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-8

Which of the following mutual funds solely invests in stocks?

A) Bond Fund B) Fixed Income Fund C) Money Market Mutual Fund D) Equity Fund

Discuss

Answer & Solution

Answer: Option D

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Who is the chairman of planning commission?

A) Prime Minister B) President C) Governor or Reserve Bank of India D) Finance Secretary

Discuss

Answer & Solution

Answer: Option A

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Advance, which remain NPA upto a period of 12 months is called

A) sub-standard advance B) doubtful advance C) loss advance D) All of the above

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Answer & Solution

Answer: Option C

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Across the face of a cheque bears the words 'Peoples Bank'. What is its significance:

A) it is an extraneous matter appearing on the cheque. Hence should be returned B) the cheque is specially crossed in favour of Peoples Bank C) it is not a crossing as it does not contain two parallel lines D) None of the above

Discuss

Answer & Solution

Answer: Option B

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Risks that insurance firms will not assume are called

A) uninsurable risk B) insurable risk C) pure risk D) avoidable risk

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Answer & Solution

Answer: Option A

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What is the mean by Insurance?

A) Contract B) Uncertainty C) Peril D) Hazard

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Answer & Solution

Answer: Option A

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Consider the following statements.
Assertion (A): RBI is entrusted with the management of the public debt and issue of new loans and treasury bills on behalf of the central and state Governments.
Reasoning (R): The Governor and the Deputy Governors of RBI are appointed by the Central Government solely for the purpose in assertion.

A) (A) is correct but (R) is not correct B) (A) and (R) both are correct but (R) is not the right explanation of (A) C) (A) and (R) both are correct and (R) is the right explanation of (A) D) (A) and (R) both are not correct

Discuss

Answer & Solution

Answer: Option B

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Before issuance of currency notes, RBI held . . . . . . . . securities.

A) gold coins and bullion B) foreign securities C) government of India's securities D) All of the above

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Answer & Solution

Answer: Option D

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In order to control inflation and ensure stability in money market:

A) The RBI works under the direction of ministry of finance, government of India B) The RBI acts independently and can refuse the government directive C) The RBI acts under the board of directors D) The RBI's board of governors shall abide by the government directive

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Answer & Solution

Answer: Option B

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Which was an oldest insurance company found in 1906?

A) LIC B) National Insurance Company C) Agriculture Insurance Company of India D) United India Insurance Company

Discuss

Answer & Solution

Answer: Option B

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