MCQOPTIONS
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MCQOPTIONS
This section includes 657 Mcqs, each offering curated multiple-choice questions to sharpen your Testing Subject knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
_ With an aim to provide better services to the debit card holders, the Reserve Bank of India (RBI) has directed all commercial and public sector banks to introduce new Automated Teller Machines (ATM) that can deliver lower denomination notes such as?$? |
| A. | Rs 10 |
| B. | Rs. 20 |
| C. | Rs. 50 |
| D. | All of the above |
| Answer» E. | |
| 2. |
_ What is an Indian Depository Receipt?$? |
| A. | A deposit account with a Public Sector Bank |
| B. | A depository account with any of depositories |
| C. | An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company. |
| D. | An instrument in the form of deposit receipt issued by Indian depositories |
| Answer» D. An instrument in the form of deposit receipt issued by Indian depositories | |
| 3. |
_ Recently Parliament has pass-ed Companies Act 2013. What is NOT true with regard to some of the features of the Act?$? |
| A. | An Individual can set up "One person Private Ltd Company" |
| B. | An independent Director can hold 3 consecutive terms of 3 years |
| C. | Listed Companies must have at least 1/3rd independent Directors |
| D. | Prescribed Companies must have at least 1 woman Director on the Board |
| Answer» C. Listed Companies must have at least 1/3rd independent Directors | |
| 4. |
_ Which of the following is not the name of a bank functioning in India?$? |
| A. | Central Bank of India |
| B. | UCO Bank |
| C. | Aegon Religare |
| D. | Dena Bank |
| Answer» D. Dena Bank | |
| 5. |
_ Interest on Government securities on fixed basis is known as$? |
| A. | Bank rate |
| B. | Coupon |
| C. | Prime Lending Rate |
| D. | Bench mark PLR |
| Answer» C. Prime Lending Rate | |
| 6. |
_ The maximum Statutory Liquidity Ratio to be maintained by banks is_____$? |
| A. | 25% |
| B. | 30% |
| C. | 35% |
| D. | 40% |
| Answer» E. | |
| 7. |
__Which of the following is NOT a source of funds of a commercial bank?__ |
| A. | Capital |
| B. | Borrowings from RBI |
| C. | Call money borrowings |
| D. | Deposits |
| Answer» B. Borrowings from RBI | |
| 8. |
__Bank branches which can undertake foreign exchange business directly are known as in foreign exchange__ |
| A. | Authorized dealers |
| B. | Foreign dealers |
| C. | Overseas branches |
| D. | Approved dealers |
| Answer» B. Foreign dealers | |
| 9. |
__In the IBA Banking Technology Awards 2014, Best Financial Inclusion Initiative award among Public Sector bank conferred on__ |
| A. | SBI |
| B. | Corporation Bank |
| C. | Andhra Bank |
| D. | Bank of Baroda |
| Answer» E. | |
| 10. |
__In 2014, Competition Commission of India probed the merger between regional rural banks sponsored by Punjab National Bank and__ |
| A. | Andhra Bank |
| B. | Union Bank of India |
| C. | State Bank of India |
| D. | Syndicate Bank |
| Answer» E. | |
| 11. |
__Which bank has launched the country's first contact less debit and credit cards on 7 January 2015?__ |
| A. | HDFC |
| B. | SBI |
| C. | ICICI |
| D. | Yes Bank |
| Answer» D. Yes Bank | |
| 12. |
__Which of the following terms is not related to banking?__ |
| A. | Repayment |
| B. | Loan |
| C. | NPA |
| D. | Fasting |
| Answer» E. | |
| 13. |
__Free shares of stock given to share holders at present, based upon the number of shares that a share holder owns are__ |
| A. | Right issues |
| B. | Bonus shares |
| C. | IPO |
| D. | Preferential shares |
| Answer» C. IPO | |
| 14. |
__Which of the following is/are various components/ channels of the monetary policy of the RBI?(a) Altering money supply, (b) credit availability (c) Influencing exchange rates__ |
| A. | Only (A) & (B) |
| B. | Only (B) & (C) |
| C. | Only (A) & (C) |
| D. | Only (A) |
| Answer» B. Only (B) & (C) | |
| 15. |
__Effective from 15th April, 1980, how many banks with demand and time liabilities exceeding 200 crore were nationalized?__ |
| A. | ten |
| B. | six |
| C. | five |
| D. | four |
| Answer» C. five | |
| 16. |
__Cash Reserve Ratio (CRR) and Statutory’ Liquidity Ratio (SLR) are terms most closely related to which of the following industries / markets?__ |
| A. | Capital Market |
| B. | Banking industry |
| C. | Commodities market |
| D. | Money Market |
