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-7

The buyer or the importer who procures a Letter of Credit from his banker is called:

A) opener of the credit B) beneficiary of the credit C) negotiator of the credit D) None of the above

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Answer & Solution

Answer: Option A

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How many pillars are there in the Basel II Framework?

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

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Answer & Solution

Answer: Option C

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Under the Corporate Debt Restructuring (CDR) mechanism, loan assets of banks have been categorized. Which one of the following statements is not correct:

A) Assets belonging to Standard and Sub-Standard category come under Category 1 B) Assets belonging to Doubtful category come under Category 2 C) Assets belonging to Doubtful and Loss categories come under Category 2 D) Out of total Loan Assets, 90% is Standard and Sub-standard and Doubtful is 10% this lot comes under Category 1

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Answer & Solution

Answer: Option C

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Which of the following is not helpful in the competition of inflation in India?

A) Optimum utilization of capacity B) Minimum support price for agriculture products C) Reduction in fiscal deficit D) Public distribution system

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Answer & Solution

Answer: Option B

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RBI absorbs liquidity in the system through:

A) Repo B) Reverse Repo C) Both A and B D) Either A or B

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Answer & Solution

Answer: Option B

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Find the false statement with respect to Atal Pension Yojana.

A) The contribution amount increases with the age of subscriber B) Monthly Quarterly and half-yearly mode of contribution is available for subscribers C) NRI can apply for the Atal Pension Yojana D) All are true

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Answer & Solution

Answer: Option C

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Match the following.

List-I	List-II
a. When one company purchases another one	1. Conglomerate merger
b. Merger between two companies having no common business areas	2. Consolidation merger
c. Merger between two companies that sell the same products in different markets	3. Purchase merger
d. Two companies are bought and combined under new entity	4. Market extension merger

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

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Answer & Solution

Answer: Option C

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Shares of companies notified by SEBI can be traded only when these are in . . . . . . . . form.

A) physical B) dematerialized C) either A or B D) None of these

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Answer & Solution

Answer: Option B

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Working capital facility to exporters is provided by

A) Reserve Bank of India B) Export Credit and Guarantee Corporation C) Commercial Banks D) Ministry of External Affairs, Government of India

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Answer & Solution

Answer: Option B

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"Bad money drives good money out of circulation." The propounder of this statement was:

A) J. M. Keynes B) Thomas Gresham C) Samuelson D) Crowther

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Answer & Solution

Answer: Option B

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