MCQOPTIONS
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MCQOPTIONS
This section includes 1588 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. |
A practice in the insurance industry where in the insurer passes some parts of all risks to another insurer for a fee is known as? [NIACL AC) 2015] |
| A. | Counter insurance |
| B. | Dual insurance |
| C. | Co-insurance |
| D. | Re-insurance |
| Answer» E. | |
| 2. |
Bank's mandatory lending to farmers for agriculture, micro and small enterprises and other weaker sections wherein banks are required to end up to 40% of the loan is generally described as?- [ IBPS, 2013] |
| A. | Para banking |
| B. | Subprime lending |
| C. | Retail lending |
| D. | Priority sector lending |
| Answer» E. | |
| 3. |
Monetary policy in India is formulated by ? [SSC, LDC, 2012] |
| A. | Finance Ministry |
| B. | RBI |
| C. | SEBI |
| D. | CLB |
| Answer» C. SEBI | |
| 4. |
Which one of the following is an example of Non-Banking financial Institution? [SSCLDC2012] |
| A. | RBI |
| B. | SBI |
| C. | IOB |
| D. | LIC |
| Answer» E. | |
| 5. |
Man bearers of the burden of indirect tax are? [SSC S.O. 2005] |
| A. | Manufacturers |
| B. | Traders |
| C. | Consumers |
| D. | Taxpayers |
| Answer» D. Taxpayers | |
| 6. |
A tax levied on the values that are added to goods and services by the producers at various stages of production and distribution is called? |
| A. | Excise Duty |
| B. | Value added Tax |
| C. | GST |
| D. | Surcharge |
| E. | Income Tax [SBI Clerk 2012] |
| Answer» C. GST | |
| 7. |
A new scheme has been announced in the Budget 2012-13 giving tax exemptions to first time equity market investors. The scheme is titled as ? [SBI] Asst. Clerk 2012] |
| A. | Rajiv Gandhi equity saving scheme |
| B. | Rashtriya Equity saving scheme |
| C. | National Equity savings scheme |
| D. | Indira Gandhi equity saving scheme |
| E. | Prime minister's equity saving scheme |
| Answer» B. Rashtriya Equity saving scheme | |
| 8. |
Which of the following term is not associated with banking/finance? [IBPS RRB O.A. 2012] |
| A. | RTGS |
| B. | SLR |
| C. | Repo Rate |
| D. | Credit |
| E. | LBW |
| Answer» F. | |
| 9. |
The term "plastic Money" refers to ? [SBI Associate Clerk 2012] |
| A. | ATM / credit cards |
| B. | Plastic-wanted currency notes |
| C. | Foreign currency Notes |
| D. | Travelers cheque |
| E. | None of these |
| Answer» B. Plastic-wanted currency notes | |
| 10. |
A cheque bearing the date earlier than the date of submission to the bank is known as? [SBI Clerk 2014] |
| A. | Bearer cheque |
| B. | Stale cheque |
| C. | Crossed cheque |
| D. | Post-Dated cheque |
| E. | Ante-Dated cheque |
| Answer» F. | |
| 11. |
When customer fall into different user groups with distinct buying preference and practices, a ....... is desirable. [SBI Clerk 2014] |
| A. | Flattered organization |
| B. | Product management organization |
| C. | BMAT organization |
| D. | Brand Management organization |
| E. | Market Management organization |
| Answer» F. | |
| 12. |
A credit Guarantee Trust fund has been set up for guaranteeing collateral-free credit facilities by lending to small-scale industries. This fund is being managed by which of the following institutions? [SBI Clerk 2014] |
| A. | IDBI |
| B. | NABARD |
| C. | SBI |
| D. | SIDBI |
| Answer» E. | |
| 13. |
Which of the following concepts of banking involves booking of web enabled touch point for basic banking services? [IBPSPO 2014] |
| A. | Extension Counters |
| B. | Retail Banking |
| C. | Kiosk Banking |
| D. | Mobile Banking |
| Answer» D. Mobile Banking | |
| 14. |
The Bank for International Settlements (BIS) is an international organization of central banks headquartered in? [IBPS 2014] |
| A. | Zurich/Switzerland |
| B. | New York, USA |
| C. | Basel, Switzerland |
| D. | Paris, France |
| Answer» D. Paris, France | |
| 15. |
Which of the following is decided by the RBI? [IBPS RRB O.A. 2012] |
| A. | Interest rate on time deposits |
| B. | Rent of safe deposit vaults |
| C. | Inflation rate |
| D. | Dearness Allowance to govt employee |
| E. | Cash Reserve Ratio |
| Answer» F. | |
| 16. |
What does the letter "C? denote in the term CBS as used in banking operations? [IBPS RRB 0, A, 2012] |
| A. | Central |
| B. | Critical |
| C. | Commercial |
| D. | Core |
| E. | Capital |
| Answer» E. Capital | |
| 17. |
Which of the following is not a function of the RBI? [IBPSRO. 2012] |
| A. | Fiscal policy functions |
| B. | Exchange control functions |
| C. | Issuance, Exchange and destruction of currency notes |
