer 1.Both coins and currency notes

Answer 2.imperfect note

Answer 3.Gold

Answer 4.Fully convertible

Answer 5.converting money obtained through illegal sources in to legal money

Answer 6.Public expenditure in excess of public revenue

Answer 7.reduction in the value of a currency vis-a-vis major internationally traded currencies

Answer 8.Finance Secretary

Answer 9.Minimum Reserve system

Answer 10.Ministry of Finance

Answer 11.The issue of currency notes without keeping gold or silver as deposit

Answer 12.Increase interest rates

Answer 13.Reserve Bank of India

Answer 14.During the reign of Sher Shah

Answer 15.Udaya Kumar Dharmalingam