National Bank for Agriculture and Rural Development (NABARD) is an apex .. fully owned by Government of India.

Development finance institution

Agricultural Development institution

is a credit facility granted by commercial banks to current account holders

discounting of bills of exchange

Which of the following factors is/ are considered by the RBI to determine the number of notes to be issued by it?

Replacement of soiled banknotes

The Government picked up the entire Share of SBI held by the RBI according to which of the following guidelines?

National Stock Exchange of India

The main function of NABARD is to provide refinance for rural credit disburse by the_______and other financial institutions as may be approved by the Reserve Bank of India:

State Co-operative Banks and The Regional Rural Banks

46 + Mcqs in Banking and Finance in Bachelor of Commerce (B Com) Page 1 McqOptions

1.	Which bank came into existence in the year 1921 when three banks namely, Bank of Bengal (1806), Bank of Bombay (1840) and Bank of Madras (1843) were reorganized and amalgamated to form a single banking entity?
A.	Punjab National Bank
B.	Imperial Bank of India
C.	State Bank of India
D.	Reserve Bank of India (R B I)
Answer» C. State Bank of India

Discussion

2.	SIDBI is one of the four All India Financial Institutions regulated and supervised by the Reserve Bank of India
A.	True
B.	False
C.	all
D.	none
Answer» B. False

Discussion

3.	In 1955, the Reserve Bank of India acquired the controlling interests of the _________and SBI was created by an act of parliament:
A.	Bank of Hindustan
B.	Imperial Bank of India
C.	United India Bank
D.	None of These
Answer» C. United India Bank

Discussion

4.	National Bank for Agriculture and Rural Development (NABARD) is an apex .. fully owned by Government of India.
A.	Development finance institution
B.	Credit financial institution.
C.	Agricultural Development institution
D.	National saving development
Answer» B. Credit financial institution.

Discussion

5.	Credit Information Bureau India Limited is India s first credit rating agency which was incorporated in the year
A.	1988
B.	2000
C.	2005
D.	1995
Answer» C. 2005

Discussion

6.	Micro credit or micro finance is a novel approach to bank with the poor. In this approach bank credit is extended to the poor through which of the following?
A.	Self Help Groups
B.	Anganwadees
C.	Co-operative credit Societies
D.	RBI
Answer» B. Anganwadees

Discussion

7.	____is the largest commercial bank in India in terms of assets, deposits, profits, branches, customers and employees:
A.	HDFC bank
B.	Axis bank
C.	SBI bank
D.	PNB
Answer» D. PNB

Discussion

8.	Th e practice of conducting banking transactions from home rather than at bank branches by means of electronic telecommunication known as------
A.	branch banking
B.	group banking
C.	chain banking
D.	home banking
Answer» E.

Discussion

9.	Both assignment and nomination are possible in the case of insurance policies
A.	life
B.	fire
C.	marine
D.	vehicle
Answer» C. marine

Discussion

10.	is a credit facility granted by commercial banks to current account holders
A.	Cash credit
B.	overdraft
C.	discounting of bills of exchange
D.	demand loans
Answer» C. discounting of bills of exchange

Discussion

11.	According to which section of the RBI Act of 1934, RBI is liable to pay the value of banknote to its holder?
A.	Section 22
B.	Section 24
C.	Section 26
D.	Section 28
Answer» D. Section 28

Discussion

12.	The Govt. of India has acquired RBI s stake in one of the major banks of India. Which of the following is the bank?
A.	Axis Bank
B.	IDBI Bank
C.	ICICI Bank
D.	SBI
Answer» E.

Discussion

13.	The instrument which provides proprietary interest in company and which entitles a person to dividend on profits, is called?
A.	Bond
B.	Share
C.	Debenture
D.	Warrant
Answer» C. Debenture

Discussion

14.	The person who seeks protection against a risk and to whom the insurance policy is issued is known as .
A.	Insurer
B.	customer
C.	insured
D.	creditor
Answer» D. creditor

Discussion

15.	For providing transparency in accounting and reporting procedures of banks -- -- are introduced in 1992
A.	IRAC rules
B.	BASEL norms
C.	Capital Adequacy Norms
D.	None of these
Answer» B. BASEL norms

Discussion

16.	Loans to poor people by banks have many limitations including lack of security and high operating cost. So to help them which type of finance system developed?
A.	Ponzi schemes
B.	Micro finance System
C.	Money Laundering Schemes
D.	Money Tampering Finance
Answer» C. Money Laundering Schemes

Discussion

17.	Which of the following organizations/agencies works solely to monitor and arrange flow of agriculture credit in India?
A.	NABARD
B.	SIDBI
C.	RBI
D.	SEBI
Answer» B. SIDBI

Discussion

18.	The Government of India is the single largest shareholder of this (SBI) fortune 500 entity with ______ownership:
A.	61.58%
B.	64.58%
C.	66.58%
D.	None of These
Answer» B. 64.58%

