Banking and Financial Institutions MCQs

Question 1

Which of the following statement/s is/are the correct characteristic/s of NBFCs? 1. NBFCs cannot accept demand deposits. 2. NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself. 3. Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of bank.

Accepted Answer

All of them

Answer

1 and 2

Answer

2 and 3

Answer

1 and 3

Question 2

On which of the following banks the Reserve Bank of India depends?

Accepted Answer

Commercial Banks

Answer

Cooperative Banks

Answer

Regional Rural Banks

Answer

Development Banks

Question 3

Match the following items of List-I with List-Il: List-I List-II a. SWIFT 1. 1996 b. NEFT 2. 1988 c. BASEL I Accord 3. 1973 d. BASEL II Accord 4. 2004

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 4

Insurance is legislated by

Accepted Answer

Central Government

Answer

Insurance Company

Answer

State Government

Answer

Government of India

Question 5

The Gresham's law specifies that

Accepted Answer

Bad money drives good money out of circulation

Answer

New money drives old money out of circulation

Answer

Good money drives bad money out of circulation

Answer

Paper money drives metallic money out of circulation

Question 6

Which one of the following statement is correct?

Accepted Answer

Ancillary services are also known as supplementary functions of a commercial banks

Answer

A bank can also exercise the right of set-off in respect of the future or contingent debts

Answer

Minimum paid-up capital for entry of new private sector banks is Rs. 200 crore

Answer

Provisions of Banking Regulation Act are not applicable to cooperative banks

Question 7

All banks registered under the . . . . . . . . are considered co-operative banks.

Accepted Answer

Cooperative Societies Act, 1912

Answer

Banking Regulation Act 1949

Answer

The Bankers' Books Evidence Act-1891

Answer

Both A and C

Question 8

UCO bank is a

Accepted Answer

public sector bank

Answer

private sector bank

Answer

non-scheduled bank

Answer

None of these

Question 9

Rupee coins are the legal tender in India under the provisions of:

Accepted Answer

Indian Coinage Act, 1906

Answer

The Reserve Bank of India Act, 1934

Answer

Negotiable Instrument Act, 1881

Answer

Banking Regulation Act, 1949