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 .
| 201. |
A mortgage involves: |
| A. | transfer of ownership |
| B. | transfer of possession |
| C. | transfer of interest |
| D. | All of the above |
| E. | None of the above |
| Answer» C. transfer of interest | |
| 202. |
“Micro Credits‖ are loans: |
| A. | granted to distressed persons (other than farmers) to pre-pay their debt to non-institutional lenders against appropriate collateral or group security |
| B. | not exceeding Rs. 50,000 per borrower provided by banks |
| C. | both (a) and (b) |
| D. | None of the above |
| E. | Cannot be determined |
| Answer» C. both (a) and (b) | |
| 203. |
RBI issued its first banknote in Jan 1938 bearing the portrait of George IV. What was its denomination? |
| A. | Rs. 5 |
| B. | Rs. 10 |
| C. | Rs. 1 |
| D. | Rs. 2 |
| E. | None of these |
| Answer» A. Rs. 5 | |
| 204. |
Bank holidays under Section 25 of the Negotiable Instruments Act, 1881 are declared by: |
| A. | State Government for the respective State |
| B. | Banking Operations Department |
| C. | Central Government |
| D. | RBI |
| E. | None of the above |
| Answer» D. RBI | |
| 205. |
The tax payers data flows directly from banks to Tax Information Network (TIN). Who maintains TIN? |
| A. | RBI |
| B. | National Securities Depository Ltd. |
| C. | National Securities Defense Ltd. |
| D. | Enforcement Directorate |
| E. | None of these |
| Answer» B. National Securities Depository Ltd. | |
| 206. |
Which of the following is not included in ‗CAMELS‘: |
| A. | Capital Adequacy and Asset Quality |
| B. | Management and Earning Performance |
| C. | Employees Performance |
| D. | Liquidity and Systems |
| E. | None of the above |
| Answer» C. Employees Performance | |
| 207. |
When were banknotes in the Mahatma Gandhi Series introduced? |
| A. | 1991 |
| B. | 1995 |
| C. | 1996 |
| D. | 2000 |
| E. | None of these |
| Answer» C. 1996 | |
| 208. |
‗Ways and Means‖ advances are provided by Reserve Bank of India only to: |
| A. | central Government |
| B. | State Government |
| C. | Both (a) and (b) |
| D. | None of the above |
| E. | Cannot be determined |
| Answer» C. Both (a) and (b) | |
| 209. |
Consider these statements:- Statement I – RBI decides volume and value of banknotes to be Statement II – RBI decides volume and value coins to be minted. |
| A. | Both are true. |
| B. | Both are false. |
| C. | Statement I is true, but statement II is false. |
| D. | Statement I is false, whereas II is true. |
| E. | None of these |
| Answer» C. Statement I is true, but statement II is false. | |
| 210. |
When a cheque is drawn on a bank, the bank is called the ? |
| A. | Payee |
| B. | Drawee |
| C. | Drawer |
| D. | Endorsee |
| E. | None of the above |
| Answer» A. Payee | |
| 211. |
Balance in a current account is classified as |
| A. | Hybrid Deposit |
| B. | Term Deposit |
| C. | Demand Deposit |
| D. | Flexi Deposit |
| E. | None of the above |
| Answer» C. Demand Deposit | |
| 212. |
Capital adequacy is worked out based on? |
| A. | Total demand and time liabilities |
| B. | Net demand and time assets |
| C. | Risk weighted assets |
| D. | Risk weighted liabilities |
| E. | None of the above |
| Answer» C. Risk weighted assets | |
| 213. |
In which of the following types of banking, there is a direct execution of transaction between a bank and its consumers? |
| A. | Retail Banking |
| B. | Universal Banking |
| C. | Virtual Banking |
| D. | Unit Banking |
| E. | None of the above |
| Answer» A. Retail Banking | |
| 214. |
“CAMEL model‖ is used by ? |
| A. | Bankers to evaluate a credit proposal |
| B. | Bankers to manage their risks |
| C. | RBI inspectors to evaluate banks functions |
| D. | Merchant Bankers to evaluate portfolio investment |
| E. | None of the above |
