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-3 section-9

Which of the following statements are true in context of Statutory Liquidity Ratio (SLR)?
1. They are regulated under Banking Regulation Act 1949.
2. It is mandatory for all scheduled commercial banks, local area banks, Primary (Urban) co-operative banks (UCBs), state co-operative banks and central co-operative banks in India to maintain the SLR.
3. Banks get a return on SLR.

A) 1 and 3 are correct B) 2 and 3 are correct C) 1 and 2 are correct D) 1, 2 and 3 are correct

Discuss

Answer & Solution

Answer: Option D

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The Narasimham Committee (1991) on financial reforms proposed for establishment of a:

A) three tier hierarchy of the banking structure B) unified control by the apex institutions C) two tier hierarchy of the banking structure D) four tier hierarchy of the banking structure

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Answer & Solution

Answer: Option D

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Which of the following principle in insurance means maximum truth?

A) Subrogation B) Causa Proxima C) Insurable interest D) Mitigation of loss

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Answer & Solution

Answer: Option B

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If in a year, the company does not have adequate profits, the dividend will not be payable in the case of which shares?

A) Non-cumulative preference B) Cumulative preference C) Both A and B D) None of the above

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Answer & Solution

Answer: Option A

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VSAT technology is first followed for online trading by:

A) BSE B) OTCEI C) NSE D) ISE

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Answer & Solution

Answer: Option C

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Currency value during currency spread

A) Increases B) Decreases C) Stable D) None of the above

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Answer & Solution

Answer: Option B

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Legal heirs of a deceased customer approaches the bank with a copy of the Will left by the deceased and request for payment of the deposit standing in the name of the deceased depositor. Bank should

A) obtain a probated Will and pay the amount to the legal heir B) obtain the Will and pay the amount to the legal heir C) both A and B D) None of the above

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Answer & Solution

Answer: Option A

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The vicious circle of poverty affects both the demand and supply of savings. This idea started with

A) Fisher B) Adam Smith C) R. Nurkse D) Marshall

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Answer & Solution

Answer: Option C

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Consider the following statements and identify the true ones.
1. Trading of treasury bills is not allowed in the market.
2. The ad hoc treasury bills have been replaced by Way sand Mean Advances System.

A) Only 1 is true B) Only 2 is true C) Both 1 and 2 are true D) Neither 1 nor 2 is true

Discuss

Answer & Solution

Answer: Option B

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What is Yield Curve Risk:

A) It is a line of graph plotting the yield of all maturities of a particular instrument B) Yield curve changes its slope and shape from time to time C) Yield curve can be twisted to the desired direction through the intervention of RBI D) All of the above

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Answer & Solution

Answer: Option D

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