Banking and Financial Institutions MCQs
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Question 1108hard
Which of the following statement is incorrect?
$$\eqalign{ & 1.{\text{NPAs}} = \left[ {\frac{{{\text{Gross or Net NPAs}}}}{{{\text{Total advances}}}}} \right] \times 100 \cr & 2.{\text{Net NPAs}} = {\text{Gross NPAs}} - {\text{Provision for NPAs}} \cr & 3.{\text{CAR}} = \frac{{{\text{Tier two capital}} + {\text{Tier three capital}}}}{{{\text{Risk weighted assets}}}} \cr} $$
4. Capital fund has two tiers - Tier I or core capital Tier II
$$\eqalign{ & 1.{\text{NPAs}} = \left[ {\frac{{{\text{Gross or Net NPAs}}}}{{{\text{Total advances}}}}} \right] \times 100 \cr & 2.{\text{Net NPAs}} = {\text{Gross NPAs}} - {\text{Provision for NPAs}} \cr & 3.{\text{CAR}} = \frac{{{\text{Tier two capital}} + {\text{Tier three capital}}}}{{{\text{Risk weighted assets}}}} \cr} $$
4. Capital fund has two tiers - Tier I or core capital Tier II
Question 1109hard
Read the following statements and choose the correct answer:
Statement I: Small Industry Development Bank of India (SIDBl) was set-up as a wholly owned subsidiary of RBI.
Statement II: SIDBI has taken over the responsibility of administering small industry development fund managed by IDBI.
Statement I: Small Industry Development Bank of India (SIDBl) was set-up as a wholly owned subsidiary of RBI.
Statement II: SIDBI has taken over the responsibility of administering small industry development fund managed by IDBI.
Question 1110hard
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. |
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Question 1111hard
Which of the following statement/s is/are correct?
1. Small Industry Development Bank of India (SIDBI) was set-up as a whole owned subsidiary of the RBI.
2. SIDBI has taken over the responsibility of administering Small Industry Development Fund managed by the IDBI.
1. Small Industry Development Bank of India (SIDBI) was set-up as a whole owned subsidiary of the RBI.
2. SIDBI has taken over the responsibility of administering Small Industry Development Fund managed by the IDBI.
Question 1112hard
What is a mutual fund?
1. A type of collective investment scheme that pools money from many investors and invests it in stocks, bonds or other money market instruments.
2. It is a subsidiary of a bank or financial company created specially to raise money to be invested in a particular industry such as housing, infrastructure, etc.
3. When several banks and financial companies come together and create a common pool of money to fund mega infrastructural project like bridges, roads, power plants, etc., the common pool is known as mutual fund.
1. A type of collective investment scheme that pools money from many investors and invests it in stocks, bonds or other money market instruments.
2. It is a subsidiary of a bank or financial company created specially to raise money to be invested in a particular industry such as housing, infrastructure, etc.
3. When several banks and financial companies come together and create a common pool of money to fund mega infrastructural project like bridges, roads, power plants, etc., the common pool is known as mutual fund.
Question 1113hard
Match the following definitions with their authors
| List-I (Definition of money) | List-II (Economist) |
| a. Money is what money does | 1. Walker |
| b. Anything that is widely accepted in exchange for goods or business obligations | 2. G. D. H. Cole |
| c. The essence of money is that after a function of circulation can be given from one hand to another for another task | 3. D. H. Robertson |
| d. A commodity for which there is a general acceptance | 4. Seligman |
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Question 1114hard
Out of the following, which are the schemes of Social Security?
(i) Provident Fund Scheme
(ii) Health Insurance Scheme
(iii) Job Guarantee Scheme
(iv) Maternity Benefit Scheme
(v) Merit Promotion Scheme
(vi) Compulsory and Voluntary Social Insurance Scheme
(vii) Child Insurance Scheme
(i) Provident Fund Scheme
(ii) Health Insurance Scheme
(iii) Job Guarantee Scheme
(iv) Maternity Benefit Scheme
(v) Merit Promotion Scheme
(vi) Compulsory and Voluntary Social Insurance Scheme
(vii) Child Insurance Scheme
Question 1115hard
Which of the following statement is/are correct?
1. 50 paise coin is limited legal tender money in India.
2. Bills of exchange is an optional money.
Select the correct answer:
1. 50 paise coin is limited legal tender money in India.
2. Bills of exchange is an optional money.
Select the correct answer:
Question 1116hard
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 |