Banking and Financial Institutions MCQs

Question 1

In the call/notice money market, which of the following participants is allowed to trade?

Accepted Answer

Only Commercial Banks

Answer

All Banks, Primary Dealers and Mutual Funds

Answer

All Corporates

Answer

All of the above

Question 2

The F and O segment of NSE provides trading facilities for the following derivative instruments, except

Accepted Answer

individual warrant options

Answer

index based futures

Answer

index based options

Answer

individual stock options

Question 3

If credit facility applied for is rejected, the reasons therefore should be briefly mentioned in the:

Accepted Answer

Loan Applications Received and Disposal Register

Answer

Opinion Reports

Answer

Loan Rejection Register

Answer

None of the above

Question 4

Which of the following is considered 'good money' according to Gresham's law?

Accepted Answer

Standard currency

Answer

Alternative currency

Answer

Representative money

Answer

None of the above

Question 5

Match the items of List-I with the items in List-II and suggest the correct option. List-I List-II a. Interbank call market 1. Money market b. Commercial Bills 2. Promissory note c. Commercial paper market 3. Short-term maturity d. Treasury bills 4. Government papers

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 6

Bank show provision for income tax under the head

Accepted Answer

other liabilities and provisions

Answer

contingent liabilities

Answer

contingent account

Answer

other accounts

Question 7

Which is the oldest bank in existence in India, originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal?

Accepted Answer

Vijaya Bank

Answer

State Bank of India

Answer

Punjab National Bank

Answer

Syndicate Bank

Question 8

Which of the following are the instruments or money market? 1. Call money market 2. Commercial bill market 3. Industrial securities market 4. Short-term loans market 5. Treasury bill market

Accepted Answer

1, 2, 4, 5

Answer

1, 2 and 5

Answer

1, 2 and 3

Answer

2 and 3

Question 9

In order to control credit and investment, the Central Bank of a country should:

Accepted Answer

sell securities in the open market and hike the Cash Reserve Ratio

Answer

buy securities from the open market and lower the Cash Reserve Ratio

Answer

buy securities from the open market and hike the Cash Reserve Ratio

Answer

sell securities in the open market and lower the Cash Reserve Ratio