Banking and Financial Institutions MCQ Questions and Solutions with Explanations

51

Which of the following is not true about Aadhaar-enabled payment system (AEPS)?

A) AEPS enables bank customers to access their Aadhaar-linked bank accounts through the Aadhaar authentication B) For a transaction through AEPS, only Aadhaar number and fingerprint captured during the enrolment are required C) AEPS allows inter-operability among different systems adopted by different banks in a safe and secured manner D) Customers can find out their account balance deposit cash, withdraw money and transfer funds to other Aadhaar-linked bank accounts through the help of business correspondents of the bank they have account in

Discuss

Answer & Solution

Answer: Option D

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52

The difference between a Term Loan and a Deferred Payment Guarantee relates to:

A) end use of funds B) outlay of funds C) both A and B D) None of these

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Answer & Solution

Answer: Option B

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53

Banking Regulation (Amendment) Bill, 2020, which comes in the backdrop of PMC Bank scam, seeks to strengthen cooperative banks by:

A) improving professionalism B) enabling access to capital C) ensuring sound banking through RBI D) all of the above

Discuss

Answer & Solution

Answer: Option C

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54

Match the items of List-I with List-II with regard to the BASEL III norms and select the correct option:

List-I	List-II
a. Pillar 1	1. Supervisory review process
b. Pillar 2	2. Market discipline
c. Pillar 3	3. Minimum regulatory capital requirements based on Risk Weighted Assets

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

Discuss

Answer & Solution

Answer: Option D

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55

Which one of the following statement is incorrect?

A) Development banks provide financial assistance to both private as well as public sector institutions B) Development banks react to the socio-economic needs of development C) The National Securities Depository Limited (NSDL) is the institute which is built by IDBI D) The Securities Trading Corporation of India (STCI) was promoted by SEBI jointly with the public sector banks

Discuss

Answer & Solution

Answer: Option C

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56

Non-performing advances means

A) non-functional assets B) obsolete assets C) assets transferred to company liquidator D) loans becoming overdue beyond 90 days

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Answer & Solution

Answer: Option B

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57

Which among the following is not true with regard to merchant banker?
1. It can accept deposits.
2. It can advance loans.
3. It can do other banking activities.
4. It can be manager to a public issue.

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

Discuss

Answer & Solution

Answer: Option A

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58

As per the current scheme for recapitalisation of the following type of banks, the capital support is provided to these banks by the Centre, concerned state governments and the sponsor banks in the ratio of 50 : 15 : 35, respectively to enable them to meet the regulatory requirement of capital to risk weighted assets ratio (CRAR) of 9 percent. Which of the following is the category?

A) Regional Rural banks B) Scheduled Commercial banks C) Cooperative Banks D) Small Finance Banks

Discuss

Answer & Solution

Answer: Option A

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59

Which type of Mutual Fund is required to be listed on Stock Exchange?

A) Debit Fund B) Liquid Fund C) Close Ended Funds D) Sector Funds

Discuss

Answer & Solution

Answer: Option C

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60

Which of the following is the situation when the units of a close-ended fund can be bought?

A) At any Launch B) At any time C) At redemption D) Depends upon the fund type

Discuss

Answer & Solution

Answer: Option A

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