Banking and Financial Institutions MCQs

Question 1

Which of the following characterises the early stage financial crises?

Accepted Answer

Excessive euphoria about the future price of certain assets

Answer

Falling the price of residential properties

Answer

Excessive pessimism about future assets price

Answer

Stragnating share price

Question 2

The Base Rate system has replaced BPLR with effect from:

Accepted Answer

1st July 2010

Answer

1st May 2010

Answer

1st June 2010

Answer

1st August 2010

Question 3

Which among the following in India can use 'Repo Bonds' to raise Short-term money from markets? 1. Commercial Bank 2. Regional Bank 3. Corporate 4. Governments Select the above correct statements.

Accepted Answer

1 and 3

Answer

Only 3

Answer

Only 1

Answer

2 and 4

Question 4

What is true about "White Card":

Accepted Answer

It does not carry on its face, the brand of the issuer

Answer

It is related to companies producing milk products

Answer

It is meant to convert black money into the economy

Answer

None of the above

Question 5

Financial markets can be classified in the following way/s

Accepted Answer

All of the above

Answer

Primary and secondary markets

Answer

Organized or formal markets, and unorganized or informal markets

Answer

Financial markets can also be classified as money markets (for short-term funds), and capital markets (for long run funds)

Question 6

What do we call the banks that undertakes commercial banking, investment banking, mutual funds and merchant banking?

Accepted Answer

Universal Banking

Answer

Shadow Banking

Answer

Unit Banking

Answer

Narrow Banking

Question 7

The Central Government has powers to supersede the SEBI, if it is of the opinion that

Accepted Answer

the SEBI is unable to discharge its functions and duties imposed on it under the provisions of the SEBI Act, 1992 or it is necessary to do so in the public interest

Answer

the members of the SEBI make an application to the Central Government to do so

Answer

the SEBI on its own makes an application to the Central Government to do so

Answer

the SEBI does not have the required number of members for performing the functions entrusted to it

Question 8

Match the following items of List-I with the items of List-II. List-I List-II a. IFCI 1. 1981 b. SIDBI 2. 1982 c. NABARD 3. 1948 d. EXIM Bank 4. 1990

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 9

Which of the following terms is used to describe the distribution of insurance products and insurance policies by banks as corporate agents?

Accepted Answer

Increase in PDI limits from 49 percent to 74 percent to help insurance companies to raise additional funds

Answer

Two public sector banks and one general insurance company will be privatised

Answer

Initial Public Offering of Life Insurance Corporation will be implemented in the financial year 2021-22 as a mega IPO

Answer

All of the above