| Answer» C. RBI inspectors to evaluate banks functions | |
| 215. |
The Foreign exchange of India is kept with |
| A. | SBI |
| B. | ECGC |
| C. | RBI |
| D. | NABARD |
| E. | None of these |
| Answer» C. RBI | |
| 216. |
Which of the following instruments is not a Negotiable Instrument, as per NI Act, 1881? |
| A. | Bills of Exchange |
| B. | Letter of credit |
| C. | Bank Draft |
| D. | Promissory Notes |
| E. | Cheque |
| Answer» B. Letter of credit | |
| 217. |
Deposits under Foreign Currency Non- Resident(FCNR) scheme can be accepted for a minimum of |
| A. | 15 days |
| B. | 3 months |
| C. | 6 months |
| D. | 1 year |
| E. | 7 days |
| Answer» D. 1 year | |
| 218. |
One of the State Government avails of a temporary financial assistance from Reserve Bank of India. This type of finance is called ? |
| A. | Overdraft |
| B. | Temporary loan |
| C. | Short term finance |
| D. | Ways and Means advance |
| E. | None of the above |
| Answer» D. Ways and Means advance | |
| 219. |
Which of the following forms of securing a loan is the safest one? |
| A. | Lien |
| B. | Assignment |
| C. | Pledge |
| D. | Hypothecation |
| E. | Mortgage |
| Answer» C. Pledge | |
| 220. |
Nationalized Bank is also known as . |
| A. | Private Sector Banks |
| B. | Self help Groups |
| C. | Cooperative Banks |
| D. | Grameena Banks |
| E. | Public Sector Banks |
| Answer» E. Public Sector Banks | |
| 221. |
In which of the following accounts, operation by cheques is permitted? |
| A. | Savings bank accounts and fixed deposit accounts |
| B. | Current accounts and fixed deposit accounts |
| C. | Savings bank accounts and floating loan accounts |
| D. | Savings bank accounts and cash accounts |
| E. | Savings banks accounts and current accounts |
| Answer» E. Savings banks accounts and current accounts | |
| 222. |
Which of the following is NOT comes under the functions of Banks? |
| A. | Accept demand and time deposits from the public |
| B. | Accept items for keeping in safe custody |
| C. | Sell gold coins |
| D. | Buy commodities for trading |
| E. | Accept foreign currency for selling to money changers |
| Answer» D. Buy commodities for trading | |
| 223. |
RTGS enables . |
| A. | Immediate transfer of money from customer of one bank to customer of another bank |
| B. | Immediate transfer of money from customer of one bank to customer of another branch within the same bank |
| C. | Immediate transfer of money from customer of another country |
| D. | Immediate transfer of money from customer of one bank to customer of RBI |
| E. | None of these |
| Answer» A. Immediate transfer of money from customer of one bank to customer of another bank | |
| 224. |
Which among the following is the private sector banks? |
| A. | Union Bank of India |
| B. | Syndicate Bank |
| C. | IDBI Bank |
| D. | UCO Bank |
| E. | HDFC Bank |
| Answer» E. HDFC Bank | |
| 225. |
Travellers Cheque is . |
| A. | A supplementary credit card |
| B. | A cheque issued by a bank or finance institution which functions as capital |
| C. | A certificate issued by a bank or finance institution in lieu of cash |
| D. | A cheque issued by a bank or finance institution which functions as a bond |
| E. | A prepaid instrument issued by a bank or financial institutions which can be substitute of cash |
| Answer» E. A prepaid instrument issued by a bank or financial institutions which can be substitute of cash | |
| 226. |
Mortgage is a security created on . |
| A. | Movable property for a loan given by a bank |
| B. | Immovable property for a deposit received by a bank |
| C. | A confirmation of immovable property given by a bank |
| D. | Movable property for a deposit given by a bank |
| E. | Immovable property for a loan given by a bank |
| Answer» E. Immovable property for a loan given by a bank | |
