Banking and Financial Institutions MCQs

Question 1

Which one of the following statement(s) is/are incorrect?

Accepted Answer

Securitisation exposures shall be deducted from regulatory capital and the deduction must be made 50% from Tier I and 50% from Tier II capital

Answer

For computation of Tier I capital, intangible assets and losses in the current period and those brought forward from previous year, should be deducted from Tier I capital

Answer

Any gain or loss arising at the time of securitisation of standard assets, if recognised, should be deducted from Tier I capital

Answer

All of the above

Question 2

Which condition of the following is shown by improvement in regular declining price level?

Accepted Answer

Reflation

Answer

Inflation

Answer

Deflation

Answer

None of the above

Question 3

From which date, banks were allowed free to fix base rates by RBI?

Accepted Answer

1st April, 2011

Answer

1st April, 2012

Answer

1st April, 2013

Answer

None of these

Question 4

Profitable investment of a Commercial bank includes

Accepted Answer

All of the above

Answer

Money at call and short notice

Answer

Discounting of bills

Answer

Treasury bills

Question 5

Which of the following statements is the best explanation of how insurance allows a company to manage risk?

Accepted Answer

Transferring risk

Answer

By avoiding risk

Answer

Modifying risk

Answer

By preventing risk

Question 6

Balance of Trade of a country is equivalent to:

Accepted Answer

difference between exports and imports

Answer

difference between the Inward and Outward remittances made in foreign exchange

Answer

surplus generated shown in a Trading Account

Answer

None of the above

Question 7

Which of the following is maintained by NSE to make good investor claims, which may arise out of non-settlement of obligations by the trading member, who has been declared defaulter, in respect of trades executed on the exchange.

Accepted Answer

Investor Protection Fund (IPF)

Answer

Investor Education and Reimbursement Fund (lERF)

Answer

Investor Reimbursement Fund (IRF)

Answer

Investor Education and Protection Fund (lEPF)

Question 8

Money spread is due to-

Accepted Answer

All of the above

Answer

Excess money issue

Answer

Decrease in production

Answer

Budget deficit

Question 9

The Monopolistic and Restrictive Trade Practices Act (MRTP) came into force from the year:

Accepted Answer

1970

Answer

1949

Answer

1959

Answer

1969