Basic Concepts of Finance and Banking

Who regulates the Indian Stock Market?

• ক. State Bank of India
• খ. Security and Exchange Board of India
• গ. Security Exchange Commission of India
• ঘ. Indian Security Exchange Commission

The difference between a bank’s rate of interest on lending to its prime customers and the rate of interest that it pays to others on borrowings (demand, time or savings deposits) is called—

• ক. Profit rate
• খ. Margin rate
• গ. Income rate
• ঘ. Interest spread

What does BIA stand for?

• ক. Bangladesh Insurance Association
• খ. Bank for international Assistance
• গ. Bangladesh Insurance Authority
• ঘ. Board of Investment Act

The act adopted for prevention of use and transfer of money illegally is called—

• ক. Illegal Money Transfer Act
• খ. Money Laundering Prevention Act
• গ. Improper Money Use and Transfer Act
• ঘ. Money Laundering Act

Which of the following is not an instrument--

• ক. Treasury Bill
• খ. Fixed Deposit
• গ. Wage Earners Bond
• ঘ. Defense Saving Certificate

When did Bangladesh become member of Asian Development Bank?

• ক. 1975
• খ. 1977
• গ. 1972
• ঘ. 1973

Where is the Headquarter of Asian Development Bank located?

• ক. Tokyo
• খ. Hong Kong
• গ. Manila
• ঘ. Kowalalampur

When was Asian Development Bank established?

• ক. 1948
• খ. 1950
• গ. 1966
• ঘ. 1970

When was world bank established?

• ক. 1950
• খ. 1947
• গ. 1941
• ঘ. 1944

Where is the Headquarter of International Moneytary Fund located?

• ক. Washington DC
• খ. London
• গ. Paris
• ঘ. Rome

When was International Moneytary Fund(IMF) established?

• ক. 1942
• খ. 1950
• গ. 1945
• ঘ. 1948

Which of the following issues is included in the monetary policy?

• ক. Duty
• খ. Export-Import
• গ. Tax and subsidy
• ঘ. Credit control

Which of the following issues is included in the revenue policy?

• ক. Money supply
• খ. Export-Import
• গ. Tax and subsidy
• ঘ. Poverty alleviation

The policy by which government determines revenue expenditure, tax and subsidy is called--

• ক. Monetary policy
• খ. Revenue policy
• গ. Commercial policy
• ঘ. Industrial policy

The market in which transaction of long-term credit take place is called--

• ক. Free market
• খ. Money market
• গ. Monopoly market
• ঘ. Capital market

Which market deals in short-term credit?

• ক. Free market
• খ. Money market
• গ. Monopoly market
• ঘ. Capital market

Inflation meant by what type of increase?

• ক. Real GDP
• খ. Rate of unemployment
• গ. Price level
• ঘ. Standard of living

Inflation that results from only the increase in demand of commodities is called--

• ক. Cost-pull inflation
• খ. Deflation
• গ. Devaluation
• ঘ. Demand-pull inflation

What is meant by total money supply of a country?

• ক. Money in the hand of people
• খ. Demand deposit of bank
• গ. Term deposit
• ঘ. a + b + c

Who issues Five Taka and Ten Taka note?

• ক. Commercial bank
• খ. Central Bank
• গ. Government
• ঘ. Specialised bank

Who issues One Taka and Two Taka note?

• ক. Commercial bank
• খ. Central Bank
• গ. Government
• ঘ. Specialised bank

Which classes of people are benefited from inflation?

• ক. Creditor
• খ. Debtor
• গ. Workers
• ঘ. Customer

Annual inflation rate of four or more than four digits is called--

• ক. Low inflation
• খ. Galloping inflation
• গ. Hyper inflation
• ঘ. Cost-pull inflation

Annual inflation rate of two or three digit is called--

• ক. Low inflation
• খ. Galloping inflation
• গ. Hyper inflation
• ঘ. Demand-pull inflation

Annual inflation rate of one digit is called--

• ক. Low inflation
• খ. Galloping inflation
• গ. Hyper inflation
• ঘ. Cost-pull inflation

Reduction in the price of the most of the commodities and expenditure is called--

• ক. Inflation
• খ. Deflation
• গ. Devaluation
• ঘ. Price index

What happens when money supply increases?