| 227. |
Foreign exchange Reserves in India are kept in the custody of . |
| A. | Finance Ministry |
| B. | SEBI |
| C. | Overseas Ministry |
| D. | Reserve Bank of India |
| E. | Govt. of India |
| Answer» D. Reserve Bank of India | |
| 228. |
What is the full form of the name ‗ILO‘ an agency of the United Nations? |
| A. | International Labour Organization |
| B. | International Legal Organization |
| C. | Indian Labour Organization |
| D. | Information & Legal Organization |
| E. | Indian Lawyer’s Organization |
| Answer» A. International Labour Organization | |
| 229. |
For using the safe deposit locker facilities, bank customers pay . |
| A. | Commission of locker |
| B. | Interest on locker |
| C. | Rent on locker |
| D. | Exchange on locker |
| E. | Safe custody charges |
| Answer» C. Rent on locker | |
| 230. |
Expand MAT related to tax? |
| A. | Minimum Additional Tax |
| B. | Maximum Alternative Tax |
| C. | Maximum Additional Tax |
| D. | Minimum Alternative Tax |
| E. | None of these |
| Answer» D. Minimum Alternative Tax | |
| 231. |
Local Area Banks |
| A. | are licensed under the Banking Regulation Act, 1956 |
| B. | are eligible for inclusion in the Second Schedule to the Reserve bank of India Act, 1934 |
| C. | Have minimum paid up capital of Rs. 5 crore with promoters’ contribution being at least Rs. 2 crore |
| D. | all of the above |
| E. | none of the above |
| Answer» D. all of the above | |
| 232. |
Which agency in India provides refinance of export credit? |
| A. | SIDBI |
| B. | NABARD |
| C. | RBI |
| D. | EXIM Bank |
| E. | Government of India |
| Answer» D. EXIM Bank | |
| 233. |
Which of the following is the first Universal Bank established in India? |
| A. | IDBI Bank Ltd. |
| B. | ICICI Bank ltd. |
| C. | Reserve bank of India |
| D. | NABARD |
| E. | HDFC Bank Ltd. |
| Answer» B. ICICI Bank ltd. | |
| 234. |
What is the objective of introduction of ‗Marginal Standing Facility‘ by RBI? |
| A. | To contain volatility in the overnight inter-bank rates |
| B. | To contain volatility in MIBOR |
| C. | To contain volatility in LIBOR |
| D. | To match with standard Tier 1 capital Ratio |
| E. | None of these |
| Answer» A. To contain volatility in the overnight inter-bank rates | |
| 235. |
The term ‗Merchant Banking‘ connotes |
| A. | Services rendered by banks for merchants and traders capital requirements to merchants covered under DICGC Guarantee Scheme |
| B. | Telegraphic transfers effected by merchants |
| C. | Catering to the needs of corporate customers raising finance |
| D. | All of the above |
| E. | none of the above |
| Answer» C. Catering to the needs of corporate customers raising finance | |
| 236. |
Expand FRBM. |
| A. | Financial Responsibility and Budget Management |
| B. | Fiscal Responsibility and Budget Maintenance |
| C. | Fiscal Responsibility and Budget Management |
| D. | Fiscal Risk and Budget Management |
| E. | None of these |
| Answer» C. Fiscal Responsibility and Budget Management | |
| 237. |
The promoters of Local Area Banks may comprise |
| A. | individuals |
| B. | corporate entities |
| C. | trusts and societies |
| D. | accepts deposits from public |
| E. | all of the above |
| Answer» E. all of the above | |
| 238. |
The regional Rural Banks are sponsored by |
| A. | Unit Trust of India |
| B. | Reserve Bank of India |
| C. | Life Insurance Corporation of India |
| D. | NABARD |
| E. | Any Scheduled Commercial bank |
| Answer» E. Any Scheduled Commercial bank | |
| 239. |
Deficit financing can (these are also demerits of it) |
| A. | Cause inflation |
| B. | Bring rise in fiscal deficit |
| C. | Bring rise in credit creation in banks |
| D. | All above |
| E. | None of the above |
| Answer» D. All above | |
| 240. |
Central co-operative banks |
