Banking and Financial Institutions MCQs

Question 1

Consider the following statements and identity the true ones. 1. Treasury bills are used by government to get Long-term loans. 2. The maturity period of a treasury bill in India ranges from 14 days to 365 days.

Accepted Answer

Both 1 and 2 are true

Answer

Only 1 is true

Answer

Only 2 is true

Answer

Neither 1 nor 2 is true

Question 2

Which one of the following is not a function of Central Bank?

Accepted Answer

Credit creation

Answer

Monopoly of issuing note

Answer

Custodian of foreign exchange funds

Answer

None of the above

Question 3

The first RRB named Prathama Grameen Bank was sponsored by:

Accepted Answer

Syndicate Bank

Answer

Punjab National Bank

Answer

State Bank of India

Answer

Canara Bank

Question 4

Banks are required to classify Non-Performing Assets into

Accepted Answer

Sub-standard assets, doubtful assets, and loss assets

Answer

Standard assets, and sub-standard assets

Answer

Doubtful assets, and bad debts

Answer

Doubtful assets, bad debts and loss assets

Question 5

Which of the following statement/s is/are relating to credit rating agencies? 1. The three largest credit rating agencies rate India's sovereign debt at the highest investment grade. 2. CRISIL is the largest credit rating agency in India but is not among the largest three in the world. 3. The three largest credit rating agencies in the world are Moody's, Standard and Poor's and Fitch.

Accepted Answer

2 and 3 only

Answer

2 only

Answer

1 and 3 only

Answer

1, 2 and 3

Question 6

Which of the following statement/s is/are correct about IDF in India? 1. Infrastructure debt fund are regulated by Planning commission. 2. Infrastructure debt fund can be established as a trust in India, but not in company.

Accepted Answer

Neither 1 nor 2

Answer

1 is correct

Answer

2 is correct

Answer

1 and 2 are correct

Question 7

Which of the following is not true about Bharat Interface for Money (BHIM) app?

Accepted Answer

Through BHIM app, a maximum of Rs. 5,000 is allowed per transaction

Answer

BHIM is a digital payments solution app, for easy and quick transactions, based on the Unified Payments Interface (UPI) from the National Payments Corporation of India (NPCI)

Answer

Money can also be sent to non-UPI supported banks using IFSC code and account number

Answer

BHIM allows daily transaction limit of Rs. 20,000

Question 8

RBI's open market operation transactions are carried with a view to regulate

Accepted Answer

All of the above

Answer

liquidity in the economy

Answer

prices of an essential commodities

Answer

inflation

Question 9

The interest rate at which the RBI lends to commercial banks in the Short-term so as keep inflation under check, economic growth rate and also to maintain liquidity is known as:

Accepted Answer

repo rate

Answer

interest rate

Answer

reverse repo rate

Answer

bank rate