Discussion

19.	Which of these committees was formed in 1915 to review the performance of cooperative societies and suggest measures for strengthening them?
A.	Raja Hari Committee
B.	Maclagan Committee
C.	Saraiya Committee
D.	Frederick Nicholson Committee
Answer» C. Saraiya Committee

Discussion

20.	The process of . begins with banks lending money out of primary deposit.
A.	credit creation
B.	cash credit
C.	debit creation
D.	over draft
Answer» B. cash credit

Discussion

21.	When a deposit of money is received by the banker , the banker becomes the ?
A.	creditor
B.	debtor
C.	receiver
D.	customer
Answer» C. receiver

Discussion

22.	Under which banking aims at targeting customers with large value transaction
A.	Whole sale banking
B.	Merchant banking
C.	Retail banking
D.	Internet banking
Answer» B. Merchant banking

Discussion

23.	Delivery of banks service to a customer at his office or home by using electronic technology is called ----
A.	ATM
B.	EFT
C.	E-Banking
D.	None of these
Answer» D. None of these

Discussion

24.	What was the target set by Narasimham-II Committee for the capital adequacy ratio of the banks by the year 2000?
A.	8%
B.	9%
C.	10%
D.	11%
Answer» C. 10%

Discussion

25.	A .. is a person to whom the management of a particular property is entrusted for the exclusive benefit of a third party
A.	customer
B.	beneficiary
C.	trustee
D.	agent
Answer» D. agent

Discussion

26.	________ is the apex institution in the country which looks after the development of the cottage industry, small industries, village industries and other rural industries:
A.	NABARD
B.	SEBI
C.	SIDBI
D.	None of The Above
Answer» B. SEBI

Discussion

27.	__________ is based on the principle of self-help through mutual help, abolition of profits and service above self help.
A.	socialism
B.	capitalism
C.	co-operation
D.	trade unionism
Answer» D. trade unionism

Discussion

28.	In the case of a cheque the drawee will always be a specified with whom the drawer keeps an account.
A.	person
B.	partner
C.	customer
D.	banker
Answer» E.

Discussion

29.	Those banking services based on the voice processing facility available with the bank computers
A.	Internet banking
B.	Home banking
C.	E banking
D.	Tele banking
Answer» E.

Discussion

30.	RBI has withdrawn the circulation of coins in the denomination of 1 paise, 2 paise, 3 paise, 5 paise, 10 paise, 20 paise and 25 paise in which year?
A.	2010
B.	2011
C.	2012
D.	2013
Answer» C. 2012

Discussion

31.	Which of the following factors is/ are considered by the RBI to determine the number of notes to be issued by it?
A.	GDP Growth
B.	Inflation
C.	Replacement of soiled banknotes
D.	All of these
Answer» E.

Discussion

32.	A cheque bears a date earlier than the date on which it is presented to the bank it is called
A.	post-dated cheque
B.	ante- dated cheque
C.	outstation cheque
D.	local cheque
Answer» C. outstation cheque

Discussion

33.	Delivery of financial services at affordable costs to the disadvantaged Low income segments of the society known as ..
A.	Credit creation
B.	financial exclusion
C.	Financial Inclusion
D.	consumer credit
Answer» D. consumer credit

Discussion

34.	Which of these committees in 1945 recommended the setting up of a Cooperative Training College in every state?
A.	Saraiya Committee
B.	Maclagan Committee
C.	Narsimaham Committee
D.	Rajagopalachari Committee
Answer» B. Maclagan Committee

Discussion

35.	Which one of the following statements is most appropriate regarding transaction made in money?
A.	It is the easiest way.
B.	It is the safest way.
C.	It is the cheapest way.
D.	It promotes trade.
Answer» B. It is the safest way.

Discussion

36.	When was the first law, regulating the working of cooperative societies, was promulgated by British India Government?
A.	1902
B.	1904
C.	1907
D.	1908
Answer» C. 1907

Discussion

37.	In which types of banking system several banks joins hands with each other for meeting the credit requirements of the large borrower ?
A.	group banking
B.	consortium banking
C.	net banking
D.	none of these
Answer» C. net banking

Discussion

38.	The total authorized capital of RRBs was originally fixed at Rs 1 crore which has since has been raised to ..
A.	Rs 2 crore
B.	Rs 3 crore
C.	Rs 5 crore
D.	Rs 7 crore
Answer» D. Rs 7 crore

Discussion

39.	.. is the price paid by the insured for the risk undertaken by the insurer
A.	Wages
B.	premium
C.	salary
D.	compensation
Answer» C. salary

Discussion

40.	The Government picked up the entire Share of SBI held by the RBI according to which of the following guidelines?
A.	Securities Commission
B.	SEBI
C.	National Stock Exchange of India
D.	Financial Regulations
Answer» C. National Stock Exchange of India

Discussion

41.	Risk which arises if there is no change in the economic policies of the government is
A.	dynamic risk
B.	static risk
C.	particular risk
D.	financial risk
Answer» C. particular risk

Discussion

42.	. Risk are arises due to changes in the economic policies of the government.
A.	speculative risk
B.	particular risk
C.	dynamic risk
D.	financial risk
Answer» D. financial risk

