Banking and Financial Institutions MCQs

Question 1

Which among the following is NOT true about BASEL?

Accepted Answer

BASEL was established by the Central Bank Governors of fifteen countries

Answer

Initially it was named as Committee of Banking Regulations and Supervisory Practices (CBRS)

Answer

It was established by the end of 1974

Answer

Disturbances in international currency and banking markets were responsible for its establishment

Question 2

The Indian Banking Regulation Act was passed

Accepted Answer

1949

Answer

1971

Answer

1969

Answer

1947

Question 3

With reference to digital system, which of the following statements is correct?

Accepted Answer

The payer and the payee both use electronic mediums to exchange money

Answer

It takes place in the premises of a bank

Answer

It requires cheque book

Answer

It needs credit card

Question 4

The insurance companies collect a fixed amount from its customers at a fixed interval of time, what is it called?

Accepted Answer

Premium

Answer

EMI

Answer

Contribution

Answer

Instalment

Question 5

Which of the following are the functions of the central bank?

Accepted Answer

All of these

Answer

Issue of note currency

Answer

Credit control

Answer

Control on commercial banks

Question 6

As per Basel III, the risk of losses in on-balance sheet and off-balance sheet positions arising from movements in market prices is called:

Accepted Answer

Market risk

Answer

Credit risk

Answer

Pricing risk

Answer

Liquidity risk

Question 7

Open market operations, one of the measures taken by RBI in order to control credit expansion in the economy means as

Accepted Answer

sale or purchase of government securities

Answer

issuance of different types of bonds

Answer

auction of gold

Answer

None of the above

Question 8

Who is the custodian of monetary reserves in India?

Accepted Answer

RBI

Answer

SBI

Answer

SIDBI

Answer

NABARD

Question 9

To operationalise online, internet, mobile banking, debit card and credit card tools, some of the essential ingredients are:

Accepted Answer

All of the above

Answer

Compliance with the Information Technology Act 2000

Answer

Satellite connection

Answer

Selection of a portal and server