1. An emerging market economy is highly classified with relatively- one in which the country is becoming a developed nation and is determined through many socio__________

A. Economic factors B. External factors C. Commercial factors D. GDP factors E. Growth factors

2. Depositor Education and Awareness Fund (DEAF) is maintained by which of the following?

A. NABARD B. RBI C. Public Provident Fund Authorities D. SIDBI E. IRDA

3. Indian Financial System Code consists of how many alphanumeric digit?

A. 12 B. 11 C. 10 D. 9 E. 8

4. For which of the following debt instruments, not having a fixed rate of interest over the life of the instrument, can ‘Floating Interest Rate’ be applied?

A. A loan B. A bond C. A mortgage D. A credit E. All of these

5. Which of the following component of external sector comes under Current Account in India?

A. FDI B. Interest payments received by government C. External Commercial Borrowings D. FII E. NRI bank account

Answers and Explanations
1. Answer - Option A
Explanation -
An emerging market economy is highly classified with relatively – one in which the country is becoming a developed nation and is determined through many socio- economic factors.
2. Answer - Option B
Explanation -
Depositor Education and Awareness Fund (DEAF) Scheme was established in 2014 and was inserted in the Banking Regulation Act, 1949 empowering the central bank. All banks are required to transfer money lying in accounts that have been inoperative for at least 10 years to the DEAF according to specific guidelines.
3. Answer - Option B
Explanation -
IFSC is an 11-character code with the first four alphabetic characters representing the bank name, and the last six characters (usually numeric, but can be alphabetic) representing the branch. The fifth character is 0 (zero) and reserved for future use. Bank IFS Code is used by the NEFT & RTGS systems to route the messages to the destination banks/branches.
The Indian Financial System Code (IFS Code) is an alphanumeric code that uniquely identifies a bank-branch participating in the two main Electronic Funds Settlement Systems in India.
4. Answer - Option E
Explanation -
An interest rate that is allowed to move up and down with the rest of the market or along with an index. This contrasts with a fixed interest rate, in which the interest rate of a debt obligation stays constant for the duration of the agreement.
A floating interest rate can also be referred to as a variable interest rate because it can vary over the duration of the debt obligation.
5. Answer - Option B
Explanation -
The Balance of payments for a country is calculated by the difference of Capital Account and Current account. Both the accounts have different components included in it.
Current Account: Components – Net Import-Export (Import minus Export); Incomes (Profits, Interests, Dividend); Transfers (Donations, Gifts. etc.)
Capital Account: Components – Investment (FDI, FII); Loan (Government Borrowings, External commercial borrowings); Bank account transfers by NRIs, etc.

1. The Union Government has allocated how many crore rupees for the development of 40 satellite launch vehicles in the next four years?

A. Rs. 10,000crore B. Rs. 10,200 crore C. Rs.10,300crore D. Rs.10,700crore E. Rs.10,900crore

2. India Post Payments Bank (IPPB) was setup under the Department of Posts, Ministry of Communication with 100% equity owned by Government of India. How many Post Offices across urban and rural India, activated as banking access points?

A. 3750 B. 1200 C. 650 D. 3250 E. 5700

3. As per RBI Report on Trend and Progress of Banking in India, what % of the total complaints received by all BO offices, is from tier-1 cities like New Delhi, Mumbai, Chennai, Kolkata, Bengaluru and Hyderabad?

A. 67% B. 75% C. 49% D. 79% E. 57%

4. Which Bank has announced an ESOP scheme with a view to retaining its talent and incentivising staff by issuing up to 10 crore equity shares?

A. Yes Bank B. HDFC Bank C. State Bank of India D. ICICI Bank E. Punjab National Bank

5. Prime Minister NarendraModi has launched Ayushman Bharat, world’s largest government-funded healthcare scheme in Jharkhand’s capital Ranchi. It will offer a benefit cover of ________ per family per year.