| D. | Monetary Authority functions |
| E. | Supervisory and control functions |
| Answer» B. Exchange control functions | |
| 18. |
Fixed deposits and recurring deposits are? [IBPSRO. 2011] |
| A. | Repayable after an agreed period |
| B. | Repayable on demand |
| C. | Not repayable |
| D. | Repayable after death of depositors |
| E. | Repayable on demand or after an agreed period as per banks choices |
| Answer» B. Repayable on demand | |
| 19. |
The number of Nationalized Banks in India are? [SSC LDC 2014] |
| A. | 14 |
| B. | 21 |
| C. | 20 |
| D. | 22 |
| Answer» D. 22 | |
| 20. |
The internal rate of return? [SSC LDC 2014] |
| A. | Must be less than the interest rate if the firm is to invest |
| B. | Makes the present value of profits equal to the present value of costs |
| C. | Falls as the annual yield of an investment rises |
| D. | Is equal to the market interest rate for all the firm?s investment |
| Answer» B. Makes the present value of profits equal to the present value of costs | |
| 21. |
As the number of investments made by a firm increases, its internal rate of return? [SSC LDC 2014] |
| A. | Declines due to diminishing Marginal productivity |
| B. | Declines because the market rate of interest will falls, ceteris parlous |
| C. | Increase to compensate the firm for the current consumption fore- gone |
| D. | Increases because the level of savings will fall |
| Answer» D. Increases because the level of savings will fall | |
| 22. |
What is meant by financial inclusion? [IBPS RRB Officer 2012] |
| A. | Making available banking services at an affordable cost |
| B. | Opening saving accounts in rural areas without any deposit |
| C. | Opening any type of account -without introduction |
| D. | Distributing money through rural branches |
| E. | Distributing wages through bank accounts |
| Answer» D. Distributing money through rural branches | |
| 23. |
VAT is imposed? |
| A. | Directly on consumer |
| B. | On final stage of production |
| C. | On first stage of production |
| D. | On all stage between production and final sale |
| Answer» E. | |
| 24. |
CENVAT is related to? |
| A. | Sales tax |
| B. | Excise duty |
| C. | Custom duty |
| D. | Service Tax |
| Answer» C. Custom duty | |
| 25. |
A situation in which consumer purchases are unplanned is called [SBI Clerk 2012] |
| A. | latent demand |
| B. | impulse buying |
| C. | irregular demand |
| D. | unwhole some laying |
| E. | None of these |
| Answer» C. irregular demand | |
| 26. |
For online marketing ...... is the most effective means. [SBI PO 2011] |
| A. | Saving accounts |
| B. | credit card |
| C. | Housing loans |
| D. | NRI deposits |
| E. | business accounts |
| Answer» C. Housing loans | |
| 27. |
Cheap money means? [SSC CPO 2010] |
| A. | Low rate of Interest |
| B. | Low level of savings |
| C. | Low level of Income |
| D. | Excess of black money |
| Answer» B. Low level of savings | |
| 28. |
The existence of a parallel economy of Black money? [SSC'SAS 2010] |
| A. | Makes the economy more competitive |
| B. | Makes the monetary policies less effective |
| C. | Ensure a better distribution on income and wealth |
| D. | Ensure increasing productive investment |
| Answer» C. Ensure a better distribution on income and wealth | |
| 29. |
The monetary policy in India is formulated by? [SSC CGL 2010] |
| A. | Central government |
| B. | Industrial financial corporation of India |
| C. | RBI |
| D. | Industrial development of India |
| Answer» D. Industrial development of India | |
| 30. |
On which of the following issues had there been a dispute between IRDA and SEBI? (WABARD2010) |
| A. | ULIP Products |
| B. | Violation of SEBI guidelines in respect of investment by big companies in equities. |
| C. | Overlapping of the functions of IRDA and SEBI |
| D. | None of these |
| Answer» B. Violation of SEBI guidelines in respect of investment by big companies in equities. | |
| 31. |
MCX is the index of which of the following stock exchanges of India? [SBI Clerk 2012] |
| A. | NSE |
| B. | BSE |
| C. | Delhi stock exchange |
| D. | Kolkata stock exchange |
| E. | Multi commodity stock exchange |
| Answer» F. | |
| 32. |
Investment and savings are kept equal through a change in the level of? [SSC S.O. 2005] |
| A. | Consumption |
| B. | Investment |
| C. | Government expenditure |
| D. | Income |
| Answer» B. Investment | |
| 33. |
In order to attract more foreign exchange the govt. of India decided tallow foreign investment in LLP firms what is full form of "LLP" as Used in this reference? [IBPS P.O. 2011] |
| A. | Local Labor promotion |
