MCQOPTIONS
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MCQOPTIONS
This section includes 1347 Mcqs, each offering curated multiple-choice questions to sharpen your Banking And Financial Awareness knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Enumerate the main functions of a banker as per banking regulations act. 1949? |
| A. | ccepting deposit of money |
| B. | dvancing of loans |
| C. | ssuance of letters of credits |
| D. | bove all |
| Answer» E. | |
| 2. |
The commercial banking system in India comprises of |
| A. | cheduled and non-scheduled banks |
| B. | ationalised banks and private sector banks |
| C. | egional rural banks, cooperative banks |
| D. | and development banks |
| Answer» B. ationalised banks and private sector banks | |
| 3. |
How many banks in India have joined the international telecommunication network of SWIFT? |
| A. | 49 |
| B. | 6 |
| C. | 8 |
| D. | 9 |
| Answer» C. 8 | |
| 4. |
Reserve bank of India, in regard to RTGS, has decided that |
| A. | here would be accessible to all retail customers. |
| B. | here would be no floor ceiling for routing transactions through RTGS |
| C. | ettlement of transactions of the clearing corporations of India and the stock market would be conducted through RTGS. |
| D. | ll of the above |
| Answer» E. | |
| 5. |
Insurance business in India is regulated by |
| A. | ife Insurance Corporation of India |
| B. | eserve Bank of India |
| C. | nsurance Regulatory and Development Authority (IRDA) |
| D. | EBI |
| Answer» D. EBI | |
| 6. |
Banks do not purchase/ discount |
| A. | ocumentary Bills |
| B. | lean Bills |
| C. | ccommodation Bills |
| D. | sance Bills |
| Answer» D. sance Bills | |
| 7. |
________ is India’s largest Wide Area Network. |
| A. | BINET |
| B. | ICNET |
| C. | NET |
| D. | ank Net |
| Answer» C. NET | |
| 8. |
What do you mean by home banking? |
| A. | ome banking is an extended version of tele banking. |
| B. | n home banking the customer is able to access his personal account from his home for availing a variety of services which is made available. |
| C. | ome banking is availed through the customer’s personal computer attached to a telephone line and modem |
| D. | ll of the above |
| Answer» E. | |
| 9. |
What are the various facilities offered by banks through Tele banking? |
| A. | alance enquiries and Transfer of funds |
| B. | nquiries about collection or specific credits/debits transaction |
| C. | equestfor statement of accounts |
| D. | ll of the above |
| Answer» E. | |
| 10. |
CBS stands for |
| A. | ore Banking solution |
| B. | entralized based system |
| C. | omputer based system |
| D. | one of these |
| Answer» B. entralized based system | |
| 11. |
In banking services, which are the major characteristics affecting the channel selection |
| A. | ntangibility |
| B. | nseparability |
| C. | erish ability |
| D. | ll of the above |
| Answer» E. | |
| 12. |
The one-rupee note bears the signature of ____________. |
| A. | BI Governor |
| B. | eputy Governor |
| C. | inance Secretary |
| D. | inance Minister |
| Answer» D. inance Minister | |
| 13. |
At present, the RBI issue notes in the denominations of Rs. |
| A. | , 2, 5, 10, 20, 50, 100 and 500 |
| B. | , 2, 5, 10, 20, 50, 500 and 1000 |
| C. | , 5, 10, 20, 50, 100, 500 and 1000 |
| D. | , 5, 10, 20, 50, 100, 1000 and 10000 |
| Answer» D. , 5, 10, 20, 50, 100, 1000 and 10000 | |
| 14. |
For issuing notes, RBI has required to hold the minimum reserve of Rs. 200 crore of which not lesss than Rs. ______ crore to be hold in gold. |
| A. | 5 |
| B. | 00 |
| C. | 15 |
| D. | 25 |
| Answer» D. 25 | |
| 15. |
On march 1,1992, Reserve Bank of India announced a new system of exchange rates known as |
| A. | artial convertibility |
| B. | iberalized exchange rate system |
| C. | oth A and B |
| D. | one of these |
| Answer» D. one of these | |
| 16. |
Which of the following methods is currently used in India to issue note? |
| A. | ixed Fiduciary System |
| B. | aximum Fiduciary System |
| C. | ercentage Reserve System |
| D. | inimum Reserve System |
| Answer» E. | |
| 17. |
Who decided on the quantity of coins to be minted? |
| A. | he Government of India |
| B. | BI |
| C. | ither 1 or 2 |
| D. | ll of the above |
| Answer» B. BI | |
| 18. |
Where the signature of the drawer of a cheque is not genuine , such a cheque is called |
| A. | ost dated cheque |
| B. | tale cheque |
| C. | orged cheque |
| D. | ll of the above |
| Answer» D. ll of the above | |
| 19. |
What is international banking? |
| A. | roviding of variety of financial services to the customers who are living outside their home country |
