Banking and Financial Institutions MCQs

Question 1

Find correct statements about National Small savings fund (NSSF).
1. Money from this fund, is utilized for covering the fiscal deficit of the Union and states.
2. Parliamentary approval is not necessary for utilizing funds from NSSF.

Accepted Answer

1 is correct

Answer

1 and 2

Answer

Neither 1 nor 2

Answer

2 is correct

Question 2

Consider the following statements and select the correct option.
Assertion (A): The impact of depreciating Indian Rupee leads to less competition for Indian firms from imports.
Reason (R): The depreciating Indian Rupee results in downward pressure on inflation.

Accepted Answer

(A) is true, but (R) is false

Answer

Both (A) and (R) are correct

Answer

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

Answer

Both (A) and (R) are false

Question 3

As per the Master Circular on "Prudential Norms on Capital Adequacy - Basel I Framework", elements of Tier I capital include:
1. Authorized Capital (Ordinary shares), statutory reserves, all other free reserves (disclosed), if any.
2. Paid-up capital (Preference shares).
3. Perpetual Non-Cumulative Preference Shares (PNCPS).
4. Innovative Perpetual Debt Instruments (IPDI).

Accepted Answer

3 and 4 only

Answer

1 and 2 only

Answer

2 and 3 only

Answer

1 and 3 only

Question 4

Secondary market intermediaries for corporate securities in India are: 1. Investors 2. Jobbers 3. Brokers and sub-broker 4. Portfolio consultants

Accepted Answer

2, 3 and 4 only

Answer

1, 2 and 3 only

Answer

2 and 3 only

Answer

3 and 4 only

Question 5

Match the items of List-I with those List-II and select correct answer: List-I List-II a. Narasimham Committee 1. Lending under consortium arrangement b. Shetty Committee 2. Frauds and Malpractices in banks c. Ghosh Committee 3. Securities operations of banks and financial institutions d. Janakiraman 4. Financial system in India Committee

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 6

The Industrial Development Bank of India (IDBI) was established in

Accepted Answer

1 st July, 1964

Answer

1 st July, 1954

Answer

1 st April, 1964

Answer

None of the above

Question 7

Match the following. List-I (Mutual Fund Schemes) List-II (Characteristics) a. Open-ended mutual fund schemes 1. It offers capital appreciation of the underlying investment. b. Close-ended mutual fund scheme 2. It is a fund accepted and liquidated on a continuous basis by a mutual fund manager. c. Growth fund scheme 3. It is also known as regional or country fund. d. Off-shore mutual fund 4. No exit possible till the closure of the scheme.

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 8

Which of the following is not true about Mobile Money Identifier (MMID)?

Accepted Answer

A unique MMID and mobile number combination helps in identifying the beneficiary's details. A single MMID can be linked to a mobile number

Answer

Mobile Money Identifier (MMID) is a seven-digit number, issued by banks for effecting financial transactions through the user's mobile phone

Answer

The user's mobile number MMID are uniquely linked with his bank account number, and is one of the key inputs to facilitate fund transfer

Answer

Both the remitter and the beneficiary are required to have their MMIDs to effect a fund transfer through the mobile phone

Question 9

Which of the following statement/s is/are reference to money markets?
1. Call money refers to borrowing/lending of funds on overnight basis.
2. Notice money refers to borrowing/lending of funds for a period exceeding 14 days.

Accepted Answer

1 only

Answer

2 only

Answer

Both 1 and 2

Answer

Neither 1 and 2

List-I	List-II
a. Narasimham Committee	1. Lending under consortium arrangement
b. Shetty Committee	2. Frauds and Malpractices in banks
c. Ghosh Committee	3. Securities operations of banks and financial institutions
d. Janakiraman	4. Financial system in India Committee

List-I (Mutual Fund Schemes)	List-II (Characteristics)
a. Open-ended mutual fund schemes	1. It offers capital appreciation of the underlying investment.
b. Close-ended mutual fund scheme	2. It is a fund accepted and liquidated on a continuous basis by a mutual fund manager.
c. Growth fund scheme	3. It is also known as regional or country fund.
d. Off-shore mutual fund	4. No exit possible till the closure of the scheme.