Banking and Financial Institutions MCQs

Question 1

Under the Corporate Debt Restructuring (CDR) mechanism, loan assets of banks have been categorized. Which one of the following statements is not correct:

Accepted Answer

Assets belonging to Doubtful and Loss categories come under Category 2

Answer

Assets belonging to Standard and Sub-Standard category come under Category 1

Answer

Assets belonging to Doubtful category come under Category 2

Answer

Out of total Loan Assets, 90% is Standard and Sub-standard and Doubtful is 10% this lot comes under Category 1

Question 2

Which of the following is not helpful in the competition of inflation in India?

Accepted Answer

Minimum support price for agriculture products

Answer

Optimum utilization of capacity

Answer

Reduction in fiscal deficit

Answer

Public distribution system

Question 3

RBI absorbs liquidity in the system through:

Accepted Answer

Reverse Repo

Answer

Repo

Answer

Both A and B

Answer

Either A or B

Question 4

Find the false statement with respect to Atal Pension Yojana.

Accepted Answer

NRI can apply for the Atal Pension Yojana

Answer

The contribution amount increases with the age of subscriber

Answer

Monthly Quarterly and half-yearly mode of contribution is available for subscribers

Answer

All are true

Question 5

Match the following. List-I List-II a. When one company purchases another one 1. Conglomerate merger b. Merger between two companies having no common business areas 2. Consolidation merger c. Merger between two companies that sell the same products in different markets 3. Purchase merger d. Two companies are bought and combined under new entity 4. Market extension merger

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 6

Shares of companies notified by SEBI can be traded only when these are in . . . . . . . . form.

Accepted Answer

dematerialized

Answer

physical

Answer

either A or B

Answer

None of these

Question 7

Working capital facility to exporters is provided by

Accepted Answer

Export Credit and Guarantee Corporation

Answer

Reserve Bank of India

Answer

Commercial Banks

Answer

Ministry of External Affairs, Government of India

Question 8

"Bad money drives good money out of circulation." The propounder of this statement was:

Accepted Answer

Thomas Gresham

Answer

J. M. Keynes

Answer

Samuelson

Answer

Crowther

Question 9

Bank rate specifies

Accepted Answer

The rate at which the central bank rediscounts the bills of exchange of commercial banks

Answer

The rate of interest at which commercial banks accept deposits from the public

Answer

The basic rate of delivery of commercial banks

Answer

The rate of interest at which commercial banks lend to customers