| A. | occupy a crucial importance in the co-operative credit structure |
| B. | from an important link between the state co- operative bank at the apex and the primary agricultural credit societies at the base |
| C. | are closer to the primary societies than an apex bank could be |
| D. | all of the above |
| E. | none of the above |
| Answer» D. all of the above | |
| 241. |
If the RBI wants to infuse credit in Banking system in our country, which of the followings can be done? |
| A. | Decreasing CRR |
| B. | Decreasing SLR |
| C. | Both (a) and (b) |
| D. | None of the above |
| E. | Cannot be determined |
| Answer» C. Both (a) and (b) | |
| 242. |
If the rupees depreciate, what is the effect on the exporters? |
| A. | They are unaffected |
| B. | They are in loss |
| C. | They are in profit |
| D. | They get credit crunch |
| E. | None of these |
| Answer» C. They are in profit | |
| 243. |
Under merchant banking, consultancy services are rendered by banks/merchant bankers for |
| A. | floating of new companies |
| B. | preparation, planning and execution of new projects |
| C. | giving expert guidance and managing the new promotions or new promotions of industries/enterprises |
| D. | all of the above |
| E. | none of the above |
| Answer» D. all of the above | |
| 244. |
When the Government of India cannot raise enough financial resources through taxation, it finances its expenditure through various means like borrowing from market, running down its balances with RBI etc. This can be exactly called as |
| A. | Fiscal Deficit Financing |
| B. | Deficit Financing |
| C. | Capital Infusion |
| D. | Restructuring |
| E. | None of these |
| Answer» B. Deficit Financing | |
| 245. |
Under the Banking Regulation Act, 1949, which of the following is not qualified to be called as banks in the co-operative sector? |
| A. | Urban Co-operative banks |
| B. | State Co-operative banks |
| C. | Primary Agricultural Credit Societies |
| D. | Central Co-operative Banks |
| E. | None of the above |
| Answer» C. Primary Agricultural Credit Societies | |
| 246. |
Buying and selling of eligible securities by RBI in the money market can be termed as |
| A. | Open Economy Operations |
| B. | Open Market Operations |
| C. | Credit Control Measures |
| D. | Credit Creation Measures |
| E. | None of these |
| Answer» B. Open Market Operations | |
| 247. |
Which of the following is the private sector Bank in India? |
| A. | IDBI Bank |
| B. | Axis Bank |
| C. | Corporation Bank |
| D. | UCO Bank |
| E. | None of the above |
| Answer» B. Axis Bank | |
| 248. |
Which of the following terms NOT used in the field of Banking & Finance? |
| A. | Overdraft |
| B. | Base Line |
| C. | RTGS |
| D. | GBC |
| E. | None of the above |
| Answer» D. GBC | |
| 249. |
Which of the following conditions must be fulfilled before a bank is included in the Second Schedule to the Reserve Bank of India Act? |
| A. | It must be a State co-operative bank or a company as defined in the Companies Act, 1956 or an institution notified by the Central Government in this behalf or a corporation or a company incorporated by or under any law in force in any place outside |
| B. | It must satisfy the Reserve Bank of India that its affairs are not being conducted in a manner detrimental to the interests of the depositors |
| C. | It must have a paid-up capital and reserves of an aggregate value of not less than Rs. 5 lakh |
| D. | Only (a) and (b) |
| E. | All of the above |
| Answer» E. All of the above | |
| 250. |
Which of the following is NOT a type of cheque issued by an individual? |
| A. | Bearer cheque |
| B. | Order cheque |
| C. | Crossed cheque |
| D. | Savings cheque |
| E. | None of the above |
| Answer» D. Savings cheque | |
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