• ক. Inflation
• খ. Deflation
• গ. Reduction is price of commodity
• ঘ. Increase in unemployment

Gradual decrease in price level is called--

• ক. Inflation
• খ. Deflation
• গ. Devaluation
• ঘ. Deficit expenditure

Inflation that results from the increase in production cost is called--

• ক. Demand pull inflation
• খ. Cost pull inflation
• গ. Devaluation
• ঘ. Deflation

Too much money chasing too few goods - is a definition of what?

• ক. Inflation
• খ. Deflation
• গ. Finance
• ঘ. Demand of money

Which one is the equation of money supply?

• ক. DD = MS + CU + TD
• খ. CU = DD + MS - TD
• গ. MS = CU + DD + TD
• ঘ. a + b + c

The disadvantage of dividing one commodity into pieces in barter system is called--

• ক. Incongruence of want
• খ. Want of unit of value measurement
• গ. Indivisibility
• ঘ. Disadvantage of transfer

The system of exchanging one commodity for another commodity is called--

• ক. Merket system
• খ. Barter system
• গ. Invisible sector
• ঘ. Value system

Which of the following is not an instrument for Government borrowing?

• ক. Treasury Bill
• খ. Fixed Deposit
• গ. Wage Earners Bond
• ঘ. Defense Saving Certificate

DSE operates under the direct control of--

• ক. Ministry of Commerce
• খ. FBCCI
• গ. SEC
• ঘ. Bangladesh Bank

Owner's share of profit of a public limited company is called--

• ক. Dividend
• খ. Directors remuneration
• গ. MD's salary
• ঘ. Employee wages

Which is not an instrument of Government borrowing?

• ক. Treasury Bill
• খ. Fixed Deposit
• গ. Wage Eanres Bond
• ঘ. Defense Saving Certificate

Govt. Fiscal policy relates to:

• ক. Tax
• খ. Money supply
• গ. Export-Import
• ঘ. Financial Institution

Which organization or agency issuses Two Taka note in Bangladesh?

• ক. Bangladesh Bank
• খ. Ministry of Finance
• গ. Ministry of Commerce
• ঘ. Sonali Bank

Which one is not a national currency---

• ক. Euro
• খ. Dollar
• গ. Sterling
• ঘ. Guilder

Floating exchange rate means conversion rate between Dollar and Taka will be determined by--

• ক. Market
• খ. Bangladesh Bank
• গ. Ministry of Finance
• ঘ. None of these

The 4th Asia-Pacific Microcredit Summit was held in which city?

• ক. Tokyo
• খ. Beijing
• গ. Manila
• ঘ. Dhaka

Which authoritative body regulates the stock markets of our country?

• ক. Bangladesh Bank
• খ. Ministry of Finance
• গ. Securities & Exchange Commission
• ঘ. Ministry of Commerce

Which wing of the World Bank is called 'soft-loan-window'?

• ক. IBRD
• খ. IDA
• গ. IFC
• ঘ. FDI

The exchange rate of British Pound against Taka is close to--

• ক. 65
• খ. 85
• গ. 120
• ঘ. 140

Stock exchanges of Bangladesh operate under the direct control of--

• ক. Bangladesh Bank
• খ. Dhaka Chamber of Commerce and Industry
• গ. Ministry of Commerce
• ঘ. Security Exchange Commission

Wall Street in New York is famous for what?

• ক. World's largest financial center
• খ. World's largest stock market
• গ. World's largest tourist center
• ঘ. World's largest trade center

Which one of the following is a specialized financial institution?

• ক. Islamic bank Bangladesh Ltd.
• খ. Rajshahi Krishi Unnayan Bank
• গ. Bangladesh commerce Bank Ltd.
• ঘ. Mutual Trust Bank Ltd.

Which one of the following is not the function of Bangladesh Bank?

• ক. Monetary Control
• খ. Money Circulation
• গ. Deposit Collection
• ঘ. Currency Issues

Which type of bank account does not pay interest to the depositors?

