Banking and Financial Institutions MCQs

Question 1

"BCSBI" stands for:

Accepted Answer

Banking Codes and Standards Boards of India

Answer

Board Code for Standards in Branches

Answer

Board Code for Standards in Banking

Answer

None of the above

Question 2

In regard to assigning risk weight to NPAs, which one of the following is incorrect?

Accepted Answer

50% risk weight, when specific provisions are more than 50% of the outstanding amount of the NPA

Answer

150% risk weight, when specific provisions are less than 20% of the outstanding amount of the NPA

Answer

100% risk weight, when specific provisions are atleast 20% of the outstanding amount of the NPA

Answer

50% risk weight, when specific provisions are atleast 50% of the outstanding amount of the NPA

Question 3

Which of the following reasons was not responsible for the establishment of IMF?

Accepted Answer

To assist the member countries in the post war reconstruction

Answer

To achieve the exchange rate stability

Answer

To help the member countries to finance short term balance of payment deficit

Answer

All are correct

Question 4

As per the Master Circular on "Prudential Norms on Capital Adequacy - Basel I Framework", elements of Tier I capital include: 1. Authorized Capital (Ordinary shares), statutory reserves, all other free reserves (disclosed), if any. 2. Paid-up capital (Preference shares). 3. Perpetual Non-Cumulative Preference Shares (PNCPS). 4. Innovative Perpetual Debt Instruments (IPDI).

Accepted Answer

3 and 4 only

Answer

1 and 2 only

Answer

2 and 3 only

Answer

1 and 3 only

Question 5

Life Insurance Corporation was established as a:

Accepted Answer

Public Corporation

Answer

Government Company

Answer

Holding Company

Answer

Subsidiary Company

Question 6

ETFs are . . . . . . . . ended funds that can be bought at prices, which vary during the day and operate with low tracking error.

Accepted Answer

open

Answer

close

Answer

Both A and B

Answer

None of the above

Question 7

Which of the following can be identified as the proper sequence of banking sector phases in India? 1. It was under private sector control. 2. There was social control. 3. Nationalization happened. 4. There was deregulation.

Accepted Answer

1, 2, 3, 4

Answer

2, 3, 1, 4

Answer

2, 1, 3, 4

Answer

1, 3, 4, 2

Question 8

The central bank can significantly influence the savings, investments and consumer spending in the economy through which of the following policy?

Accepted Answer

Monetary Policy

Answer

Fiscal Policy

Answer

Industrial Policy

Answer

Foreign Exchange Policy

Question 9

A lost asset refers to:

Accepted Answer

where the loss has been identified by the bank

Answer

remaining NPA for less than or equal to 12 months

Answer

remaining NPA for more than 12 months

Answer

when loan is overdue for a period of 1 year