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.
| 101. |
When banks accept a fixed sum of money from an individual for a definite term and pay on maturity with interest, the deposit is known as |
| A. | erm Deposit |
| B. | emand Deposit |
| C. | ond |
| D. | ortgage |
| Answer» B. emand Deposit | |
| 102. |
Which of the following is not the name of a bank functioning in India? |
| A. | entral Bank of India |
| B. | CO Bank |
| C. | egon Religare |
| D. | ena Bank |
| Answer» D. ena Bank | |
| 103. |
The currency notes of which of the following denominations are not printed in India? |
| A. | s. 5 |
| B. | s. 10 |
| C. | s. 50 |
| D. | s. 2500 |
| Answer» E. | |
| 104. |
What is 'Net Interest Margin' of a Bank? |
| A. | argin of Interest earned on Trading in Govt Securities |
| B. | ifference between the Base Interest Rate and the Average Lending Rate |
| C. | ifference between the interest income and the amount of interest paid out |
| D. | ifference between Interest on Term Loans and Interest on Cash Credits |
| Answer» D. ifference between Interest on Term Loans and Interest on Cash Credits | |
| 105. |
Recently Parliament has pass-ed Companies Act 2013. What is NOT true with regard to some of the features of the Act? |
| A. | n Individual can set up "One person Private Ltd Company" |
| B. | n independent Director can hold 3 consecutive terms of 3 years |
| C. | isted Companies must have at least 1/3rd independent Directors |
| D. | rescribed Companies must have at least 1 woman Director on the Board |
| Answer» C. isted Companies must have at least 1/3rd independent Directors | |
| 106. |
What is NOT true with regard to Currency Chests in India? |
| A. | hey are managed by different banks on behalf of RBI |
| B. | eposits in Currency Chests are taken into account for calculation of CRR (Cash Reserve Ratio) |
| C. | tandard Chartered Bank a Foreign Bank also maintains Currency Chest |
| D. | one of the above |
| Answer» E. | |
| 107. |
Main functions of Money? |
| A. | edium of Exchange |
| B. | nit of Account |
| C. | tore of Value |
| D. | , B and C of the above |
| Answer» E. | |
| 108. |
One of the Primary functions of IMF is to provide short term capital assistance to member countries through SDR (Special Drawing Rights). What is NOT true about SDR? |
| A. | urrency code of SDR is XDR |
| B. | DR is the Unit of Account of IMF |
| C. | sian Development Bank (ADB) also uses SDR as its Currency |
| D. | one of the above |
| Answer» E. | |
| 109. |
National Spot Exchange (NSEL) is the news for defaulting payments to investors. Who is the founder promoter of FT? |
| A. | ignesh Shah |
| B. | arshad Mehta |
| C. | etan Parekh |
| D. | K Telgi |
| Answer» B. arshad Mehta | |
| 110. |
RBI on October, 7th 2013, has reduced Marginal Standing Facility (MSF) rate from 9.5% to 9% to improve liquidity in the system. What is MSF? |
| A. | SF rate is the rate at which banks lodge funds overnight with RBI buying approved government securities. |
| B. | SF rate is the rate at which banks borrow funds overnight from other banks against approved government securities. |
| C. | SF rate is the rate at which banks borrow funds overnight from RBI against approved government securities. |
| D. | SF rate is the minimum rate at which banks lend to the borrowers. |
| Answer» D. SF rate is the minimum rate at which banks lend to the borrowers. | |
| 111. |
The World Trade Organization (WTO) deals with the global rules of trade between nations. Who is the Director General of WTO? |
| A. | oberto Azevedo |
| B. | hristine Legarde |
| C. | aghuram Rajan |
| D. | liver Ralph Kahn |
| Answer» B. hristine Legarde | |
| 112. |
The Reserve Bank hiked the limit for foreign investment in Asset Reconstruction Companies (ARCs) from the earlier cap of 49 percent to? |
| A. | 4 % |
| B. | 7 % |
| C. | 7 % |
| D. | 2 % |
| Answer» B. 7 % | |
| 113. |
Land Development Banks form a part of the? |
| A. | ommercial Banks |
| B. | ndustrial Development Bank of India |
| C. | ood Corporation of India |
| D. | o-operative Credit Structure |
| Answer» E. | |
| 114. |
Expand the term FRBM? |
| A. | inancial Responsibility and Business management |
| B. | iscal Responsibility and Business management |
| C. | inancial Responsibility and Budget Management |
| D. | iscal Responsibility and Budget Management |
| Answer» E. | |
| 115. |
