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-3

Which of the following statement/s is/are true about Basic Savings Bank Deposit Account?

A) This is special type of bank account only Micro finance institutes can open B) Only BPLs and self-help groups can apply for it C) They get higher interest rate than (regular) savings account D) It was earlier called "No frills account"

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Answer & Solution

Answer: Option D

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Which of the following functions rolled into one body by SEBI?

A) Quasi Legislative B) Quasi Judicial C) Quasi Executive D) All of the above

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Answer & Solution

Answer: Option D

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Consider the following:
1. Allowing convertibility of rupee at the market rate in the current account
2. Nationalization of general insurance business
3. Establishment of IDBI
4. Nationalization of life insurance business
5. Capital adequacy norms for commercial banks
Arrange the events in the ascending order of their occurrence.

A) 4, 3, 2, 1, 5 B) 1, 2, 3, 4, 5 C) 4, 5, 3, 2, 1 D) 1, 5, 2, 3, 4

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Answer & Solution

Answer: Option A

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SEBI Ombudsman was introduced in the year:

A) 2000 B) 2002 C) 2003 D) 2005

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Answer & Solution

Answer: Option C

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Which of the following statement/s is/are true?

A) Development banks are financial institutions that provide long-term credit for capital-intensive investments such as heavy industry, infrastructure, mining, etc., that are spread over a long period B) The commercial banks were seen with Short-term and medium-term perspective in terms of liquidity. They were not in a position to make investments in Long-term projects C) Both A and B D) Neither A nor B

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Answer & Solution

Answer: Option C

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The number of associate banks of State Bank of India

A) 8 B) 7 C) 9 D) 11

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Answer & Solution

Answer: Option B

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. . . . . . . . refers to the process of removing or stripping the legal status of a currency.

A) Digitisation B) Financial Inclusion C) Demonetisation D) Micro finance

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Answer & Solution

Answer: Option C

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The features of the commercial papers are

A) it is an unsecured money market instrument issued in the form of promissory note B) the highly rated corporate borrowers can raise short-term funds through this instrument C) it is an additional instrument to the investing community D) All of the above

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Answer & Solution

Answer: Option D

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ISO 14000 deals with quality standard for:

A) Environmental Management B) Technology Management C) Knowledge Management D) Information Management

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Answer & Solution

Answer: Option A

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Banking on telephone service includes:
(i) Automatic balance voice out
(ii) Inquiry all term deposit account
(iii) Direct cash withdrawl
(iv) Utility bill payment
(v) Voice out last five transactions

A) (i), (ii), (iii) and (v) B) (i), (ii), (iv) and (v) C) (ii), (iii), (iv) and (v) D) (i), (ii), (iii), (iv) and (v)

Discuss

Answer & Solution

Answer: Option B

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