Banking and Financial Institutions MCQs

Question 1

The bank rate means

Accepted Answer

rate at which RBI purchases or rediscounts bills of exchange of commercial banks

Answer

rate of interest allowed by commercial banks on their deposits

Answer

rate of interest charged by commercial banks from borrowers

Answer

rate of interest at which commercial banks discounted bills of their borrowers

Question 2

Currency Swaps are:

Accepted Answer

None of the above

Answer

common currency transactions involving borrowing and lending

Answer

currency loans from a foreign country

Answer

back-to-back loan

Question 3

Call money rate is applicable for a very short period to:

Accepted Answer

Interbank advances

Answer

Bank to Reserve Bank advances

Answer

Reserve Bank to Bank advances

Answer

Commercial Banks to Industrial Banks advances

Question 4

Match the following items of List-I with the items of List-II: List-I List-II a. IDBI 1. 1956 b. ICICI 2. 1955 c. LIC of India 3. 1990 d. SIDBI 4. 1964

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 5

Earliest known cooperative credit union 'Anyonya Sahakari Mandali' was founded in which year?

Accepted Answer

1889

Answer

1965

Answer

1912

Answer

1770

Question 6

A . . . . . . . . card is basically a payment mechanism which allows the holder of the card to make purchase without any immediate cash payment.

Accepted Answer

credit

Answer

ATM

Answer

debit

Answer

Kisan credit land

Question 7

The central office of the Life Insurance Corporation of India (LIC) is located to

Accepted Answer

Mumbai

Answer

Kolkata

Answer

New Delhi

Answer

Pune

Question 8

Which of the following is false about NBFCs?

Accepted Answer

NBFCs cannot undertake insurance business

Answer

NBFCs cannot accept demand deposits

Answer

NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself

Answer

deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs

Question 9

Which of the following statement/s is/are true about Basic Savings Bank Deposit Account?

Accepted Answer

It was earlier called "No frills account"

Answer

This is special type of bank account only Micro finance institutes can open

Answer

Only BPLs and self-help groups can apply for it

Answer

They get higher interest rate than (regular) savings account