Banking and Financial Institutions MCQs

Question 1

Identify the years in which different phases of bank nationalisation took place in India. 1. 1950 2. 1955 3. 1969 4. 1949 5. 1980 Select the correct answer:

Accepted Answer

2, 3 and 5

Answer

1, 2, 3 and 4

Answer

2, 4 and 5

Answer

3, 4 and 5

Question 2

Assertion (A) "The problem of rural credit is not primarily one of rural credit, it may be said to be one of rural minded credit." Reason (R) The Indian economy has yet to come out of rural mentality.

Accepted Answer

Both (A) and (R) are incorrect

Answer

Both (A) and (R) are correct

Answer

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

Answer

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

Question 3

Which of the following are the forms of e-banking? 1. Internet Banking 2. Telephone Banking 3. Electronic Cheque Conversion 4. Electronic Bill Payment 5. Direct Fund Transfer Through RTGS

Accepted Answer

1, 2, 3, 4 and 5

Answer

1, 3 and 4

Answer

1, 2, 3 and 4

Answer

2, 3 and 4

Question 4

Which among the following is NOT a correct statement?

Accepted Answer

The Reserve Bank of India worked as Central Bank of Bangladesh from January 1972 to December 1975

Answer

The Reserve Bank of India worked as Central Bank of Burma till April 1947

Answer

The Reserve Bank of India worked as Central Bank of Pakistan till June 1948

Answer

The Reserve Bank of India commenced its operations on 1 st April 1935

Question 5

Match the items in List-I with the items in List-II : List-I List-II a. ATM card 1. NPA b. Debts due for more than 30 days 2. John Shephard Barron c. Micro finance 3. State Finance Corporations Act d. State level finance corporations 4. NABARD

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 6

Select the major principles which banks strive to incorporate in their working form the following: (i) Profitability (ii) Labour welfare (iii) Social welfare (iv) Safety (v) HRD (vi) Liquidity

Accepted Answer

(i), (iii), (iv), (vi)

Answer

(i), (ii), (iv), (v)

Answer

(iii), (iv), (v), (vi)

Answer

(i), (ii), (iii), (iv)

Question 7

Match the items of List-I with List-II in terms of functions of a bank. List-I List-II a. Underwriting 1. Primary Functions b. Transfer of funds 2. Granting Advances c. Overdraft 3. Utility Functions d. Recurring Deposits 4. Agency Functions

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 8

Which of the following are functions of a financial system?
1. The operation of a payments system.
2. Provides the means of portfolio adjustment.
3. Helping to reduce unemployment.
4. Channelizing funds between lenders and borrowers.
5. Helping speculators to bet on price movements.

Accepted Answer

1, 2 and 4

Answer

2, 3 and 5

Answer

1, 3 and 5

Answer

2, 3 and 4

Question 9

Which combination of the following methods indicates quantitative methods of control of credit creation practiced by the Reserve Bank of India?
1. Bank Rate
2. Open Market Operations
3. Variable Reserve Ratios
4. Credit Rationing

Accepted Answer

1, 2 and 3

Answer

1, 2 and 4

Answer

2, 3 and 4

Answer

1, 3 and 4

List-I	List-II
a. ATM card	1. NPA
b. Debts due for more than 30 days	2. John Shephard Barron
c. Micro finance	3. State Finance Corporations Act
d. State level finance corporations	4. NABARD

List-I	List-II
a. Underwriting	1. Primary Functions
b. Transfer of funds	2. Granting Advances
c. Overdraft	3. Utility Functions
d. Recurring Deposits	4. Agency Functions