Modern Banking Solved MCQs


Demand deposit also known as ___________________.

A. current account
B. fixed deposit
C. capital account
D. recurring deposit
Answer» A. current account

Bank places certain restriction on withdrawal for _______________ deposit.

A. savings deposit
B. demand deposit
C. current account
D. fixed deposit
Answer» A. savings deposit

______________ is the contribution made by the shareholders of the bank.

A. loans & advances
B. cash in hand
C. bills discounted
D. share capital
Answer» D. share capital

__________ was originally the home of commercial banking.

A. u.s.a
B. england
C. britain
D. germany
Answer» D. germany

____________ was initially the home of industrial or investment banking.

A. italy
B. england
C. geneva
D. germany
Answer» D. germany

The trend in India is towards ___________.

A. mixed banking
B. development banking
C. commercial banking
D. industrial banking
Answer» A. mixed banking

___________ to ___________ percent of total deposit is kept as cash reserve.

A. 5 to 10
B. 11 to 15
C. 8 to 11
D. 9 to 11
Answer» D. 9 to 11

Commercial banks to expand deposit through expanding their loans and advances is known as ___________.

A. credit creation
B. trade discount
C. deposit
D. bank advances
Answer» A. credit creation

Rediscounting and giving advance the central bank changes interest at a rate which is known as __________

A. crr
B. slr
C. bank rate
D. credit
Answer» C. bank rate

The nationalization of 14 commercial banks was on?

A. 19 july, 1969
B. 15 aug, 1972
C. 15april, 1980
D. 19 jan, 1959
Answer» A. 19 july, 1969

The State Bank of India was established under the State Bank of India Act on?

A. 1935
B. 1948
C. 1955
D. 1952
Answer» C. 1955

RBI introduced 14-day intermediate Treasury Bills and 14-day Treasury bills on?

A. 1994
B. 1997
C. 1984
D. 1972
Answer» B. 1997

DIC stands for?

A. deposit investment corporation
B. deposit insurance corporation
C. deposit industrial corporation
D. development corporation of india
Answer» C. deposit industrial corporation

System of banking is guided by the Islamic Law called?

A. islamic guide
B. islamic banking
C. banking regulation act
D. shariat
Answer» D. shariat

Money at call and short notice is also known as?

A. capital market
B. inter bank call money market
C. financial system
D. financial call money
Answer» B. inter bank call money market

The process of credit creation by the banking system as a whole is termed as ?

A. multiple credit creation
B. primary deposit
C. credit creation
D. single bank credit system
Answer» A. multiple credit creation

The regulator of Indian Money market is?

A. sbi
B. commercial bank
C. rbi
D. sebi
Answer» C. rbi

The regulator of Indian Capital Market is?

A. sebi
B. sbi
C. rbi
D. commercial bank
Answer» A. sebi

Bridge Loan is also known as?

A. swing loan
B. term loan
C. demand loan
D. farm loan
Answer» A. swing loan

182-day Treasury bill was introduced in Indian Money Market in?

A. 19992
B. 1972
C. 1987
D. 1952
Answer» C. 1987

CIBIL stands for?

A. credit information bureau ltd
B. credit information banking india ltd
C. credit investment bureau india ltd
D. credit information bureau india ltd
Answer» D. credit information bureau india ltd

The value of money received today will be more than a rupee tomorrow is?

A. time value of money
B. present value of money
C. future value of money
D. compound value of money
Answer» A. time value of money

The interest computed on the principal for the entire period of borrowings?

A. compound interest
B. simple interest
C. flat rate interest
D. floating rate interest
Answer» B. simple interest

The periodical interval at which interest is added is called?

A. floating period
B. compounding period
C. fixed period
D. periodic payment
Answer» B. compounding period

________Act offer incentive to attract people to invest in housing property.

A. sales tax
B. income tax act 1961
C. banking regulations act
D. co-operative societies act
Answer» B. income tax act 1961
Question and answers in Modern Banking, Modern Banking multiple choice questions and answers, Modern Banking Important MCQs, Solved MCQs for Modern Banking, Modern Banking MCQs with answers PDF download

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