Banking and Financial Institutions MCQs

Question 1

When the amount for which a subject matter is insured is more than its actual value, it is called:

Accepted Answer

Double Insurance

Answer

Premium

Answer

Reinsurance

Answer

Co-insurance

Question 2

Match the following. List-I (Mutual Fund Schemes) List-II (Characteristics) a. Open-ended mutual fund schemes 1. It offers capital appreciation of the underlying investment. b. Close-ended mutual fund scheme 2. It is a fund accepted and liquidated on a continuous basis by a mutual fund manager. c. Growth fund scheme 3. It is also known as regional or country fund. d. Off-shore mutual fund 4. No exit possible till the closure of the scheme.

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 3

Which of the following dates was suggested by Nachiket Mor Committee that was set up by RBI for issuing vision statements?

Accepted Answer

Bank account for every citizen by 2016

Answer

Bank account for every resident by 2018

Answer

Bank account for every BPL by 2018

Answer

Bank account for every resident by 2016

Question 4

Which of the following statements are correct in context of IFCI?

Accepted Answer

All of the above

Answer

IDBI, Scheduled banks, insurance companies, investment trusts and co-operative banks are the shareholders of IFCI

Answer

IFCI is authorized to issue bonds and debentures in the open market, to borrow foreign currency from the World Bank and other organizations, accept deposits from the public and also borrow from the RBI

Answer

IFCI provides Soft Loan Assistance, Entrepreneur Development Programme, Industrial Development in Backward Area stypes of aids to industry

Question 5

In which year SARFAESI Act came into existence?

Accepted Answer

2002

Answer

1999

Answer

2000

Answer

2001

Question 6

"Money is a standard for deferred payments." This function of money comes in the category of:

Accepted Answer

secondary function

Answer

primary function

Answer

contingent function

Answer

other function

Question 7

The Indian banking sector is facing the problem of heavy NPAs. Which among the following industries has contributed least to the level of NPAs?

Accepted Answer

Software and BPO

Answer

Realestate sector

Answer

Iron and steel

Answer

Infrastructural development

Question 8

Which of the following assumes the counterparty risk of each member and guarantees financial settlement?

Accepted Answer

The National Securities Clearing Corporation Ltd. (NSCCL)

Answer

SEBI

Answer

Central Depository Services Ltd. (CDSL)

Answer

The National Depository Services Ltd. (NSDL)

Question 9

Nationalised banks have been permitted to offer their equity shares to the public to the extent of 49% of their capital as per amendments made in 1994 in

Accepted Answer

Banking Companies (Acquisition and Transfer of Undertakings) Acts, 1970/1980

Answer

Banking Regulation Act, 1949

Answer

Both A and B

Answer

None of the above