| Answer» C. Commodities market | |
| 17. |
__What do you understand by the term ‘Mortgage’?__ |
| A. | Registration of charge with the Registrar of Companies |
| B. | Making the security of immovable property available as a cover for a home loan by the borrower. |
| C. | Sale of moveable security in the event of default by the borrower |
| D. | Registration of charge with the Regional Transport Authority |
| Answer» C. Sale of moveable security in the event of default by the borrower | |
| 18. |
__The effect of a crossing a cheque is__ |
| A. | The payee can obtain payment only through a bank account |
| B. | The payee Is compelled to open an account |
| C. | The payee will have to endorse the cheque to a bank |
| D. | None of these |
| Answer» B. The payee Is compelled to open an account | |
| 19. |
__Fixed deposits can have__ |
| A. | Nomination facility |
| B. | Nomination facility with the permission of Bank Chairman |
| C. | Nomination facility by taking special permission from bank |
| D. | Nomination facility on the day of closing |
| Answer» B. Nomination facility with the permission of Bank Chairman | |
| 20. |
__Many a times we read in the news paper about CASA deposits of banks. CASA deposits are__ |
| A. | Demand deposits |
| B. | Term deposits |
| C. | Hybrid deposits |
| D. | Recurring deposits |
| Answer» B. Term deposits | |
| 21. |
__After how many years of terrorist attack World Trade Centre reopen for business?__ |
| A. | 12 years |
| B. | 13 years |
| C. | 15 years |
| D. | 7 years |
| Answer» C. 15 years | |
| 22. |
__A scheduled bank must be__ |
| A. | A corporative or company incorporated by any law in force in any place in India |
| B. | An institution notified by GOI |
| C. | A company as defined by companies act, 2013 |
| D. | All of the above |
| Answer» E. | |
| 23. |
__Liability- side of the balance-sheet comprises:__ |
| A. | Capital and reserve |
| B. | Long-term liabilities |
| C. | Current liabilities |
| D. | All of the above |
| Answer» E. | |
| 24. |
__In regards to insurance, “A policy provision that allows a policy to be restored from a lapsed status and resume active coverage” is termed as?__ |
| A. | Reaffirmation |
| B. | Reinsurance |
| C. | Reinstatement |
| D. | Revocation |
| Answer» D. Revocation | |
| 25. |
_Once a Budget has been presented in the Parliament, the government has to get all money bills related to the union budget passed within ________.$? |
| A. | 30 Days |
| B. | 60 Days |
| C. | 75 Days |
| D. | 90 Days |
| Answer» D. 90 Days | |
| 26. |
_Which of the statement on Islamic banking is incorrect? (A) Islamic banking is only for Muslims.(B) Islamic banking activity do not allow paying and receiving of interest. (C) Islamic banking promotes the principle of profit sharing between banking institution and depositor.$? |
| A. | Only A |
| B. | Only B |
| C. | Only C |
| D. | Both B and C |
| Answer» B. Only B | |
| 27. |
_What does CRISIL stand for?$? |
| A. | Credit Rating and Industrial Services of India Limited |
| B. | Cash Rating and Industrial Services of India Limited |
| C. | Credit Rating and Investment Services of India Limited |
| D. | Currency Rating and Investment Services of India Limited |
| Answer» D. Currency Rating and Investment Services of India Limited | |
| 28. |
_Which one of the following is not a 'Money Market Instrument'?$? |
| A. | Treasury Bills |
| B. | Commercial Paper |
| C. | Certificate of Deposit |
| D. | Equity Shares |
| Answer» E. | |
| 29. |
_The Tier-1 capital of banks does not include _______.$? |
| A. | Paid-up capital |
| B. | Revaluation reserves |
| C. | Statutory reserves |
| D. | Investment fluctuation reserves |
| Answer» C. Statutory reserves | |
| 30. |
_When the government tries to meet the gap of public expenditure and public revenue through borrowing from the banking system, it is called as :$? |
| A. | Credit Financing. |
| B. | Debt Financing |
| C. | Deficit Financing. |
| D. | Internal Debt. |
| Answer» D. Internal Debt. | |
| 31. |
_Who among the following can issue commercial papers in India?$? |
| A. | Corporates |
| B. | Primary dealers |
| C. | All India financial institutions |
| D. | All of above |
| Answer» E. | |
| 32. |
_In index of financial inclusion has been launched for the first time in 2008 by$? |
| A. | BSE |
| B. | NSE |
| C. | ICRIER |
| D. | CCI |
| Answer» D. CCI | |
| 33. |
