Banking and Financial Institutions MCQs

Question 1

The NABARD was established in the year . . . . . . . .

Accepted Answer

1982

Answer

1970

Answer

1990

Answer

1947

Question 2

Nationalisation of banks aimed at all of the following except

Accepted Answer

removal of control by a few

Answer

provision of control by a few

Answer

provision of adequate credit for agriculture, small industry and export units

Answer

encouragement of a new class of entrepreneur

Question 3

Which of the following is not true about Aadhaar-enabled payment system (AEPS)?

Accepted Answer

Customers can find out their account balance deposit cash, withdraw money and transfer funds to other Aadhaar-linked bank accounts through the help of business correspondents of the bank they have account in

Answer

AEPS enables bank customers to access their Aadhaar-linked bank accounts through the Aadhaar authentication

Answer

For a transaction through AEPS, only Aadhaar number and fingerprint captured during the enrolment are required

Answer

AEPS allows inter-operability among different systems adopted by different banks in a safe and secured manner

Question 4

The difference between a Term Loan and a Deferred Payment Guarantee relates to:

Accepted Answer

outlay of funds

Answer

end use of funds

Answer

both A and B

Answer

None of these

Question 5

Banking Regulation (Amendment) Bill, 2020, which comes in the backdrop of PMC Bank scam, seeks to strengthen cooperative banks by:

Accepted Answer

ensuring sound banking through RBI

Answer

improving professionalism

Answer

enabling access to capital

Answer

all of the above

Question 6

Match the items of List-I with List-II with regard to the BASEL III norms and select the correct option: List-I List-II a. Pillar 1 1. Supervisory review process b. Pillar 2 2. Market discipline c. Pillar 3 3. Minimum regulatory capital requirements based on Risk Weighted Assets

Accepted Answer

a-3, b-1, c-2

Answer

a-1, b-2, c-3

Answer

a-1, b-3, c-2

Answer

a-3, b-2, c-1

Question 7

Which one of the following statement is incorrect?

Accepted Answer

The National Securities Depository Limited (NSDL) is the institute which is built by IDBI

Answer

Development banks provide financial assistance to both private as well as public sector institutions

Answer

Development banks react to the socio-economic needs of development

Answer

The Securities Trading Corporation of India (STCI) was promoted by SEBI jointly with the public sector banks

Question 8

Non-performing advances means

Accepted Answer

obsolete assets

Answer

non-functional assets

Answer

assets transferred to company liquidator

Answer

loans becoming overdue beyond 90 days

Question 9

Which among the following is not true with regard to merchant banker? 1. It can accept deposits. 2. It can advance loans. 3. It can do other banking activities. 4. It can be manager to a public issue.

Accepted Answer

1, 2 and 3

Answer

2, 3 and 4

Answer

1, 3 and 4

Answer

2 and 4