Banking and Financial Institutions MCQs

Question 1

What is Statutory Liquidity Ratio (SLR) of a bank?

Accepted Answer

Amount that commercial banks are required to maintain before providing credit to customers

Answer

Ratio of total deposits against total investments

Answer

Amount deposited by the bank with the Central Bank in the form of cash, gold and securities

Answer

Amount that commercial banks deposit with the foreign banks

Question 2

Match the various stock exchanges in List-I with the years of their establishment in List-II as follows and suggest the correct option. List-I List-II a. National Stock Exchange 1. 1875 b. MCX Stock Exchange (MCX-SX) 2. 1992 c. Bombay Stock Exchange 3. 2000 d. Interconnected Stock Exchange of India 4. 2008

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 3

Statement I For strengthening capital base of banks. Statement II For sanctioning more loans.

Accepted Answer

Both statements are incorrect

Answer

Both statements are correct

Answer

Statement I is correct, but Statement II is incorrect

Answer

Statement I is incorrect, but Statement II is correct

Question 4

Bank rate is determined by

Accepted Answer

Reserve Bank of India

Answer

Government of India

Answer

State government

Answer

All of these

Question 5

The Government has approved framework for "Mobile-linked No-Frills Accounts" by banks. Which of the following is/are correct regarding the Government's expectations in this regard.

Accepted Answer

All of the above

Answer

nearly 500 million should be able to access financial services through mobile phones

Answer

each bank to start its implementation from 31st July and complete it by 31st December 2010

Answer

this will be a core micro payment platform for payment transfer of benefits of Government Schemes, and financial inclusion of target groups

Question 6

RBI pays interest to banks on their balances kept with it for purposes of Cash Reserve Ratio at:

Accepted Answer

No interest is paid

Answer

Less than 3%

Answer

3.5% on eligible balances

Answer

At bank rate

Question 7

The type of charge created on LIC Policy is:

Accepted Answer

assignment

Answer

pledge

Answer

hypothecation

Answer

All of these

Question 8

Which committee recommended the set-up of RRB?

Accepted Answer

Narasimham Committee

Answer

Nayak Committee

Answer

A. P. Shah Committee

Answer

Rangarajan Committee

Question 9

Which of the following can be described as involving indirect finance?

Accepted Answer

All of the above

Answer

A corporation take out loans from bank

Answer

People buy shares in a mutual fund

Answer

A corporation buys commercial paper in a secondary market