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-4

Broad Money has to be sensitized through:

A) CRR B) SLR C) Repo Rate D) All of the above

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Answer & Solution

Answer: Option D

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In which of the following year the introduction of Mutual Funds in India took place?

A) 1964 B) 1963 C) 1987 D) 1999

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Answer & Solution

Answer: Option B

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The methods used for computation of capital for credit risk under Basel-II are

A) standardised approach B) internal rating based approach-foundation C) internal rating based approach-advanced D) All of the above

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Answer & Solution

Answer: Option A

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Investments by holders of Overseas Citizen of India (OCI) cards, in mutual fund schemes, is repatriable provided the original investment came into India in . . . . . . . . currency.

A) local B) foreign C) Both A and B D) None of the above

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Answer & Solution

Answer: Option B

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Demutualisation of stock exchanges refers to

A) the legal structure of an exchange whereby the ownership, the management and the trading rights at the exchange are segregated from one another B) the legal structure of an exchange whereby the ownership and the management at the exchange are segregated from one another C) the legal structure of an exchange whereby the ownership, the management and the trading rights at the exchange vests in one person D) None of the above

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Answer & Solution

Answer: Option A

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Match List-I with List-II.

List-I (Financial Institutions)	List-II (Regulatory Bodies)
a. Housing Finance Institutions	1. SEBI
b. Merchant Banking, VCF, Broking, Collective Investment Schemes	2. MCA
c. Nidhi Companies, Mutual Benefit Companies	3. State Govts
d. Chit Fund Companies	4. National Housing Bank

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

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Answer & Solution

Answer: Option C

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What does the letter 'R' denotes in the abbreviation 'BR Act' which controls banking activities in the country?

A) Reformation B) Regulation C) Reporting D) Resolution

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Answer & Solution

Answer: Option B

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Mutual Funds are required to be registered with:

A) AMFI B) SEBI C) IBA D) RBI

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Answer & Solution

Answer: Option B

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Which of the following statement/s is/are the correct characteristic/s of NBFCs?
1. NBFCs cannot accept demand deposits.
2. NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself.
3. Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of bank.

A) 1 and 2 B) 2 and 3 C) 1 and 3 D) All of them

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Answer & Solution

Answer: Option D

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On which of the following banks the Reserve Bank of India depends?

A) Cooperative Banks B) Regional Rural Banks C) Commercial Banks D) Development Banks

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Answer & Solution

Answer: Option C

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