| B. | roviding of financial services to the customers who are living in home country |
| C. | anking between two countries |
| D. | ll of the above |
| Answer» B. roviding of financial services to the customers who are living in home country | |
| 20. |
Which of the following was set up as a exclusive data communication network for banks in terms of recommendations of committee on communication network of banks? |
| A. | ANKNET |
| B. | WIFT |
| C. | ICR |
| D. | one of these |
| Answer» B. WIFT | |
| 21. |
Tele banking is attracting the fancy of urban customer due to |
| A. | on-availability of time to visit bank branches |
| B. | ransport bottlenecks |
| C. | raffic Jams |
| D. | ll of the above |
| Answer» E. | |
| 22. |
In India, which among the following is/are a part of Legal Tender Money? |
| A. | oth coins and currency notes |
| B. | oth coins and bank drafts |
| C. | oth currency notes and SDRs |
| D. | nly currency notes issued by RBI |
| Answer» B. oth coins and bank drafts | |
| 23. |
The drawer of a cheque is always a |
| A. | ank |
| B. | ompany |
| C. | irm |
| D. | ustomer |
| Answer» E. | |
| 24. |
Who can file a criminal case against the drawer of a dishonoured cheque? |
| A. | he payee |
| B. | he holder in due course |
| C. | othof the above |
| D. | he paying banker |
| Answer» D. he paying banker | |
| 25. |
Truncation of cheques means |
| A. | canning of the cheques and transmission of electronic image instead of physical cheque in the clearing cycle |
| B. | ebiting of drawer’s account through internet |
| C. | oth of the above |
| D. | one of these |
| Answer» B. ebiting of drawer’s account through internet | |
| 26. |
Which of the following does not constitute ‘payment in due course’? |
| A. | ayment of a post-dated cheque |
| B. | ayment of a crossed cheque across the counter |
| C. | ayment of a cheques the payment of which has been countermanded |
| D. | ll of the above |
| Answer» E. | |
| 27. |
"Sub Prime lending" is a term applied to the loans made to |
| A. | hose borrows who do not have a good credit history |
| B. | hose who wish top take loan against the mortgage of tangible assets |
| C. | hose who have a good credit history and are know to bank since 10 years |
| D. | hose borrowers who are most preferred customers of the bank |
| Answer» B. hose who wish top take loan against the mortgage of tangible assets | |
| 28. |
The SecuritisationAnd Reconstruction of Financial Assets and Enforcement of Security Interests Act (SARFAESI Act) at present, is not applicable to |
| A. | ublic Sector Banks |
| B. | inancial Institutes of the Govt. |
| C. | rivate Banks |
| D. | on Banking Financial Companies |
| Answer» E. | |
| 29. |
Often, we read in the newspapers that several Indian companies are taking the FCCB route to raise capital. What does the term FCCB stand for? |
| A. | oreign Currency Convertible Bond |
| B. | oreign Convertible Credit Bond |
| C. | inancial Consortium and Credit Bureau |
| D. | uture Credit and Currency Bureau |
| Answer» B. oreign Convertible Credit Bond | |
| 30. |
In TRIPS, what does ‘I’ stand for? |
| A. | ntellectual |
| B. | nformation |
| C. | ndian |
| D. | nfra |
| Answer» B. nformation | |
| 31. |
Which of the following statements is incorrect regarding RTGS system? |
| A. | he transactions take place in real time |
| B. | he system operates on DNS (Deferred Net Settlement) basis |
| C. | he minimum amount that can be remitted is Rs. 2 lakh |
| D. | ervice charges for RTGS transactions vary from one bank to another |
| Answer» C. he minimum amount that can be remitted is Rs. 2 lakh | |
| 32. |
A cheque crossed as ‘Payees a/c only” is direction to |
| A. | he payee not to negotiate the cheque. |
| B. | he paying banker to ensure that the proceeds of the cheque are credited to the payees a/c only. |
| C. | he collecting banker to ensure that the proceeds of the cheques are collected for the account of the payee only. |
| D. | one of the above |
| Answer» D. one of the above | |
| 33. |
The effect of a crossing a cheque is |
| A. | he payee can obtain payment only through a bank account |
| B. | he payee Is compelled to open an account |
| C. | he payee will have to endorse the cheque to a bank |
| D. | one of these |
| Answer» B. he payee Is compelled to open an account | |
| 34. |
Who is primarily liable on a cheque? |
| A. | rawer |
| B. | aying banker |
| C. | ollection banker |
| D. | verybody who touches the cheque |
| Answer» B. aying banker | |
| 35. |
In July 1969, how many Commercial Banks were nationalized? |
| A. | 3 |
| B. | 4 |
| C. | 5 |
| D. | 6 |
| Answer» C. 5 | |
| 36. |
What does FSDC stand for? |
