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

61.
Treasury bills are short-term debt instruments (less than . . . . . . . . year to maturity) issued at a discount.

A. 2

B. 3

C. 4

D. 1

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62.
Match List-I with List-II and select the correct answer:

List-I List-II

a. Commercial Bank 1. Monopoly of note issue

b. Industrial Bank 2. Short-term loan to customers

c. Central Bank 3. Long term loan to farmers

d. Land Mortgage Bank 4. Long-term loan to industries

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

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

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

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

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63.
The written insurance contract that may include all clauses, riders and endorsements, it is called?

A. Instalment

B. Premium

C. Policy

D. Assets

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64.
Which of the following is not true about National Electronic Funds Transfer (NEFT) system?

A. There is no limit on transaction through NEFT

B. NEFT operates in hourly batches

C. NEFT is a payment system which facilitates one-to-one funds transfer

D. Only bank branches which are NEFT enabled, can be a part of the NEFT funds transfer network

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65.
NSE has implemented . . . . . . . . in compulsory rolling settlement with effect from 2^nd July, 2001.

A. securities-based market-wide circuit breakers

B. index-based market-wide circuit breakers

C. market-wide based securities-wise circuit breakers

D. none of the above

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66.
Which of the following is principle of valuation of currency?

A. Commodity theory of money

B. State theory of money

C. Quantity theory of money

D. All of these

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67.
Which of the following is a short-term debt obligation of a Central Government that are issued to mature in 3 to 12 months?

A. Commercial paper

B. Bonds

C. Certificate of Deposits

D. Treasury Bill

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68.
Under the member constituent agreement, trading members are required to make the clients aware of which of the following?
1. Trading segment in which the trading member is admitted.
2. SEBI registration number.
3. Basic risks involved in trading on the exchange.
Select the correct answer

A. Both 2 and 3

B. Both 1 and 2

C. Both 1 and 3

D. All of the above

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69.
Which of the following statement/s is/are correct?
1. Small Industry Development Bank of India (SIDBI) was set-up as a whole owned subsidiary of the RBI.
2. SIDBI has taken over the responsibility of administering Small Industry Development Fund managed by the IDBI.

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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70.
Match the following.

List-I List-II

a. CRR 1. Maximum expected rate

b. Fiscal policy 2. Government of India

c. Monetary policy 3. RBI

d. RRR 4. Rate of interest

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

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

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

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

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Commercial Bank	1. Monopoly of note issue
b. Industrial Bank	2. Short-term loan to customers
c. Central Bank	3. Long term loan to farmers
d. Land Mortgage Bank	4. Long-term loan to industries

List-I	List-II
a. CRR	1. Maximum expected rate
b. Fiscal policy	2. Government of India
c. Monetary policy	3. RBI
d. RRR	4. Rate of interest

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

61. Treasury bills are short-term debt instruments (less than . . . . . . . . year to maturity) issued at a discount.

Answer & Solution

62. Match List-I with List-II and select the correct answer: List-I List-II a. Commercial Bank 1. Monopoly of note issue b. Industrial Bank 2. Short-term loan to customers c. Central Bank 3. Long term loan to farmers d. Land Mortgage Bank 4. Long-term loan to industries

Answer & Solution

63. The written insurance contract that may include all clauses, riders and endorsements, it is called?

Answer & Solution

64. Which of the following is not true about National Electronic Funds Transfer (NEFT) system?

Answer & Solution

65. NSE has implemented . . . . . . . . in compulsory rolling settlement with effect from 2nd July, 2001.

Answer & Solution

66. Which of the following is principle of valuation of currency?

Answer & Solution

67. Which of the following is a short-term debt obligation of a Central Government that are issued to mature in 3 to 12 months?

Answer & Solution

68. Under the member constituent agreement, trading members are required to make the clients aware of which of the following? 1. Trading segment in which the trading member is admitted. 2. SEBI registration number. 3. Basic risks involved in trading on the exchange. Select the correct answer

Answer & Solution

69. Which of the following statement/s is/are correct? 1. Small Industry Development Bank of India (SIDBI) was set-up as a whole owned subsidiary of the RBI. 2. SIDBI has taken over the responsibility of administering Small Industry Development Fund managed by the IDBI.

Answer & Solution

70. Match the following. List-I List-II a. CRR 1. Maximum expected rate b. Fiscal policy 2. Government of India c. Monetary policy 3. RBI d. RRR 4. Rate of interest

Answer & Solution

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61.
Treasury bills are short-term debt instruments (less than . . . . . . . . year to maturity) issued at a discount.

62.
Match List-I with List-II and select the correct answer:

List-I List-II

a. Commercial Bank 1. Monopoly of note issue

b. Industrial Bank 2. Short-term loan to customers

c. Central Bank 3. Long term loan to farmers

d. Land Mortgage Bank 4. Long-term loan to industries

63.
The written insurance contract that may include all clauses, riders and endorsements, it is called?

64.
Which of the following is not true about National Electronic Funds Transfer (NEFT) system?

65.
NSE has implemented . . . . . . . . in compulsory rolling settlement with effect from 2^nd July, 2001.

66.
Which of the following is principle of valuation of currency?

67.
Which of the following is a short-term debt obligation of a Central Government that are issued to mature in 3 to 12 months?

68.
Under the member constituent agreement, trading members are required to make the clients aware of which of the following?
1. Trading segment in which the trading member is admitted.
2. SEBI registration number.
3. Basic risks involved in trading on the exchange.
Select the correct answer

69.
Which of the following statement/s is/are correct?
1. Small Industry Development Bank of India (SIDBI) was set-up as a whole owned subsidiary of the RBI.
2. SIDBI has taken over the responsibility of administering Small Industry Development Fund managed by the IDBI.

70.
Match the following.

List-I List-II

a. CRR 1. Maximum expected rate

b. Fiscal policy 2. Government of India

c. Monetary policy 3. RBI

d. RRR 4. Rate of interest