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BANKING MULTIPLE CHOICE QUESTIONS
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6. A repurchase agreement known as “Repo” is a form of short-term _____ by the central bank.
7. Which of the following statement is true about Repo and Reverse Repo interest rate?
(A) Repo is higher than Reverse Repo
(B) Reverse Repo is higher than Repo
(C) Both are equal to policy rate
(D) Both interest rates are equal
8. Replacement of an existing loan with another loan is known as
9. The risk-free interest rate is the rate of return of an investment which has _____ risk.
10. What interest rate is considered as a benchmark for which global banks lend to one another for short-term loans?
(A) treasury yield
(B) coupon yield
ANSWERS: BANKING MULTIPLE CHOICE QUESTIONS
6. (A) borrowing
7. (B) Reverse Repo is higher than Repo
8. (D) refinancing
9. (A) zero
10. (C) LIBOR [London InterBank Offered Rate]. Next Page: Banking Questions