Banker to the Government

Q.

What are the types of bank guarantees?

Q. Who carries out the general banking activities of both the central government and the state governments in India?

1. Commercial banks
2. Private banks
3. World Bank
4. Reserve Bank of India

Q. Which of the following are short-term bills?

1. Treasury bills
2. Government bonds
3. Promissory notes
4. Foreign exchange

Q. What is the major difference between treasury bills and government bonds?

1. Treasury bills are issued by private companies, whereas government bonds are issued by the government.
2. A treasury bill is a short-term investment option, whereas a government bond is a long-term investment option.
3. Treasury bills are issued by the government, whereas government bonds are issued by private companies.
4. A government bond is a short-term investment option, whereas a treasury bill is a long-term investment option.

Q. Which of the following sentences best describe the use of tax money?

1. Taxes are used for providing salaries, pensions, funding military operations, etc.
2. Taxes are used for making politicians immensely rich.
3. Taxes are used to fund richer countries and their activities.
4. Taxes are used to strengthen the financial conditions of richer countries.

Q. Choose the correct option.

Statement I: The RBI carries out the general banking activities of both the central government and for almost all the state governments in India.
Statement II: The Government of India can take loans from the RBI.

1. Both statements are true.
2. Both statements are false.
3. Statement I is true, but statement II is false.
4. Statement I is false, but statement II is true.

Q. Which of the following are revenue streams for a government?

1. Taxes
2. Fines
3. Penalties
4. Minting money

Q. Which of the following are securities that can be exchanged within a brief period?

1. Public securities
2. Government bonds
3. Treasury bills
4. Loans

Q. Which of the following statements best describes public securities?

1. Security personnel for the public
2. Security personnel for the RBI
3. Providing bills in return for money
4. Providing loans without collateral