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-6

What is the full form of CBS?

A) Core Banking Solution B) Core Banking Software C) Core Banking System D) Core Banking Service

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

Foreign exchange Regulation act was implemented in India on

A) 5^th July, 1978 B) 1^st June, 1980 C) 10^th September, 1973 D) 1^st January, 1979

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

Which of the following is not true about National Automated Clearing House (NACH)?

A) It is a centralized clearing system launched by the National Payments Corporation of India (NPCI) B) It aims to replace and consolidate multiple existing Electronic Clearing Service (ECS) systems across India C) NACH platform has been created to replace the Electronic Clearing Service (ECS) system D) All of the above

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

When the general insurance business nationalised?

A) 1970 B) 1971 C) 1972 D) 1973

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

Credit creation capacity of a bank depends on the cash reserve ratio and statutory liquidity ratio.
If the initial deposit (O) is Rs. 1,000 and the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) is 5% and 20%, then the credit creation capacity will be as follows

A) Rs. 3,000 B) Rs. 5,000 C) Rs. 6,000 D) Rs. 2,000

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

Which of the following is not true about Real Time Gross Settlement (RTGS) system?

A) The minimum amount that can be received through RTGS is Rs. 2 lakhs B) The banks receive the funds in real time as soon as funds are transferred by the remitting bank C) The minimum amount to be remitted through RTGS is Rs. 2 lakhs D) All of the above

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

Which of the following statements is/are correct?
1. Nifty is based on 50 companies in India.
2. Nifty is governed and regulated by the Reserve Bank of India.
3. Nifty deals with futures and options.
Select the correct answer using the options given below:

A) 1 only B) 2 only C) 3 only D) 1 and 3

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

Which of the following set of functions is not performed by Commercial Banks in India?

A) The mobilization of savings B) The extending Loans and Advances C) Issuing Currency Notes D) Financing Priority Sectors

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

Qualitative credit control include

A) Bank Rate Policy B) Rationing of Credit C) Open Market Operation D) None of the these

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

Chalapathi Rao Committee was constituted for restructuring of

A) State Financial Corporation in India B) Commercial Bank in India C) Co-operative Bank in India D) Regional Rural Banks in India

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board