Banking and Financial Institutions MCQs

Question 1

Which one of the following is the main objective of Unit Trust of India?

Accepted Answer

To mobilise the savings of low and middle income groups

Answer

To mobilise the savings of high income groups

Answer

To mobilise the savings of low and high income groups

Answer

To mobilise the savings of corporate

Question 2

Match the items of List-I with the items of List-II and choose the correct answer. List-I List-II a. NPA 1. The percentage of deposits to be kept with RBI in the form of cash. b. SLR 2. The rate at which RBI lends money to commercial banks. c. Repo rate 3. Loans and advances not paid for more than 90 days. d. CRR 4. The percentage of net demand and time liabilities to be kept in the form of liquid assets.

Accepted Answer

a-3, b-4, c-2, d-1

Answer

a-3, b-4, c-1, d-2

Answer

a-2, b-3, c-4, d-1

Answer

a-3, b-2, c-4, d-1

Question 3

Operational risk is the risk of loss arising from various types of:

Accepted Answer

All of the above

Answer

Human error

Answer

System failed in the bank

Answer

Breakdown in internal control

Question 4

A doubt-full asset refers to:

Accepted Answer

remaining NPA for more than 12 months

Answer

remaining NPA for less than or equal to 12 months

Answer

where the loss has been identified by the bank

Answer

when loan is overdue for a period of 1 year

Question 5

The comprehensive meaning of an efficient stock market is that it is market which

Accepted Answer

reflects the effective use of information in the price of the shares traded therein

Answer

allocates resources efficiently

Answer

signals the changes in the listed company's performance

Answer

safeguards the investors money

Question 6

What do you mean by "Outcome Budget":

Accepted Answer

It is a report submitted by the Government of India indicating strides made in different projects by ministries and departments as a first step towards converting outlays into income

Answer

It denotes reaction of the media after Budget Papers are approved in the Parliament

Answer

It aims to measure performance of the Government in various departments

Answer

None of the above

Question 7

One of the items is not related with e-banking:

Accepted Answer

Demand Draft

Answer

SPNS

Answer

ECS

Answer

ATM

Question 8

Deposits under NRE/FCNB accounts are linked to:

Accepted Answer

LIBOR

Answer

Base Rate

Answer

SIBOR

Answer

None of these

Question 9

Which of the following is not the fund based business of commercial banks?

Accepted Answer

DP Operations

Answer

Loans

Answer

Deposits

Answer

Discounting of Bills