Banking and Financial Institutions MCQ Questions and Solutions with Explanations

Banking and Financial Institutions MCQ Questions and Solutions with Explanations | Commerce

Banking and Financial Institutions MCQ Questions and answers with easy and logical explanations. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Banking and Financial Institutions MCQ is important for exams like B.COM, M.COM, BBA, BBM, CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other commerce department exam.

Identify the correct combination of statements with regard to banking in India.
1. For many years the presidency banks had acted as quasi-central banks.
2. The Bank of Hindustan was liquidated during 1829-32.
3. General Bank of India was an unsuccessful bank and was dissolved in 1791.
4. Bank of Calcutta was renamed as Bank of Bengal in 1921.

A) 1, 2 and 3 B) 2, 3 and 4 C) 1, 2 and 4 D) 1, 2, 3 and 4

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Answer & Solution

Answer: Option A

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The coverage of Right to Information Act (RTI), 2005 is:

A) Whole of India B) Whole of India, except North Eastern States C) Whole of India, except the State of Jammu & Kashmir D) None of the above

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Answer & Solution

Answer: Option C

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One of the items is not related with e-banking.

A) Demand draft B) SPNS C) ECS D) ATM

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Answer & Solution

Answer: Option A

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Second generation reforms in our country do not comprise of which one of the following?

A) Exploiting the knowledge based global economy B) Growing Indian transnational corporations C) Population control measures D) Clean environment

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Answer & Solution

Answer: Option C

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Match List-I with List-II and select the correct answer:

List I	List II
a. Bank rate policy	1. Involving the shortening of the currency of bills eligible for rediscount.
b. Credit rationing	2. Involving the purchase and sale of securities in the open market.
c. Vanable reserve system	3. Involving the alteration of discount rate.
d. Open market operation	4. Involving the variation of the minimum reserves.

A) a-1, b-4, c-2, d-3 B) a-2, b-1, c-3, d-4 C) a-4, b-2, c-1, d-3 D) a-3, b-1, c-4, d-2

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Answer & Solution

Answer: Option D

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With reference to mutual funds, which of the following statements is correct?

A) Open-ended funds are always open to investment B) Open-ended funds are always open to redemption C) Open-ended funds are always open to investment and redemption D) It is an investment in equity shares

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Answer & Solution

Answer: Option C

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Credit Exposure does not include:

A) Bridge Loans B) Working Capital Demand Loan C) Shares of the company underwritten by the bank D) Advances against the Bank's fixed deposits granted to a company

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Answer & Solution

Answer: Option D

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For the purpose of extending rural banking and agro finance, the NABARD

A) Directly lends and monitors the rural borrowers B) Refinances the banks extending rural finance C) Refinances the rural borrowers obtaining credit from banks D) Directly finances the rural borrowers and gets refinance from government

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Answer & Solution

Answer: Option C

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Under Section [S.2(h)] of the RTI Act, 2005 "Other Public Authority" means:

A) By notification issued or by order of the appropriate government B) All bodies owned, controlled or subsequently financed by the government C) All non governmental organizations substantially financed by the government D) All of the above

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Answer & Solution

Answer: Option D

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By which scholar insurance defined as "insurance is a social device for making accumulation to meet uncertain losses of capital which is carried out through the transfer of risk of many individual to one person or to a group of persons"?

A) Lewis B) Willset C) AH Willed D) Magee

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Answer & Solution

Answer: Option C

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