Banking and Financial Institutions MCQs

Question 1

Pillar-II of RBI's new capital adequacy framework (Basel-II guidelines) prescribes that

Accepted Answer

None of the above

Answer

banks are required to adhere to market discipline by furnishing a set of disclosure requirements, which will enable market participants to assess key pieces of information on the scope of application, capital, risk exposure and risk assessment processes and hence, the capital adequacy of the institution

Answer

banks will come under supervisory review process of RBI in regard to efficacy of their risk management system and will have to adhere to "Internal capital adequacy assessment process" to capture risks such as liquidity risks, reputational risks etc. Other than those prescribed under Pillar-I to convince RBI that adequate capital is maintained for various risks they are exposed to

Answer

banks are required to maintain minimum 9% capital adequacy for credit risk, market risk and operational risk

Question 2

Monetary policy is prepared and declared by . . . . . . . .

Accepted Answer

RBI

Answer

Govt. of India

Answer

State Govt.

Answer

SBI

Question 3

The chief promoter of 'Clearing Corporation' is

Accepted Answer

SBI

Answer

RBI

Answer

Financial Ministry

Answer

None of these

Question 4

In India, mergers and acquisition of firms are regulated by:

Accepted Answer

Competition Commission of India

Answer

National Manufacturing Competitiveness Council

Answer

Security and Exchange Board of India

Answer

Department of Industrial Policy and Promotion

Question 5

When the insurance paper is not depositon time, then it is known as

Accepted Answer

timeless insurance

Answer

underinsurance paper

Answer

max insurance paper

Answer

All of these

Question 6

Arrange the following banks in order, in which they were established. 1. IDBI 2. IFCI 3. SIDBI 4. IIBI

Accepted Answer

2, 1, 3, 4

Answer

2, 1, 4, 3

Answer

1, 2, 3, 4

Answer

1, 2, 4, 3

Question 7

Credit gaps can be eliminated by reducing

Accepted Answer

information asymmetry

Answer

size of the firm

Answer

Both A and B

Answer

None of these

Question 8

The relationship between value of money and general price level is:

Accepted Answer

Inverse

Answer

Direct

Answer

Indirect

Answer

Proportional

Question 9

Match the items of List-I with the items of List-II and select the correct option. List-I List-II a. Relationship Banking 1. Dealing in hundis and acceptance of deposits. b. Merchant Banking 2. Widening the entrepreneurial base and assist in a rapid rate of industrial growth. c. Indigenous Banking 3. Engaged in the business of Issue Management. d. Development Banking 4. Creating, maintaining and enhancing strong relationship with customers.

Accepted Answer

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

Answer

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

Answer

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

Answer

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