Banking and Financial Institutions MCQs

Question 1

RTA carries out the redemption processing at its end and provides final redemption information to the exchange on

Accepted Answer

T+1

Answer

T+2

Answer

T+3

Answer

T+4

Question 2

Narasimham Committee suggested three - four bigger banks in India. Government carried out a massive consolidation process in 2019. Which of the following statement is true in this context?

Accepted Answer

All of the above

Answer

There are six merged public sector banks and six independent public sector banks in India

Answer

SBI is the largest public sector bank in India

Answer

The nationalized banks are almost wholly owned by GOI

Question 3

CRR in 'C'. . . . . . . . is used for

Accepted Answer

Cash

Answer

Customer

Answer

Commission

Answer

Credit

Question 4

What is the full form of CBS?

Accepted Answer

Core Banking Solution

Answer

Core Banking Software

Answer

Core Banking System

Answer

Core Banking Service

Question 5

Foreign exchange Regulation act was implemented in India on

Accepted Answer

10th September, 1973

Answer

5th July, 1978

Answer

1st June, 1980

Answer

1st January, 1979

Question 6

Which of the following is not true about National Automated Clearing House (NACH)?

Accepted Answer

All of the above

Answer

It is a centralized clearing system launched by the National Payments Corporation of India (NPCI)

Answer

It aims to replace and consolidate multiple existing Electronic Clearing Service (ECS) systems across India

Answer

NACH platform has been created to replace the Electronic Clearing Service (ECS) system

Question 7

When the general insurance business nationalised?

Accepted Answer

1973

Answer

1970

Answer

1971

Answer

1972

Question 8

Credit creation capacity of a bank depends on the cash reserve ratio and statutory liquidity ratio. If the initial deposit (O) is Rs. 1,000 and the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) is 5% and 20%, then the credit creation capacity will be as follows

Accepted Answer

Rs. 3,000

Answer

Rs. 5,000

Answer

Rs. 6,000

Answer

Rs. 2,000

Question 9

Which of the following is not true about Real Time Gross Settlement (RTGS) system?

Accepted Answer

All of the above

Answer

The minimum amount that can be received through RTGS is Rs. 2 lakhs

Answer

The banks receive the funds in real time as soon as funds are transferred by the remitting bank

Answer

The minimum amount to be remitted through RTGS is Rs. 2 lakhs