_Banks in our country normally publicise that additional interest rate is allowed on retail domestic term deposits of$? |
| A. | Minors |
| B. | Married women |
| C. | Senior citizens |
| D. | Govt. employees |
| Answer» D. Govt. employees | |
| 34. |
_Which of the following restrictions apply for opening BSBDA by banks for individuals?$? |
| A. | Age |
| B. | Income |
| C. | Amount |
| D. | None of these |
| Answer» E. | |
| 35. |
_As part of the Financial Inclusion the following acts as an alternative to the Branch Banking.$? |
| A. | Online Banking |
| B. | Mobile banking |
| C. | Issuing of ATM Cards |
| D. | Kiosks |
| Answer» C. Issuing of ATM Cards | |
| 36. |
_The security which is a claim on the government and is a secure financial instrument guarantees certainty of both capital and interest is called?$? |
| A. | Gilt-Edged Security |
| B. | Call Money |
| C. | Treasury Bills |
| D. | Certificate of Deposits |
| Answer» B. Call Money | |
| 37. |
_The tag line ‘A friend you can bank on’ is of which bank?$? |
| A. | Vijaya Bank |
| B. | Bank of Maharashtra |
| C. | UCO Bank |
| D. | Bank of Baroda |
| Answer» B. Bank of Maharashtra | |
| 38. |
_The bank which refinances the loans given to the poor and weaker sections to construct or buy houses is$? |
| A. | SIDBI |
| B. | IDBI |
| C. | NHB |
| D. | IIBI |
| Answer» D. IIBI | |
| 39. |
_As a practice, all banks now deduct some amount from their pre- tax income and set aside in a separate account to create a cushion for the loans which may go bad. This is called:$? |
| A. | CRR |
| B. | SLR |
| C. | Provisioning |
| D. | PLR |
| Answer» D. PLR | |
| 40. |
_Fixed deposits and recurring deposits are:$? |
| A. | repayable after an agreed period |
| B. | repayable on demand |
| C. | not repayable |
| D. | repayable after death of depositors |
| Answer» C. not repayable | |
| 41. |
_In respect of CGTMSE (Credit Guarantee fund Trust for Micro and Small Enterprises) No collateral and no third party guarantee for fund based and non fund based credit facilities up to ___$? |
| A. | Rs. 10.00 lakhs |
| B. | Rs. 5.00 lakhs |
| C. | Rs.100 lakhs |
| D. | Rs. 5 lakhs |
| Answer» D. Rs. 5 lakhs | |
| 42. |
_One of the major challenges banking industry is facing these days is money laundering. Which of the following acts/ norms are launched by the banks to prevent money laundering in general?$? |
| A. | Banking Regulation Act |
| B. | Know Your Customer Norms |
| C. | Negotiable Instrument Act |
| D. | Narcotics and Psychotropic Substance Act |
| Answer» C. Negotiable Instrument Act | |
| 43. |
_Under which Section of the Reserve Bank of India Act, the Reserve Bank has the sole right of note issue?$? |
| A. | 20 |
| B. | 22 |
| C. | 25 |
| D. | 28 |
| Answer» C. 25 | |
| 44. |
_Who decided on the quantity of coins to be minted?$? |
| A. | The Government of India |
| B. | RBI |
| C. | Either 1 or 2 |
| D. | All of the above |
| Answer» B. RBI | |
| 45. |
_Truncation of cheques means$? |
| A. | Scanning of the cheques and transmission of electronic image instead of physical cheque in the clearing cycle |
| B. | Debiting of drawer’s account through internet |
| C. | Both of the above |
| D. | None of these |
| Answer» B. Debiting of drawer‚Äö√Ñ√¥s account through internet | |
| 46. |
_The commercial banking system in India comprises of$? |
| A. | Scheduled and non-scheduled banks |
| B. | Nationalised banks and private sector banks |
| C. | Regional rural banks, cooperative banks |
| D. | Land development banks |
| Answer» B. Nationalised banks and private sector banks | |
| 47. |
_RTGS stands for$? |
| A. | Real Time Gross Settlement |
| B. | Real type General scheme |
| C. | Real Type gross settlement system |
| D. | Real time Gross system |
| Answer» B. Real type General scheme | |
| 48. |
_Banks do not purchase/ discount$? |
| A. | Documentary Bills |
| B. | Clean Bills |
| C. | Accommodation Bills |
| D. | Usance Bills |
| Answer» D. Usance Bills | |
| 49. |
_CBS stands for$? |
| A. | Core Banking solution |
| B. | Centralized based system |
| C. | Computer based system |
| D. | None of these |
| Answer» B. Centralized based system | |
| 50. |
_Tele banking is attracting the fancy of urban customer due to$? |
| A. | Non-availability of time to visit bank branches |
| B. | Transport bottlenecks |
| C. | Traffic Jams |
| D. | All of the above |
| Answer» E. | |