• ক. Current account
• খ. Savings account
• গ. Fixed deposit account
• ঘ. Short-term deposit account

We open current accounts with a commercial bank for a propose of--

• ক. Earning interest
• খ. Safe custody of funds
• গ. Getting Loan
• ঘ. All of these

The bank rate means---

• ক. The rate at which commercial banks lend money
• খ. The rate at which central banks lends money to commercial bank
• গ. The rate at which interest on deposite is fixed
• ঘ. The rate at which commercial banks lend to others commercial banks

The world bank is a--

• ক. Multinational Bank
• খ. National Bank
• গ. U. N. Body
• ঘ. International Financial Institution

Where is the headquarters of the world bank group located?

• ক. Washington DC
• খ. Zurich
• গ. London
• ঘ. Oslo

Who has offered to buy out the majority shares of Rupali Bank?

• ক. Prince Badar Bin Mohammed
• খ. Prince Waterhouse Cooper's
• গ. HSBC Bank
• ঘ. Citi Bank NA

'The Federal Reserve System' is the central Bank of--

• ক. The USA
• খ. The UK
• গ. Russia
• ঘ. India

IMF is a(n)--

• ক. Multinational Bank
• খ. National Bank
• গ. International Financial Institution
• ঘ. UN Body

Who was the founder of BARD at Comilla?

• ক. Abdul Hamid Khan Bhasani
• খ. Akhter Hamid Khan
• গ. Dr. Md Younus
• ঘ. Hamidul Hoque Chowdhury

Which one of the following is not a depositary financial institution?

• ক. IFIC Bank Limited
• খ. The Oriental Bank Limited
• গ. Agrani Bank
• ঘ. Uttara Bank Limited

Which of the following is the main objective of IMF?

• ক. to lend developing countries
• খ. to promote private sector in underdevoloped nations
• গ. to proomote international trade among countries
• ঘ. to assist countries stabilize currrency values

What is the name of the company in power sector that was listed with the stock exchange in June 2006?

• ক. Power Grid Company of Bangladesh
• খ. DESA
• গ. Summit Power company
• ঘ. DESCO

Which of the following deposit accounts provides the lowest interest?

• ক. Fixed deposit
• খ. Savings deposit
• গ. Current deposit
• ঘ. STD account

Which of the following is not traded in the stock exchanges of Bangladesh?

• ক. Government Bond
• খ. Preferred Stock
• গ. Common Stock
• ঘ. Corporate Bond

Which of the following is not a source of long term finance?

• ক. Bond
• খ. Preferred Stock
• গ. Common Stock
• ঘ. Commarcial Paper

Beta shows the --- of a stock.

• ক. total risk
• খ. systemic risk
• গ. idiosynctratic risk
• ঘ. credit risk

Stock dividend is distributerd among:

• ক. preference shareholders
• খ. debenture holders
• গ. common shareholders
• ঘ. directors

When Company offers its share to public for the first time, it is known as--

• ক. Initial Public Offering
• খ. Secondary Stock Offering
• গ. Right Issue
• ঘ. Bonus Issue

NBFI stands for--

• ক. Non Brokering Financial Institution
• খ. Non Bailing Financial Institution
• গ. Nationalized Banking and Financial Institution
• ঘ. Non Bank Financial Institution

Specialized firm that finances young, startup companies are called--

• ক. venture capital firm
• খ. finance companies
• গ. SME finance companies
• ঘ. capital creation companies

Finance companies--

• ক. borrow in large amounts, but lend in small amounts
• খ. are highly regulated
• গ. are capital market intermediaries
• ঘ. usually charge very low interest rates

Intermediaries, who are agents of investors and match buyers with sellers of securities are called--

• ক. Brokers
• খ. Investment bankers
• গ. Dealers
• ঘ. Treders

IFC is a(n)

• ক. Multilateral trade organization
• খ. International association of finance companies
• গ. Bi-lateral trade organization
• ঘ. Investment bank for Asia Pacific

In Bangladesh, the companies Act was amended in:

• ক. 1913
• খ. 1986
• গ. 1992
• ঘ. 1995

What is the current Statutory Liquidity Reserve(SLR) requirement of commercial banks with Bangladesh Bank?

