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1500+ Banking Awareness Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Common Topics in Competitive and Entrance exams .

451.

term refers an account that cannot be converted and repatriated into foreign currency.

A. Non-Resident Ordinary Rupee or NRO Account
B. Non-Resident Rupee or NRE Account
C. FCNR Account
D. Retail Account
E. None of these
Answer» A. Non-Resident Ordinary Rupee or NRO Account
452.

What does the term Open Market Operations refer to?

A. Selling of equities in the open market
B. Selling of commodities in the open market
C. Buying and selling of government securities in the open market
D. Buying and selling of products in the wholesale market
E. None of these
Answer» C. Buying and selling of government securities in the open market
453.

account is opened by the investor while registering with an investment broker.

A. Fixed Deposit Account
B. Savings Bank Account
C. Recurring Account
D. De-materialized Account
E. None of these
Answer» D. De-materialized Account
454.

is the percentage of total deposits of a bank which it has to keep with itself in the form of liquid assets.

A. Statutory Liquidity Ratio (SLR)
B. Cash Reserve Ratio (CRR)
C. Statutory Reserve Ratio
D. Cash Ratio
E. None of these
Answer» A. Statutory Liquidity Ratio (SLR)
455.

is a deposit of money that has a fixed time and pays higher interest than a SB Account.

A. Fixed Deposit Account
B. Savings Bank Account
C. Recurring Account
D. Current Account
E. None of these
Answer» A. Fixed Deposit Account
456.

Money Market is regulated by?

A. RBI
B. SEBI
C. IRDAI
D. None of the Above
E. Both (a) and (c)
Answer» A. RBI
457.

Who issues treasury bills?

A. Reserve Bank of India, as the agent of the Central Government
B. Any Govt. dept. of State and Central
C. Any Commercial Bank
D. All of the above
E. None of the above
Answer» A. Reserve Bank of India, as the agent of the Central Government
458.

short term instrument, have the generic character of T-bills but are issued for maturities less than 91 days.

A. Dated Government Securities
B. State Development Loans (SDL)
C. Cash Management Bills (CMBs)
D. All of the Above
E. None of these
Answer» C. Cash Management Bills (CMBs)
459.

Certificate of deposit can be subscribed by

A. individuals
B. corporate companies
C. Trusts, funds, association et.c
D. ( a) and (b)
E. all of (a) to (c)
Answer» E. all of (a) to (c)
460.

refers borrower‘s ability to meet immediate liabilities.

A. Current Ratio
B. Gearing Ratio
C. Acid-Test Ratio
D. All of the above
E. None of the Above
Answer» C. Acid-Test Ratio
461.

A government security is generally issued in the form of

A. Stock certificates
B. Bearer bonds
C. Promissory notes
D. all
E. none
Answer» D. all
462.

An Asset Reconstruction Company(ARC) in India is associated with                      

A. UCPDC
B. DICGC
C. NPA
D. All of the above
E. None of the Above
Answer» C. NPA
463.

Who are the major players in the call money markets?

A. Banks
B. Insurance companies
C. Development Financial Institutions
D. Selected Mutual Funds
E. All of the above
Answer» E. All of the above
464.

is a voluntary market body for the bond, money and derivatives markets.

A. RBI
B. SEBI
C. IRDAI
D. FIMMDA
E. None of the above
Answer» D. FIMMDA
465.

CICs are permitted to invest Liquid Fund Schemes (Mutual Funds) with maturity of less than          days.

A. 51
B. 71
C. 61
D. 91
E. 81
Answer» D. 91
466.

Which of the following is NOT the part of the organized sector in Indian Money Market?

A. Mutual Funds
B. Non-Banking Financial Companies
C. Unit Trust of India
D. Chit funds
E. None of these
Answer» D. Chit funds
467.

Systematically Important Core Investment Company(CIC-ND-SI)/ CICs can not accept                 .

A. Public Fund
B. Deposit
C. Public Deposit
D. Both (B) and (C)
E. None of these
Answer» D. Both (B) and (C)
468.

CEO of ICICI bank is:

A. Arundhati Bhattacharya
B. Chanda Kochhar
C. Indira Nuyi
D. Arun Jaitley
E. None of These
Answer» B. Chanda Kochhar
469.

Infrastructure Finance Company(IFC) has a minimum Net Owned Funds of                

A. 100 Crore
B. 150 Crore
C. 250 Crore
D. 300 Crore
E. 350 Crore
Answer» D. 300 Crore
470.

ICICI bank launched internet banking operations in

A. 1998
B. 1999
C. 2000
D. 2002
E. None of These
Answer» A. 1998
471.

When was the Imperial Bank of India nationalised?

A. 1948
B. 1950
C. 1955
D. 1969
E. 1957
Answer» C. 1955
472.

'BCSBI' Stands for :

A. Banking Codes and Standards Boards of India
B. Five
C. Six
D. Eight
E. Three
Answer» A. Banking Codes and Standards Boards of India
473.

Kisan Credit Card can be used for financing?

A. Production needs
B. Consumption needs
C. Both (a) and (b)
D. None of the above
E. cannot be determined
Answer» C. Both (a) and (b)
474.

The largest number of commercial banks‘ offices are located in?

A. Karnataka
B. Maharashtra
C. Tamil Nadu
D. Uttar Pradesh
E. None of these
Answer» D. Uttar Pradesh
475.

Closed Economy is one in which :

A. only export takes place
B. money supply is fully controlled
C. deficit financing takes place
D. neither export nor import takes place
E. None of these
Answer» D. neither export nor import takes place
476.

means the period for which the securities cannot be delivered.

