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

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

31.
Development Financial Institutions are usually helped by government and regulatory bodies. Which of the following instrument/s provided support funding support to them, specifically during initial periods?

A. Lines of credit from RBI

B. Statutory Liquidity Ratio bonds

C. Both A and B

D. None of the above

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32.
Which one of the following statement is correct?

A. Granting loan to the borrowers is not the main function of a bank

B. Bank cannot buy and sell shares and debentures on behalf of customers

C. Narasimham Committee recommended making banking structure of the counting three tier

D. Banks have the same function as development bank

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33.
Credit creation is a . . . . . . . . of a bank.

A. primary function

B. agency function

C. general utility function

D. None of these

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34.
In order to control credit in the country, the RBI may

A. buy securities in the open market

B. sell securities in the open market

C. reduce CRR

D. reduce bank rate

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35.
When did the National Housing Bank start its operations?

A. July, 1982

B. July, 1988

C. April, 1980

D. March, 1971

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36.
Every listed company is required to submit to the stock exchange the shareholding pattern of the company on a

A. quarterly basis

B. monthly basis

C. yearly basis

D. half yearly basis

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37.
Banks lend money by
1. Loan
2. Cash credit
3. Overdraft
4. Discounting of bill
Select the correct answer

A. Both 1 and 2

B. 1, 2 and 4

C. 2, 3 and 4

D. All of these

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38.
Match the following.

List-I List-II

a. Bank of Hindustan 1. 1843

b. General Bank of India 2. 1840

c. Bank of Bombay 3. 1786

d. Bank of Madras 4. 1770

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

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

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

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

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39.
Unsecured exposure will attract the following provision

A. 20% for assets in sub-standard category

B. 100% for assets in doubtful and loss category

C. Both A and B

D. None of the above

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40.
Which of the following is not a function of a Rural Bank?

A. To accept deposit

B. To waive loans

C. To grant advances

D. To supply inputs to farmers

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1 2 3 4 5

List-I	List-II
a. Bank of Hindustan	1. 1843
b. General Bank of India	2. 1840
c. Bank of Bombay	3. 1786
d. Bank of Madras	4. 1770

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

31. Development Financial Institutions are usually helped by government and regulatory bodies. Which of the following instrument/s provided support funding support to them, specifically during initial periods?

Answer & Solution

32. Which one of the following statement is correct?

Answer & Solution

33. Credit creation is a . . . . . . . . of a bank.

Answer & Solution

34. In order to control credit in the country, the RBI may

Answer & Solution

35. When did the National Housing Bank start its operations?

Answer & Solution

36. Every listed company is required to submit to the stock exchange the shareholding pattern of the company on a

Answer & Solution

37. Banks lend money by 1. Loan 2. Cash credit 3. Overdraft 4. Discounting of bill Select the correct answer

Answer & Solution

38. Match the following. List-I List-II a. Bank of Hindustan 1. 1843 b. General Bank of India 2. 1840 c. Bank of Bombay 3. 1786 d. Bank of Madras 4. 1770

Answer & Solution

39. Unsecured exposure will attract the following provision

Answer & Solution

40. Which of the following is not a function of a Rural Bank?

Answer & Solution

Read More Section(Banking and Financial Institutions)

31.
Development Financial Institutions are usually helped by government and regulatory bodies. Which of the following instrument/s provided support funding support to them, specifically during initial periods?

32.
Which one of the following statement is correct?

33.
Credit creation is a . . . . . . . . of a bank.

34.
In order to control credit in the country, the RBI may

35.
When did the National Housing Bank start its operations?

36.
Every listed company is required to submit to the stock exchange the shareholding pattern of the company on a

37.
Banks lend money by
1. Loan
2. Cash credit
3. Overdraft
4. Discounting of bill
Select the correct answer

38.
Match the following.

List-I List-II

a. Bank of Hindustan 1. 1843

b. General Bank of India 2. 1840

c. Bank of Bombay 3. 1786

d. Bank of Madras 4. 1770

39.
Unsecured exposure will attract the following provision

40.
Which of the following is not a function of a Rural Bank?