Which of the following banks is limited to the needs of agriculture and rural finance? |
| A. | BI |
| B. | BI |
| C. | FC |
| D. | ABARD |
| Answer» E. | |
| 116. |
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. | s 10 |
| B. | s. 20 |
| C. | s. 50 |
| D. | ll of the above |
| Answer» E. | |
| 117. |
Which among the following is the first universal bank of India? |
| A. | DFC |
| B. | xis Bank |
| C. | CICI |
| D. | ederal Bank |
| Answer» D. ederal Bank | |
| 118. |
Free shares of stock given to share holders at present, based upon the number of shares that a share holder owns are |
| A. | ight issues |
| B. | onus shares |
| C. | PO |
| D. | referential shares |
| Answer» C. PO | |
| 119. |
The securities that the Banks purchase with the intention of keeping them till they mature, fall in which of the following categories ? |
| A. | eld till maturity |
| B. | ixed securities |
| C. | ixed time securities |
| D. | ermanent securities |
| Answer» B. ixed securities | |
| 120. |
What is financialinclusion? |
| A. | o provide banking services to all those living in remote areas |
| B. | o provide a 100days job to all those who are in need of a job |
| C. | o provide a permanent employment to the unemployed |
| D. | o ensure that all financial transactions amounting Rs. 5,000/- and above are done through banks |
| Answer» B. o provide a 100days job to all those who are in need of a job | |
| 121. |
Effective from 15th April, 1980, how many banks with demand and time liabilities exceeding 200 crore were nationalized? |
| A. | en |
| B. | ix |
| C. | ive |
| D. | our |
| Answer» C. ive | |
| 122. |
Real Time Gross Settlement System means a payment system in which |
| A. | oth processing and final settlement of funds transfer instructions can take place continuously |
| B. | inal transaction takes place at the end of the day |
| C. | inal payment is physically effected within 24 hours |
| D. | inal settlement of funds take place at 3 PM daily |
| Answer» B. inal transaction takes place at the end of the day | |
| 123. |
Which of the following is/are called key Policy rates by the Reserve Bank of India?A. Bank rateB. Repo Rate, Reverse repo rateC. CRR, SLR |
| A. | nly A |
| B. | nly B |
| C. | nly A & B |
| D. | ll A, B and C |
| Answer» E. | |
| 124. |
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. | nly (A) & (B) |
| B. | nly (B) & (C) |
| C. | nly (A) & (C) |
| D. | nly (A) |
| Answer» B. nly (B) & (C) | |
| 125. |
Lending to Micro Finance Institutions by banks is considered as finance to |
| A. | on priority sector |
| B. | riority sector |
| C. | ommercial sector |
| D. | griculture sector |
| Answer» C. ommercial sector | |
| 126. |
What do you understand by the term ‘Mortgage’? |
| A. | egistration of charge with the Registrar of Companies |
| B. | aking the security of immovable property available as a cover for a home loan by the borrower. |
| C. | ale of moveable security in the event of default by the borrower |
| D. | egistration of charge with the Regional Transport Authority |
| Answer» C. ale of moveable security in the event of default by the borrower | |
| 127. |
Cash Reserve Ratio (CRR) and Statutory’ Liquidity Ratio (SLR) are terms most closely related to which of the following industries / markets? |
| A. | apital Market |
| B. | anking industry |
| C. | ommodities market |
| D. | oney Market |
| Answer» C. ommodities market | |
| 128. |
Expand the term ALM as used in Banking/Finance sector ? |
| A. | sset Liability Maturity |
| B. | sset Liability Mismatch |
| C. | sset Liability Management |
| D. | sset Liability Manpower |
| Answer» D. sset Liability Manpower | |
| 129. |
Insurance cover for bank deposits in our country is provided by |
| A. | BI |
| B. | CI |
| C. | ICGC |
| D. | IC |
| Answer» D. IC | |
| 130. |
Bank branches which can undertake foreign exchange business directly are known as in foreign exchange |
| A. | uthorized dealers |
| B. | oreign dealers |
| C. | verseas branches |
| D. | pproved dealers |
| Answer» B. oreign dealers | |
| 131. |
Crossing on a cheque can be cancelled by the ________ of the cheque, under his full signature. |
| A. | ayee |
| B. | rawee |
| C. | ndorser |
| D. | rawer |
| Answer» E. | |
| 132. |
Almost all banks in our country have introduced facility for granting crop loans to farmers. |
| A. | erm Loans |
| B. | isan Credit Cards |
| C. | ank Guarantee |
| D. | oreign Exchange |
