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 socioeconomic 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.