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

71.
What is "Stagflation":

A. Inflation with growth

B. Deflation with growth

C. Inflation after deflations

D. Inflation with depression

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72.
Online banking is not known as:

A. Internet banking

B. Virtual banking

C. E-banking

D. Instrument banking

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73.
Reverse Repo means:

A. Rate at which RBI borrows money from Commercial Banks

B. Rate offered to Blue chip companies

C. A rate equal to Bank rate

D. None of the above

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74.
Reserve Bank of India controls the activities of which of the following banks in India?
1. Commercial banks
2. Cooperative banks
3. Foreign banks
4. Rural banks

A. 1, 2 and 3

B. 1, 3 and 4

C. 2, 3 and 4

D. All of the above

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75.
Identify the years in which different phases of bank nationalisation took place in India.
1. 1950
2. 1955
3. 1969
4. 1949
5. 1980
Select the correct answer:

A. 1, 2, 3 and 4

B. 2, 3 and 5

C. 2, 4 and 5

D. 3, 4 and 5

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76.
Banks should not grant new loans for purpose of minor irrigation in:

A. White Block

B. Grey Block

C. Dark Block

D. All of these

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77.
Which of the following statement is false?

A. Risk averse people will pay an insurance premium that is greater than the mathematically fair chance of loss in order to relieve themselves of uncertainty

B. A risk seeker is willing to assume risk

C. The mathematically fair price for insurance is the objective risk for the insurer multiplied by the maximum possible loss

D. Insurance is never a mathematically fair trade because the insurer adds several operating and other costs to loss costs when it calculates the premium

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78.
Read the following statements and choose the correct answer:
Statement I: Small Industry Development Bank of India (SIDBl) was set-up as a wholly owned subsidiary of RBI.
Statement II: SIDBI has taken over the responsibility of administering small industry development fund managed by IDBI.

A. Only I is correct

B. Only II is correct

C. Both I and II are correct

D. Both I and II are incorrect

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79.
The most important reason for an investor to prefer a Bank deposit is

A. The credit worthiness of the Bank

B. The Bank does not invest in the securities

C. The Bank offers a guarantee

D. All of the above

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80.
Match List-I with List-II and select the correct answer:

List-I List-II

a. Narasimham Committee 1. Lending under consortium arrangement

b. Shetty Committee 2. Frauds and malpractices in banks

c. Ghosh Committee 3. Securities operations of bank and financial institutions

d. Janakiraman Committee 4. Financial system in India

A. a-3, b-4, c-2, d-1

B. a-2, b-3, c-4, d-1

C. a-4, b-2, c-3, d-1

D. a-3, b-4, c-1, d-2

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Narasimham Committee	1. Lending under consortium arrangement
b. Shetty Committee	2. Frauds and malpractices in banks
c. Ghosh Committee	3. Securities operations of bank and financial institutions
d. Janakiraman Committee	4. Financial system in India

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

71. What is "Stagflation":

Answer & Solution

72. Online banking is not known as:

Answer & Solution

73. Reverse Repo means:

Answer & Solution

74. Reserve Bank of India controls the activities of which of the following banks in India? 1. Commercial banks 2. Cooperative banks 3. Foreign banks 4. Rural banks

Answer & Solution

75. Identify the years in which different phases of bank nationalisation took place in India. 1. 1950 2. 1955 3. 1969 4. 1949 5. 1980 Select the correct answer:

Answer & Solution

76. Banks should not grant new loans for purpose of minor irrigation in:

Answer & Solution

77. Which of the following statement is false?

Answer & Solution

78. Read the following statements and choose the correct answer: Statement I: Small Industry Development Bank of India (SIDBl) was set-up as a wholly owned subsidiary of RBI. Statement II: SIDBI has taken over the responsibility of administering small industry development fund managed by IDBI.

Answer & Solution

79. The most important reason for an investor to prefer a Bank deposit is

Answer & Solution

Answer & Solution

Read More Section(Banking and Financial Institutions)

71.
What is "Stagflation":

72.
Online banking is not known as:

73.
Reverse Repo means:

74.
Reserve Bank of India controls the activities of which of the following banks in India?
1. Commercial banks
2. Cooperative banks
3. Foreign banks
4. Rural banks

75.
Identify the years in which different phases of bank nationalisation took place in India.
1. 1950
2. 1955
3. 1969
4. 1949
5. 1980
Select the correct answer:

76.
Banks should not grant new loans for purpose of minor irrigation in:

77.
Which of the following statement is false?

78.
Read the following statements and choose the correct answer:
Statement I: Small Industry Development Bank of India (SIDBl) was set-up as a wholly owned subsidiary of RBI.
Statement II: SIDBI has taken over the responsibility of administering small industry development fund managed by IDBI.

79.
The most important reason for an investor to prefer a Bank deposit is