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.
Bank rate specifies

A. The rate of interest at which commercial banks accept deposits from the public

B. The rate at which the central bank rediscounts the bills of exchange of commercial banks

C. The basic rate of delivery of commercial banks

D. The rate of interest at which commercial banks lend to customers

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22.
Consider the following statements and identity the true ones.
1. Treasury bills are used by government to get Long-term loans.
2. The maturity period of a treasury bill in India ranges from 14 days to 365 days.

A. Only 1 is true

B. Only 2 is true

C. Both 1 and 2 are true

D. Neither 1 nor 2 is true

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23.
Which one of the following is not a function of Central Bank?

A. Monopoly of issuing note

B. Credit creation

C. Custodian of foreign exchange funds

D. None of the above

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24.
The first RRB named Prathama Grameen Bank was sponsored by:

A. Punjab National Bank

B. State Bank of India

C. Syndicate Bank

D. Canara Bank

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25.
Banks are required to classify Non-Performing Assets into

A. Sub-standard assets, doubtful assets, and loss assets

B. Standard assets, and sub-standard assets

C. Doubtful assets, and bad debts

D. Doubtful assets, bad debts and loss assets

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26.
Which of the following statement/s is/are relating to credit rating agencies?
1. The three largest credit rating agencies rate India's sovereign debt at the highest investment grade.
2. CRISIL is the largest credit rating agency in India but is not among the largest three in the world.
3. The three largest credit rating agencies in the world are Moody's, Standard and Poor's and Fitch.

A. 2 only

B. 2 and 3 only

C. 1 and 3 only

D. 1, 2 and 3

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27.
Which of the following statement/s is/are correct about IDF in India?
1. Infrastructure debt fund are regulated by Planning commission.
2. Infrastructure debt fund can be established as a trust in India, but not in company.

A. 1 is correct

B. 2 is correct

C. 1 and 2 are correct

D. Neither 1 nor 2

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28.
Which of the following is not true about Bharat Interface for Money (BHIM) app?

A. BHIM is a digital payments solution app, for easy and quick transactions, based on the Unified Payments Interface (UPI) from the National Payments Corporation of India (NPCI)

B. Money can also be sent to non-UPI supported banks using IFSC code and account number

C. BHIM allows daily transaction limit of Rs. 20,000

D. Through BHIM app, a maximum of Rs. 5,000 is allowed per transaction

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29.
RBI's open market operation transactions are carried with a view to regulate

A. liquidity in the economy

B. prices of an essential commodities

C. inflation

D. All of the above

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30.
The interest rate at which the RBI lends to commercial banks in the Short-term so as keep inflation under check, economic growth rate and also to maintain liquidity is known as:

A. interest rate

B. repo rate

C. reverse repo rate

D. bank rate

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

21. Bank rate specifies

Answer & Solution

22. Consider the following statements and identity the true ones. 1. Treasury bills are used by government to get Long-term loans. 2. The maturity period of a treasury bill in India ranges from 14 days to 365 days.

Answer & Solution

23. Which one of the following is not a function of Central Bank?

Answer & Solution

24. The first RRB named Prathama Grameen Bank was sponsored by:

Answer & Solution

25. Banks are required to classify Non-Performing Assets into

Answer & Solution

Answer & Solution

27. Which of the following statement/s is/are correct about IDF in India? 1. Infrastructure debt fund are regulated by Planning commission. 2. Infrastructure debt fund can be established as a trust in India, but not in company.

Answer & Solution

28. Which of the following is not true about Bharat Interface for Money (BHIM) app?

Answer & Solution

29. RBI's open market operation transactions are carried with a view to regulate

Answer & Solution

30. The interest rate at which the RBI lends to commercial banks in the Short-term so as keep inflation under check, economic growth rate and also to maintain liquidity is known as:

Answer & Solution

Read More Section(Banking and Financial Institutions)

21.
Bank rate specifies

22.
Consider the following statements and identity the true ones.
1. Treasury bills are used by government to get Long-term loans.
2. The maturity period of a treasury bill in India ranges from 14 days to 365 days.

23.
Which one of the following is not a function of Central Bank?

24.
The first RRB named Prathama Grameen Bank was sponsored by:

25.
Banks are required to classify Non-Performing Assets into

27.
Which of the following statement/s is/are correct about IDF in India?
1. Infrastructure debt fund are regulated by Planning commission.
2. Infrastructure debt fund can be established as a trust in India, but not in company.

28.
Which of the following is not true about Bharat Interface for Money (BHIM) app?

29.
RBI's open market operation transactions are carried with a view to regulate

30.
The interest rate at which the RBI lends to commercial banks in the Short-term so as keep inflation under check, economic growth rate and also to maintain liquidity is known as: