(a) Always the banker
(b) Who encash the cheques
(c) Who issue the cheques
(d) Who cancel the cheques
(e) None of these
2. Money that flows regularly between financial markets as investors attempt to ensure they get the highest shortterm interest rates possible, is known as
(a) Near money
(b) Hot money
(c) Optional money
(d) Fiat money
(e) Dear money
3. Drawer can be payee in the Bank Cheques?
(a) Yes
(b) No
(c) It is illegal
(d) Bank should accept
(e) RBI should accept
4. Highly liquid assets which are not cash but can easily be converted into cash is called as
(a) Optional money
(b) Hot money
(c) Near money
(d) Fiat money
(e) Dear money
5. Bill of Exchange means –
(a) Unconditional orders issued by the bank on RBI to adjust the funds at future rate for repo rate for certain rate
(b) Conditional order issued by the government of India to file the payment order on Treasury bills
(c) Unconditional order issued by a person or business which directs the recipient to pay a fixed sum of money to a third party at a future date.
(d) Indian Banks issue the bills to the private parties on the secured payment of the future date payments
(e) None of these
6. The non legal tender money which is generally acceptable by the people in it's final payments is known as
(a) Near money
(b) Hot money
(c) Optional money
(d) Fiat money
(e) Dear money
7. Who gives the Order to pay OR maker of the Bill of exchange is called
(a) Drawee
(b) Drawer
(c) Payee
(d) None of these
(e) All of above
8. The Money that derives its value from government regulation or law –
(a) Near money
(b) Hot money
(c) Optional money
(d) Fiat money
(e) Dear money
9. In the Bill of Exchange, on whom the obligation to pay rests is called –
(a) Drawer
(b) Drawee
(c) Drawer and Drawee
(d) Payee
(e) None
10. The process of preparing budget for a period of a year or even for several years allocating capital outlays for the various investment projects is known as (
a) Capital Budgeting
(b) Factoring
(c) Balanced Budget
(d) Balance of Payment
(e) None of these
