Banking and Financial Institutions MCQs

Question 1

Which type of insurance usually requires higher premium?

Accepted Answer

Broad form insurance

Answer

Whole life insurance

Answer

Health insurance

Answer

Term insurance

Question 2

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 3

When a loan will be NPA?

Accepted Answer

All of the above

Answer

Interest and/or loan instalments overdue for more than 90 days

Answer

The account is out of order for more than 90 days in case of overdraft/cash credit

Answer

Bill remains overdue for more than 90 days

Question 4

The powers of Controller of Capital Issues of India is now shifted of

Accepted Answer

SEBI

Answer

Ministry of Finance

Answer

AMFI

Answer

Ministry of Corporate Affairs

Question 5

The major outcome of the Bretton Woods Conference was:

Accepted Answer

Establishment of IMF and IBRD

Answer

Establishment of IMF and IFC

Answer

Establishment of IBRD and IFC

Answer

Establishment of IBRD and ADB

Question 6

Which is the measure of quantitative credit control is not

Accepted Answer

Credit rationing/rationing of credit

Answer

Bank rate

Answer

Open market activities

Answer

Variable fund ratio

Question 7

Any person or persons acting in concert, who together own . . . . . . . . or more of the open interest in index derivatives are required to disclose the same to the clearing corporation.

Accepted Answer

15%

Answer

35%

Answer

5%

Answer

1%

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

Domestic Currency tends to depreciate owing to:

Accepted Answer

High inflation rate

Answer

Constant inflation rate

Answer

Lowering of inflation rate

Answer

All of the above