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-5 section-2

Consider the following statements.
1. UTI is established by an Act of Parliament in 1964. So, UTI does not come under the SEBI regulations for mutual funds.
2. Mutual fund organisations can invest their mobilised funds abroad.
Which of the statement(s) given above is/are correct?

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

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

Insurance company transfers the risk insured to another company. This is known as

A) Reinsurance B) TPAs C) Bancassurance D) Actuaries

Discuss

Answer & Solution

Answer: Option A

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NABARD has taken over the entire functions of

A) ARDC B) ACD of RBI C) RPCD of RBI D) All of the above

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

In India, NIFTY and SENSEX are calculated on the basis of

A) Market capitalization B) Paid up capital C) Free-float market capitalization D) Authorized share capital

Discuss

Answer & Solution

Answer: Option C

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Which among the following is not a subsidiary of RBI?
1. Deposit Insurance and Credit Guarantee Corporation of India.
2. Bharatiya Reserve Bank Note Mudran Private Limited.

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

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

Demand draft for Rs. 20,000 and above:

A) can be paid in cash B) should not be paid in cash C) mode of payment will depend on the status of the customer D) None of the above

Discuss

Answer & Solution

Answer: Option B

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What is the expansion of the term SARFAESI Act?

A) Securitisation and Reconstruction of Financial Assets and Enforcement of Social Interest B) Securitisation and Reconstruction of Financial Assets and Enactment of Security Interest C) Securitisation and Reconstruction of Ferry Assets and Enforcement of Security Interest D) Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

Consider the following statements.
Assertion (A): The future will see mostly the electronic money clearance through satellite networking.
Reasoning (R): RBI is encouraging e-banking.

A) (A) is true, but (R) is false B) (A) is false, but (R) is true C) Both (A) and (R) are true and (R) is the correct explanation of (A) D) Both (A) and (R) are true, but (R) does not support (A)

Discuss

Answer & Solution

Answer: Option C

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Which of the following would be treated as 'worst money' according to Gresham's law?

A) Representative paper money B) Convertible paper money C) Non-convertible paper money D) Fiat money

Discuss

Answer & Solution

Answer: Option B

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The major shareholders in Asset Reconstruction Company of India Limited (ARCIL) other than SBI are:

A) IDBI & Canara Bank B) ICICI & HDFC C) IDBI & HDFC D) IDBI & ICICI

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board