McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Common Topics in Competitive and Entrance exams .
| 1. |
Banking Ombudsman Scheme is applicable to the business of . |
| A. | All scheduled commercial banks excluding RRBs |
| B. | All scheduled commercial banks including RRBs |
| C. | Only Public Sector Banks |
| D. | Only Private Sector Banks |
| E. | All scheduled banks except private banks |
| Answer» B. All scheduled commercial banks including RRBs | |
| 2. |
Which of the following functions are not being performed by the Reserve Bank of India? |
| A. | Regulation of Banks in India |
| B. | Regulation of Foreign Direct Investment inIndia |
| C. | Foreign Currency Management in India |
| D. | Currency Management in India |
| E. | Control and Supervision of Money Supply |
| Answer» B. Regulation of Foreign Direct Investment inIndia | |
| 3. |
A bank is called as ―Scheduled Bank‖ when . |
| A. | Its business has crossed Rs. 1000 crore mark |
| B. | Its branch network is over 100 |
| C. | It is included in the second Schedule of the RBI Act |
| D. | When it complies with all the three above |
| E. | None of these |
| Answer» C. It is included in the second Schedule of the RBI Act | |
| 4. |
Which of the following organization/agencies has sought an emergency fund of Rs. 1000 crore from banks to tackle acute liquidity crisis, which is coming in the way to give loans to micro borrowers? |
| A. | Micro Finance Institutions |
| B. | Regional Rural & Cooperative Banks |
| C. | RBI |
| D. | NABARD |
| E. | None of these |
| Answer» D. NABARD | |
| 5. |
What is the upper limit prescribed for RTGS transaction? |
| A. | Rs. 5 lacs |
| B. | Rs. 1 lacs |
| C. | Rs. 25 lacs |
| D. | Rs. 50 lacs |
| E. | No upper limits is prescribed |
| Answer» E. No upper limits is prescribed | |
| 6. |
Distribution of insurance products and insurance policies by banks as corporate agents is known as . |
| A. | General Insurance |
| B. | Non-life Insurance |
| C. | Bancassurance |
| D. | Insurance Banking |
| E. | Deposit Insurance |
| Answer» C. Bancassurance | |
| 7. |
Which of the following committees/ Task Forces was set up to suggest reforms in Banking Sector? |
| A. | Swaminathan Committee |
| B. | Narasimham Committee |
| C. | Rajinder Sachar Committee |
| D. | Task Force on Infrastructure |
| E. | None of these |
| Answer» B. Narasimham Committee | |
| 8. |
FINO stands for . |
| A. | Financial Investment Network and Operations |
| B. | Farmers Investment in National Organization |
| C. | Farmers Inclusion News and Operations |
| D. | Financial Inclusion Network and Operations |
| E. | None of these |
| Answer» D. Financial Inclusion Network and Operations | |
| 9. |
When the rate of inflation increases . |
| A. | Value of money increases |
| B. | Purchasing power of money decreases |
| C. | Purchase power of money increases |
| D. | Purchasing power of money remains unaffected |
| E. | Amount of money in circulation decreases |
| Answer» B. Purchasing power of money decreases | |
| 10. |
Which of the following is the main advantage ―ASBA‖ with the applicants for share allotment? |
| A. | ASBA applicant has got certain preference in allotment of shares as compared to general applicants |
| B. | ASBA applicants need not remit the fund for allotment of shares, he/she will do shares are allotment to him/her |
| C. | ASBA applicant has got secured allotment of shares |
| D. | ASBA applicants deposit/OD account is debited, only the funds are blocked for same and he/she continues to avail interest till the shares are allotted to him/her. |
| E. | None of these |
| Answer» D. ASBA applicants deposit/OD account is debited, only the funds are blocked for same and he/she continues to avail interest till the shares are allotted to him/her. | |
| 11. |
Interest on saving bank account is now calculated by banks on . |
| A. | Minimum balance during the month |
| B. | Minimum balance from 7th to last day of the month |
| C. | Minimum balance from 10th to last day of the month |
| D. | Maximum balance during the month |
| E. | Daily product basis |
| Answer» E. Daily product basis | |
| 12. |
A centralized database with online connectivity to branches, internet as well as ATM-network which has been adopted by almost all major banks of our country is known as . |
| A. | Investment banking |
| B. | Core banking |
| C. | Mobile banking |
| D. | National banking |
| E. | Specialized banking |
| Answer» B. Core banking | |
| 13. |
Which of the following is not considered a money market instrument? |
| A. | Treasury bills |
| B. | Repurchase Agreement |
