Banking and Financial Institutions MCQs

Question 1

Tier II capital should not be more than . . . . . . . . of Tier I capital.

Accepted Answer

50%

Answer

150%

Answer

100%

Answer

None of these

Question 2

What is the meaning of indemnify in insurance?

Accepted Answer

To put back in the same financial position just prior to the loss

Answer

To put aside funds to pay for losses reported but not yet paid

Answer

To transfer risk to someone who has better financial resources and can withstand loss

Answer

To make financial provisions for dealing with potential losses

Question 3

In a mutual fund, the trust acts through . . . . . . . . who are appointed by the sponsor.

Accepted Answer

trustees

Answer

lawyers

Answer

investors

Answer

auditors

Question 4

Which of the following public sector companies organisations provides insurance cover to exporters?

Accepted Answer

ECGC

Answer

NABARD

Answer

SIDBI

Answer

IRDA

Question 5

Banking services offered to units set up in Special Economic Zones (SEZs) have been exempted from paying . . . . . . . . tax.

Accepted Answer

Capital Gains Tax

Answer

Income Tax

Answer

Service Tax

Answer

None of these

Question 6

What does the phrase 'Lender of the last resort' refers to

Accepted Answer

RBI

Answer

IDBI

Answer

ICICI

Answer

IMF

Question 7

Which one of the following statement is correct?

Accepted Answer

Non-banking financial institutions can also act as intermediaries

Answer

Small scale industries are not financed by any SFI

Answer

IDBI is wholly-owned subsidiary of the Reserve Bank of India

Answer

Financial institutions are mainly banking institutions

Question 8

'BOLT' system in the Indian Securities market is related to:

Accepted Answer

Bombay Stock Exchange

Answer

National Stock Exchange

Answer

Over the Counter Exchange of India

Answer

Multi Commodity Stock Exchange

Question 9

One of the functions of IDBI is to assist other financial institutions by of loans granted for exports.

Accepted Answer

refinancing

Answer

planning

Answer

Both A and B

Answer

None of the above