| B. | Low labor projects |
| C. | Limited loan partnership |
| D. | Longer liability partnership |
| E. | Limited Liability partnership |
| Answer» F. | |
| 34. |
At present, India is following [SSC CC1.2.2011] |
| A. | Fixed exchange rate |
| B. | Floating exchange rate |
| C. | Pegged up exchange rate |
| D. | Pegged down exchange rate |
| Answer» C. Pegged up exchange rate | |
| 35. |
The RBI does not decide the? [SBI Clerk 2012] |
| A. | Rate of Repo and Reverse Repo |
| B. | Marginal standing facility rates |
| C. | Bank rates |
| D. | Rate of Dearness allowance to govt. employees |
| E. | SLR |
| Answer» E. SLR | |
| 36. |
Excise duty on a commodity is payable with reference to its? [SSCCPOSI.2006] |
| A. | Production |
| B. | Production and sale |
| C. | Production and transportations |
| D. | Production, transportation and sale |
| Answer» B. Production and sale | |
| 37. |
What is value Added Tax (VAT)? [SSC Tax Assistant 2006] |
| A. | A simple transparent, easy to pay tax imposed on consumers |
| B. | A new initiative taken by the government to increase the tax burden of high income groups |
| C. | A single tax that replaces state taxes like, surcharge, turnover tax etc. |
| D. | Anew tax to be imposed on the producers of devaluation of currency is |
| Answer» B. A new initiative taken by the government to increase the tax burden of high income groups | |
| 38. |
Which is responsible to collect the service tax? [SSC SO ...2005] |
| A. | Income tax department |
| B. | Central excise department |
| C. | Commercial tax department of the state/UT |
| D. | Postal department |
| Answer» C. Commercial tax department of the state/UT | |
| 39. |
A commercial bank law creates credit only if it has? [SSC S.O, 2005] |
| A. | Cash in the value |
| B. | Excess reserves |
| C. | Permission of RBI |
| D. | Cooperation of other banks |
| Answer» D. Cooperation of other banks | |
| 40. |
Which of the following is not a Banking organization? [SBI Asst. 2015] |
| A. | ICICI PRUDENTIAL |
| B. | AXIS BANK |
| C. | KOTAK MAHINDRA |
| D. | ICICI BANK |
| Answer» B. AXIS BANK | |
| 41. |
S.D.R. stands for? [SSC .L 2008] |
| A. | Special Dollar Rights |
| B. | Special Drawing Rights |
| C. | State Drawing Rights |
| D. | Specific Dollar Rights |
| Answer» C. State Drawing Rights | |
| 42. |
Which one of the following is not a quantitative credit control techniques? [SSC, CPO S I 2008] |
| A. | Bank rate |
| B. | Cash Reserve Ratio |
| C. | Statutory Liquidity Ratio |
| D. | Increase of interest rate on saving deposit |
| Answer» E. | |
| 43. |
A Non-performing asset in Banking Business means? A fixed asset of bank that has not been utilized A portion of deposits not utilized A loan asset on which interest and / or instalments remain 'Past due' [SBI Asst. 2015] |
| A. | Only a |
| B. | Only C |
| C. | Only |
| D. | Only B & C |
| Answer» C. Only | |
| 44. |
A banknote of -which a portion is missing or which is composed of more than two pieces is known as? [IBPSRRB2014] |
| A. | A multilated banknote |
| B. | A counterfeit banknote |
| C. | A soiled banknote |
| D. | A damaged banknote |
| Answer» B. A counterfeit banknote | |
| 45. |
The earlier system of Prime Lending Rate (PLR) has now been replaced by- [IBPS, RRB 2014] |
| A. | Reverse Repo Rate system |
| B. | Repo Rate system |
| C. | Bank Rate system |
| D. | Base Rate system |
| Answer» E. | |
| 46. |
Banks generally insist account holders to nominate persons to whom the money lying in their accounts should go in the event of? [IBPSPO 2014] |
| A. | Death of account holder |
| B. | Illness of account holder |
| C. | Account holder migrates |
| D. | Account holder turns bankrupt |
| Answer» B. Illness of account holder | |
| 47. |
Delivery channels means [SBI Clerk 2012] |
| A. | Place from where the products are sold |
| B. | Courier service |
| C. | distribution agencies |
| D. | delivery time |
| E. | offsite banking |
| Answer» D. delivery time | |
| 48. |
One rupee notes are issued by the? [SSC LDC 2014] |
| A. | RBI |
| B. | SBI |
| C. | President of India |
| D. | Government of India |
| Answer» E. | |
| 49. |
Customer's relationship with the bank is influenced by [SBI Clerk 2009] |
| A. | Customers attitudes |
| B. | Attitudes of bank staff |
| C. | interest rates of the bank |
| D. | attitude of sales persons |
| E. | All of the above |
| Answer» E. All of the above | |
| 50. |
What is the statutory liquidity Ratio (SIR) at present? [SBI Clerk 2012] |
| A. | 20% |
| B. | 22% |
| C. | 25% |
| D. | 24% |
| E. | None of these |
| Answer» D. 24% | |