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

81.
A state law requires individuals suffering injury or loss from an automobiles accidents to be reimbursed by their own insurance companies. What type of insurance is this?

A. No fault auto insurance

B. Public liability insurance

C. Automobile physical damage insurance

D. Comprehensive insurance

Answer & Solution Discuss in Board Save for Later

82.
Match the following.

List-I List-II

a. Performing assets 1. Investments

b. Loss assets 2. Standard assets

c. Cash balance 3. Non-performing assets

d. Government securities 4. Liquid assets

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

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

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

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

Answer & Solution Discuss in Board Save for Later

83.
Usually, the validity period of an Income Tax Refund Order is:

A. 1 months

B. 2 months

C. 3 months

D. 6 months

Answer & Solution Discuss in Board Save for Later

84.
If a cheque presented through the Clearing House is returned unpaid for any reason, the banker has to enclose the cheque to a Returning Memo while returning the instrument to the customer. This provision has been prescribed under:

A. Negotiable Instruments Act, 1881

B. Reserve Bank of India Act, 1934

C. Banking Regulation Act, 1949

D. RBI Clearing House Rules

Answer & Solution Discuss in Board Save for Later

85.
Consider the following statements.
Assertion (A): The liability of the option buyer is limited in the currency options market.
Reason (R): Option buyer need not exercise the option if the exchange rate is not favourable for him.

A. (R) is correct and (A) is wrong

B. (A) is correct and (R) is wrong

C. Both (A) and (R) are correct

D. Both (A) and (R) are wrong

Answer & Solution Discuss in Board Save for Later

86.
In the call/notice money market, which of the following participants is allowed to trade?

A. All Banks, Primary Dealers and Mutual Funds

B. All Corporates

C. Only Commercial Banks

D. All of the above

Answer & Solution Discuss in Board Save for Later

87.
The F and O segment of NSE provides trading facilities for the following derivative instruments, except

A. individual warrant options

B. index based futures

C. index based options

D. individual stock options

Answer & Solution Discuss in Board Save for Later

88.
If credit facility applied for is rejected, the reasons therefore should be briefly mentioned in the:

A. Loan Applications Received and Disposal Register

B. Opinion Reports

C. Loan Rejection Register

D. None of the above

Answer & Solution Discuss in Board Save for Later

89.
Which of the following is considered 'good money' according to Gresham's law?

A. Alternative currency

B. Standard currency

C. Representative money

D. None of the above

Answer & Solution Discuss in Board Save for Later

90.
Match the items of List-I with the items in List-II and suggest the correct option.

List-I List-II

a. Interbank call market 1. Money market

b. Commercial Bills 2. Promissory note

c. Commercial paper market 3. Short-term maturity

d. Treasury bills 4. Government papers

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

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

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

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

Answer & Solution Discuss in Board Save for Later

1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Performing assets	1. Investments
b. Loss assets	2. Standard assets
c. Cash balance	3. Non-performing assets
d. Government securities	4. Liquid assets

List-I	List-II
a. Interbank call market	1. Money market
b. Commercial Bills	2. Promissory note
c. Commercial paper market	3. Short-term maturity
d. Treasury bills	4. Government papers

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

81. A state law requires individuals suffering injury or loss from an automobiles accidents to be reimbursed by their own insurance companies. What type of insurance is this?

Answer & Solution

82. Match the following. List-I List-II a. Performing assets 1. Investments b. Loss assets 2. Standard assets c. Cash balance 3. Non-performing assets d. Government securities 4. Liquid assets

Answer & Solution

83. Usually, the validity period of an Income Tax Refund Order is:

Answer & Solution

84. If a cheque presented through the Clearing House is returned unpaid for any reason, the banker has to enclose the cheque to a Returning Memo while returning the instrument to the customer. This provision has been prescribed under:

Answer & Solution

85. Consider the following statements. Assertion (A): The liability of the option buyer is limited in the currency options market. Reason (R): Option buyer need not exercise the option if the exchange rate is not favourable for him.

Answer & Solution

86. In the call/notice money market, which of the following participants is allowed to trade?

Answer & Solution

87. The F and O segment of NSE provides trading facilities for the following derivative instruments, except

Answer & Solution

88. If credit facility applied for is rejected, the reasons therefore should be briefly mentioned in the:

Answer & Solution

89. Which of the following is considered 'good money' according to Gresham's law?

Answer & Solution

90. Match the items of List-I with the items in List-II and suggest the correct option. List-I List-II a. Interbank call market 1. Money market b. Commercial Bills 2. Promissory note c. Commercial paper market 3. Short-term maturity d. Treasury bills 4. Government papers

Answer & Solution

Read More Section(Banking and Financial Institutions)

81.
A state law requires individuals suffering injury or loss from an automobiles accidents to be reimbursed by their own insurance companies. What type of insurance is this?

82.
Match the following.

List-I List-II

a. Performing assets 1. Investments

b. Loss assets 2. Standard assets

c. Cash balance 3. Non-performing assets

d. Government securities 4. Liquid assets

83.
Usually, the validity period of an Income Tax Refund Order is:

84.
If a cheque presented through the Clearing House is returned unpaid for any reason, the banker has to enclose the cheque to a Returning Memo while returning the instrument to the customer. This provision has been prescribed under:

85.
Consider the following statements.
Assertion (A): The liability of the option buyer is limited in the currency options market.
Reason (R): Option buyer need not exercise the option if the exchange rate is not favourable for him.

86.
In the call/notice money market, which of the following participants is allowed to trade?

87.
The F and O segment of NSE provides trading facilities for the following derivative instruments, except

88.
If credit facility applied for is rejected, the reasons therefore should be briefly mentioned in the:

89.
Which of the following is considered 'good money' according to Gresham's law?

90.
Match the items of List-I with the items in List-II and suggest the correct option.

List-I List-II

a. Interbank call market 1. Money market

b. Commercial Bills 2. Promissory note

c. Commercial paper market 3. Short-term maturity

d. Treasury bills 4. Government papers