Banking and Financial Institutions MCQ Questions and Solutions with Explanations

51

What do we mean by financial deepening?

A) It refers to growth of Aggregate Monetary Resources in relation to Gross National Product B) It deals with our resources in commercial banking C) It talks about the deep impact of RBI has in the economy of nation D) It talks about shadow banking activities in the nation

Discuss

Answer & Solution

Answer: Option A

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52

Differential rate of interest scheme was introduced in which year?

A) 1962 B) 1982 C) 1972 D) 1980

Discuss

Answer & Solution

Answer: Option C

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53

Which one is NOT true regarding the Market Stabilization Scheme (MSS)?

A) It absorbs surplus liquidity of enduring nature arising out of large capital flows B) It absorbs surplus liquidity through sale of short-dated government securities and treasury bills C) Mobilised surplus liquidity is held in the MSS account with the Reserve Bank of India D) MSS account liquidity can be used for normal government expenditure of capital nature

Discuss

Answer & Solution

Answer: Option D

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54

For the purpose of extending rural banking and agro finance, the NABARD:

A) Directly lends and monitors the rural borrowers B) Refinances the banks extending rural finance C) Refinances the rural borrowers obtaining credit from banks D) Directly finances the rural borrowers and gets refinance from government

Discuss

Answer & Solution

Answer: Option B

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55

Which one of the following is the main objective of Unit Trust of India?

A) To mobilise the savings of high income groups B) To mobilise the savings of low and high income groups C) To mobilise the savings of corporate D) To mobilise the savings of low and middle income groups

Discuss

Answer & Solution

Answer: Option D

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56

Match the items of List-I with the items of List-II and choose the correct answer.

List-I	List-II
a. NPA	1. The percentage of deposits to be kept with RBI in the form of cash.
b. SLR	2. The rate at which RBI lends money to commercial banks.
c. Repo rate	3. Loans and advances not paid for more than 90 days.
d. CRR	4. The percentage of net demand and time liabilities to be kept in the form of liquid assets.

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

Discuss

Answer & Solution

Answer: Option B

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57

Operational risk is the risk of loss arising from various types of:

A) Human error B) System failed in the bank C) Breakdown in internal control D) All of the above

Discuss

Answer & Solution

Answer: Option D

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58

A doubt-full asset refers to:

A) remaining NPA for less than or equal to 12 months B) remaining NPA for more than 12 months C) where the loss has been identified by the bank D) when loan is overdue for a period of 1 year

Discuss

Answer & Solution

Answer: Option B

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59

The comprehensive meaning of an efficient stock market is that it is market which

A) allocates resources efficiently B) reflects the effective use of information in the price of the shares traded therein C) signals the changes in the listed company's performance D) safeguards the investors money

Discuss

Answer & Solution

Answer: Option B

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60

What do you mean by "Outcome Budget":

A) It denotes reaction of the media after Budget Papers are approved in the Parliament B) It aims to measure performance of the Government in various departments C) It is a report submitted by the Government of India indicating strides made in different projects by ministries and departments as a first step towards converting outlays into income D) None of the above

Discuss

Answer & Solution

Answer: Option C

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