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-8

Statement I For strengthening capital base of banks.
Statement II For sanctioning more loans.

A) Both statements are correct B) Both statements are incorrect C) Statement I is correct, but Statement II is incorrect D) Statement I is incorrect, but Statement II is correct

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Answer & Solution

Answer: Option B

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Bank rate is determined by

A) Reserve Bank of India B) Government of India C) State government D) All of these

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Answer: Option A

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The Government has approved framework for "Mobile-linked No-Frills Accounts" by banks. Which of the following is/are correct regarding the Government's expectations in this regard.

A) nearly 500 million should be able to access financial services through mobile phones B) each bank to start its implementation from 31^st July and complete it by 31^st December 2010 C) this will be a core micro payment platform for payment transfer of benefits of Government Schemes, and financial inclusion of target groups D) All of the above

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Answer & Solution

Answer: Option D

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RBI pays interest to banks on their balances kept with it for purposes of Cash Reserve Ratio at:

A) Less than 3% B) 3.5% on eligible balances C) At bank rate D) No interest is paid

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Answer & Solution

Answer: Option D

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The type of charge created on LIC Policy is:

A) pledge B) hypothecation C) assignment D) All of these

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Answer & Solution

Answer: Option C

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Which committee recommended the set-up of RRB?

A) Nayak Committee B) A. P. Shah Committee C) Narasimham Committee D) Rangarajan Committee

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Answer: Option C

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Which of the following can be described as involving indirect finance?

A) A corporation take out loans from bank B) People buy shares in a mutual fund C) A corporation buys commercial paper in a secondary market D) All of the above

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Answer: Option D

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Which of the following insurance companies was launched with NABARD as one of its promoter's with 30% stake in it?

A) General Insurance Corporation Ltd B) SBI Life Insurance Company Ltd C) National Insurance Company Ltd D) None of the above

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Answer: Option A

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What do we call the type of banking carried out by the non-bank financial intermediaries which provide services similar to those of traditional commercial banks?

A) Shadow Banking B) Universal Banking C) Unit Banking D) Narrow Banking

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Answer: Option A

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Which one of the following is not a part of organised money market?

A) Central Bank B) Commercial Banks C) Indigenous bankers D) Regional Rural Banks

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Answer: Option C

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