McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) , Bachelor of Commerce (B Com) .
| 251. |
Credit for the purchase of Farm equipment & machinery for agriculture operations |
| A. | Land purchase |
| B. | Farm mechanization |
| C. | Minor irrigation |
| D. | Land development |
| Answer» B. Farm mechanization | |
| 252. |
Which type of deposits gives highest rate of interest? |
| A. | Current deposit |
| B. | Fixed deposit |
| C. | Recurring deposit |
| D. | None |
| Answer» B. Fixed deposit | |
| 253. |
Which bank deals with short-term credit |
| A. | Agricultural B |
| B. | Commercial B |
| C. | Industrial B |
| D. | None |
| Answer» B. Commercial B | |
| 254. |
Which one of the following is the most important relationship between banker & customer? |
| A. | Debtor & Creditor |
| B. | Bailee&Bailor |
| C. | Agency & Principal |
| D. | Trustee & Beneficiary |
| Answer» A. Debtor & Creditor | |
| 255. |
Which one of this is not a function of commercial bank? |
| A. | Accepting deposits |
| B. | Real Estate Development |
| C. | Paying bills |
| D. | Safety Box Deposit |
| Answer» B. Real Estate Development | |
| 256. |
Maximum amount of interest can be procured from |
| A. | Savings/Demand Deposit A/c |
| B. | Recurring Deposit A/c |
| C. | Current A/c Deposit |
| D. | Fixed Deposit A/c |
| Answer» D. Fixed Deposit A/c | |
| 257. |
There is no interest on deposit in this type of account |
| A. | Current A/c |
| B. | Concurrent A/c |
| C. | Recurring A/c |
| D. | Solvency A/c |
| Answer» A. Current A/c | |
| 258. |
IDBI stand for |
| A. | International Debit Bank Incorporate |
| B. | Industrial Debit Bank of India |
| C. | Intensive Development Bank of India |
| D. | Industrial Development Bank of India |
| Answer» D. Industrial Development Bank of India | |
| 259. |
When a customer Deposits money with a bank, the customer becomes a |
| A. | Borrower |
| B. | Lender |
| C. | Agent |
| D. | Subsciber |
| Answer» B. Lender | |
| 260. |
When the customer borrows money from the bank, the bank becomes the |
| A. | Debtor |
| B. | Trustee |
| C. | Creditor |
| D. | Underwriter |
| Answer» C. Creditor | |
| 261. |
Overdraft facility can be enjoyed in which account |
| A. | Fixed Deposit A/c |
| B. | Demand Deposit A/c |
| C. | Recurring Deposit A/c |
| D. | Current A/c Deposit |
| Answer» D. Current A/c Deposit | |
| 262. |
Overdraft withdrawal is a |
| A. | Short term loan |
| B. | Medium term loan |
| C. | Long term loan |
| D. | Grant in aid |
| Answer» A. Short term loan | |
| 263. |
A kind of deposit where depositor is required to deposit a fixed amount at regular interval for a specific period is |
| A. | term deposit |
| B. | recurring deposit |
| C. | savings deposit |
| D. | fixed deposit |
| Answer» D. fixed deposit | |
| 264. |
What types of deposits earn higher interest rate? |
| A. | current account |
| B. | savings account |
| C. | Fixed deposit |
| D. | none of these |
| Answer» C. Fixed deposit | |
| 265. |
In recurring deposits, |
| A. | a fixed sum is deposited every month |
| B. | period of deposit is a fixed tenure |
| C. | interest is paid at FDR rate |
| D. | all the above |
| Answer» D. all the above | |
| 266. |
Interest on saving deposits is paid |
| A. | every month |
| B. | quarterly |
| C. | half yearly |
| D. | yearly |
| Answer» C. half yearly | |
| 267. |
The banker customer relationship in credit card payment is |
| A. | creditor-debtor |
| B. | debtor-creditor |
| C. | agent principle |
| D. | principle-agent |
| Answer» B. debtor-creditor | |
| 268. |
The credit policy of bank does not consists of? |
| A. | lending policies |
| B. | quality control |
| C. | loan product mix |
| D. | advertising of loan products |
| Answer» D. advertising of loan products | |
| 269. |
The relationship between RBI and the Bank maintaining the currency chest is that of? |
