Banking and Financial Institutions MCQs

Question 1

Assets which has remained NPA for a period less than or equal to 12 months is called as:

Accepted Answer

Substandard Assets

Answer

Loss Assets

Answer

Doubtful Assets

Answer

None of these

Question 2

In order to encourage investment in the country, the RBI may

Accepted Answer

reduce CRR

Answer

increase CRR

Answer

sell securities in the open market

Answer

increase bank rate

Question 3

Uncertain events are broadly classified as:

Accepted Answer

predictable and unpredictable

Answer

possible and impossible

Answer

natural and artificial

Answer

rare and continuous

Question 4

The Unit Trust of India (UTI) came into existence in

Accepted Answer

1964

Answer

1960

Answer

1968

Answer

1972

Question 5

The powers of the Board of Directors to borrow from the bank are mentioned in

Accepted Answer

Memorandum of Association

Answer

Article of Association

Answer

Special Resolution

Answer

Both A and B

Question 6

Which of the following is not true about Immediate Payment Service (IMPS)?

Accepted Answer

To use IMPS, both the account holder and beneficiary needs to have Mobile Money Identifier (MMID)

Answer

IMPS offers an instant, 24X7, interbank electronic fund transfer service through mobile phones

Answer

The facility is provided by National Payments Corporation of India through its existing NFS switch

Answer

Internet Banking Account facilitates IMPS to transfer money to any account

Question 7

Money which performs the functions as medium of exchange is called-

Accepted Answer

real money

Answer

commodity money

Answer

accounting money

Answer

none of the above

Question 8

Match the following. List-I List-II a. Reserve Bank of India 1. 1975 b. Nationalisation of 14 major commercial banks 2. 1935 c. Nationalisation of 6 commercial banks 3. 1969 d. Regional Rural Banks 4. 1980

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 9

Which one of the following statement is incorrect?

Accepted Answer

Credit card is a way to 'pay now', a debit card is a way to 'pay later'

Answer

ATMs are part of virtual banking

Answer

A smart card is also known as Integrated Circuit Card (ICC)

Answer

Debit cards are known as check cards