• ক. 13%
• খ. 18%
• গ. 20%
• ঘ. 22%

Which of the following institution is the pioneer of microfinance movement in Bangladesh?

• ক. BRAC
• খ. ASA
• গ. Grameen Bank
• ঘ. Proshika

How many development banks are there in Bangladesh for the development of agriculture sector?

• ক. 1
• খ. 2
• গ. 5
• ঘ. 10

Which is the main source of bank fund?

• ক. paid-up capital
• খ. reserve fund
• গ. borrowing from the central bank
• ঘ. deposits

Which of the following is not a function of a commercial bank?

• ক. Deposit mobilization
• খ. Credit control
• গ. Providing credit
• ঘ. Discounting bills

The duration of a valid cheque is:

• ক. 6 months
• খ. 15 days
• গ. 1 year
• ঘ. 2 months

The theory that bad money drives good money out of circulation is given by:

• ক. Marshall
• খ. Keynes
• গ. Robertson
• ঘ. Amartya Sen

When you deposit money in a bank, you are--

• ক. taking credit from it
• খ. earning money
• গ. lending it money
• ঘ. creating money

If nominal interest rate is 10% and inflation rate is 4% what is the real interest rate?

• ক. 14%
• খ. 6%
• গ. 40%
• ঘ. 2.5%

Which of the following is a monetary policy instrument?

• ক. Open Market Operation
• খ. Tax
• গ. Savings
• ঘ. Investments

Money market is a--

• ক. market for short term fund
• খ. market for long term fund
• গ. market for risky securities
• ঘ. market for hedge fund

Taka 10 polymer note was first introduced in Bangladesh in--

• ক. 2000
• খ. 2001
• গ. 1999
• ঘ. 2002

Treasury Bills are issued--

• ক. At discount
• খ. At premium
• গ. At Per Value
• ঘ. With Coupon

The MFA that regulated world trade in textile and clothing phased out in--

• ক. Dec 2004
• খ. June 2004
• গ. June 2005
• ঘ. Jan 2005

The net increase in owner's equity resulting from business operations is called--

• ক. expense
• খ. earnings per share
• গ. net income
• ঘ. revenue

IBRD is the name of the--

• ক. IMF
• খ. World Bank
• গ. ADB
• ঘ. IDB

The central regulatory body for the banks in Bangladesh is:

• ক. Ministry of Commerce
• খ. SEC
• গ. BIBM
• ঘ. Bangladesh Bank

Business of banking started first in which of the following country?

• ক. England
• খ. Italy
• গ. Germany
• ঘ. France

East Pakistan Stock Exchange Association Ltd. Previous name of Dhaka Stock Exchange, was incorporated in the year.

• ক. 1952
• খ. 1953
• গ. 1954
• ঘ. 1964

Share market of the country is regulated by:

• ক. Securities & Exchange Commission
• খ. Investment Corporation of Bangladesh
• গ. Dhaka Stock Exchange
• ঘ. Ministry of finance

Which of the following is the major stock market index in England?

• ক. NASDAQ
• খ. DAX
• গ. FTSE
• ঘ. NIKKIE

The name of President of the World Bank is:

• ক. Robert Zoellick
• খ. P. Robins
• গ. Al-Gore
• ঘ. Franklin

The Head Office of Asian Development Bank(ADB) is situated in--

• ক. Bangkok
• খ. Manila
• গ. Dhaka
• ঘ. Tokyo

What do you understand by the term 'Call Money'?

• ক. Inter-bank short-term lending and borrowing
• খ. Borrowing from central bank
• গ. Lending by commercial banks to insurance companies
• ঘ. Lending by leasing companies to industrial sector

Which of the following is the main source of revenue for the insurance companies in Bangladesh?

• ক. Premium
• খ. Investment Income
• গ. Share trading
• ঘ. Deposit collection

Private General insurance companies in Bangladesh must place 50% of their re-insurance business with which of the following companies?

