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-1 section-5

Which of the following is not the liability of commercial banks?

A) Security holdings B) Treasury deposits at banks C) Demand deposits and time deposits D) Borrowing from Central Banks

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Answer & Solution

Answer: Option A

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Which of the following statement/s is/are reference to money markets?
1. Call money refers to borrowing/lending of funds on overnight basis.
2. Notice money refers to borrowing/lending of funds for a period exceeding 14 days.

A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 and 2

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Answer & Solution

Answer: Option A

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Consider the following statements.
1. Transfer and transmission of shares are the same thing.
2. 'Stag' is a speculative person who applies for shares in a new issue expected to be over subscribed to make profit by selling such shares at a premium.
3. Stock is a bundle of fully paid shares put together for convenience.
Which of the statement(s) given above is/are correct?

A) Both 1 and 2 B) Both 2 and 3 C) Only 3 D) Only 2

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Answer & Solution

Answer: Option B

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The financial market for securities with maturities of less than one year is known as

A) derivatives market B) cash market C) money market D) rupee market

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Answer & Solution

Answer: Option C

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Which of the following statement is incorrect?

A) Using bank as tool of social welfare was the objective behind nationalisation of banks in India B) Expansion of bank branch specially in rural area was the objectly behind nationalisation of bank in India C) Non-priority sector lending was the objective behind nationalisation of banks in India D) Speed up economic growth was the objective behind nationalisation of banks in India

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Answer & Solution

Answer: Option C

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In India, the system of decimal coinage was introduced on:

A) 15^th August, 1947 B) 26^th January, 1950 C) 1^st April, 1957 D) All of the above

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Answer & Solution

Answer: Option C

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The market for transaction of government securities is called:

A) Gilt-edged market B) Industrial securities market C) Call money market D) None of the above

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Answer & Solution

Answer: Option A

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Which of the following statement/s is/are correct regarding payments banks?
1. Payments banks can accept deposits up to Rs. 5 lakhs under savings and current accounts.
2. Payments banks can issue both credit and debit cards.

A) 1 is correct B) 2 is correct C) 1 and 2 is correct D) Neither 1 nor 2 is correct

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Answer & Solution

Answer: Option D

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Limit of FDI in insurance sector

A) 47% B) 50% C) 49% D) 51%

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Answer & Solution

Answer: Option C

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SEBI controls:

A) Capital Market B) Money Market C) Both A and B D) None of these

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Answer & Solution

Answer: Option A

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