Banking and Financial Institutions MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11

1.
Which of the following are included in digital payment system?
1. RTGS
2. Demand draft
3. NEFT
4. Cheque
Choose the correct option from the following:

A. 1, 3 and 4

B. 2 and 4 only

C. 1 and 3 only

D. 2, 3 and 4

Answer & Solution Discuss in Board Save for Later

2.
Arrange the following in correct order according to the year of establishment and occurrence of the event.
1. Establishment of Regional Rural Bank.
2. Establishment of Reserve Bank of India.
3. Nationalisation of 6 Commercial Banks.
4. Nationalisation of 14 major Commercial Banks.

A. 2, 4, 1, 3

B. 2, 4, 1, 3

C. 1, 4, 3, 2

D. 3, 1, 2, 4

Answer & Solution Discuss in Board Save for Later

3.
When a customer, by a letter has advised the bank not to honour/pay a particular cheque, such letter is called . . . . . . . .

A. Cancellation letter

B. Garnishee letter

C. Mandate

D. None of the above

Answer & Solution Discuss in Board Save for Later

4.
Under which pillar of RBI's new capital adequacy framework (Basel-II guidelines), minimum 8% capital adequacy for credit risk, market risk and operational risk has been prescribed?

A. Pillar-I

B. Pillar-II

C. Pillar-III

D. None of these

Answer & Solution Discuss in Board Save for Later

5.
Which of the following organizations is associated with the Micro Finance Regulation Authority

A. SIDBI

B. NABARD

C. RBI

D. IDBI

Answer & Solution Discuss in Board Save for Later

6.
Consider the following statements:
Assertion (A): Use of paper money is replaced by plastic money. The future will see the electronic money clearance through satellite networking.
Reason (R): RBI is encouraging e-banking.

A. (A) is false, but (R) is true

B. (A) is true, but (R) is false

C. Both (A) and (R) are false

D. Both (A) and (R) are true

Answer & Solution Discuss in Board Save for Later

7.
IFCI can accept deposits from the public, State Government and local authorities for a period of less than

A. 10 years

B. 1 year

C. 5 years

D. None of these

Answer & Solution Discuss in Board Save for Later

8.
Who have to compensate any loss occasioned to any investor or to the scheme and/or plan on account of non-compliance by the fund?

A. RTAs

B. Stock Exchanges

C. Custodians

D. AMC

Answer & Solution Discuss in Board Save for Later

9.
As per the RBI Act, 1934, the following functions are described as the functions of a Central Bank:
1. Banking functions
2. Advisory functions
3. Supervisory functions
4. Promotional functions
Identify the correct combination:

A. 1, 3 and 4

B. 1, 2 and 4

C. 2, 3 and 4

D. Only 1 and 3

Answer & Solution Discuss in Board Save for Later

10.
Which one of the following is are the instruments of credit control in the banking system?

A. Open market operations

B. Moral suasion

C. Cash Reserve Ratio

D. All of the above

Answer & Solution Discuss in Board Save for Later

1 2 3 4 5

Banking and Financial Institutions MCQ Questions and Solutions with Explanations | Commerce

1. Which of the following are included in digital payment system? 1. RTGS 2. Demand draft 3. NEFT 4. Cheque Choose the correct option from the following:

Answer & Solution

2. Arrange the following in correct order according to the year of establishment and occurrence of the event. 1. Establishment of Regional Rural Bank. 2. Establishment of Reserve Bank of India. 3. Nationalisation of 6 Commercial Banks. 4. Nationalisation of 14 major Commercial Banks.

Answer & Solution

3. When a customer, by a letter has advised the bank not to honour/pay a particular cheque, such letter is called . . . . . . . .

Answer & Solution

4. Under which pillar of RBI's new capital adequacy framework (Basel-II guidelines), minimum 8% capital adequacy for credit risk, market risk and operational risk has been prescribed?

Answer & Solution

5. Which of the following organizations is associated with the Micro Finance Regulation Authority

Answer & Solution

6. Consider the following statements: Assertion (A): Use of paper money is replaced by plastic money. The future will see the electronic money clearance through satellite networking. Reason (R): RBI is encouraging e-banking.

Answer & Solution

7. IFCI can accept deposits from the public, State Government and local authorities for a period of less than

Answer & Solution

8. Who have to compensate any loss occasioned to any investor or to the scheme and/or plan on account of non-compliance by the fund?

Answer & Solution

9. As per the RBI Act, 1934, the following functions are described as the functions of a Central Bank: 1. Banking functions 2. Advisory functions 3. Supervisory functions 4. Promotional functions Identify the correct combination:

Answer & Solution

10. Which one of the following is are the instruments of credit control in the banking system?

Answer & Solution

Read More Section(Banking and Financial Institutions)

1.
Which of the following are included in digital payment system?
1. RTGS
2. Demand draft
3. NEFT
4. Cheque
Choose the correct option from the following:

2.
Arrange the following in correct order according to the year of establishment and occurrence of the event.
1. Establishment of Regional Rural Bank.
2. Establishment of Reserve Bank of India.
3. Nationalisation of 6 Commercial Banks.
4. Nationalisation of 14 major Commercial Banks.

3.
When a customer, by a letter has advised the bank not to honour/pay a particular cheque, such letter is called . . . . . . . .

4.
Under which pillar of RBI's new capital adequacy framework (Basel-II guidelines), minimum 8% capital adequacy for credit risk, market risk and operational risk has been prescribed?

5.
Which of the following organizations is associated with the Micro Finance Regulation Authority

6.
Consider the following statements:
Assertion (A): Use of paper money is replaced by plastic money. The future will see the electronic money clearance through satellite networking.
Reason (R): RBI is encouraging e-banking.

7.
IFCI can accept deposits from the public, State Government and local authorities for a period of less than

8.
Who have to compensate any loss occasioned to any investor or to the scheme and/or plan on account of non-compliance by the fund?

9.
As per the RBI Act, 1934, the following functions are described as the functions of a Central Bank:
1. Banking functions
2. Advisory functions
3. Supervisory functions
4. Promotional functions
Identify the correct combination:

10.
Which one of the following is are the instruments of credit control in the banking system?