Banking and Financial Institutions MCQs

Question 1

Which of the following are money markets instruments? 1. Treasury, 8%, 2011. 2. National Savings Certificates. 3. A 3-month certificate of deposit. 4. A treasury bill with 7 days to maturity. 5. A 14-day repurchase agreement of Treasury 8% 2007.

Accepted Answer

3, 4 and 5

Answer

2 and 4

Answer

1, 2 and 5

Answer

1, 3 and 4

Question 2

In case the security has not been traded on a particular day, . . . . . . . . at the NSE is to be considered as the closing price.

Accepted Answer

the latest available closing price

Answer

the average closing price for the last one week

Answer

the theoretical closing price

Answer

none of the above

Question 3

Which of the following terms is incorrect?

Accepted Answer

Stabled Broker

Answer

Circuit Broker

Answer

Merchant Broker

Answer

None of these

Question 4

What is POP-SP in relation to New Pension System introduced on the 1st May 2009:

Accepted Answer

Point of Presence Service Provider for registering the citizens under the Scheme and remitting their subscriptions

Answer

Popular Service Provider for registering the citizens under the Scheme and remitting their subscriptions

Answer

Both A and B

Answer

None of the above

Question 5

Co-operative banks which work at a metropolitan level are called:

Accepted Answer

Primary Urban Co-operative Bank

Answer

District Central Co-operative Bank

Answer

State Co-operative Bank

Answer

Primary Agricultural Credit Societies

Question 6

What do we mean by financial deepening?

Accepted Answer

It refers to growth of Aggregate Monetary Resources in relation to Gross National Product

Answer

It deals with our resources in commercial banking

Answer

It talks about the deep impact of RBI has in the economy of nation

Answer

It talks about shadow banking activities in the nation

Question 7

Differential rate of interest scheme was introduced in which year?

Accepted Answer

1972

Answer

1962

Answer

1982

Answer

1980

Question 8

Which one is NOT true regarding the Market Stabilization Scheme (MSS)?

Accepted Answer

MSS account liquidity can be used for normal government expenditure of capital nature

Answer

It absorbs surplus liquidity of enduring nature arising out of large capital flows

Answer

It absorbs surplus liquidity through sale of short-dated government securities and treasury bills

Answer

Mobilised surplus liquidity is held in the MSS account with the Reserve Bank of India

Question 9

For the purpose of extending rural banking and agro finance, the NABARD:

Accepted Answer

Refinances the banks extending rural finance

Answer

Directly lends and monitors the rural borrowers

Answer

Refinances the rural borrowers obtaining credit from banks

Answer

Directly finances the rural borrowers and gets refinance from government