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

21.
On which one of the following issues can SEBI penalise any company in India?
1. Violation of Banking Regulation Act.
2. Violation of foreign portfolio investment guidelines.
3. For violation of Negotiable Instruments Act.

A. Only 2

B. Only 1 and 2

C. All 1, 2 and 3

D. Only 1

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22.
Certificate in respect of an SSI unit is given by:

A. RBI

B. Chamber of Commerce

C. District Industries Centre

D. None of these

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23.
Pledge means:

A. advance against goods

B. hypothecation of goods

C. bailment of goods as security for payment of a debt or performance of a promise

D. open limits

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24.
When RBI reduces Statutory Liquidity Ratio by 50 or 100 basis points, which of the following should be outcome?

A. India's GDP growth rate increases drastically

B. Foreign Institutional Investors may bring more capital in to our country

C. Scheduled Commercial Banks may cut their lending rates

D. It may drastically reduce the liquidity to the banking system

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25.
The fraudulent and unfair trade practices relating to securities market regulation in 2953 was passed to prohibit:

A. insider trading practices

B. brokers from illegal trading

C. foreign institutional investors in the market

D. manipulation of prices and misleading statements

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26.
A draft issued by the bank has been lost by the payee. He sends a letter to the issuing bank to stop payment. Bank will:

A. note caution and will advise the payee to contact purchaser of the draft

B. not act on the request

C. stop payment

D. None of the above

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27.
Which of the following is not a feature of OTCEI?

A. Quick transfer and disposal system

B. Nationalized computerized networking

C. Ringless trading system

D. Fragmentation of regional stock exchanges

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28.
How schemes such as 'Mahatma Gandhi National Rural Employment Guarantee Scheme' could have stirred up inflationary pressure?

A. By increasing demand

B. By increasing rural wage

C. Both A and B

D. None of the above

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29.
Commercial Papers are secured by:

A. floating charge on stocks

B. unsecured loans

C. fixed assets

D. book-debts

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30.
Banks generally prefer to extend finances to registered firms only, because:

A. banks will have priority over creditors in case of liquidation of the firm

B. the firm can sue the debtors in case of default on their part

C. banks can sue the firm in case of default

D. the creditors can sue the firm

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

21. On which one of the following issues can SEBI penalise any company in India? 1. Violation of Banking Regulation Act. 2. Violation of foreign portfolio investment guidelines. 3. For violation of Negotiable Instruments Act.

Answer & Solution

22. Certificate in respect of an SSI unit is given by:

Answer & Solution

23. Pledge means:

Answer & Solution

24. When RBI reduces Statutory Liquidity Ratio by 50 or 100 basis points, which of the following should be outcome?

Answer & Solution

25. The fraudulent and unfair trade practices relating to securities market regulation in 2953 was passed to prohibit:

Answer & Solution

26. A draft issued by the bank has been lost by the payee. He sends a letter to the issuing bank to stop payment. Bank will:

Answer & Solution

27. Which of the following is not a feature of OTCEI?

Answer & Solution

28. How schemes such as 'Mahatma Gandhi National Rural Employment Guarantee Scheme' could have stirred up inflationary pressure?

Answer & Solution

29. Commercial Papers are secured by:

Answer & Solution

30. Banks generally prefer to extend finances to registered firms only, because:

Answer & Solution

Read More Section(Banking and Financial Institutions)

21.
On which one of the following issues can SEBI penalise any company in India?
1. Violation of Banking Regulation Act.
2. Violation of foreign portfolio investment guidelines.
3. For violation of Negotiable Instruments Act.

22.
Certificate in respect of an SSI unit is given by:

23.
Pledge means:

24.
When RBI reduces Statutory Liquidity Ratio by 50 or 100 basis points, which of the following should be outcome?

25.
The fraudulent and unfair trade practices relating to securities market regulation in 2953 was passed to prohibit:

26.
A draft issued by the bank has been lost by the payee. He sends a letter to the issuing bank to stop payment. Bank will:

27.
Which of the following is not a feature of OTCEI?

28.
How schemes such as 'Mahatma Gandhi National Rural Employment Guarantee Scheme' could have stirred up inflationary pressure?

29.
Commercial Papers are secured by:

30.
Banks generally prefer to extend finances to registered firms only, because: