McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
Chapters
| 251. |
The process of …………. begins with banks lending money out of primary deposit. |
| A. | credit creation |
| B. | cash credit |
| C. | debit creation |
| D. | over draft |
| Answer» A. credit creation | |
| 252. |
NBFI s refers to ………. |
| A. | Non Banking Financial Industries |
| B. | Non Banking Financial Institution |
| C. | Net Banking Financial Industries |
| D. | Net Banking Financial Institutions |
| Answer» B. Non Banking Financial Institution | |
| 253. |
Delivery of financial services at affordable costs to the disadvantaged Low income segments of the society known as……….. |
| A. | Credit creation |
| B. | financial exclusion |
| C. | Financial Inclusion |
| D. | consumer credit |
| Answer» C. Financial Inclusion | |
| 254. |
When a deposit of money is received by the banker , the banker becomes the …………? |
| A. | creditor |
| B. | debtor |
| C. | receiver |
| D. | customer |
| Answer» B. debtor | |
| 255. |
When a deposit of money is received by the banker , the customer becomes the …………..? |
| A. | debtor |
| B. | creditor |
| C. | customer |
| D. | lender |
| Answer» B. creditor | |
| 256. |
The primary relationship between banker and customer is ……………. |
| A. | Giver and receiver |
| B. | debtor and creditor |
| C. | insurer |
| D. | insured |
| Answer» B. debtor and creditor | |
| 257. |
A ……….. is a person to whom the management of a particular property is entrusted for the exclusive benefit of a third party |
| A. | customer |
| B. | beneficiary |
| C. | trustee |
| D. | agent |
| Answer» C. trustee | |
| 258. |
Bankers Book Evidence Act was comes into existence ---- |
| A. | 1881 |
| B. | 1891 |
| C. | 1890 |
| D. | 1892 |
| Answer» B. 1891 | |
| 259. |
………… is the right of a creditor to retain possession of the property belonging to the debtor until certain demands of the person in possession are satisfied. |
| A. | Lien |
| B. | Returning |
| C. | Surrender |
| D. | None of these |
| Answer» A. Lien | |
| 260. |
FDR stands for ………….. |
| A. | Fixed Delivery Receipt |
| B. | Fixed Deposit Receipt |
| C. | Final Deposit Receipt |
| D. | Final Delivery Receipt |
| Answer» B. Fixed Deposit Receipt | |
| 261. |
In which year Negotiable Instrument Act was passed ………? |
| A. | 1981 |
| B. | 1956 |
| C. | 1881 |
| D. | 1984 |
| Answer» C. 1881 | |
| 262. |
…………… is a person who draws or makes a cheque |
| A. | Drawee |
| B. | Drawer |
| C. | Payer |
| D. | payee |
| Answer» B. Drawer | |
| 263. |
In the case of a cheque the drawee will always be a specified ………… with whom the drawer keeps an account. |
| A. | person |
| B. | partner |
| C. | customer |
| D. | banker |
| Answer» D. banker | |
| 264. |
………… is a person to whom the amount of a cheque is payable |
| A. | Drawer |
| B. | Drawee |
| C. | Payee |
| D. | Customer |
| Answer» C. Payee | |
| 265. |
Which one of them are correct in the case of parties involved in a cheque ? |
| A. | Debtor and Creditor |
| B. | Banker and customer |
| C. | Drawer, Drawee and Payee |
| D. | Drawer and Payee |
| Answer» C. Drawer, Drawee and Payee | |
| 266. |
In which types of banking system several banks joins hands with each other for meeting the credit requirements of the large borrower ? |
| A. | group banking |
| B. | consortium banking |
| C. | net banking |
| D. | none of these |
| Answer» B. consortium banking | |
| 267. |
Th e practice of conducting banking transactions from home rather than at bank branches by means of electronic telecommunication known as------ |
| A. | branch banking |
| B. | group banking |
| C. | chain banking |
| D. | home banking |
| Answer» D. home banking | |
| 268. |
NPA means ---- |
| A. | Net Performing Assets |
| B. | Non-Performing Asset |
| C. | Net profit Acceptance |
| D. | None of these |
| Answer» B. Non-Performing Asset | |
| 269. |
Example for Foreign Bank is ----- |
| A. | Centurion Bank |
| B. | City Bank |
| C. | Axis Bank |
| D. | All |
| Answer» B. City Bank | |
| 270. |
Bank of Baroda is an example for ------- |
| A. | Private sector Bank |
| B. | Foreign Bank |
| C. | Public sector Bank |
| D. | None of these |
| Answer» C. Public sector Bank | |
| 271. |
Federal Bank is a ------ |
| A. | Private sector Bank |
| B. | Foreign Bank |
| C. | Public sector Bank |
| D. | None of these |
| Answer» A. Private sector Bank | |
| 272. |
IBRD is also Known as ----- |
| A. | Central Bank |
| B. | World Bank |
| C. | Exim Bank |
| D. | All |
| Answer» B. World Bank | |
| 273. |
State financial corporations is an example for -------- |
| A. | Industrial Bank |
| B. | Foreign Bank |
| C. | Public sector Bank |
| D. | All |
| Answer» A. Industrial Bank | |
| 274. |
----- is a loan for short term temporary financing for Business firms . |
| A. | Term loans |
| B. | Bridge loans |
| C. | Cash credit |
| D. | All |
| Answer» B. Bridge loans | |
| 275. |
------- is a temporary financial arrangement by the bank to draw more than the amount standing to his credit. |
| A. | Overdraft |
| B. | Bridge loans |
| C. | Cash credit |
| D. | None of these. |
| Answer» A. Overdraft | |
| 276. |
General relationship between banker and customer is ----- |
| A. | contractual relation ship |
| B. | trustee and beneficiary |
| C. | Right of agent |
| D. | none of these |
| Answer» B. trustee and beneficiary | |
| 277. |
While accepting deposit,a banker becomes ------ and customer is ----- |
| A. | Creditor and debtor |
| B. | Debtor and Creditor |
| C. | None of these . |
| D. | all |
| Answer» B. Debtor and Creditor | |
| 278. |
There is no fixed place of repayment in ------- |
| A. | debt due from bank |
| B. | ordinary commercial debt |
| C. | special debt |
| D. | None of |
| Answer» B. ordinary commercial debt | |
| 279. |
Prime lending rate is charged by |
| A. | Commercial bank |
| B. | Merchant bank |
| C. | Co-operative bank |
| D. | Development bank |
| Answer» A. Commercial bank | |
| 280. |
When did the banking sector reforms initiates |
| A. | 1996 |
| B. | 1901 |
| C. | 1991 |
| D. | 1989 |
| Answer» C. 1991 | |
| 281. |
Under which banking aims at targeting customers with large value transaction |
| A. | Whole sale banking |
| B. | Merchant banking |
| C. | Retail banking |
| D. | Internet banking |
| Answer» A. Whole sale banking | |
| 282. |
On which rate method, the interest is charged on the full amount of the loan throughout the entire period of loan |
| A. | Fixed rate of interest |
| B. | Floating rate of interest |
| C. | Flat rate of interest |
| D. | Compound rate of interest |
| Answer» C. Flat rate of interest | |
| 283. |
A type of loan given by one bank to another bank is……..? |
| A. | money at call and short notice |
| B. | bridge loan |
| C. | term loan |
| D. | d .none of these |
| Answer» A. money at call and short notice | |
| 284. |
CRR and SLR are monetary policy instruments |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» A. True | |
| 285. |
Globalization has increased the role of central bank. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» A. True | |
| 286. |
Which one of the following statements is most appropriate regarding transaction made in money? |
| A. | It is the easiest way. |
| B. | It is the safest way. |
| C. | It is the cheapest way. |
| D. | It promotes trade. |
| Answer» A. It is the easiest way. | |
| 287. |
Which one of the following is a modem form of currency? |
| A. | Gold |
| B. | Silver |
| C. | Copper |
| D. | Paper notes |
| Answer» D. Paper notes | |
| 288. |
Which among the following authorities issues currency notes on behalf of the government? |
| A. | Government of India |
| B. | The State Bank of India |
| C. | National Bank for Agriculture and Rural Development |
| D. | Reserve Bank of India |
| Answer» D. Reserve Bank of India | |
| 289. |
In which of the following systems exchange of goods is done without use of money? |
| A. | Credit system |
| B. | Barter system |
| C. | Banking system |
| D. | Collateral system |
| Answer» B. Barter system | |
| 290. |
Banks provide a higher rate of interest on which of the following accounts? |
| A. | Saving account |
| B. | Current account |
| C. | Fixed deposits for long period |
| D. | Fixed deposits for very short period |
| Answer» C. Fixed deposits for long period | |
| 291. |
Banks use the major portion of the deposits to: |
| A. | Keep as reserve so that people may withdraw |
| B. | Meet their routine expenses |
| C. | Extend loans |
| D. | Meet renovation of bank |
| Answer» C. Extend loans | |
| 292. |
What percentage of their deposits is kept as cash by the banks in India? |
| A. | 25% |
| B. | 20% |
| C. | 15% |
| D. | 10% |
| Answer» C. 15% | |
| 293. |
The informal source of credit does not include which one of the following? |
| A. | Traders |
| B. | Friends |
| C. | Cooperative Societies |
| D. | Moneylenders |
| Answer» C. Cooperative Societies | |
| 294. |
Which one of the following is the new way of providing loans to the mral poor? |
| A. | Co-operative societies |
| B. | Traders |
| C. | Relatives and friends |
| D. | SHGs |
| Answer» D. SHGs | |
| 295. |
Why is currency accepted as a medium of exchange? |
| A. | Because the currency is authorised by the government of the country. |
| B. | Because it is liked by the people who use it. |
| C. | Because the use of currency has its origin in ancient times. |
| D. | Because the currency is authorised by the World Bank. |
| Answer» A. Because the currency is authorised by the government of the country. | |
| 296. |
Who issues the currency notes in India? |
| A. | Currency notes are issued by the Finance Commission. |
| B. | All the nationalized banks can issue the currency notes. |
| C. | Only Reserve Bank of India can issue currency notes. |
| D. | Any individual or organization can issue cur¬rency notes with the permission of the govt. |
| Answer» C. Only Reserve Bank of India can issue currency notes. | |
| 297. |
CRR refer s to ………….. |
| A. | Cash Reserve Ratio |
| B. | Credit Reserve Ratio |
| C. | Common Reserve Ratio |
| D. | None of these |
| Answer» A. Cash Reserve Ratio | |
| 298. |
SLR refers to ………….. |
| A. | Statutory Liquidity Ratio |
| B. | Stability Liquidity Ratio |
| C. | Safety Liquidity Ratio |
| D. | None of these |
| Answer» A. Statutory Liquidity Ratio | |
| 299. |
RBI ACT was comes in to existence…… |
| A. | 1934 |
| B. | 1935 |
| C. | 1948 |
| D. | 1945 |
| Answer» A. 1934 | |
| 300. |
Banking Regulation Act was comes into existence……… |
| A. | 1949 |
| B. | 1934 |
| C. | 1956 |
| D. | 1949 |
| Answer» A. 1949 | |
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