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    FEDERAL BANK Financial Awareness Questions

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    mathavan_00
    The document contains 30 multiple choice questions related to various topics in finance and banking. The questions cover topics such as bank accounts, debit/credit cards, exchange rates, interest rates, loans, insurance policies, taxes, mutual funds, and stock markets. Correct answers are provided at the end for self-assessment. The questions are intended to help assess financial awareness and knowledge of common banking and financial concepts.

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    FEDERAL BANK Financial Awareness Questions

    Uploaded by

    mathavan_00
    477 views7 pages
    The document contains 30 multiple choice questions related to various topics in finance and banking. The questions cover topics such as bank accounts, debit/credit cards, exchange rates, interest rates, loans, insurance policies, taxes, mutual funds, and stock markets. Correct answers are provided at the end for self-assessment. The questions are intended to help assess financial awareness and knowledge of common banking and financial concepts.

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    The document contains 30 multiple choice questions related to various topics in finance and banking. The questions cover topics such as bank accounts, debit/credit cards, exchange rates, interest rates, loans, insurance policies, taxes, mutual funds, and stock markets. Correct answers are provided at the end for self-assessment. The questions are intended to help assess financial awareness and knowledge of common banking and financial concepts.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    477 views7 pages

    FEDERAL BANK Financial Awareness Questions

    Uploaded by

    mathavan_00
    The document contains 30 multiple choice questions related to various topics in finance and banking. The questions cover topics such as bank accounts, debit/credit cards, exchange rates, interest rates, loans, insurance policies, taxes, mutual funds, and stock markets. Correct answers are provided at the end for self-assessment. The questions are intended to help assess financial awareness and knowledge of common banking and financial concepts.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 7