| C. | Commercial Paper |
| D. | Certificate of deposit |
| E. | Shares and bonds |
| Answer» E. Shares and bonds | |
| 14. |
Which of the following is not a part of the scheduled banking structure in India? |
| A. | State Co-operative Banks |
| B. | Public Sector Banks |
| C. | Private Sector Banks |
| D. | Regional Rural Banks |
| E. | Money Lenders |
| Answer» E. Money Lenders | |
| 15. |
Which of the following terms is used in the field of finance and banking? |
| A. | Guage Pressure |
| B. | Quantum number |
| C. | Adjustment Credit |
| D. | Absolute Zero |
| E. | Single bond |
| Answer» C. Adjustment Credit | |
| 16. |
Goods and Services Tax (GST), would replace which of the following taxes level at present? |
| A. | Income tax |
| B. | Corporate tax |
| C. | Capital gains tax |
| D. | Value-added tax (VAT) |
| E. | All of these |
| Answer» D. Value-added tax (VAT) | |
| 17. |
Normally Banks accepts Fixed Deposits for a maximum period of . |
| A. | 5 years |
| B. | 3 years |
| C. | 7 years |
| D. | 20 years |
| E. | 10 years |
| Answer» E. 10 years | |
| 18. |
IFRS stands for . |
| A. | International Financial Reporting Standards |
| B. | Indian Financial Rating Standards |
| C. | International Financial Rating Standards |
| D. | Indian Functional Reporting Standards |
| E. | None of these |
| Answer» A. International Financial Reporting Standards | |
| 19. |
KYC guidelines followed by the Banks have been framed on the recommendations the . |
| A. | Ministry of Home Affairs |
| B. | Ministry of Rural Development |
| C. | Indian Banks Association |
| D. | Financial Intelligence Unit |
| E. | Reserve Bank of India |
| Answer» E. Reserve Bank of India | |
| 20. |
Short-term assets, representing amounts due to a vendor or suppliers of goods or services that were sold on credit terms is known as . |
| A. | Account Receivable |
| B. | Fixed Asset |
| C. | Deposit Asset |
| D. | Current Liabilities |
| E. | None of these |
| Answer» A. Account Receivable | |
| 21. |
What is the rate at which commercial banks charge on their surplus funds with RBI? |
| A. | SLR |
| B. | Reverse Repo Rate |
| C. | Repo Rate |
| D. | Cash Reverse Ratio |
| E. | Bank Rate |
| Answer» B. Reverse Repo Rate | |
| 22. |
is the rate at which commercial bank needs to maintain in the form of cash, or gold or government approved securities (Bonds) before providing credit to its customers. |
| A. | Reverse Repo Rate |
| B. | Repo Rate |
| C. | CRR Rate |
| D. | SLR Rate |
| E. | None of these |
| Answer» D. SLR Rate | |
| 23. |
Who appoints the governor of Reserve Bank of India? |
| A. | Financial Secretary |
| B. | Financial Ministry |
| C. | Central Government |
| D. | President of India |
| E. | None of these |
| Answer» C. Central Government | |
| 24. |
In India, the Chit funds are governed / regulated by . |
| A. | Local Bodies |
| B. | RBI |
| C. | Central Government |
| D. | State Government |
| E. | None of these |
| Answer» D. State Government | |
| 25. |
CAG Stands for . |
| A. | Controller and Auditor General of India |
| B. | Constant and Author General of India |
| C. | Constant Auditor General of India |
| D. | Central Auditor General of India |
| E. | None of these |
| Answer» A. Controller and Auditor General of India | |
| 26. |
CPI stands for . |
| A. | Cost Price Index |
| B. | Current Price Index |
| C. | Consumer Price Index |
| D. | Cash Price Index |
| E. | None of these |
| Answer» C. Consumer Price Index | |
| 27. |
SEBI is a . |
| A. | Non-Advisory body |
| B. | Statutory body |
| C. | Advisory body |
| D. | Constitutional body |
| E. | Non- Statutory body |
| Answer» B. Statutory body | |
| 28. |
At which rate the RBI lends money to a public sector bank on a long term basis? |
| A. | Bank Rate |
| B. | CRR |
| C. | Repo Rate |
| D. | PLR |
| E. | Reverse Repo Rate |
| Answer» A. Bank Rate | |
| 29. |
What is the full form of PPP? |
| A. | Personal Private Power |
| B. | Primary Power Parity |
| C. | Personal Private Parity |
| D. | Purchasing Power Parity |
| E. | None of these |
| Answer» D. Purchasing Power Parity | |
| 30. |
What is the Minimum amount of transfer required for RTGS is . |
| A. | Rs. 1 lakh |
| B. | Rs. 2 lakh |
| C. | Rs. 5 lakh |
| D. | Rs. 50,000 |
| E. | No Limits |
| Answer» B. Rs. 2 lakh | |
| 31. |
Who is the sole authority to issue and manage currency in India? |
| A. | State Bank of India |
| B. | Government of India |
| C. | Reserve Bank of India |
| D. | Finance Ministry |
| E. | None of these |
| Answer» C. Reserve Bank of India | |
| 32. |
In CRR, C stands for . |
| A. | Cash |
| B. | Currency |