| A. | debtor and creditor |
| B. | principle and agent |
| C. | bailor and bailee |
| D. | none of these |
| Answer» B. principle and agent | |
| 270. |
------ is the rate at which the central bank rediscounts the bills of commercial banks |
| A. | Bank Rate Policy |
| B. | Central bank rate |
| C. | Credit rate |
| D. | None of these |
| Answer» A. Bank Rate Policy | |
| 271. |
___________is a kind of deposit where depositor is required to deposit a fixed amount of money every month for a specific period of time |
| A. | Term deposit |
| B. | Recurring deposit |
| C. | Savings deposit |
| D. | Fixed deposit |
| Answer» B. Recurring deposit | |
| 272. |
When a customer deposits money with a bank, the customer becomes a lender and the bank become a__________ |
| A. | Trustees |
| B. | Custodian |
| C. | Borrower |
| D. | agent |
| Answer» C. Borrower | |
| 273. |
Different types of advances are |
| A. | Loans, cash credit and overdraft |
| B. | Bill discounted and purchased |
| C. | Both (i) and (ii) |
| D. | None of the above |
| Answer» C. Both (i) and (ii) | |
| 274. |
Overdraft facilities are allowed in |
| A. | Current account only |
| B. | Savings account only |
| C. | Fixed deposit only |
| D. | Recurring deposit only |
| Answer» A. Current account only | |
| 275. |
The primary relationship between a banker and customer starts from the time |
| A. | when customer visits that bank |
| B. | when customer opens account |
| C. | when customer visits that bank to made queries |
| D. | All of the above |
| Answer» B. when customer opens account | |
| 276. |
Which of the following are the special relationship of banker and customer: |
| A. | Banker‟s obligation to honour cheques |
| B. | Banker lien |
| C. | Bankers duty to maintain secrecy of customer‟s accounts |
| D. | All of these |
| Answer» D. All of these | |
| 277. |
______________ is the right of a person to retain the property of another person in his possession untill the debt from that owner of that property is repaid |
| A. | Lien |
| B. | Retainment |
| C. | Retrenchment |
| D. | Libel |
| Answer» A. Lien | |
| 278. |
The right of set-off customers account can be exercised only by a |
| A. | Creditors |
| B. | Debtors |
| C. | Banker |
| D. | Customer |
| Answer» A. Creditors | |
| 279. |
The Governor of the Reserve Bank of India currently is: |
| A. | Raghuram G. Rajan |
| B. | Urjit Patel |
| C. | Shaktikanta Das |
| D. | NirmalaSitharaman |
| Answer» C. Shaktikanta Das | |
| 280. |
The main objective of the Reserve Bank of India is: |
| A. | accept deposits from the public |
| B. | give loans and advances |
| C. | maintain price stability |
| D. | provide remittance facilities |
| Answer» C. maintain price stability | |
| 281. |
Two types of Commercial banks have been stipulated by Section_______ of the Reserve Bank of India Act, 1934: |
| A. | 42(6)(b) |
| B. | 24(6)(b) |
| C. | 42(6)(a) |
| D. | 24 (6)(a) |
| Answer» C. 42(6)(a) | |
| 282. |
Quantitative measure for credit control by the RBI includes: |
| A. | Discriminatory Interest Rate |
| B. | Ceiling on Credit |
| C. | Cash Reserve Ratio |
| D. | Directives |
| Answer» C. Cash Reserve Ratio | |
| 283. |
There are three parties to a bank draft: |
| A. | The drawer bank branch, The drawee bank branch, The payee |
| B. | The drawee bank branch, the payee, the purchaser of the draft |
| C. | The payee, the purchaser of the draft, the drawer bank branch |
| D. | The drawer bank branch, the drawee bank branch, the purchaser of the draft |
| Answer» A. The drawer bank branch, The drawee bank branch, The payee | |
| 284. |
The legal obligation to honour cheques is subject to: |
| A. | The cheque being post-dated |
| B. | The cheque being drawn on another bank |
| C. | The cheque being drawn by the depositor |
