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-8 section-1

What is "Stagflation":

A) Inflation with growth B) Deflation with growth C) Inflation after deflations D) Inflation with depression

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Answer & Solution

Answer: Option C

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Online banking is not known as:

A) Internet banking B) Virtual banking C) E-banking D) Instrument banking

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Answer & Solution

Answer: Option D

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Reverse Repo means:

A) Rate at which RBI borrows money from Commercial Banks B) Rate offered to Blue chip companies C) A rate equal to Bank rate D) None of the above

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Answer & Solution

Answer: Option A

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Reserve Bank of India controls the activities of which of the following banks in India?
1. Commercial banks
2. Cooperative banks
3. Foreign banks
4. Rural banks

A) 1, 2 and 3 B) 1, 3 and 4 C) 2, 3 and 4 D) All of the above

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Answer & Solution

Answer: Option D

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Identify the years in which different phases of bank nationalisation took place in India.
1. 1950
2. 1955
3. 1969
4. 1949
5. 1980
Select the correct answer:

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

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Answer & Solution

Answer: Option B

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Banks should not grant new loans for purpose of minor irrigation in:

A) White Block B) Grey Block C) Dark Block D) All of these

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Answer & Solution

Answer: Option C

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Which of the following statement is false?

A) Risk averse people will pay an insurance premium that is greater than the mathematically fair chance of loss in order to relieve themselves of uncertainty B) A risk seeker is willing to assume risk C) The mathematically fair price for insurance is the objective risk for the insurer multiplied by the maximum possible loss D) Insurance is never a mathematically fair trade because the insurer adds several operating and other costs to loss costs when it calculates the premium

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Answer & Solution

Answer: Option D

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Read the following statements and choose the correct answer:
Statement I: Small Industry Development Bank of India (SIDBl) was set-up as a wholly owned subsidiary of RBI.
Statement II: SIDBI has taken over the responsibility of administering small industry development fund managed by IDBI.

A) Only I is correct B) Only II is correct C) Both I and II are correct D) Both I and II are incorrect

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Answer & Solution

Answer: Option B

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The most important reason for an investor to prefer a Bank deposit is

A) The credit worthiness of the Bank B) The Bank does not invest in the securities C) The Bank offers a guarantee D) All of the above

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Answer & Solution

Answer: Option D

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Match List-I with List-II and select the correct answer:

List-I	List-II
a. Narasimham Committee	1. Lending under consortium arrangement
b. Shetty Committee	2. Frauds and malpractices in banks
c. Ghosh Committee	3. Securities operations of bank and financial institutions
d. Janakiraman Committee	4. Financial system in India

A) a-3, b-4, c-2, d-1 B) a-2, b-3, c-4, d-1 C) a-4, b-2, c-3, d-1 D) a-3, b-4, c-1, d-2

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Answer & Solution

Answer: Option B

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