A. Rs 2 lakh B. Rs 5 lakh C. Rs 7 lakh D. Rs 10 lakh E. Rs 15 lakh

Answers and Explanations
1. Answer - Option E
Explanation -
The Union Government has allocated 10,900 crore rupees for the development of 40 satellite launch vehicles in the next four years.Dr Sivan stated that Chandrayan Mission will be launched within three months. It will land in one part of the Moon which is still unexplored. The human space flight Gaganyaan is planned to be launched by 2022, the 75th anniversary of Independence.
2. Answer - Option D
Explanation -
3,250 Post Offices across urban and rural India, activated as banking access points of IPPB.
3. Answer - Option E
Explanation -
The number of complaints registered at banking ombudsman offices have seen a 25% increase in the fiscal year 2018. “The banking ombudsman offices in tier-1 cities like New Delhi, Mumbai, Chennai, Kolkata, Bengaluru and Hyderabad accounted for more than 57% of the total complaints received by all BO offices,” the RBI Report on Trend and Progress of Banking in India has stated.
4. Answer - Option E
Explanation -
State-run Punjab National Bank (PNB) has announced an ESOP scheme with a view to retaining its talent and incentivising staff by issuing up to 10 crore equity shares. The bank stated it will issue up to 10 crore equity shares to its employees under ‘Employee Stock Purchase Scheme (ESPS)’. A note is being placed to board in its ensuing meeting dated June 15, 2018 regarding ESPS with a proposal for issuance of up to 10 crore equity shares to its employees, the bank said in a regulatory filing.
5. Answer - Option B
Explanation -
Prime Minister NarendraModi launched Ayushman Bharat, world’s largest government-funded healthcare scheme in Jharkhand’s capital Ranchi. The Center's flagship scheme has been renamed as PM Jan ArogyaYojana (PMJAY). The scheme will become operational from September 25 on the birth anniversary of PanditDeendayalUpadhyay. Ayushman Bharat-National Health Protection Scheme (AB-NHPS) will have a defined benefit cover of Rs 5 lakh per family (on a family floater basis) per year for secondary and tertiary care hospitalisation. It will offer a benefit cover of Rs 5 lakh per family per year. It will subsume the existing RashtriyaSwasthyaBimaYojana (RSBY), launched in 2008 by the UPA government.

1. What is the expand form of ‘OTC’?

A. Opposite Tenure Counter B. Over Term Counter C. Over Transfer of Cash D. Opposite Transfer of Cash E. Over the Count

2. In Economics, the business of buying trade debts at a discount and making a profit when debt is realized and also taking over a collection of trade debts at agreed prices is termed _____.

A. Forfeiting B. Factoring C. Exfoliation D. Hypothecation E. None of the above

3. In the context of Indian economy, ‘Open market Operations’ refers to ___________.

A. Purchase and sale of Government securities by the Government B. Purchase and sale of Government securities by the RBI C. Borrowing by the scheduled commercial banks from RBI D. Lending by commercial banks to Industries and traders E. None of the above

4. Which agency maintains the Micro Finance Development and Equity Fund in India?

A. SEBI B. NABARD C. RBI D. Ministry of Finance E. SIDBI

5. As per Coinage Act 1906, in India, coins can be issued upto the denomination of?

A. Rs. 50 B. Rs. 100 C. Rs. 500 D. Rs. 1000 E. None of these

Answers and Explanations
1. Answer - Option E
Explanation -
OTC – Over the Counter
The phrase “over-the-counter” can be used to refer to stocks that trade via a dealer network as opposed to on a centralized exchange. It also refers to debt securities and other financial instruments, such as derivatives, which are traded through a dealer network.
2. Answer - Option B
Explanation -
Forfeiting: In International Trade when an exporter finds it difficult to realize money from the importer, he sells the right to receive money at a discount to a forfaiter, who undertakes inherent political and commercial risks to finance the exporter, of course with assumption of a profit in the venture.Factoring: Business of buying trade debts at a discount and making a profit when debt is realized and also taking over collection of trade debts at agreed prices.
3. Answer - Option B
Explanation -
Open Market Operations (OMO): The buying and selling of eligible securities in the money market by RBI for the purpose of curtailing or expanding the volume of credit. By selling securities the RBI can absorb funds, and buying the securities can release funds also into the market. The purpose of OMO is to influence the volume of cash reserves with the commercial banks and thus influence the volume of loans and advances they can make to the industrial and commercial sector.
4. Answer - Option B
Explanation -
In the Union budget of 2000-01, creation of Micro Finance Development Fund (MFDF) came into existence. The objective of the MFDF is to facilitate and support the orderly growth of the micro finance sector through diverse modalities for enlarging the flow of financial services to the poor, particularly for women and vulnerable sections of society, consistent with sustainability. Consequently, MFDF with a corpus of Rs.200 crore was established in NABARD.
5. Answer - Option D
Explanation -
The Reserve Bank can also issue notes in the denominations of one thousand rupees, five thousand rupees and ten thousand rupees, or any other denomination that the Central Government may specify. There cannot, though, be notes in denominations higher than ten thousand rupees in terms of the current provisions of the Reserve Bank of India Act, 1934. Coins can be issued up to the denomination of Rs.1000.