• ক. Jibon Bima Corporation
• খ. ALICO
• গ. Sadharon Bima Corporation
• ঘ. Directorate of Insurance

------ insurance is the oldest form of insurance that was introduced in the 12th/13th century in the northern part of Italy.

• ক. Marine
• খ. Fire
• গ. Burglary
• ঘ. Motor

Private Insurance Companies started operating in the Bangladesh Insurance Market from--

• ক. 1984
• খ. 1985
• গ. 1986
• ঘ. 1987

Which of the following insurance products was discontinued by Sadharan Bima Corporation in the 90's?

• ক. Burglary
• খ. Marine Cargo
• গ. Fidelity
• ঘ. Crop

The insurance policy that covers risk of robbery or theft for cash on Counter which may also be provided for Stamps securities, money orders, postal orders etc is called--

• ক. Cash on Transit Insurance Policy
• খ. Cash on Counter Insurance Policy
• গ. Cash in Safe Insurance Policy
• ঘ. All of these

To allow insurance companies in private sector, 'The Insurence Corporation Act 1973' was amended in the year in the year--

• ক. 1982
• খ. 1983
• গ. 1984
• ঘ. 1985

Insurance is a system of--

• ক. Welcoming risk
• খ. Avoiding risk
• গ. Spreading risk
• ঘ. Developing risk

Which of the following insurance products covers the exporters against losses resulting from both commercial and non-commercial (political) risks in respect of goods sold to foreign buyers on credit?

• ক. Export Credit Guarantee Scheme
• খ. All risk insurance Policy
• গ. Export Import Policy
• ঘ. All of these

Sadharan Bima Corporation has a market share of over -- % of the total premium income of the insurence market of Bangladesh.

• ক. 20
• খ. 30
• গ. 40
• ঘ. 50

Which of the following insurence produtcs is not offered by Sadharan Bima Corporation?

• ক. Health
• খ. Marine Cargo
• গ. Burglary
• ঘ. Aviation

In which year did the government of Bangladesh nationalized the insurence industry?

• ক. 1972
• খ. 1973
• গ. 1974
• ঘ. 1975

Life insurance companies mainly provide benefits to the beneficiary of a policy upon?

• ক. Policyholder's retirement
• খ. Policyholder's illness
• গ. Policyholder's death
• ঘ. All of these

Which of the following is the largest NGO in the world?

• ক. TMSS
• খ. ASA
• গ. Proshika
• ঘ. PKSF

Where is the ADB headquarters located?

• ক. Thimpu
• খ. Manila
• গ. New Delhi
• ঘ. Bangkok

The rate that banks charge to their most creditworthy customers is generally termed as:

• ক. Bank rate
• খ. Prime rate
• গ. Interest rate
• ঘ. Discount rate

What do the leasing companies do?

• ক. Sell Assets
• খ. Buy Assets
• গ. Lend Money
• ঘ. Rent Assets

We open accounts with a commercial bank for propose of--

• ক. Earning interest
• খ. Safe custody of funds
• গ. Getting Loan
• ঘ. All of these

Which of the following account (s) can the customers open with Dhaka Bank's Islamic Banking Branches?

• ক. Mudaraba Term Deposit Account
• খ. Mudaraba Special Notice Account
• গ. Mudaraba Hajj Savings Account
• ঘ. All of these

What does IMF stand for?

• ক. International Maritime Federation
• খ. Intravenous Micro Fluid
• গ. International Monetary Found
• ঘ. International Marketing Forum

Who is the current governor of Bangladesh Bank?

• ক. Dr. Salehuddin Ahmed
• খ. Dr. Farashuddin
• গ. Dr. Fakhruddin Ahmed
• ঘ. Dr. Atiur Rahman

Bank rate means--

• ক. Interest rate at which Bangladesh Bank lend money to other Banks
• খ. Interest rate at which Banks gets money from other Banks
• গ. Rate of interest that Banks charge on their credit
• ঘ. Interest rate that is offered by banks to collect deposits

Call money rate means--

• ক. Interbank short term borrowing rate
• খ. The loan rate issued during the Eid
• গ. Long term borrowing rate by banks
• ঘ. Credit rate without guarantee

Which type of account gives lowest rate of return?

