Banking and Financial Institutions MCQs

Question 1

Escrow account is useful/helpful to:

Accepted Answer

Exporters

Answer

Importers

Answer

Both A and B

Answer

None of these

Question 2

SCORES stands for:

Accepted Answer

SEBI Complaints Redress System

Answer

Special Complaints Redress System

Answer

Sources for Complaints Redress System

Answer

None of These

Question 3

Which of the following statement/s is/are correct? 1. NBFCs does not hold a banking license. 2. NBFC can issue Demand Drafts like banks.

Accepted Answer

1 is correct

Answer

2 is correct

Answer

1 and 2 is correct

Answer

None of the above

Question 4

Assertion (A): Most of the development bank in India have setup private commercial banks after the introduction of capital adequacy norms. Reason (R): Development banks in India have not adhered to their basic objectives.

Accepted Answer

(A) is correct, but (R) is incorrect

Answer

(A) and (R) both are correct and (R) is correct explanation of (A)

Answer

(A) and (R) both are correct but (R) is not a correct explanation of (A)

Answer

(R) is correct, but (A) is incorrect

Question 5

Which of the following is not a function of Foreign Exchange Market?

Accepted Answer

Stabilization function

Answer

Hedging function

Answer

Credit function

Answer

Transfer function

Question 6

Which of the following institution was first established

Accepted Answer

Industrial Finance Corporation (IFCI)

Answer

Industrial development bank of India (IDBI)

Answer

Unit trust of India (UTI)

Answer

Industrial Credit and Investment Corporation of India (ICICI)

Question 7

Skimming' in e-banking refers to

Accepted Answer

Identifying fraudsters copying vital information from credit cards

Answer

Multiple transactions by one credit card

Answer

Conversion of a debit card into credit card

Answer

None of the above

Question 8

Which of the following are the core objectives of the FSDC? 1. Acts as an apex level forum to strengthen and institutionalize the mechanism for maintaining financial stability 2. Enhance inter-regulatory coordination and promoting financial sector development in the country

Accepted Answer

Both 1 and 2

Answer

1 only

Answer

2 only

Answer

Neither 1 nor 2

Question 9

Which of the following is not the principle of insurance?

Accepted Answer

Maximisation of profit

Answer

Utmost good faith

Answer

Principle of contribution

Answer

Causa proxima