1. Which among the following was the first bank purely managed by Indians?
a) Oudh Commercial Bank
b) Punjab National Bank
c) Bank of India
d) Allahabad

2. Which of the following statements best describes the Federal Reserve?
a) The Federal Reserve is shrouded in mystery.
b) The Federal Reserve is not interested in inflation within the economy.
c) The Federal Reserve is the central bank of the United States.
d) The Federal Reserve regulates the stock market.

3. Financial markets?
a) include any market in which goods are traded.
b) have no oversight by the government.
c) only include large markets like the New York Stock Exchange.
d) allow us to buy and sell financial instruments easily.

4. What term is used for maximum capital which the company can raise in its life time?
a) Authorized Capital
b) Registered Capital
c) Nominal Capital
d) All of them

5. The following is an example of the core principle “Information is the basis for decisions”?
a) Wealthy depositors are the banks’ best customers.
b) Payments made over time generally add up to more than the original loan amount.
c) Lenders require credit scores on individuals who want to take out loans.
d) Car insurance is often required by law.

6. The central organizing mechanism of the U.S. economy is?
a) markets.
b) prices.
c) money.
d) the Federal Reserve.

7. Markets are sources of information because they?
a) provide stability.
b) signal what is valuable and what is not by determining prices and allocating resources.
c) are places for exchange between buyers and sellers.
d) are The Department of the Treasury.

8. Which of the following statements is true when thinking about the core principle “Stability improves welfare”?
a) Government intervention is needed to reduce some risks which improves stability.
b) Individuals must find ways to reduce all risk to improve stability.
c) Risk and stability are not related.
d) Central banks cannot reduce volatility.

9. Cash only sales at a store?
a) reduce risk to buyers.
b) eliminate the need for costly information gathering by the seller.
c) increase the uncertainty of selling.
d) are regulated by the government.

10. Which among the following is NOT a pillar of Basel III?
a) Minimum capital standards
b) Supervisory review
c) Market discipline
d) Consolidation of assets

11. Time affects the value of financial transactions because?
a) inflation makes money worth more over time.
b) there is an opportunity cost to a lender when money is borrowed.
c) it takes time to gather information about financial transactions.
d) very wealthy people require compensation for holding their money.