Banking and Financial Institutions MCQs

Question 1

Which is the apex financing institute for agriculture?

Accepted Answer

NABARD

Answer

RBI

Answer

UTI Bank

Answer

Axis Bank

Question 2

Loans upto Rs. 1 lakh against gold and silver ornaments will attract a risk weight of

Accepted Answer

50%

Answer

20%

Answer

30%

Answer

75%

Question 3

Which of the following statement/s is/are correct about Bridge loan?

Accepted Answer

All of the above

Answer

A bridge loan is short-term financing used until a person or company secures permanent financing or removes an existing obligation

Answer

Bridge loans are Short-term, typically up to one year

Answer

Homeowners can use bridge loans toward the purchase of a new home while they wait for their current home to sell

Question 4

During economic reforms, Government wanted to bring many changes in capital market. Hence forth, in 1992, the powers of Controller of Capital Issues of India shifted to:

Accepted Answer

SEBI

Answer

Ministry of Finance

Answer

AMFI

Answer

Ministry of Corporate Affairs

Question 5

Borrower's ability to meet the immediate liabilities is indicated by:

Accepted Answer

Acid Test Ratio

Answer

Current Ratio

Answer

Debt Equity Ratio

Answer

None of these

Question 6

SEBI regulations require that there should be atleast . . . . . . . . trustees (or directors in the trustee company) in a mutual fund.

Accepted Answer

4

Answer

7

Answer

5

Answer

6

Question 7

On which of the following instruments is the rate of return calculated on a 'discount basis'? 1. Certificates of deposit 2. Interbank deposits 3. Commercial paper 4. Repurchase agreements 5. Commercial bills

Accepted Answer

3 and 5

Answer

1, 3 and 4

Answer

2, 3 and 5

Answer

1 and 3

Question 8

External Commercial Borrowings (ECBs) form part of:

Accepted Answer

Capital Account

Answer

Current Account

Answer

Either A or B

Answer

Balance of Payments

Question 9

Assertion (A) "Banks globally are facing more challenges now and macro sustainability is a necessity but not sufficient for sustainable economic growth." Reason (R) "Putting regulations in place is only one part and their implementation is equally important for achieving growth and sustainability."

Accepted Answer

Both (A) and (R) are correct and (R) is the correct explanation of (A)

Answer

Both (A) and (R) are true, but (R) is not the correct explanation of (A)

Answer

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

Answer

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