Banking and Financial Institutions MCQs

Question 1

Concentration Banking is a method of:

Accepted Answer

Decentralised collection

Answer

Centralised collection

Answer

Direct collection

Answer

Payment only through cheques

Question 2

Arrange the following financial institutions in ascending order of their year of establishment: 1. National Housing Bank 2. Export-Import Bank of India 3. NABARD 4. Unit Trust of India Choose the correct option:

Accepted Answer

4, 2, 3, 1

Answer

2, 4, 3, 1

Answer

4, 2, 1, 3

Answer

4, 3, 2, 1

Question 3

Which of the following statement is true?

Accepted Answer

The RBI is a banker to both Central and State Government

Answer

The currency notes issued by RBI are legal tender throughout the world

Answer

All commercial banks including those owned by government do not need a licence from the RBI to do banking business

Answer

The treasury bills are sold by the RBI for raising its working capital

Question 4

The risks involved in paying a post-dated cheque are:

Accepted Answer

the drawer may stop payment

Answer

the drawer may issue other cheques which bear a date prior to the date of such a cheque and if the balance is insufficient, the bank may be held liable

Answer

an Attachment Order may be received attaching the balance in the account

Answer

the drawer may become insolvent or die

Question 5

The different forms of IMF assistance are given below. Identify the one which is mainly meant for Less Developed Countries (LDCs)

Accepted Answer

Compensatory Financing Facility

Answer

Credit Tranche Drawing

Answer

Extended Fund Facility

Answer

Structural Adjustment Facility

Question 6

Which one of the following is not the objective of UTI?

Accepted Answer

To maximize mobilization of people's savings by making insurance linked savings adequately attractive

Answer

To give everyone a chance to indirectly own shares and securities in a large number of select companies

Answer

To channelize the pooled savings into productive out-lets

Answer

To mobilize savings of the community by offering savers the triple benefits of safety liquidity and profitability of investments

Question 7

PIN in banking transaction is known as

Accepted Answer

Personal Identification Number

Answer

Postal Index Number

Answer

Permanent Identification Number

Answer

Public Interlocking Numeric

Question 8

Currency chest balance will be periodically verified by

Accepted Answer

Both A and B

Answer

Bank's own officials

Answer

RBI officials

Answer

Officials of AG's office

Question 9

Match the items of List-I with List-Il. List-I List-II a. Future 1. Consists of purchase or sale of commodities in two different markets with the expectations that a future change in price in one market will be offset by an opposite change in the other market b. Swap 2. A contract in which a seller agrees to deliver an asset to a buyer at a predetermined price at some future date as privately negotiated c. Hedging 3. A contractual agreement for exchanging a steam of payments with opposite and matching needs, to reap the benefit arising due to market discrepancies d. Forward 4. A contract covering the purchase and sale of physical commodities or financial instruments for future delivery on a future exchange floor

Accepted Answer

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

Answer

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

Answer

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

Answer

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