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-2 section-1

Which of the following statements is not correct:

A) The rising interest rate increases the discount rate on cash flows and decreases the market value of that Asset B) Falling interest rates decrease the market value of Assets or Liabilities C) When a Bank holds longer term assets than liabilities and if interest rate rises, the market value of Assets falls by more amount than liabilities D) The above C may lead to economic loss

Discuss

Answer & Solution

Answer: Option B

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A sub-standard asset refers to:

A) Remaining NPA for less than or equal to 12 months B) Remaining NPA for more than 12 months C) Where the loss has been identified by the bank D) When loan is overdue for a period of 1 year

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Answer & Solution

Answer: Option A

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Off Shore Banking Unit is:

A) A unit which is situated in Foreign country B) A unit which is situated in Special Economic Zones and deals in foreign currency only C) A unit which is actively participating in lending foreign currency loans and in joint ventures D) None of the above

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Answer & Solution

Answer: Option B

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A seller's market in which insurance is expensive and in short supply is termed as . . . . . . . .

A) Hard market B) Soft market C) Alternative market D) None of these

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Answer & Solution

Answer: Option C

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Which one of the following development financial institutions in India has started the special refinance scheme for the resettlement and rehabilitation of voluntary retired workers of the National Textile Corporation of lndia?

A) IDBI B) SIDBI C) ICICI D) None of these

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Answer & Solution

Answer: Option A

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Assertion (A): The Central Bank of the country is responsible to maintain stability of the monetary standard which involves currency circulation.
Reason (R): The Central Bank is the only authorised entity to do so.

A) Both (A) and (R) are true B) Both (A) and (R) are false C) (A) is true, but (R) is false D) (R) is true, but (A) is false

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Answer & Solution

Answer: Option C

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Capitalization of Reserves is carried out by issue of . . . . . . . . to the existing shareholders.

A) Additional shares B) Bonus shares C) Incentives D) None of these

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Answer & Solution

Answer: Option B

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The regulatory authority of Regional Rural Banks is

A) NABARD B) Central Government C) State Government D) Sponsor Bank

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Answer & Solution

Answer: Option A

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A single policy covering a group of individuals, usually employees of the same company or members of the same association and their dependants is called . . . . . . . .

A) Hospital insurance B) Hull insurance C) Group insurance D) Identity theft insurance

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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. Reserve Bank of India	1. NPA
b. EXIM Bank	2. Facilitating small scale industries
c. SIDBI	3. Credit control
d. Capital Adequacy	4. Export/Import financing

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

Discuss

Answer & Solution

Answer: Option D

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