A. Fixed Time Period
B. Shut Period
C. Grace Period
D. Payback Period
E. None of these
Answer» B. Shut Period
477.

The definition of the priority sector was first formalized in 1972 by?

A. Planning Commission
B. National Development Council
C. Reserve Bank of India
D. Ministry of Finance, Government of India
E. None of these
Answer» C. Reserve Bank of India
478.

The term ―capitalisation of reserves‖ is used to denote?

A. the use of reserves for the acquisition of additional capital
B. the use of reserves for paying-off loans raised for building up fixed assets
C. the use of reserves for issuing bonus shares to the existing shareholders
D. the use of reserves for the replacement of depreciated assets
E. None of these
Answer» C. the use of reserves for issuing bonus shares to the existing shareholders
479.

―Multi-currency basket‖ means?

A. a number of international currencies to which the value of SDRs is linked
B. selected international currencies to which the value of Asian Monetary Unit is linked
C. number of major international currencies to which the external value of the Indian rupee is linked
D. the name given to a group of West European currencies.
E. None of these
Answer» C. number of major international currencies to which the external value of the Indian rupee is linked
480.

Which is India‘s first and largest Asset Reconstruction Company?

A. ARCIL
B. PARAS
C. Relaince ARC
D. Both a) and b)
E. None of the Above
Answer» A. ARCIL
481.

The tertiary sector of economy is called as:

A. Manufacturing Industry
B. Service Industry
C. Agro and Fishing Industry
D. All of the above
E. None of these
Answer» B. Service Industry
482.

In Notice Money Market, the tenor of the transactions is from                  

A. 2-7 days
B. 2-14 days
C. 2-21 days
D. 2-28 days
E. None of these
Answer» B. 2-14 days
483.

FDR is:

A. Fix Date Rate
B. Fixed Deposit Receipt
C. Full Date Rate
D. All of the above
E. None of these
Answer» B. Fixed Deposit Receipt
484.

What is the full form of ECB?

A. Extra Commercial Banking
B. Extra Commercial Borrowings
C. External Commercial Borrowings
D. All of the above
E. None of these
Answer» C. External Commercial Borrowings
485.

Account payee crossing is an direction of the drawer to?

A. To collecting banker
B. To drawee banker
C. To payee
D. To all endorsees
E. None of these
Answer» A. To collecting banker
486.

A offers loans to people starting their own business"

A. Bank
B. Credit Union
C. Pawnshop
D. Both a) and b)
E. None of These
Answer» C. Pawnshop
487.

Which of the following cannot be called as a Debt Instrument as referred in financial transactions?

A. Certificate of Deposits
B. Bonds
C. Stocks
D. Commercial Papers
E. None of these
Answer» C. Stocks
488.

All coins that are minted in Noida have

A. Dot
B. Star
C. Diamond
D. No mark
E. None of these
Answer» A. Dot
489.

Obtaining cash from an ATM is similar to:

A. Writing a Cheque
B. Open any Account
C. Any banking transaction
D. Both a) and b)
E. None of These
Answer» A. Writing a Cheque
490.

Which of the following cannot be endorsed?

A. A fixed deposit receipt
B. A bank draft
C. A Promissory note
D. A usance bill of exchange
E. None of these
Answer» A. A fixed deposit receipt
491.

What is a Green Index?

A. It measures the nation’s wealth according to per Capita
B. It measures the nation’s wealth according to GDP per Capita
C. It measures nation’s wealth according to provisions of control on greenhouse gases
D. It measures the nation’s wealth in terms of coverage of forest area.
E. none of these
Answer» C. It measures nation’s wealth according to provisions of control on greenhouse gases
492.

A endorsement includes the words "FOR DEPOSIT ONLY":

A. Restrictive
B. Predictive
C. Conductive
D. Both a) and c)
E. None of These
Answer» A. Restrictive
493.

In a company the use of price sensitive corporate information by the Company – people to make gains or cover losses is known as?

A. insider trading
B. future trading
C. foreign trading
D. stock trading
E. None of these
Answer» A. insider trading
494.

India‘s first indigenous payment gateway is

A. India Payment
B. India Pay
C. India Rupee
D. India Expenditure
E. None of these
Answer» B. India Pay
495.

Which of the following organizations provides Buffer Stock Financing Facility?

A. Reserve Bank of India
B. Asian Development Bank
C. International Monetary Fund
D. World Bank
E. Federal Reserve Bank
Answer» C. International Monetary Fund
496.

The relationship between RBI and the Bank maintaining the currency chest is that of?

A. Creditor and Debtor
B. Bailor and Bailee
C. Principal and Agent
D. Debtor and Creditor
E. None of these
Answer» C. Principal and Agent
497.

Where are the headquarters of National Housing Bank?

A. Lucknow
B. Allahabad
C. Mumbai
D. New Delhi
E. Kolkata
Answer» D. New Delhi
498.

In India, forex rates are determined by

A. Demand and supply forces
B. Importers
C. Ministry of commerce
D. Exporters
E. None of these
Answer» A. Demand and supply forces
499.

Which among the following committees suggested the concept of ―Universal Banking‖ ?

A. Raja Chelliah Committee
B. SH Khan Committee
C. Abid Hussain Committee
D. LK Jha Committee
E. None of them
Answer» B. SH Khan Committee
500.

An increase in CRR by RBI leads to

A. Increase in deposit
B. Decrease in deposit
C. Decrease in lendable resources
D. Increase in lendable resources
E. None of these
Answer» C. Decrease in lendable resources

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