Discussion

43.	. of a life policy means transferring the rights of the insured in respect of the policy to another one
A.	Nomination
B.	Consideration
C.	Assignment
D.	Agreement
Answer» B. Consideration

Discussion

44.	On which rate method, the interest is charged on the full amount of the loan throughout the entire period of loan
A.	Fixed rate of interest
B.	Floating rate of interest
C.	Flat rate of interest
D.	Compound rate of interest
Answer» D. Compound rate of interest

Discussion

45.	. means selling of insurance policies and products through banking firms
A.	Assurance
B.	bancassurance
C.	insurance
D.	policy
Answer» C. insurance

Discussion

46.	The main function of NABARD is to provide refinance for rural credit disburse by the_______and other financial institutions as may be approved by the Reserve Bank of India:
A.	State Co-operative Banks
B.	The Regional Rural Banks
C.	State Co-operative Banks and The Regional Rural Banks
D.	None of The Above
Answer» D. None of The Above

Discussion

Explore topic-wise MCQs in Bachelor of Commerce (B Com).

Which bank came into existence in the year 1921 when three banks namely, Bank of Bengal (1806), Bank of Bombay (1840) and Bank of Madras (1843) were reorganized and amalgamated to form a single banking entity?

SIDBI is one of the four All India Financial Institutions regulated and supervised by the Reserve Bank of India

In 1955, the Reserve Bank of India acquired the controlling interests of the _________and SBI was created by an act of parliament:

National Bank for Agriculture and Rural Development (NABARD) is an apex .. fully owned by Government of India.

Credit Information Bureau India Limited is India s first credit rating agency which was incorporated in the year

Micro credit or micro finance is a novel approach to bank with the poor. In this approach bank credit is extended to the poor through which of the following?

____is the largest commercial bank in India in terms of assets, deposits, profits, branches, customers and employees:

Th e practice of conducting banking transactions from home rather than at bank branches by means of electronic telecommunication known as------

Both assignment and nomination are possible in the case of insurance policies

is a credit facility granted by commercial banks to current account holders

According to which section of the RBI Act of 1934, RBI is liable to pay the value of banknote to its holder?

The Govt. of India has acquired RBI s stake in one of the major banks of India. Which of the following is the bank?

The instrument which provides proprietary interest in company and which entitles a person to dividend on profits, is called?

The person who seeks protection against a risk and to whom the insurance policy is issued is known as .

For providing transparency in accounting and reporting procedures of banks -- -- are introduced in 1992

Loans to poor people by banks have many limitations including lack of security and high operating cost. So to help them which type of finance system developed?

Which of the following organizations/agencies works solely to monitor and arrange flow of agriculture credit in India?

The Government of India is the single largest shareholder of this (SBI) fortune 500 entity with ______ownership:

Which of these committees was formed in 1915 to review the performance of cooperative societies and suggest measures for strengthening them?

The process of . begins with banks lending money out of primary deposit.

When a deposit of money is received by the banker , the banker becomes the ?

Under which banking aims at targeting customers with large value transaction

Delivery of banks service to a customer at his office or home by using electronic technology is called ----

What was the target set by Narasimham-II Committee for the capital adequacy ratio of the banks by the year 2000?

A .. is a person to whom the management of a particular property is entrusted for the exclusive benefit of a third party

________ is the apex institution in the country which looks after the development of the cottage industry, small industries, village industries and other rural industries:

__________ is based on the principle of self-help through mutual help, abolition of profits and service above self help.

In the case of a cheque the drawee will always be a specified with whom the drawer keeps an account.

Those banking services based on the voice processing facility available with the bank computers

RBI has withdrawn the circulation of coins in the denomination of 1 paise, 2 paise, 3 paise, 5 paise, 10 paise, 20 paise and 25 paise in which year?

Which of the following factors is/ are considered by the RBI to determine the number of notes to be issued by it?

A cheque bears a date earlier than the date on which it is presented to the bank it is called

Delivery of financial services at affordable costs to the disadvantaged Low income segments of the society known as ..

Which of these committees in 1945 recommended the setting up of a Cooperative Training College in every state?

Which one of the following statements is most appropriate regarding transaction made in money?

When was the first law, regulating the working of cooperative societies, was promulgated by British India Government?

In which types of banking system several banks joins hands with each other for meeting the credit requirements of the large borrower ?

The total authorized capital of RRBs was originally fixed at Rs 1 crore which has since has been raised to ..

.. is the price paid by the insured for the risk undertaken by the insurer

The Government picked up the entire Share of SBI held by the RBI according to which of the following guidelines?

Risk which arises if there is no change in the economic policies of the government is

. Risk are arises due to changes in the economic policies of the government.

. of a life policy means transferring the rights of the insured in respect of the policy to another one

On which rate method, the interest is charged on the full amount of the loan throughout the entire period of loan

. means selling of insurance policies and products through banking firms

The main function of NABARD is to provide refinance for rural credit disburse by the_______and other financial institutions as may be approved by the Reserve Bank of India: