MCQOPTIONS
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MCQOPTIONS
This section includes 3653 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.
| 3251. |
Land development banks provide long- term credit for schemes of basic importance to agriculture as |
| A. | minor irrigation purposes like wells, dug-cum-bore wells, tubewells, pump sets and irrigation tanks |
| B. | mechanisation of agriculture i.e., loans for purposes of tractors, power tillers, threshers, etc |
| C. | land reclamation, soil conservation, plantation of fruit orchards, dairy development schemes etc involving heavy expenditure |
| D. | Both [a] and [b] |
| Answer» E. | |
| 3252. |
Banks' mandatory lending to farmers for agriculture, micro and small enterprises and other weaker sections where in banks are required to lend up to 40% of the loans is generally described as (IBPS 2013) |
| A. | Para banking |
| B. | Sub-prime lending |
| C. | Retail lending |
| D. | Non-priority sector lending |
| Answer» E. | |
| 3253. |
Which of the following cannot be called as a debt instrument as referred in financial transactions? [Indian Overseas Bank 2009] |
| A. | Certificate of deposits |
| B. | Bonds |
| C. | Stocks |
| D. | Commercial papers |
| Answer» E. | |
| 3254. |
Structure of Basel II is based on how many pillars? |
| A. | Two |
| B. | Ten |
| C. | Four |
| D. | Five |
| Answer» E. | |
| 3255. |
In a Poverty Pyramid index, which of the following segments of population faces the highest poverty risk? [Corporation Bank 2011] |
| A. | Formal Wage Employment |
| B. | Informal Self-Employment: Employers |
| C. | Regular Informal Wage Employment |
| D. | Informal Self Employment: Own Account |
| Answer» E. | |
| 3256. |
As per the target for the 11th Five Year Plan, educated unemployment is to be reduced to which of the following levels? [Corporation Bank 2011] |
| A. | 0.09 |
| B. | 0.06 |
| C. | 0.07 |
| D. | 0.08 |
| Answer» E. | |
| 3257. |
With effect from July 1, 2012, for calculation of lending rates, the Reserve Bank of India has advised banks to switch over to the [IBPS 2013] |
| A. | MSF Rate System |
| B. | Reverse Repo Rate System |
| C. | Bank Rate System |
| D. | Repo Rate System |
| Answer» E. | |
| 3258. |
Banks in their daily business, face various kinds of risks. Which of the following is one such major risk? |
| A. | Customer risk |
| B. | Reputation |
| C. | Goodwill risk |
| D. | Protection risk |
| Answer» E. | |
| 3259. |
The objectives of forming SHG is/are 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. Select the correct answer using the codes given below: |
| A. | Only I |
| B. | I and II |
| C. | I and III |
| D. | II and III |
| Answer» E. | |
| 3260. |
Which of the following is popular 'saving bank' among the poor children? |
| A. | Core banking |
| B. | Credit banking |
| C. | Debit banking |
| D. | Merchant banking |
| Answer» E. | |
| 3261. |
Setting up of the IPPB to further financial Inclusion was one of the budgetary announcements during |
| A. | 1998-99 |
| B. | 2005-06 |
| C. | 2011-12 |
| D. | 2013-14 |
| Answer» E. | |
| 3262. |
Who is eligible for Payment Bank? |
| A. | Finance Companies |
| B. | Business Correspondents |
| C. | Telecom Companies |
| D. | Retailers |
| Answer» E. | |
| 3263. |
Which of the following is/are correct regarding the functions of the Indian Mortgage Guarantee Corporation? [IBPS 2014] |
| A. | It mitigates risk taken by lenders |
| B. | It provides mortgage guarantees to banks |
| C. | It provides mortgage guarantees to housing finance companies |
| D. | It makes easier for people to get access to home loans with lower down payment amounts |
| Answer» E. | |
| 3264. |
In banking business/ when the borrowers avail a Term Loan, initially they are given a repayment holiday and this is referred as ________. [SBI Bank 2013] |
| A. | Subsidy |
| B. | Interest Waiver |
| C. | Re-phasing |
| D. | Interest concession |
| Answer» E. | |
| 3265. |
Bancassurance is [Corporation Bank 2011] |
| A. | an insurance scheme to insure bank deposits |
| B. | an insurance scheme exclusively for the employees of banks |
| C. | a composite financial service offering both banking and insurance products |
| D. | a bank deposit scheme exclusively for employees of insurance companies |
| Answer» E. | |
| 3266. |
Which of the following is not a Public Sector Bank? (SBI 2016) |
| A. | Corporation Bank |
| B. | United Bank of India |
| C. | Vijaya Bank |
| D. | Bank of Maharashtra |
| Answer» E. | |
| 3267. |
Which of the following services relate to execution of transactions directly with consumers, rather than corporations or other banks? (IBPS 2013) |
| A. | Wholesale Banking Services |
| B. | Industrial Banking Services |
| C. | Investment Banking Services |
