Banking and Financial Institutions MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11

11.
Tier II capital should not be more than . . . . . . . . of Tier I capital.

A. 150%

B. 100%

C. 50%

D. None of these

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12.
What is the meaning of indemnify in insurance?

A. To put back in the same financial position just prior to the loss

B. To put aside funds to pay for losses reported but not yet paid

C. To transfer risk to someone who has better financial resources and can withstand loss

D. To make financial provisions for dealing with potential losses

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13.
In a mutual fund, the trust acts through . . . . . . . . who are appointed by the sponsor.

A. lawyers

B. investors

C. trustees

D. auditors

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14.
Which of the following public sector companies organisations provides insurance cover to exporters?

A. NABARD

B. ECGC

C. SIDBI

D. IRDA

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15.
Banking services offered to units set up in Special Economic Zones (SEZs) have been exempted from paying . . . . . . . . tax.

A. Capital Gains Tax

B. Income Tax

C. Service Tax

D. None of these

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16.
What does the phrase 'Lender of the last resort' refers to

A. IDBI

B. ICICI

C. RBI

D. IMF

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17.
Which one of the following statement is correct?

A. Small scale industries are not financed by any SFI

B. IDBI is wholly-owned subsidiary of the Reserve Bank of India

C. Non-banking financial institutions can also act as intermediaries

D. Financial institutions are mainly banking institutions

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18.
'BOLT' system in the Indian Securities market is related to:

A. National Stock Exchange

B. Bombay Stock Exchange

C. Over the Counter Exchange of India

D. Multi Commodity Stock Exchange

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19.
One of the functions of IDBI is to assist other financial institutions by of loans granted for exports.

A. planning

B. refinancing

C. Both A and B

D. None of the above

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20.
Why venture capital is considered risky in nature?
1. The business plan in which venture capitalists invest is usually non-conventional in nature
2. Venture capitalists contribute towards a debt of the product
3. Venture capitalists contribute money for a long time period

A. 3 only

B. 1 and 3 only

C. 1 and 2 only

D. 1, 2 and 3

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

11. Tier II capital should not be more than . . . . . . . . of Tier I capital.

Answer & Solution

12. What is the meaning of indemnify in insurance?

Answer & Solution

13. In a mutual fund, the trust acts through . . . . . . . . who are appointed by the sponsor.

Answer & Solution

14. Which of the following public sector companies organisations provides insurance cover to exporters?

Answer & Solution

15. Banking services offered to units set up in Special Economic Zones (SEZs) have been exempted from paying . . . . . . . . tax.

Answer & Solution

16. What does the phrase 'Lender of the last resort' refers to

Answer & Solution

17. Which one of the following statement is correct?

Answer & Solution

18. 'BOLT' system in the Indian Securities market is related to:

Answer & Solution

19. One of the functions of IDBI is to assist other financial institutions by of loans granted for exports.

Answer & Solution

20. Why venture capital is considered risky in nature? 1. The business plan in which venture capitalists invest is usually non-conventional in nature 2. Venture capitalists contribute towards a debt of the product 3. Venture capitalists contribute money for a long time period

Answer & Solution

Read More Section(Banking and Financial Institutions)

11.
Tier II capital should not be more than . . . . . . . . of Tier I capital.

12.
What is the meaning of indemnify in insurance?

13.
In a mutual fund, the trust acts through . . . . . . . . who are appointed by the sponsor.

14.
Which of the following public sector companies organisations provides insurance cover to exporters?

15.
Banking services offered to units set up in Special Economic Zones (SEZs) have been exempted from paying . . . . . . . . tax.

16.
What does the phrase 'Lender of the last resort' refers to

17.
Which one of the following statement is correct?

18.
'BOLT' system in the Indian Securities market is related to:

19.
One of the functions of IDBI is to assist other financial institutions by of loans granted for exports.

20.
Why venture capital is considered risky in nature?
1. The business plan in which venture capitalists invest is usually non-conventional in nature
2. Venture capitalists contribute towards a debt of the product
3. Venture capitalists contribute money for a long time period