Banking and Financial Institutions MCQs

Question 1

The instrument chosen for enhancement of international liquidity is:

Accepted Answer

Special Drawing Rights (SDRs)

Answer

Society for World wide Inter bank Financial Telecommunications (SWIFT)

Answer

Multilateral Netting

Answer

Netting of Payments

Question 2

Which of the following are the means of marketing new issues of securities? 1. By listing of securities 2. Through jobbers and brokers 3. By private placing of securities 4. Through privileged subscription Select the correct answer

Accepted Answer

All of the above

Answer

Both 1 and 2

Answer

1, 2 and 3

Answer

Both 3 and 4

Question 3

Which is not an objective of insurance from amongst the following?

Accepted Answer

Limited area

Answer

Security of risk

Answer

Insurance is a contract

Answer

Risk transfer method

Question 4

Interest rate is regulated by

Accepted Answer

Reserve Bank of India

Answer

State Bank of India

Answer

Central Government

Answer

None of these

Question 5

Which of the following mutual funds solely invests in stocks?

Accepted Answer

Equity Fund

Answer

Bond Fund

Answer

Fixed Income Fund

Answer

Money Market Mutual Fund

Question 6

Who is the chairman of planning commission?

Accepted Answer

Prime Minister

Answer

President

Answer

Governor or Reserve Bank of India

Answer

Finance Secretary

Question 7

Advance, which remain NPA upto a period of 12 months is called

Accepted Answer

loss advance

Answer

sub-standard advance

Answer

doubtful advance

Answer

All of the above

Question 8

Across the face of a cheque bears the words 'Peoples Bank'. What is its significance:

Accepted Answer

the cheque is specially crossed in favour of Peoples Bank

Answer

it is an extraneous matter appearing on the cheque. Hence should be returned

Answer

it is not a crossing as it does not contain two parallel lines

Answer

None of the above

Question 9

Risks that insurance firms will not assume are called

Accepted Answer

uninsurable risk

Answer

insurable risk

Answer

pure risk

Answer

avoidable risk