Banking and Financial Institutions MCQs

Question 1

Consider the following statements and identify the true ones. 1. Trading of treasury bills is not allowed in the market. 2. The ad hoc treasury bills have been replaced by Way sand Mean Advances System.

Accepted Answer

Only 2 is true

Answer

Only 1 is true

Answer

Both 1 and 2 are true

Answer

Neither 1 nor 2 is true

Question 2

What is Yield Curve Risk:

Accepted Answer

All of the above

Answer

It is a line of graph plotting the yield of all maturities of a particular instrument

Answer

Yield curve changes its slope and shape from time to time

Answer

Yield curve can be twisted to the desired direction through the intervention of RBI

Question 3

If a currency note is demonetized, it takes away the . . . . . . . . of that currency.

Accepted Answer

legal tender character

Answer

exchange rate

Answer

value

Answer

None of these

Question 4

The first Mutual Fund Scheme in India was introduced by

Accepted Answer

Unit Trust of India

Answer

Government of India

Answer

Reserve Bank of India

Answer

State Bank of India

Question 5

Which one of the following statements is not correct?

Accepted Answer

S&P CNX Nifty is the index of 50 large companies on the Bombay Stock Exchange

Answer

The National Association of Securities Dealers Automated Quotations, known as NASDAQ, is an American stock exchange

Answer

Nikkei is the stock market of index for the Tokyo Stock Exchange

Answer

Hang Seng Index record daily changes of the largest companies of the Hong Kong Stock Market

Question 6

Match the List-I with List-II relating to Social Security measures in India. List-I List-II a. Social Assistance 1. Payable to workers in accidents & injuries during employment b. Social Insurance 2. Covers individual risks primarily c. Commercial Insurance 3. Maternity benefits d. Workmen's Compensation 4. Provident Funds

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 7

Match the following. List-I List-II a. Monetary policy 1. Instrument for regulation of money and credit b. Bank rate 2. Instrument of fiscal policy c. Taxation policy 3. Instrument of monetary policy d. Repo rate 4. Quantitative instrument of monetary policy

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 8

Assertion (A) The Reserve Bank of India is entrusted with the management of the public debt and issue of new loans and treasury bills on behalf of the Central and State Governments. Reason (R) The Governor and the Deputy Governors of Reserve Bank of India are appointed by the Central Government.

Accepted Answer

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

Answer

(A) is correct, but (R) is not correct

Answer

(A) and (R) both are correct and (R) is the right explanation of (A)

Answer

(A) and (R) both are not correct

Question 9

With reference to financial sector regulators, consider the following statements: 1. PFRDA deals with pension funds, which are not invested in stock exchanges 2. Commodity markets are subject to jurisdiction of SEBI 3. NBFCs are also subject to jurisdiction of SEBI

Accepted Answer

2 only

Answer

2 and 3 only

Answer

1 and 3 only

Answer

1, 2 and 3