Banking and Financial Institutions MCQs

Question 1

Which committee reviewed the financial position of all RRBs in 2010 and recommended for recapitalization?

Accepted Answer

Chakrabarty Committee

Answer

Nayak Committee

Answer

Dr. Vyas Committee

Answer

Srinivasan Committee

Question 2

If the reserve bank want to increase the liquid currency with commercial banks, it should

Accepted Answer

Government bonds should be bought in the open market

Answer

Release the gold from its own corpus

Answer

Transactions relating to bill of exchange should be stopped

Answer

Cash reserve ratio should be increased

Question 3

Which one of the following statements is false?

Accepted Answer

IFC encourages the growth and development of Public Sector Enterprises in member countries

Answer

IFC was established in July 1956

Answer

IFC is an affiliate of the World Bank

Answer

IFC encourages the growth of productive private enterprises in member countries

Question 4

At which one of the following rate, the central bank lends to banks against government securities?

Accepted Answer

Repo rate

Answer

Reverse repo rate

Answer

Bank rate

Answer

SLR

Question 5

Closed Economy is one in which:

Accepted Answer

neither export nor import takes place

Answer

only export takes place

Answer

money supply is fully controlled

Answer

deficit financing takes place

Question 6

Sishu, Kishor and Tarun are the schemes of:

Accepted Answer

Micro Units Development and Refinance Agency Ltd (MUDRA)

Answer

Regional rural banks

Answer

Small Industries Development Banks of India

Answer

Industrial Development Bank of India

Question 7

Which option is an option that would lead to a zero cash flow to the holder if it were exercised immediately?

Accepted Answer

At the money

Answer

In the money

Answer

Out of the money

Answer

Put the money

Question 8

How many letters and digits are there in IFSC?

Accepted Answer

11

Answer

7

Answer

10

Answer

13

Question 9

Which of the following is not true about Small Finance Bank?

Accepted Answer

They can set up subsidiaries to undertake non-banking financial service activities

Answer

Maximum loan size to a single person cannot exceed 10% of total capital funds; cannot exceed 15% in the case of a group

Answer

At least 50% of its loans should constitute loans and advances of up to 25 lakhs

Answer

Minimum paid-up equity capital requirement of Small Finance Banks is Rs. 100 crores