Banking and Financial Institutions MCQs

Question 1

Who is authorised to issue coins of smaller denomination in India?

Accepted Answer

Ministry of Finance

Answer

RBI

Answer

SBI

Answer

None of the above

Question 2

What does RBI's 'Rural Branching Mandate' mean to us?

Accepted Answer

None of above

Answer

All scheduled commercial banks have to open at least 25% of their branches in tier-1 and tier-2 areas

Answer

All scheduled commercial banks need RBI's permission before opening 25% of their branches in tier-1 areas

Answer

All scheduled commercial banks to open at least 25% of their branches in tier 3 to 6 areas

Question 3

A type of insurance that combines protection with investment plan is called

Accepted Answer

universal

Answer

whole life

Answer

limited pay

Answer

endowment

Question 4

Which of the following factor(s) aid in financial inclusion? 1. That under National optical fibre network, government plans to connect all Gram Panchayats with internet connection. 2. That Mobile penetration is increasing on routine basis in rural areas. 3. That as per Census 2011, India's working age population (15-64 years) is more than 60%.

Accepted Answer

1 and 3

Answer

1 and 2

Answer

2 and 3

Answer

All of above

Question 5

Which of the following is an autonomous body set up by the Government of India to develop and regulate the pension market in India?

Accepted Answer

PFRDA

Answer

SEBI

Answer

FMC

Answer

RBI

Question 6

What will be the effect of reduction in statutory liquidity ratio of banks by the central bank?

Accepted Answer

Government will be able to sell more debentures to banks than before

Answer

Government will be able to take more loan from banks than before

Answer

Private sector will be able to get less credit from banks than before

Answer

Government will be able to sell fewer securities to banks than before

Question 7

Where is the headquarters of SIDBI located?

Accepted Answer

Lucknow

Answer

Nagpur

Answer

Pune

Answer

Mumbai

Question 8

Reserve Bank of India issues all types of currency in India, but it does not issue which type of currency?

Accepted Answer

One rupee note

Answer

One thousand rupee note

Answer

Five rupee note

Answer

Ten rupee note

Question 9

Which of the following statement is not correct regarding Basel III implementation in India?

Accepted Answer

Minimum tier 1 capital ratio should be 8%

Answer

Maximum tier 2 capital should be 2%

Answer

Minimum total capital ratio should be 9%

Answer

Minimum total capital plus capital conservation buffer should be 11.5%