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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-9

Each section contains 100 MCQs on Banking and Financial Institutions .
71
At what stage of opening of bank account is the checking of Politically Exposed Persons (PEP) carried out:
Discuss
Answer & Solution
Answer: Option A
No explanation is given for this question. Let's Discuss on Board
72
Match the items of List-I with List-II in terms of functions of a bank.
List-I List-II
a. Underwriting 1. Primary Functions
b. Transfer of funds 2. Granting Advances
c. Overdraft 3. Utility Functions
d. Recurring Deposits 4. Agency Functions
Discuss
Answer & Solution
Answer: Option C
No explanation is given for this question. Let's Discuss on Board
73
Risk pooling is an example of
Discuss
Answer & Solution
Answer: Option B
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74
Arrange the following institutions in chronology order.
1. SEBI (Securities Exchange Board of India), 1988
2. Board for Industrial and Financial Reconstruction (BIFR)
3. EXIM Bank
4. National Stock Exchange
Discuss
Answer & Solution
Answer: Option C
No explanation is given for this question. Let's Discuss on Board
75
Concept of "Service Area Approach" was recommended by:
Discuss
Answer & Solution
Answer: Option A
Solution:
Service Area Approach was introduced to make rural lending more organized and more effective

It assigned each bank branch specific villages as its service area so that credit planning could be done properly

This reduced duplication of efforts and ensured better monitoring of rural borrowers

This concept was recommended by the R. V. Gupta Committee

Therefore the correct answer is Option A (R. V. Gupta)
76
The pay-in and pay-out dates for the settlement calendar is declared
Discuss
Answer & Solution
Answer: Option D
No explanation is given for this question. Let's Discuss on Board
77
SDR popularly called-
Discuss
Answer & Solution
Answer: Option D
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78
The . . . . . . . . advance is an advance where payment of interest and/or repayment of installment of principal remain unpaid for a period of two quarters or more.
Discuss
Answer & Solution
Answer: Option B
Solution:
Non-Performing Asset (NPA) is a loan or advance where interest and or installment of principal remains overdue

If the dues remain unpaid for a period of two quarters or more that loan is classified as Non-Performing

This means the asset stops generating income for the bank and becomes a financial risk

Therefore the correct answer is Option C (non-performing)
79
Which of the following is not an example of a method of protection of risk?
Discuss
Answer & Solution
Answer: Option D
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80
Which of the following banks launched India's first UPI (Unified Payments Interface) based mobile payments app?
Discuss
Answer & Solution
Answer: Option A
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