Banking and Financial Institutions MCQs

Question 1

Credit rating:

Accepted Answer

Is used to rate the borrowers while giving advances

Answer

Is used to work out performance of the employees

Answer

Is used to calculate the number of excellent audit rated branches

Answer

Is not used in any bank

Question 2

Treasury bills are short-term debt instruments (less than . . . . . . . . year to maturity) issued at a discount.

Accepted Answer

1

Answer

2

Answer

3

Answer

4

Question 3

Match List-I with List-II and select the correct answer: List-I List-II a. Commercial Bank 1. Monopoly of note issue b. Industrial Bank 2. Short-term loan to customers c. Central Bank 3. Long term loan to farmers d. Land Mortgage Bank 4. Long-term loan to industries

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 4

The written insurance contract that may include all clauses, riders and endorsements, it is called?

Accepted Answer

Policy

Answer

Instalment

Answer

Premium

Answer

Assets

Question 5

Which of the following is not true about National Electronic Funds Transfer (NEFT) system?

Accepted Answer

NEFT operates in hourly batches

Answer

There is no limit on transaction through NEFT

Answer

NEFT is a payment system which facilitates one-to-one funds transfer

Answer

Only bank branches which are NEFT enabled, can be a part of the NEFT funds transfer network

Question 6

NSE has implemented . . . . . . . . in compulsory rolling settlement with effect from 2nd July, 2001.

Accepted Answer

index-based market-wide circuit breakers

Answer

securities-based market-wide circuit breakers

Answer

market-wide based securities-wise circuit breakers

Answer

none of the above

Question 7

Which of the following is principle of valuation of currency?

Accepted Answer

Quantity theory of money

Answer

Commodity theory of money

Answer

State theory of money

Answer

All of these

Question 8

Which of the following is a short-term debt obligation of a Central Government that are issued to mature in 3 to 12 months?

Accepted Answer

Treasury Bill

Answer

Commercial paper

Answer

Bonds

Answer

Certificate of Deposits

Question 9

Under the member constituent agreement, trading members are required to make the clients aware of which of the following? 1. Trading segment in which the trading member is admitted. 2. SEBI registration number. 3. Basic risks involved in trading on the exchange. Select the correct answer

Accepted Answer

All of the above

Answer

Both 2 and 3

Answer

Both 1 and 2

Answer

Both 1 and 3