| C. | Core |
| D. | Currency |
| E. | None of these |
| Answer» A. Cash | |
| 33. |
MICR code is used for . |
| A. | For Code Banking Solution |
| B. | For Electronic Funds Transfer |
| C. | For Electronic Clearance of Cheques |
| D. | For Cheque Truncation Services |
| E. | None of these |
| Answer» C. For Electronic Clearance of Cheques | |
| 34. |
The Statutory Liquidity Ratio (SLR), the amount of liquid assets such as cash, precious metals |
| A. | 6 months |
| B. | 3 months |
| C. | 2 months |
| D. | 1 month |
| E. | 1 year |
| Answer» D. 1 month | |
| 35. |
Money lent for more than one day but less than 15 days in the money market is known as . |
| A. | Notice Money |
| B. | Call Money |
| C. | Term Money |
| D. | Week Money |
| E. | None of these |
| Answer» A. Notice Money | |
| 36. |
Smart Money‘ is a term used for . |
| A. | Internet Banking |
| B. | Credit Card |
| C. | Mobile Apps |
| D. | Demand Drafts of Banks |
| E. | None of these |
| Answer» B. Credit Card | |
| 37. |
The Indian Financial System Code (IFS Code) is an alphanumeric code that uniquely identifies a bank-branch participating in the two main Electronic Funds Settlement Systems in India. IFSC code consists of how many alphanumeric codes? |
| A. | 10 |
| B. | 11 |
| C. | 9 |
| D. | 12 |
| E. | 8 |
| Answer» B. 11 | |
| 38. |
Which among the following committee constituted on Payment Banks license? |
| A. | Dr. Nachiket Mor |
| B. | Deepak Mohanty |
| C. | A C Shan |
| D. | B D Thakar |
| E. | None of these |
| Answer» A. Dr. Nachiket Mor | |
| 39. |
SARFAESI Act 2002 related to . |
| A. | Acquisition of small banks |
| B. | Fixation of interest rates |
| C. | Recovery of bad loans |
| D. | Regulation of foreign exchange |
| E. | None of these |
| Answer» C. Recovery of bad loans | |
| 40. |
NDTL stands for . |
| A. | Net Demand and Term Liability |
| B. | Net Demand and Time Liquidity |
| C. | Net Demand and Trade Liquidity |
| D. | Net Demand and Time Liability |
| E. | None of these |
| Answer» D. Net Demand and Time Liability | |
| 41. |
Magnetic Ink Character Recognition (MICR) is a 9 digits code is used mainly by the banking industry to ease the processing and clearance of cheques and other documents. The first three digits represent the . |
| A. | Bank |
| B. | City |
| C. | State |
| D. | Branch |
| E. | None of these |
| Answer» B. City | |
| 42. |
A savings as well as current account should be treated as inoperative / inactive if there are no transactions in the account for over a period of years. |
| A. | 5 |
| B. | 3 |
| C. | 1 |
| D. | 2 |
| E. | 4 |
| Answer» D. 2 | |
| 43. |
In CDR, ―R‖ stands for . |
| A. | Regulation |
| B. | Reserve |
| C. | Restructuring |
| D. | Ratio |
| E. | Reduce |
| Answer» C. Restructuring | |
| 44. |
If one is not satisfied with the decision passed by the Banking Ombudsman, one can approach the appellate authority to . |
| A. | Governor of RBI |
| B. | Deputy Governor of the RBI |
| C. | Finance Secretary |
| D. | Finance Minister |
| E. | GM of the Concern Bank |
| Answer» B. Deputy Governor of the RBI | |
| 45. |
Headquarters of National Investment and Infrastructure Fund (NIIF) is located at . |
| A. | New Delhi |
| B. | Hyderabad |
| C. | Mumbai |
| D. | Kolkata |
| E. | Bangalore |
| Answer» C. Mumbai | |
| 46. |
According to the proposal on PSL, what sub target is to be created for Micro Enterprises in India by March 2017? |
| A. | 7 % |
| B. | 7.5 % |
| C. | 8 % |
| D. | 8.5 % |
| E. | None of the above |
| Answer» B. 7.5 % | |
| 47. |
What is ―Stagflation‖? |
| A. | inflation with growth |
| B. | deflation with growth |
| C. | inflation after deflations |
| D. | inflation with depression |
| E. | None of the above |
| Answer» C. inflation after deflations | |
| 48. |
Which bank has become the first private sector bank to sell Indian gold coins? |
| A. | Dhanlaxmi Bank |
| B. | Federal Bank |
| C. | ICICI Bank |
| D. | IndusInd Bank |
| E. | Karur Vysya Bank |
| Answer» B. Federal Bank | |
| 49. |
Which of the following can issue commercial paper for raising short term funds? |
| A. | Corporate |
| B. | Primary Dealers |
| C. | All-India Financial Institutions |
| D. | Both (B) and (C) |
| E. | All of the Above |
| Answer» E. All of the Above | |
| 50. |
Section 80E of the Income Tax Act provides for deduction of interest paid on Education or study loan taken for higher education. Deduction under section 80E is available for |
| A. | 2 years |
| B. | 4 years |
| C. | 8 years |
| D. | 10 years |
| E. | None of these |
| Answer» C. 8 years | |
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