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. Page-10 section-5

What is the upper limit prescribed for RTGS transaction?

A) Rs. 5 lakhs B) Rs. 1 lakhs C) Rs. 25 lakhs D) No upper limit is prescribed

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Answer & Solution

Answer: Option D

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Which of the following companies has received the Tata Energy Research Institute (TERI) award?

A) Shreeram jute products ltd B) Soshasai paper and boards ltd C) Sundari rubber mills ltd D) Siyaram textiles ltd

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Answer: Option A

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Reserve Bank of India has not authorized banks to approve limits relating to:

A) Cash Reserve Ratio B) Statutory Liquidity Ratio C) Foreign Exchange Operations D) None of the above

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Answer: Option D

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Match the following concepts of List-I with List-II.

List-I	List-II
a. Raghuram Rajan	1. Financial Services
b. Nachiketa Mor	2. Banking licenses
c. Arvind Mayaram	3. Comprehensive Financial Services for Small Businesses and Low Income Households
d. Bimal Jalan	4. New definitions for FDI and FII

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

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Answer & Solution

Answer: Option D

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Which of the following concepts principle of indemnity is applicable to?

A) Life Insurance B) Personal accident insurance C) Proximate Cause D) Property insurance

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Answer & Solution

Answer: Option D

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Which of the following statement/s is/are correct?

A) Since independence, if India had followed a free market capitalist model of economy, financial inclusion would have been extremely high B) Since independence, if India had taken concrete steps for financial inclusion, the regional disparities would have been less C) Both A and B are correct D) Neither A nor B is correct

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Answer: Option D

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Which one of the following statement is incorrect?

A) Doubtful advance is an advance which remains NPA for more than 12 months B) The account remain 'out of order' for a period of more than 100 days, in respect of an Overdraft/Cash Credit (OD/CC) C) Net NPA is having provisions for bad debts D) Net NPAs = Gross NPAs - Provision for NPAs

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Answer: Option D

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Which of the following organisation promotes trade?

A) STC B) MMTC C) ECGC D) All of these

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Answer & Solution

Answer: Option D

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Which of the following are the different functions that are performed by the financial markets?
1. Determination of the prices where financial markets help in price discovery of various financial instruments.
2. Mobilization of the funds
3. Providing an opportunity to different investors to buy or sell their respective financial instrument at the fair value that is prevailing in market.
4. Providing the various types of information to traders that help in decision making.
5. The sharing of the risk with investors.

A) 2, 3 and 5 B) 1, 2 and 3 C) 3 and 4 D) 1, 2, 3, 4 and 5

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Answer & Solution

Answer: Option D

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100

Match the items of List-I with those of List-II and select the correct option:

List-I	List-II
a. High levered fund	1. Market risk
b. Increase in bank rate	2. Purchasing power risk
c. Inflation	3. Financial risk
d. Political instability	4. Interest rate risk

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

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Answer & Solution

Answer: Option C

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