| D. | Corporate Banking Services |
| Answer» E. | |
| 3268. |
Which of the following is/are the Non-Tax Revenue components of the Union Budget of India? [Andhra Bank 2011] I. Custom Duties II. Interest Receipts III. Dividend and Profits Select the correct answer using the codes given below |
| A. | I and II |
| B. | Only II |
| C. | II and III |
| D. | Only III |
| Answer» D. Only III | |
| 3269. |
The Central Board of Direct Taxes has made felling of income tax returns mandatory for all assesses whose annual earnings exceed[SBI Associate 2013] |
| A. | Rs. 5 lakh during die fiscal |
| B. | Rs. 10 lakh during the fiscal |
| C. | Rs. 15 lakh during the fiscal |
| D. | Rs. 20 lakh during the fiscal |
| Answer» C. Rs. 15 lakh during the fiscal | |
| 3270. |
As we all know. Government of India collects tax revenue on various activities in the country. Which of the following is a part of the tax revenue of the government? [Corporation Bank 2011] I. Tax OH Income II. Tax on Expenditure III. Tax on Property or Capital Asset IV. Tax on Goods and Services Select the correct answer using the codes given below |
| A. | I and II |
| B. | II and IV |
| C. | II, III and IV |
| D. | All of these |
| Answer» D. All of these | |
| 3271. |
Which of the following is/are the components of the Fiscal Deficit? I. Budgetary Deficit II. Market Borrowing III. Expenditure made from Pradhan Mantri Rahat Kosh Select the correct answer using the codes given below |
| A. | Only I |
| B. | Only II |
| C. | Only III |
| D. | All of these |
| Answer» E. | |
| 3272. |
Which of the following are the indirect taxes? |
| A. | Custom Duty |
| B. | Excise Duty |
| C. | Sales Tax and Service Tax |
| D. | Both b and c |
| Answer» B. Excise Duty | |
| 3273. |
A direct tax cannot be shifted to other person. Central direct taxes is/are |
| A. | Income tax |
| B. | Gift tax |
| C. | Corporate tax |
| D. | All of the above |
| Answer» E. | |
| 3274. |
Modified Value Added Tax (MOD VAT) was introduced in |
| A. | 1986-87 |
| B. | 1980-81 |
| C. | 1982-83 |
| D. | 1981-82 |
| Answer» C. 1982-83 | |
| 3275. |
During inflation |
| A. | exports becomes more expensive |
| B. | exports becomes more cheap |
| C. | imports becomes more expensive |
| D. | surplus balance of payment |
| Answer» B. exports becomes more cheap | |
| 3276. |
The purpose of providing depreciation on the bank's property is |
| A. | to reduce the profit of the bank |
| B. | to make usual allowances for annual wear and tear |
| C. | to enable the bank to recover tills amount from the Reserve Bank of India |
| D. | to strengthen the financial position of the bank |
| Answer» C. to enable the bank to recover tills amount from the Reserve Bank of India | |
| 3277. |
Inflation is caused by |
| A. | increase in supply of goods |
| B. | increase in cash with the government |
| C. | decrease in money supply |
| D. | increase in money supply |
| Answer» E. | |
| 3278. |
Base rate is the rate below which no bank can allow their lending to anyone. Who set up this base rate for banks? [IBPS PO Main 2015] |
| A. | Individual Banks Boards (Correct Answer) |
| B. | Ministry of Commerce |
| C. | Ministry of Finance |
| D. | RBI |
| Answer» B. Ministry of Commerce | |
| 3279. |
By increasing repo rate, the economy may observe the following effects ______ [IBPS 2012] |
| A. | Rate of interest on loans and advances will be costlier |
| B. | Industrial output would be affected to an extent |
| C. | Banks will increase rate of interest on deposits |
| D. | Industry houses may borrow money from foreign countries |
| Answer» D. Industry houses may borrow money from foreign countries | |
| 3280. |
Which of the following organisations is known as the market regulator in India? [BOI 2008] |
| A. | IBA |
| B. | SEBI |
| C. | AMFI |
| D. | NSDL |
| Answer» C. AMFI | |
| 3281. |
Which of the following is the regulator of the credit rating agencies in India? [BOB 2008] |
| A. | RBI |
| B. | SBI |
| C. | SIDBI |
| D. | SEBI |
| Answer» E. | |
| 3282. |
Interest payable on savings bank accounts is [IBPS 2011] |
| A. | not regulated by RBI. |
| B. | regulated by State Governments. |
| C. | regulated by Central Government |
| D. | regulated by RBI. |
| Answer» E. | |
| 3283. |
Which of the following bodies promoted Securities Trading Corporation of India Limited (STCI) jointly with the Public Sector Banks? [Indian Overseas Bank 2011] |
| A. | Securities Exchange Board of India |
| B. | ICICI Ltd |
| C. | IDBI Ltd |
| D. | Reserve Bank of India |
| Answer» E. | |
| 3284. |
Who amongst the following was the Head of the committee which gave its recommendations on the modalities for Capital' Account Convertibility? [Andhra Bank 2011] |
| A. | Dr. Rakesh Mohan |
| B. | Dr. C Rangarajan |
| C. | S.S. Tarapore |
