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.
Which of the following statements are correct in context of Statutory Liquidity Ratio (SLR)?
1. SLR consists of a certain percentage of liquid assets of NDTL.
2. Liquid assets for the purpose are those assets that one can easily convert into cash, gold, treasury bills, govt-approved securities, government bonds, and cash reserves.
3. SLR includes securities, eligible under Market Stabilization Schemes and those under the Market Borrowing Programmes.
4. The limit of SLR set is 0 to 40% of NDTL.

A. 1 and 3 are correct

B. 2 and 3 are correct

C. 1, 2, 3 and 4 are correct

D. 2, 3 and 4 are correct

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82.
Demonetisation of Rs. 1,000 & Rs. 500 notes was done in India on

A. 1^st November, 2016

B. 8^th November, 2016

C. 15^th November, 2016

D. 30^th November, 2016

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83.
Which one of the following institutions is promoted by the IFCI?

A. Credit Analysis and Research Ltd. (CARE)

B. Rashtriya Gramin Vikas Nidhi (RGVN)

C. Clearing Corporation of India Ltd. (CCIL)

D. Small Industries Development Bank of India (SIDBI)

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84.
Which of the following pair is incorrect?

A. EXIM ⇔ For Import-Export

B. FCI ⇔ For commercial establishments financial institution

C. RBI ⇔ Bankers of Banks

D. IDBI ⇔ Industrial finance

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85.
Which among the following defines the process of converting physical certificates into electronic form?

A. Liquidity

B. Accessibility

C. NEFT

D. DEMAT

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86.
The floating rate system is characterised by:

A. the market forces that determine the exchange rate between two currencies

B. the central banking authorities of the two countries mutually agree upon the rate

C. help realigning the par value of major currencies

D. the rate of exchange mutually agreed upon between IMF and its member nations

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87.
Which of the following are probable benefits of securitization, in which assets are transformed into security?
1. For the owner of the asset, it improves the liquidity position as the future receivables are replaced by cash.
2. It improves the channelization of money in the economy.

A. 1 only

B. 2 only

C. Both 1 and 2

D. Neither 1 nor 2

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88.
Most firms shift their risks by

A. buying an insurance policy

B. establishing a self-insurance fund

C. establishing a safety programme

D. stopping the questionable activity

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89.
Which of the following is not part of criteria laid down by RBI for NPA?

A. Interest on loan remains overdue for a period of 90 days

B. Interest on loan taken for a long-duration agricultural crop remains unpaid for one crop season

C. Interest on loan taken for a short duration agricultural crop remains unpaid for two crop seasons

D. Interest on loan taken to purchase personal asset remains overdue for 60 days

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90.
Which one of the following is not the function of the Reserve Bank of India?

A. Issue of Bank notes

B. Custodian of Cash Reserves of Commercial Banks

C. Accepting deposits and advancing loans to public

D. Controller of credit

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

Answer & Solution

82. Demonetisation of Rs. 1,000 & Rs. 500 notes was done in India on

Answer & Solution

83. Which one of the following institutions is promoted by the IFCI?

Answer & Solution

84. Which of the following pair is incorrect?

Answer & Solution

85. Which among the following defines the process of converting physical certificates into electronic form?

Answer & Solution

86. The floating rate system is characterised by:

Answer & Solution

87. Which of the following are probable benefits of securitization, in which assets are transformed into security? 1. For the owner of the asset, it improves the liquidity position as the future receivables are replaced by cash. 2. It improves the channelization of money in the economy.

Answer & Solution

88. Most firms shift their risks by

Answer & Solution

89. Which of the following is not part of criteria laid down by RBI for NPA?

Answer & Solution

90. Which one of the following is not the function of the Reserve Bank of India?

Answer & Solution

Read More Section(Banking and Financial Institutions)

82.
Demonetisation of Rs. 1,000 & Rs. 500 notes was done in India on

83.
Which one of the following institutions is promoted by the IFCI?

84.
Which of the following pair is incorrect?

85.
Which among the following defines the process of converting physical certificates into electronic form?

86.
The floating rate system is characterised by:

87.
Which of the following are probable benefits of securitization, in which assets are transformed into security?
1. For the owner of the asset, it improves the liquidity position as the future receivables are replaced by cash.
2. It improves the channelization of money in the economy.

88.
Most firms shift their risks by

89.
Which of the following is not part of criteria laid down by RBI for NPA?

90.
Which one of the following is not the function of the Reserve Bank of India?