| D. | The cheque being drawn on the account where there is insufficient balance |
| Answer» C. The cheque being drawn by the depositor | |
| 285. |
When the cash reserve ratio (CRR) is increased by the RBI, it will: |
| A. | Increase the supply of money in the economy |
| B. | Decrease the supply of money in the economy |
| C. | No impact on the supply of money in the economy |
| D. | Initially increase the supply but later on decrease automatically. |
| Answer» B. Decrease the supply of money in the economy | |
| 286. |
Agency services rendered by a bank to its customers as their agent include: |
| A. | Receipt of deposits |
| B. | Act as executors of wills |
| C. | Issue letters of credit |
| D. | Purchase foreign exchange |
| Answer» B. Act as executors of wills | |
| 287. |
Currency notes of Rupee 1 and its subsidiary coins are issued by the |
| A. | RBI |
| B. | SBI |
| C. | Ministry of Finance, Government of India |
| D. | Securities & Exchange Board of India. |
| Answer» C. Ministry of Finance, Government of India | |
| 288. |
14th Major commercial banks were nationalized in 19th July |
| A. | 1959 |
| B. | 1969 |
| C. | 1979 |
| D. | 1989 |
| Answer» B. 1969 | |
| 289. |
_________is an instrument which is used for transfer of funds |
| A. | Cheque book |
| B. | Demand draft |
| C. | Pass book |
| D. | None |
| Answer» B. Demand draft | |
| 290. |
___________are the banks whose main objectives is to provide financial assistance to economically weaker sections of the society. |
| A. | Co-operative B |
| B. | Commercial B |
| C. | Industrial B |
| D. | Development B |
| Answer» A. Co-operative B | |
| 291. |
The RBI commenced its operation from 1st April |
| A. | 1955 |
| B. | 1925 |
| C. | 1935 |
| D. | 1945 |
| Answer» C. 1935 | |
| 292. |
Which bank has given the instructions to the commercial banks regarding the immediate credit of outstation cheque? |
| A. | RBI |
| B. | Central Bank |
| C. | World Bank |
| D. | All of the above |
| Answer» A. RBI | |
| 293. |
Payment of cheque can be stopped by |
| A. | Beneficiary |
| B. | Nominee |
| C. | Drawer of cheque |
| D. | All of the above |
| Answer» C. Drawer of cheque | |
| 294. |
Bank draft is issued by |
| A. | Private Sector Bs |
| B. | Regional Rural Bs |
| C. | Public sector Bs |
| D. | All of the above |
| Answer» D. All of the above | |
| 295. |
A Central Bank is the sole authority for |
| A. | Printing and Issuing currency note |
| B. | Lending to public |
| C. | Accepting deposits from customer |
| D. | Issuing cheques |
| Answer» A. Printing and Issuing currency note | |
| 296. |
The head of the Reserve Bank of India is called |
| A. | Chairman |
| B. | President |
| C. | Governor |
| D. | Councillor |
| Answer» C. Governor | |
| 297. |
One of the main aim of a Central Bank is to control inflation, what does „inflation‟ mean? |
| A. | Saving income |
| B. | Increase export |
| C. | Maintain foreign currency |
| D. | Rising Price |
| Answer» D. Rising Price | |
| 298. |
What is bank rate? |
| A. | Rate at which a Central Bank lends money to Central Government |
| B. | Rate at which a Central Bank lends money to commercial banks |
| C. | Rate at which a Central Bank lends money to State Government |
| D. | Rate of Interest at which a Central Bank accepts deposits from Commercial Banks |
| Answer» B. Rate at which a Central Bank lends money to commercial banks | |
| 299. |
Commercial Bank as the name suggest is a bank functioning for |
| A. | Social welfare |
| B. | Public interest |
| C. | Profit motive |
| D. | Growth of industry |
| Answer» C. Profit motive | |
| 300. |
Commercial Banks make money available to public by |
| A. | A.T.M |
| B. | Honouring cheques |
| C. | Issuing money on demand from Savings A/c |
| D. | giving out loan |
| Answer» D. giving out loan | |
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