| A. | inancial Security and Development Council |
| B. | inancial Stability and Development Council |
| C. | iscal Security and Development Council |
| D. | iscal Stability and Development Council |
| Answer» C. iscal Security and Development Council | |
| 37. |
“Micro Credits” are loans |
| A. | ranted to distressed person (other than farmers) to pre-paytheir debt to non- institutionallenders against appropriate collateral or group security, |
| B. | ot exceeding 50.000 per borrower provided by banks |
| C. | oth (1) and (2) |
| D. | one of these |
| Answer» D. one of these | |
| 38. |
The term ‘BSR’ refers to |
| A. | ank’s selling Rate |
| B. | asic Statistical Returns |
| C. | nnual returns submitted by banks to RBI in respect to priority sector advances |
| D. | uarterly statements of advance to agriculture |
| Answer» C. nnual returns submitted by banks to RBI in respect to priority sector advances | |
| 39. |
Co-operative Banks in India are registered under(i) Banking laws (Co-operative Societies) Act. 1956(ii) Banking Regulations Act, 1949(iii) Companies Act, 1956 Select the correct answer using the following codes. |
| A. | nly i |
| B. | and ii |
| C. | i and iii |
| D. | , ii and iii |
| Answer» B. and ii | |
| 40. |
Capital market is a market which deals in |
| A. | hort-term funds |
| B. | ong-term funds |
| C. | ilt-edge securities |
| D. | one of these |
| Answer» C. ilt-edge securities | |
| 41. |
The objectives of forming SHG is(i) to build mutual trust and confidence between the bankers and the rural poor people.(ii) to encourage banking activities, both on the thrift as well as credit sides, in a segment of the population that the formal financial institutions usually find difficult to cover.(iii) to meet the needs of the poor by combining the flexibility, sensitivity and responsiveness of the informal credit system with the strength of technical and administrative capabilities and financial resources of the formal credit institutions. |
| A. | only |
| B. | and ii |
| C. | and iii |
| D. | i and iii |
| Answer» D. i and iii | |
| 42. |
Smart card has been introduced on the recommendations of which committee among the following? |
| A. | angarajan committee |
| B. | anneerselvam committee |
| C. | araf committee |
| D. | ayak committee |
| Answer» D. ayak committee | |
| 43. |
In period of depression when the Reserve Bank desires to encourage the banking system to create more credit it |
| A. | educes the bank rate |
| B. | aises the bank rate |
| C. | ermits the bank rate to be decided by market forces |
| D. | ll of the above |
| Answer» B. aises the bank rate | |
| 44. |
Narrow banking means |
| A. | he bank branch which has narrow corridors |
| B. | he bank situated in narrow street |
| C. | he bank which accepts deposits and invests the amount in government securities |
| D. | he bank which only lends loans and not accepts any deposits from the public |
| Answer» D. he bank which only lends loans and not accepts any deposits from the public | |
| 45. |
The returned non resident Indians are permitted to open the following accounts |
| A. | on resident external account |
| B. | on resident ordinary account |
| C. | FC account |
| D. | CNR account |
| Answer» D. CNR account | |
| 46. |
What do you mean by a Clearing House? |
| A. | ollection centre for cheques and demand drafts |
| B. | ooling centre for excess currencies received from the branches |
| C. | ollection centre for collection of tax and other receipts |
| D. | ollection centre for issuing debit and credit cards to customers |
| Answer» B. ooling centre for excess currencies received from the branches | |
| 47. |
Two parallel transverse lines on the face of the cheque is called as crossing and when a name of a bank is included between the two lines, it is called as |
| A. | eneral crossing |
| B. | pecial crossing |
| C. | ouble crossing |
| D. | ank crossing |
| Answer» C. ouble crossing | |
| 48. |
The discounting rate at which RBI borrows government securities from commercial banks is known as |
| A. | epo Rate |
| B. | everse Repo |
| C. | eposit Rate |
| D. | ase Rate |
| Answer» B. everse Repo | |
| 49. |
Which of the following organizations is the Mutual Fund Market regulator? |
| A. | MFI |
| B. | EBI |
| C. | IBIL |
| D. | RISIL |
| Answer» C. IBIL | |
| 50. |
Scheduled bank refers to a bank |
| A. | uthorized by central government to transaction government business |
| B. | egistered with ministry of finance , govt. of India |
| C. | hich is included in the second scheduleto the RBI act, 1934 |
| D. | ncorporated as a cooperative society |
| Answer» D. ncorporated as a cooperative society | |