| D. | K.J. Udeshi |
| Answer» D. K.J. Udeshi | |
| 3285. |
Which of the following rates signals the RBI's long-term outlook on interest rates? [Allahabad Bank 2011] |
| A. | Repo Rate |
| B. | Reverse Repo Rate |
| C. | Bank Rate |
| D. | SLR |
| Answer» D. SLR | |
| 3286. |
Many a time we read in newspapers that some big banks have revised their lending rates to make them dearer or cheaper. Though the decision to raise the lending rates is always in the hands of the banks, normally they announce this decision of theirs [Corporation Bank 2010] [a] immediately after the Union Budget is presented in the Lok Sabha every year. [b] when the RBI makes changes in its policy rates. [c] when the Monetary and Credit Policy of the RBI is reviewed periodically. |
| A. | Only [a] |
| B. | Only [b] |
| C. | Only [c] |
| D. | Only [b] & [c] |
| Answer» E. | |
| 3287. |
As reported in various newspapers, the Reserve Bank of India is planning to allow more and more banks to function as "Local Area Banks". This will help RBI in the implementation of which of the following of its plans/drives? [SBI 2010] (1) Financial Inclusion (2) Rural Banking (3) Mobile and e-Banking |
| A. | Only (1) |
| B. | Only (2) |
| C. | Only (3) |
| D. | Only (1) & (2) |
| Answer» B. Only (2) | |
| 3288. |
What is the Statutory Liquidity Ratio (SLR) at present? [IOB 2008] |
| A. | 0.14 |
| B. | 0.18 |
| C. | 0.2 |
| D. | 0.24 |
| Answer» E. | |
| 3289. |
Which of the following is/are key policy rates used by RBI to influence interest rates? I. Bank rate and repo rate II. Reverse repo rate III. CRR and SLR Select the correct answer using the codes given below |
| A. | Only I |
| B. | Only II |
| C. | Only III |
| D. | All of these |
| Answer» D. All of these | |
| 3290. |
Which of the following training establishment is not run by Reserve Bank of India? |
| A. | Bankers Training College, Bombay |
| B. | College of Agricultural Banking, Pune |
| C. | NIBM |
| D. | All of the above |
| Answer» D. All of the above | |
| 3291. |
The Monetary and Credit Policy of India is the responsibility of which of the following? |
| A. | Planning Commission |
| B. | Finance Ministry |
| C. | RBI |
| D. | National Advisory Council |
| Answer» D. National Advisory Council | |
| 3292. |
Bank rate as fixed by RBI, means |
| A. | rate of interest charged by banks from borrowers |
| B. | rate of interest on bank deposits |
| C. | rate of interest charged by RBI on its loans to banks |
| D. | rate of interest on inter-bank loans |
| Answer» D. rate of interest on inter-bank loans | |
| 3293. |
CRR refers to the share of........ that banks have to maintain with RBI of their net demand and time liabilities. |
| A. | soft cash |
| B. | forex reserves |
| C. | gold |
| D. | liquid cash |
| Answer» E. | |
| 3294. |
SEBI, a regulator of securities market in India was established in the year 1988, but was empowered with statutory Powers in the form of Act in the year |
| A. | 1990 |
| B. | 1991 |
| C. | 1992 |
| D. | 1993 |
| Answer» D. 1993 | |
| 3295. |
Which of the following agencies/ organisations has decided to make major changes for ULIPs? |
| A. | IRDA |
| B. | RBI |
| C. | AMFI |
| D. | FRBI |
| Answer» B. RBI | |
| 3296. |
The methods of credit control by the Reserve Bank of India may be broadly divided into |
| A. | Open and close |
| B. | Quantitative and Qualitative |
| C. | Monetary and fiscal |
| D. | Rural and urban |
| Answer» C. Monetary and fiscal | |
| 3297. |
Which of the following functions are not being performed by the Reserve Bank of India? |
| A. | Regulation of banks in India |
| B. | Regulation of foreign direct investment in India |
| C. | Foreign currency management in India |
| D. | Control and supervision of money supply |
| Answer» C. Foreign currency management in India | |
| 3298. |
The Public Debt Office of the Reserve Bank of India |
| A. | is a central depository for all types of Government securities except Treasury Bills |
| B. | attends to the function of note issue the Reserve Bank of India |
| C. | is responsible for maintaining external value of rupee |
| D. | controls balance of payment position of the Government of India |
| Answer» B. attends to the function of note issue the Reserve Bank of India | |
| 3299. |
Which of the following is the full form of the term SLR as used in the banking sector? |
| A. | Social Lending Ratio |
| B. | Statutory Liquidity Ratio |
| C. | Scheduled Liquidity Rate |
| D. | Separate Lending Rate |
| Answer» C. Scheduled Liquidity Rate | |
| 3300. |
The chief economic advisor to the Government of India has recently changed. Who is the present incumbent? |
| A. | Raghurm Rajan |
| B. | Bimal Jalan |
| C. | Rakesh Mohan |
| D. | Kaushik Basu |
| Answer» B. Bimal Jalan | |