Banking and Financial Institutions MCQs

Question 1

Which among the following is not a subsidiary of RBI? 1. Deposit Insurance and Credit Guarantee Corporation of India. 2. Bharatiya Reserve Bank Note Mudran Private Limited.

Accepted Answer

Neither 1 nor 2

Answer

Only 1

Answer

Only 2

Answer

Both 1 and 2

Question 2

Demand draft for Rs. 20,000 and above:

Accepted Answer

should not be paid in cash

Answer

can be paid in cash

Answer

mode of payment will depend on the status of the customer

Answer

None of the above

Question 3

What is the expansion of the term SARFAESI Act?

Accepted Answer

Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest

Answer

Securitisation and Reconstruction of Financial Assets and Enforcement of Social Interest

Answer

Securitisation and Reconstruction of Financial Assets and Enactment of Security Interest

Answer

Securitisation and Reconstruction of Ferry Assets and Enforcement of Security Interest

Question 4

Consider the following statements. Assertion (A): The future will see mostly the electronic money clearance through satellite networking. Reasoning (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, but (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 5

Which of the following would be treated as 'worst money' according to Gresham's law?

Accepted Answer

Convertible paper money

Answer

Representative paper money

Answer

Non-convertible paper money

Answer

Fiat money

Question 6

The major shareholders in Asset Reconstruction Company of India Limited (ARCIL) other than SBI are:

Accepted Answer

IDBI & ICICI

Answer

IDBI & Canara Bank

Answer

ICICI & HDFC

Answer

IDBI & HDFC

Question 7

Bank rate is also known as

Accepted Answer

discount rate

Answer

penalty rate

Answer

interest rate

Answer

None of these

Question 8

Which of the following is the risk of default on a debt that may arise from a borrower failing to make required payments?

Accepted Answer

Market Risk

Answer

Credit Risk

Answer

Operational Risk

Answer

Forex Risk

Question 9

Which bank has secured four awards for inclusive insurance in 2016 from Skoch Group?

Accepted Answer

Karnataka Vikas Grameen Bank

Answer

Telangana Grameen Vikas Bank

Answer

Prathama Gramin Bank

Answer

Vidarbha Konkan Gramin Bank