Banking and Financial Institutions MCQs

Question 1

Why venture capital is considered risky in nature?
1. The business plan in which venture capitalists invest is usually non-conventional in nature
2. Venture capitalists contribute towards a debt of the product
3. Venture capitalists contribute money for a long time period

Accepted Answer

1 and 3 only

Answer

3 only

Answer

1 and 2 only

Answer

1, 2 and 3

Question 2

Which among the following is not true with regard to merchant banker?
1. It can accept deposits.
2. It can advance loans.
3. It can do other banking activities.
4. It can be managed to a public issue.
Select the correct answer:

Accepted Answer

1, 2 and 3

Answer

2, 3 and 4

Answer

1, 3 and 4

Answer

Both 2 and 4

Question 3

Assertion (A): The future will see mostly the electronic money clearance through satellite networking. Reason (R): RBI is encouraging e-banking.

Accepted Answer

Both (A) and (R) are true and (R) is the correct explanation of (A)

Answer

(A) is true, (R) is false

Answer

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

Answer

Both (A) and (R) are true, but (R) does not support (A)

Question 4

Match the items of List-I with the items of List-II and select a correct option: List-I List-II a. SEBI 1. Exchange for small companies b. RBI 2. Secondary market in treasury bills c. STCI 3. Regulation of secondary market d. OTCEI 4. Ad-hoc treasury bills

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 5

Match List-I with List-II and select the correct answer: List-I List-II a. Reserve Bank of India 1. NPA b. EXIM Bank 2. Facilitating small scale industries c. SIDBI 3. Credit control d. Capital Adequacy 4. Export/Import financing

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 6

Which among the following in India can use 'Repo Bonds' to raise Short-term money from markets? 1. Commercial Bank 2. Regional Bank 3. Corporate 4. Governments Select the above correct statements.

Accepted Answer

1 and 3

Answer

Only 3

Answer

Only 1

Answer

2 and 4

Question 7

Foreign Exchange Management Act was implemented in India on

Accepted Answer

1 st June, 2000

Answer

1 st July, 2000

Answer

1 st June, 1999

Answer

1 st July, 1999

Question 8

Which of the following are the characteristic of a financial intermediary?
1. It introduces borrowers to lenders.
2. It has assets which exceed liabilities.
3. It increases liquidity for lenders.
4. It reduces transaction costs for borrowers and lenders.
5. It makes excess profit.

Accepted Answer

3 and 4

Answer

2 and 3

Answer

1, 2 and 3

Answer

3, 4 and 5

Question 9

Match List-I with List-II and select the 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 bank and financial institutions d. Janakiraman Committee 4. Financial system in India

Accepted Answer

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

Answer

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

Answer

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

Answer

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

List-I	List-II
a. SEBI	1. Exchange for small companies
b. RBI	2. Secondary market in treasury bills
c. STCI	3. Regulation of secondary market
d. OTCEI	4. Ad-hoc treasury bills

List-I	List-II
a. Reserve Bank of India	1. NPA
b. EXIM Bank	2. Facilitating small scale industries
c. SIDBI	3. Credit control
d. Capital Adequacy	4. Export/Import financing

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 bank and financial institutions
d. Janakiraman Committee	4. Financial system in India