Federal Bank Financial Awareness Question Paper



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Federal Bank Financial Awareness Previous Year Question Paper


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



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