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-7 section-1

Banks are required to classify non-performing assets into option

A) Sub-standard assets, doubtful assets and IDSS assets B) Standard assets and sub-standard assets C) Doubtful assets and bad debts D) Doubtful assets, bad debts and IDSS assets

Discuss

Answer & Solution

Answer: Option A

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Which of the following financial institutions is not with in the supervisory Purview of RBI?

A) Foreign Commercial Banks Operating in India B) Regional Rural Banks C) Mutual Funds D) State Co-operative Banks

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Answer & Solution

Answer: Option C

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Bank rate is the rate

A) On which banks provide loan of debt B) On which RBI rediscounts eligible exchanges C) On which commercial banks take loans D) On which development banks take loans

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Answer & Solution

Answer: Option B

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The following activities are mainly related to which organisation?
1. Micro Finance
2. Rural Finance
3. Self Help Groups
4. Cooperative Banks Finance

A) Industrial Finance Corporation of India B) Ministry of Finance C) Reserve Bank of India D) National Bank for Agriculture and Rural Development

Discuss

Answer & Solution

Answer: Option D

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As per RBI directives which of the following areas/functions cannot be outsourced by the Banks:

A) Opening and closing of accounts B) Cash collection from the parties C) Recovery of bad loans D) Credit and debit cards

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Answer & Solution

Answer: Option A

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The worst effect of inflation is

A) On rich class B) On poor C) On Investors D) On doctors

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Answer & Solution

Answer: Option B

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Which combination of the following is correct with regard to World Trade Organization (WTO) :
1. WTO initiates peace process among the member countries to enhance international trade.
2. WTO avoids the task of "Settlement of Disputes" among the member countries.
3. WTO administers the "Trade Review Mechanism".
4. WTO cooperates in an appropriate manner with the IMF and the World Bank.

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

Discuss

Answer & Solution

Answer: Option C

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Authorized Dealers for foreign exchange transactions are appointed by:

A) Reserve Bank of India B) Government of India C) Individual Banks D) FEDAI

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Answer & Solution

Answer: Option A

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PIN in banking transaction is known as

A) Postal Index Number B) Permanent Identification Number C) Personal Identification Number D) Public Interlocking Numeric

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Answer & Solution

Answer: Option C

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The single largest component of external debt is:

A) Commercial borrowings B) Multilateral debt C) Short term debt D) NRI deposits

Discuss

Answer & Solution

Answer: Option A

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