| Answer» C. ank Guarantee | |
| 133. |
Which of the following terms is not related to banking? |
| A. | epayment |
| B. | oan |
| C. | PA |
| D. | asting |
| Answer» E. | |
| 134. |
Which of the following institutions is involved mainly in granting Housing Loans? |
| A. | BI |
| B. | BI |
| C. | DFC |
| D. | CICI |
| Answer» D. CICI | |
| 135. |
Which one of the following is a Credit Card Association? |
| A. | ndia Card |
| B. | aster Card |
| C. | BI Cards |
| D. | ity Bank Cards |
| Answer» C. BI Cards | |
| 136. |
Depreciation of an asset occurs due to |
| A. | ire in the unit |
| B. | heft |
| C. | abour Trouble |
| D. | ear and tear |
| Answer» E. | |
| 137. |
Credit risk to the bank is high from which of these cards? |
| A. | ebit cards |
| B. | redit cards |
| C. | TM cards |
| D. | one of these |
| Answer» C. TM cards | |
| 138. |
Which of the following banking does not come under Social Banking? |
| A. | rediting the LPG subsidy in the beneficiary bank account |
| B. | ffering Jan Dhan Scheme accounts |
| C. | llowing students to credit their scholarships through No-frill accounts |
| D. | llowing the subsidy loan to disadvantage sections of the society |
| Answer» D. llowing the subsidy loan to disadvantage sections of the society | |
| 139. |
In the IBA Banking Technology Awards 2014, Best Financial Inclusion Initiative award among Public Sector bank conferred on |
| A. | BI |
| B. | orporation Bank |
| C. | ndhra Bank |
| D. | ank of Baroda |
| Answer» E. | |
| 140. |
Which bank bagged the Core Banking System Initiative Award for the year 2014 at the Asian Banking and Finance - Retail Banking Awards 2014? |
| A. | BI |
| B. | CICI Bank |
| C. | harathiya Mahila Bank |
| D. | tandard Bank |
| Answer» D. tandard Bank | |
| 141. |
A personal loan is a kind of unsecured loan which can be used for any purpose that the borrower deems necessary. The loan backed only by promise to repay, and for this reason the personal loan also called |
| A. | ransfer loan |
| B. | ignature loans |
| C. | riority sector loan |
| D. | ecured loans |
| Answer» C. riority sector loan | |
| 142. |
In 2014, Competition Commission of India probed the merger between regional rural banks sponsored by Punjab National Bank and |
| A. | ndhra Bank |
| B. | nion Bank of India |
| C. | tate Bank of India |
| D. | yndicate Bank |
| Answer» E. | |
| 143. |
To make KCC a Smart Card cum Debit Card, Government of India had constituted a Working Group under the Chairmanship of |
| A. | . Ranga Rajan |
| B. | handa Kocchar |
| C. | rundhathi Bhattacharya |
| D. | .M. Bhasin |
| Answer» E. | |
| 144. |
On 7 May 2015, RBI said with effect from September 1, 2015 all new cards issued - debit and credit, domestic and international - by banks shall be EMV chip and pin based cards. EMV stands for |
| A. | uropay, Mastro and Visa |
| B. | uropay, Master Card and Visa |
| C. | ntitlement of Master Card and Visa |
| D. | uro, Master Card and Visa |
| Answer» C. ntitlement of Master Card and Visa | |
| 145. |
Which bank has launched the country's first contact less debit and credit cards on 7 January 2015? |
| A. | DFC |
| B. | BI |
| C. | CICI |
| D. | es Bank |
| Answer» D. es Bank | |
| 146. |
A collection of investment tools such as stocks, shares, mutual funds, bonds, cash and so on depending on the investor's income, budget and convenient time frame. The art of selecting the right investment policy for the individuals in terms of minimum risk and maximum return is called as |
| A. | ortfolio management |
| B. | redit creation |
| C. | mortized management |
| D. | ero account |
| Answer» B. redit creation | |
| 147. |
International Day of Rural Women is observed on ? |
| A. | eptember 15 |
| B. | uly 15 |
| C. | ecember 15 |
| D. | ctober 15 |
| Answer» E. | |
| 148. |
Where is National Institute of Bank Management (NIBM) located? |
| A. | asik |
| B. | umbai |
| C. | une |
| D. | ew Delhi |
| Answer» D. ew Delhi | |
| 149. |
The Tier-1 capital of banks does not include _______. |
| A. | aid-up capital |
| B. | evaluation reserves |
| C. | tatutory reserves |
| D. | nvestment fluctuation reserves |
| Answer» C. tatutory reserves | |
| 150. |
What is MZM in money market? |
| A. | oney with highest return |
| B. | oney with zero maturity |
| C. | oney with sovereign guarantee |
| D. | onetary base or total currency |
| Answer» C. oney with sovereign guarantee | |