Banking and Financial Institutions MCQs

Question 1

Which of the following statement/s is/are correct?

Accepted Answer

Neither A nor B is correct

Answer

Since independence, if India had followed a free market capitalist model of economy, financial inclusion would have been extremely high

Answer

Since independence, if India had taken concrete steps for financial inclusion, the regional disparities would have been less

Answer

Both A and B are correct

Question 2

Which one of the following statement is incorrect?

Accepted Answer

Net NPAs = Gross NPAs - Provision for NPAs

Answer

Doubtful advance is an advance which remains NPA for more than 12 months

Answer

The account remain 'out of order' for a period of more than 100 days, in respect of an Overdraft/Cash Credit (OD/CC)

Answer

Net NPA is having provisions for bad debts

Question 3

Which of the following organisation promotes trade?

Accepted Answer

All of these

Answer

STC

Answer

MMTC

Answer

ECGC

Question 4

Which of the following are the different functions that are performed by the financial markets? 1. Determination of the prices where financial markets help in price discovery of various financial instruments. 2. Mobilization of the funds 3. Providing an opportunity to different investors to buy or sell their respective financial instrument at the fair value that is prevailing in market. 4. Providing the various types of information to traders that help in decision making. 5. The sharing of the risk with investors.

Accepted Answer

1, 2, 3, 4 and 5

Answer

2, 3 and 5

Answer

1, 2 and 3

Answer

3 and 4

Question 5

Match the items of List-I with those of List-II and select the correct option: List-I List-II a. High levered fund 1. Market risk b. Increase in bank rate 2. Purchasing power risk c. Inflation 3. Financial risk d. Political instability 4. Interest rate risk

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 6

Who is the fiscal agent and advisor to government in monetary and financial matters in India?

Accepted Answer

None of the above

Answer

SBI

Answer

NABARD

Answer

Corporative Banks

Question 7

New reform in Indian banking system include 1. Digitization of bank operations 2. Banking consolidation 3. Borrowing from Government 4. Agency work Choose the correct option from the following:

Accepted Answer

1 and 2

Answer

3 and 4

Answer

2, 4 and 3

Answer

1, 3 and 4

Question 8

S. L. Kapoor Committee relates to:

Accepted Answer

financing of Small Scale Industries

Answer

Agriculture financing

Answer

both A and B

Answer

None of the above

Question 9

To operate in the derivative segment of NSE, the dealer/broker and sales persons are required to pass . . . . . . . . Examination.

Accepted Answer

NCFM

Answer

Certified Financial Analyst

Answer

MBA (Finance)

Answer

Chartered Accountancy