• ক. Savings account
• খ. Fixed deposits
• গ. Current account
• ঘ. Joint account

Circuit breaker in a stock exchange works as--

• ক. A medium to spilt stocks
• খ. An obstacle to excessive change in share price
• গ. A policy for broker houses
• ঘ. A constraint to issue bonus shares

BO in BO Account stands for--

• ক. Beneficiary Owner's
• খ. Bonafide Operator
• গ. Benefit Operation
• ঘ. By Owner's

Money mainly serves as a

• ক. medium of exchange
• খ. means of barter
• গ. means of hoarding
• ঘ. both (a) & (b)

The exchange rate of British Pound against Taka is close to:

• ক. 65
• খ. 85
• গ. 100
• ঘ. 120

SEC stands for--

• ক. Securities Exchange Commission
• খ. Social Enrollment Committee
• গ. Survival Environment Call
• ঘ. Social Equality Cell

Apart from DSE, which is the other stock Exchange of Bangladesh?

• ক. Sylhet Stock Exchange
• খ. Karnaphuli Stock Exchange
• গ. Chittagong Stock Exchange
• ঘ. Khulna Stock Exchange

The term secondary market is used in--

• ক. Labour Market
• খ. Job Market
• গ. Agriculture Market
• ঘ. Stock Market

A Bank's function do not include--

• ক. acceptance of deposit
• খ. manufacturing
• গ. giving loans
• ঘ. transfer of funds

Treasury Bills are sold by--

• ক. Bangladesh Bank
• খ. SEC
• গ. Households
• ঘ. Jamuna Bank

DES (Dhaka Stock Exchange) operates under the direct control of--

• ক. Ministry of Commerce
• খ. FBCCI
• গ. SEC
• ঘ. Bangladesh Bank

The term 'Book Building Method' is related to--

• ক. Building construction
• খ. Price discovery method of IPO
• গ. Ship building
• ঘ. Printing and Publication

The currency museum of Bangladesh was established in the year--

• ক. 2009
• খ. 2005
• গ. 1987
• ঘ. 1997

An increase in the growth rate of the money supply is most likely to be followed by:

• ক. Recession
• খ. a decline in economic activity
• গ. Inflation
• ঘ. All of these

Money appears to have a major influence on:

• ক. inflation
• খ. the business cycle
• গ. interest rates
• ঘ. all of these

The current inflation rate of Bangladesh is close to which of the following?

• ক. 5%
• খ. 6%
• গ. 7%
• ঘ. 8%

The maximum lending rate for the commercial banks to tackle the fallout of global recession. Which sector has been kept outside this regulation?

• ক. Agriculture Loan
• খ. Industrial Loan
• গ. Credit Card and Customer Loan
• ঘ. Transport Loan

When you purchaes shares of corporate stock, then--

• ক. You have loaned money to the corporation
• খ. You own part of the corporation
• গ. You have made new funds available to the corporation
• ঘ. All of the above

In which year did Bangladesh become a member of the IMF?

• ক. 1993
• খ. 1972
• গ. 1974
• ঘ. 1977

How many Stock Exchanges are there in Bangladesh?

• ক. Three
• খ. Two
• গ. One
• ঘ. Four

Which of the following is known as 'Twin of Bertton Woods'?

• ক. IMF, IDA
• খ. IMF, IBRD
• গ. ILO, IDA
• ঘ. ILO, IBRD

Which of the following is the soft loan window of the World Bank(WB)?

• ক. IFC
• খ. IBRD
• গ. MIGA
• ঘ. IDA

Dhaka Stock Exchange was established in---

• ক. 1950
• খ. 1952
• গ. 1954
• ঘ. 1958

The first NCB to register in the stock market is--

• ক. ICB
• খ. Janata Bank
• গ. BASIC Bank
• ঘ. Rupali Bank

What is Bangladesh Development Bank?

• ক. New name for Bangladesh Shilpa Bank
• খ. A Bank established by SAARC
• গ. Bangladesh branch of the ADB
• ঘ. A merger of development finance institutions