Banking and Financial Institutions MCQs

Question 1

Insurance Regulatory and Development Act was passed in

Accepted Answer

1999

Answer

1998

Answer

2000

Answer

2001

Question 2

The IDBI underwriters and . . . . . . . . the shares and debentures of industrial concern.

Accepted Answer

subscribes to

Answer

imposes on

Answer

targets

Answer

None of these

Question 3

Paid-up capital of a bank should not be less than the following percentage of subscribed capital.

Accepted Answer

50%

Answer

25%

Answer

75%

Answer

100%

Question 4

Consider the following statements. Assertion (A): Taking of deposits and granting of loans single out banks. Reasoning (R): Banks act as intermediaries when they mobilize savings from surplus units to shortage units in order to finance productive activities.

Accepted Answer

Assertion (A) is correct and Reasoning (R) is the correct explanation of (A)

Answer

Both Assertion (A) and Reasoning (R) are correct but (R) is not the correct explanation of (A)

Answer

Assertion (A) is correct but Reasoning (R) is incorrect

Answer

Reasoning (R) is correct but Assertion (A) is incorrect

Question 5

Which one of the following statement is corrrect?

Accepted Answer

The Governor is the Reserve Bank's chief executive

Answer

IFCI can grant long-term loans to partnership firms

Answer

Money market is a market for stock market operations

Answer

The Export-Import Bank of India is a subsidiary of IDBI

Question 6

Consider the following statements and select the correct option. Assertion (A): The impact of depreciating Indian Rupee leads to less competition for Indian firms from imports. Reason (R): The depreciating Indian Rupee results in downward pressure on inflation.

Accepted Answer

(A) is true, but (R) is false

Answer

Both (A) and (R) are correct

Answer

(A) is false, but (R) is correct

Answer

Both (A) and (R) are false

Question 7

According to the FDI Policy of the Government of India (2012), the FDI in banks is limited to

Accepted Answer

20% in Nationalised Banks and 74% in Private Sector Banks

Answer

20% in Nationalised Banks and 49% in Private Sector Banks

Answer

16% in Nationalised Banks and 74% in Private Sector Banks

Answer

49% in Nationalised Banks and 51% in Private Sector Banks

Question 8

Match the following. List-I List-II a. Letter of reference 1. Advancing loans b. Sale of gold coins 2. Receiving deposits c. Recurring account 3. Non-banking function d. Overdrafts 4. Agency function

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 9

By "Deemed Exports" it means:

Accepted Answer

supplies of goods and services to units within the country which can earn foreign currency to the country

Answer

exports made by units situated in EPZ areas to out of country

Answer

exports made by EOU out of the country

Answer

anticipated value of exports