Banking and Financial Institutions MCQs

Question 1

The Repo and Reverse Repo rates are resorted by the RBI as a tool of

Accepted Answer

Liquidity Control

Answer

Credit Control

Answer

Settlement Systems

Answer

Currency Management

Question 2

The difference between a bank and a non-banking financial companies (NBFCs) is that:

Accepted Answer

a bank indulges in a number of activities relating to finance with a range of customers, while an NBFI is mainly concerned with the finances of foreign companies

Answer

a bank interacts directly with customers, while an NBFI interacts with banks and governments

Answer

a bank deals with both internal and international customers, while an NBFI is mainly concerned with the finances of foreign companies

Answer

a bank's main interest is to help in business transactions and savings/investment activities, while an NBFI's main interest is the stabilization of currency

Question 3

Under Quantity Theory of Money, which one of the following equations was given by Fisher?

Accepted Answer

PT = MV + M'V'

Answer

M = KY + K'A

Answer

M = PKR

Answer

n = p(k + rk')

Question 4

. . . . . . . . regulates Regional Rural banks in India.

Accepted Answer

NABARD

Answer

SBI

Answer

PNB

Answer

IDBI

Question 5

Which one of the following development financial institutions in India has started the special refinance scheme for the resettlement and rehabilitation of voluntary retired workers of the National Textile Corporation of India?

Accepted Answer

IDBI

Answer

SIDBI

Answer

ICICI

Answer

None of the above

Question 6

When was Debt Recovery Tribunal was introduced for the first time in India?

Accepted Answer

1993

Answer

1991

Answer

1992

Answer

1994

Question 7

Which type of insurance policy will protect a business from theft and forgery by its employees?

Accepted Answer

Burglary insurance

Answer

Facility bond

Answer

Indemnity insurance

Answer

Liability insurance

Question 8

Transfer of rights and remedies of the insured to the insurer after indemnity has been effect is called:

Accepted Answer

Subrogation

Answer

Insurable interest

Answer

Proximate clause

Answer

Money back policy

Question 9

An Indian investor investing in a US equity stock mutual fund, would be worried about what happens to the exchange rate of

Accepted Answer

US Dollar : Indian Rupee

Answer

US Dollar : Euro

Answer

Euro : Indian Rupee

Answer

British Pound : Indian Rupee