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-6 section-4

Which of the following statements are false?
1. Grey market is a market for dealing in listed securities.
2. OTCEI is mainly intended for big investors.
3. Insider Trading is legally permitted in the capital market.
4. The device adopted to make profit out of the differences in prices of a security in two different markets is called 'arbitrage'.

A) 1, 2 and 3 B) 1, 2 and 4 C) 1, 2, 3 and 4 D) 2, 3 and 4

Discuss

Answer & Solution

Answer: Option A

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Expand the term ALM as used in banking/finance sector:

A) Asset Liability Mismatch B) Asset Liability Maturity C) Asset Liability Management D) Asset Liability Manpower

Discuss

Answer & Solution

Answer: Option C

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The institution which provides long term loans for big industrial projects is called:

A) Development Bank B) Investment Bank C) Exchange Bank D) Mortgage Bank

Discuss

Answer & Solution

Answer: Option A

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FDI beyond 49%, but upto 74% in private banking sector of India is allowed through

A) automatic route B) government route C) Both A and B D) None of these

Discuss

Answer & Solution

Answer: Option A

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Which of the following is not a liability of a commercial bank?

A) Share capital B) Reserve fund C) Bill to be paid D) Balance deposits with the central bank and other banks

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Answer & Solution

Answer: Option D

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Scheduled banks are

A) Nationalised B) Included in the IV schedule of RBI C) Included in the II schedule of RBI D) None of these

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Answer & Solution

Answer: Option C

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Which bank is a specialized financial institution for financing, facilitating and promoting foreign trade of India?

A) EXIM Bank B) ICICI C) IDBI D) NABARD

Discuss

Answer & Solution

Answer: Option A

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The increase in foreign investment limit in the banking sector to 74%includes portfolio investment.

A) Foreign Institutional Investors (FIIs) B) Non-Resident Indians (NRIs) C) Private placement D) All of the above

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Answer & Solution

Answer: Option C

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When was the State Bank of India established

A) 1935 B) 1949 C) 1955 D) 1956

Discuss

Answer & Solution

Answer: Option C

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SIDBI is an apex financial institution

A) For agriculture sector B) For cottage industries C) For Small and medium enterprises D) For Macro level enterprises

Discuss

Answer & Solution

Answer: Option C

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