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

41.
Which of the following is not a development banking institutions?

A. IDBI

B. IFCI

C. EXIM bank

D. ICICI

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42.
That which covers the cost of self-insurance, loading in insurance premiums and enforcing hedging arrangements is:

A. Cost of Loss Financing

B. Cost of Control of loss

C. Cost of Residual Uncertainty

D. Cost of Internal Risk Reduction

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43.
SIDBI was set-up as a subsidiary of IDBI to

A. Takeover the functions of small business financing of IDBI

B. Takeover the venture capital operations of ICICI

C. Reconstruct and rehabilitate the sick and closed industrial units financed by IDBI

D. Facilitate, finance and promote India's foreign trade

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44.
Arrange the events in the ascending order of their occurrence.
1. Allowing convertibility of rupee at the market rate in the current account.
2. Nationalisation of general insurance business.
3. Establishment of IDBI.
4. Nationalisation of life insurance business.
5. Capital adequacy norms for commercial banks.

A. 4, 3, 2, 1, 5

B. 5, 4, 3, 2, 1

C. 1, 2, 3, 5, 4

D. 1, 5, 2, 4, 3

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45.
Which one of the following is the main objective of IFCI?

A. To offer both small and large investors the means of acquiring shares in the widening prosperity resulting from the steady industrial growth of the country

B. To upgrade technology, modernisation and to promote marketing of products of small scale sector

C. To serve as the apex institution for term finance for industry with coordination, regulation and supervision of the working of other financial institutions

D. To provide medium and long-term financial assistance to industrial undertakings, particularly in those circumstances in which banking accommodation is in appropriate or resource to capital market is impracticable

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46.
Which of the following is not provided by EXIM bank, for financing overseas investments?

A. Term loans to Indian companies upto 80% of their equity investment in overseas JV/WOS

B. Term loans to Indian companies towards upto 100% of loan extended by them to the overseas JV/WOS

C. Term loan to overseas JV/WOS towards part financing

D. Guarantee facility to the overseas JV/WOS for raising term loan/working capital

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47.
Which one of the following financial institutions coordinates the functions and operations of all the financial institutions into a single integrated financial structure so that each may contribute to the growth of the economy?

A. IFCI

B. UTI

C. IDBI

D. SIDBI

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48.
Which of the following statement/s is/are correct?
1. Companies reduce pension fund risk by relying on fixed income strategies.
2. The real returns for pension funds are often lower than projections.
3. Corporations try to balance pension costs with staying competitive.

A. 1 and 2

B. 3 is correct

C. 2 is correct

D. All of the above

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49.
What is the full form of NAV?

A. Net Assessment Value

B. National Asset Value

C. Net Asset Value

D. National Asset Variation

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50.
Match the items of List I with List II with regard to the Basel-III norms.

List-I List-II

a. Pillar 1 1. Supervisory review process

b. Pillar 2 2. Market discipline

c. Pillar 3 3. Minimum regulatory capital requirements based on Risk Weighted Assets (RWAs)

A. a-1, b-2, c-3

B. a-1, b-3, c-2

C. a-3, b-2, c-1

D. a-3, b-1, c-2

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Pillar 1	1. Supervisory review process
b. Pillar 2	2. Market discipline
c. Pillar 3	3. Minimum regulatory capital requirements based on Risk Weighted Assets (RWAs)

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

41. Which of the following is not a development banking institutions?

Answer & Solution

42. That which covers the cost of self-insurance, loading in insurance premiums and enforcing hedging arrangements is:

Answer & Solution

43. SIDBI was set-up as a subsidiary of IDBI to

Answer & Solution

Answer & Solution

45. Which one of the following is the main objective of IFCI?

Answer & Solution

46. Which of the following is not provided by EXIM bank, for financing overseas investments?

Answer & Solution

47. Which one of the following financial institutions coordinates the functions and operations of all the financial institutions into a single integrated financial structure so that each may contribute to the growth of the economy?

Answer & Solution

48. Which of the following statement/s is/are correct? 1. Companies reduce pension fund risk by relying on fixed income strategies. 2. The real returns for pension funds are often lower than projections. 3. Corporations try to balance pension costs with staying competitive.

Answer & Solution

49. What is the full form of NAV?

Answer & Solution

50. Match the items of List I with List II with regard to the Basel-III norms. List-I List-II a. Pillar 1 1. Supervisory review process b. Pillar 2 2. Market discipline c. Pillar 3 3. Minimum regulatory capital requirements based on Risk Weighted Assets (RWAs)

Answer & Solution

Read More Section(Banking and Financial Institutions)

41.
Which of the following is not a development banking institutions?

42.
That which covers the cost of self-insurance, loading in insurance premiums and enforcing hedging arrangements is:

43.
SIDBI was set-up as a subsidiary of IDBI to

45.
Which one of the following is the main objective of IFCI?

46.
Which of the following is not provided by EXIM bank, for financing overseas investments?

47.
Which one of the following financial institutions coordinates the functions and operations of all the financial institutions into a single integrated financial structure so that each may contribute to the growth of the economy?

48.
Which of the following statement/s is/are correct?
1. Companies reduce pension fund risk by relying on fixed income strategies.
2. The real returns for pension funds are often lower than projections.
3. Corporations try to balance pension costs with staying competitive.

49.
What is the full form of NAV?

50.
Match the items of List I with List II with regard to the Basel-III norms.

List-I List-II

a. Pillar 1 1. Supervisory review process

b. Pillar 2 2. Market discipline

c. Pillar 3 3. Minimum regulatory capital requirements based on Risk Weighted Assets (RWAs)