    FEDERAL BANK Financial Awareness Questions

    1. Sunita has two bank accounts, one with HDFC Bank and another with ICICI
    Bank. She wants to transfer Rs.10,000 from HDFC Bank to ICICI Bank. Which is
    the safest method to do so?
    A. Write a ‘Self’ cheque for Rs.10,000 and withdraw cash from HDFC Bank, go
    to ICICI Bank and deposit the amount in cash
    B. Visit ATM of HDFC Bank, withdraw Rs.10,000 cash, go to ICICI Bank and
    deposit the amount in cash.
    C. Transfer Rs.10,000 by cheque from HDFC Bank account to ICICI Bank
    D. All
    2. What is known as the plastic money?
    A. Plastic tokens used in Financial Games
    B. Debit Card
    C. Credit Card
    D. Debit card and credit card both
    3. USD/INR exchange rate has come down from 50 to 48. What does it mean?
    A. Indian Rupee has depreciated against US Dollar
    B. Indian Rupee has appreciated against US Dollar
    C. USD has become stronger
    D. INR has become weaker
    4. Which is the Central Bank in India?
    A. Central Bank of India
    B. State Bank of India
    C. Indian Bank
    D. Reserve Bank of India
    5. What is the full form of the term AQB, which is associated with bank account?
    A. Audited Quarterly Balance
    B. Account with Quarterly Balance
    C. Assessed Quarterly Balance
    D. Average Quarterly Balance
    6. In various types of Loans, the term EMI is used for
    A. Equal Minimum Installment
    B. Equated Monthly Installment
    C. Equated Money Index
    D. Easy Money Installment
    7. Full form of NAV in Mutual Fund Parlance
    A. Net Annual Value
    B. Net Actual Value
    C. Net Asset Value
    D. Non Asset Value
    8. In the Life Insurance, which policy is the purest form of insurance
    A. Endowment Policy
    B. Money Back Policy
    C. Whole Life Policy
    D. Term Insurance Policy
    9. Manoj was allotted shares of the company under employee stock options. He
    has made some profit by selling shares. His profit is known as
    A. Income from share
    B. Income from stock options
    C. Income from other allowances
    D. Income from capital gains
    10. What is the full form for NPS
    A. New Pension Scheme
    B. Non Government Pension Scheme
    C. National Public Scheme
    D. National Planning Service
    11. What is the full form of ITR
    A. India Technology and Research
    B. Income Tax Return
    C. Income Tax Review
    D. Income Tax Report
    12. If a company issues its shares first time to the public, it is known as IPO. In the
    same way, when a mutual fund issues units for the first time, what is it called
    A. Rights Issue
    B. Public Issue
    C. New Issue
    D. NFO
    13. What is the full form of NCD
    A. National Capital District
    B. Non Cumulative Deposit
    C. National Crime Detection
    D. Non Convertible Debentures
    14. What is meant by Free Credit Period in case of credit card?
    A. Period during which credit card holders can purchase anything free of cost
    B. Period during which credit card holders can shop without paying any finance
    charges
    C. Period during which credit card holders cannot do any shopping
    D. Period during which credit card holders are not eligible for any reward points
    15. What is the full form of ATM
    A. Any Time Machine
    B. Automated Teller Machine
    C. Automatic Tea Machine
    D. Average Trading Multiple
    16. In the compound interest formula = A(1 + r/m)^mn, A is the principal amount,
    r is the rate of interest, and m is the frequency of compounding. If a bank pays
    interest compounded quarterly, what is the value of m?
    A. 12
    B. 3
    C. 4
    D. 6
    17. If you want to use your credit card prudently, what you should ideally do?
    A. Pay off minimum amount every month
    B. Pay only the finance charges
    C. Pay the total bill every month in full
    D. Roll over the outstanding purchases until you can save enough money to clear
    all the debt at one time
    18. What is the full form of PAN
    A. Pension Account Notification
    B. Permanent Account Number
    C. Primary Account Number
    D. Previous Account Number
    19. International price of gold is quoted in terms of US Dollar, what is its unit?
    A. Per Gram
    B. Per Kg
    C. Per 10 Grams
    D. Per Troy Ounce
    20. In India, gold is currently sold at Rs.15,000 per 10 grams. What is the price of
    1 Kg of gold?
    A. 1.5 Million
    B. 1.5 Billion
    C. 150 Thousand
    D. None of the above
    21. Which of the following life insurance plans is the cheapest in terms of
    premium?
    A. Term Insurance Plan
    B. Term Insurance Plan with return of Premium
    C. Endowment Plan
    D. Whole Life Plan
    22. Bank ABC pays 8% interest for a three year term deposit with interest
    compounded annually. Bank XYZ pays 8% interest for a three year term deposit
    with quarterly compounding of interest. Which bank is more attractive in terms of
    returns?
    A. Bank ABC
    B. Bank XYZ
    C. None
    D. Both
    23. A car financing company offers you a loan of 300,000 repayable in three years
    by way EMI of 10,000. What is the total interest outgo?
    A. 290,000
    B. 60,000
    C. Nil
    D. 20,000
    24. For the Assessment Year 2010-2011, if an individual falls in the highest tax
    slab, what will be the rate of income tax for income above 500,000? (Excluding
    Education Cess)
    A. 20%
    B. 10%
    C. 30%
    D. 35%
    25. What is the rate of interest on PPF and what is the permissible investment
    amount per year?
    A. 8%, 70,000
    B. 8%, No Limit
    C. 8%, 60,000
    D. 8.5%, 70,000
    26. For the Credit Card issuing companies, a credit card is a type of _________
    loan
    A. Secured Loan
    B. Unsecured Loan
    C. Mortgage Loan
    D. Housing
    27. For opening DEMAT Account, _________ is the mandatory requirement
    A. Share Trading Account
    B. Investment in Shares
    C. PAN Card
    D. Age Proof
    28. What is the rate of service tax + education cess on stock brokerage charges?
    A. 10%
    B. 10.3%
    C. 10.36%%
    D. 0.125%
    29. What do you require in order to withdraw cash from your bank account
    through ATM
    A. Debit card and PIN
    B. ATM card and PIN
    C. Credit card and PIN
    D. Any one of A or B
    30. Ramesh wants to transfer Rs.5000 from Bank A to Bank B by cheque. Ramesh
    should write a cheque from the chequebook of Bank A and deposit it in Bank B
    with a cheque deposit slip. In whose name, should Ramesh write the cheque?
    A. Yourself
    B. Bank A
    C. Bank B
    D. Ramesh
    ANSWERS
    Question Answer Question Answer
    Number Number
    1 C 16 C
    2 D 17 C
    3 B 18 B
    4 D 19 D
    5 D 20 A
    6 B 21 A
    7 C 22 B
    8 D 23 B
    9 D 24 C
    10 A 25 A
    11 B 26 B
    12 D 27 C
    13 D 28 B
    14 B 29 D
    15 B 30 D

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