Banking and Financial Institutions MCQs

Question 1

An investor owns one thousand shares of Reliance. Around budget time, he gets uncomfortable with the price movements. One contract on Reliance is equivalent to 100 shares. Which of the following will give him the hedge he desires?

Accepted Answer

Sell 10 Reliance futures contracts

Answer

Buy 5 Reliance futures contracts

Answer

Sell 5 Reliance futures contracts

Answer

Buy 10 Reliance futures contracts

Question 2

Who said, "Money consists of those things which within a society, are of general acceptability"?

Accepted Answer

Ely

Answer

Marshal

Answer

Keynes

Answer

Crowther

Question 3

Which of the following is not true about Payments Bank?

Accepted Answer

Payments Bank can give a loan of up to only Rs. 1 lakh

Answer

Payments bank can issue ATM/debit cards but not credit cards

Answer

Initial capital required for a Payments Bank is Rs. 100 crore

Answer

Payments Bank must maintain Cash Reserve Ration (CRR) as decided by RBI

Question 4

Value of money refers to

Accepted Answer

General purchasing power of money

Answer

Gold purchased by money

Answer

Demand for money

Answer

Value intrinsic in money

Question 5

BRICS Bank is based on

Accepted Answer

Shanghai

Answer

Hongkong

Answer

Johannesburg

Answer

Brazil

Question 6

To revitalize RRBs, the Central Government has taken some significant steps. One of these is not such a step:

Accepted Answer

RRBs can undertake Insurance Business

Answer

made SARFAESI Act applicable to RRBs

Answer

permitted RRBs to accept NRI deposits

Answer

permitted RRBs for Branch Expansion

Question 7

E-banking is synonymous with

Accepted Answer

tele banking

Answer

internet banking

Answer

euro banking

Answer

None of these

Question 8

Match the following. List-I List-II a. Certificate of deposits 1. 91 days, 182 days and 346 days b. Debentures 2. 3 to 5 months c. Treasury bills 3. 1 day to 270 days d. Commercial papers 4. Longer period in years

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 9

According to the recent guidelines (2013) of the Reserve Bank of India the Private Sector Banks are required to have a minimum paid up equity capital of

Accepted Answer

Rs. 500 crores

Answer

Rs. 300 crores

Answer

Rs. 200 crores

Answer

Rs. 400 crores