McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) , Bachelor of Commerce in Banking and Insurance (B.Com Banking and Insurance) .
| 101. |
Net interest income is |
| A. | interest earned on advances |
| B. | interest earned on investment |
| C. | total interest earn |
| D. | on advances and investment |
| Answer» D. on advances and investment | |
| 102. |
The ……….is an important function of a bank and this function distinguishes banks from the non banking institution. |
| A. | accepting deposit |
| B. | lending money |
| C. | creation of credit |
| D. | agency service |
| Answer» C. creation of credit | |
| 103. |
………..function are the core activities of banking. |
| A. | agency and general utility |
| B. | borrowing and lending |
| C. | accepting deposit a |
| D. | borrow money |
| Answer» B. borrowing and lending | |
| 104. |
Banks lend to special purpose vehicles (SPVs)in the private sector registered under………… for directly undertaking infrastructure projects. |
| A. | reserve bank of india |
| B. | state bank of india |
| C. | local courts |
| D. | companies act. |
| Answer» D. companies act. | |
| 105. |
Banks categorised housing loan ,education loan etc. as……… |
| A. | wholesale loan |
| B. | retail loan |
| C. | risk loan |
| D. | personal loan |
| Answer» B. retail loan | |
| 106. |
Banks extend need based working capital facilities as well as term loans to all NBFCs registered with……… |
| A. | companies act. |
| B. | state bank of india |
| C. | commercial bank |
| D. | reserve bank of india |
| Answer» D. reserve bank of india | |
| 107. |
Investment of banks in Govt. securities and other approved securities is categorised as …… |
| A. | lending |
| B. | slr-investment |
| C. | non-slr investment |
| D. | anbc |
| Answer» B. slr-investment | |
| 108. |
Interest rate risk is a type of |
| A. | credit risk |
| B. | market risk |
| C. | operational risk. |
| D. | all of the above |
| Answer» B. market risk | |
| 109. |
Which of the following is not a motive for the companies to hold cash |
| A. | transactional motive |
| B. | precautionary motive |
| C. | lack of proper synchronization between cash inflows a |
| D. | outflows |
| Answer» D. outflows | |
| 110. |
VaR means |
| A. | value of business at risk |
| B. | value at risk |
| C. | volume on risk |
| D. | value as risk. |
| Answer» B. value at risk | |
| 111. |
In an inflationary trend ,the pricing of the bank products are |
| A. | decreasing trend |
| B. | constant |
| C. | increasing tre |
| D. | d.no relevance. |
| Answer» C. increasing tre | |
| 112. |
……….is a place where inter bank claims arising on account of cheques received for collection by each bank drawn against other banks are settled. |
| A. | investment house |
| B. | issuehouse |
| C. | bankers clearing house |
| D. | none of these |
| Answer» C. bankers clearing house | |
| 113. |
The primery function of central bank is to………….of the country. |
| A. | control the system |
| B. | regulate the monetary system |
| C. | plan the monetary system |
| D. | none of these |
| Answer» B. regulate the monetary system | |
| 114. |
Every central bank has the monopoly right of………. |
| A. | moral suasion |
| B. | note issue |
| C. | direct action |
| D. | credit regulation |
| Answer» B. note issue | |
| 115. |
Open market operation is another important…………… wepon of credit control.? |
| A. | qualitative |
| B. | normal |
| C. | quantitative |
| D. | none of the above |
| Answer» C. quantitative | |
| 116. |
……………… is a method of credit control adopted by the modern central banks? |
| A. | consumer credit |
| B. | margin requirements |
| C. | variable reserve ratio. |
| D. | rationing of credit, |
| Answer» C. variable reserve ratio. | |
| 117. |
The Govt.of India set up the ……….committee(1991) to examine all aspects relating to structure ,organisation and the functioning of the Indian banking system. |
| A. | narasimham |
| B. | malhotra |
| C. | vadia |
| D. | smith |
| Answer» A. narasimham | |
| 118. |
How many banks were in second phase of nationalisation? |
| A. | 4 |
| B. | 5 |
| C. | 6 |
| D. | 7 |
| Answer» C. 6 | |
| 119. |
……….is automation of banks across multiple –delivery channels. |
| A. | anbc |
| B. | obe |
| C. | naba |
| D. | (d) cbs |
| Answer» D. (d) cbs | |
| 120. |
……….was the first public sector bank to tap the equity market in December 1993 |
| A. | sbt |
| B. | pnb |
| C. | sbi |
| D. | boi |
| Answer» C. sbi | |
| 121. |
Large value payment system consist of |
| A. | ecs |
| B. | rtgs |
| C. | neft |
| D. | obe |
| Answer» B. rtgs | |
| 122. |
………..may be defined as an exposure to a transaction with loss ,which occurs with some probability and which can be expected, measured and minimised. |
| A. | profit |
| B. | loss |
| C. | risk |
| D. | opportunity |
| Answer» C. risk | |
| 123. |
What is CRR? |
| A. | cash reserve ratio |
| B. | current ratio rate |
| C. | review report |
| D. | credit rating record |
| Answer» A. cash reserve ratio | |
| 124. |
………….. banks are those banks which are incorporated outside India and their head office are also situated outside India. |
| A. | foreign exchange bank |
| B. | schedule bank |
| C. | non-schedul |
| D. | bank |
| Answer» A. foreign exchange bank | |
| 125. |
Banks have adopted asset-liability management and stress testing as a tool of ………. |
| A. | profit management |
| B. | risk management |
| C. | loss management |
| D. | opportunity management |
| Answer» B. risk management | |
| 126. |
Which of the following NBFC converted itself into a commercial Bank? |
| A. | tata finance |
| B. | reliance capital trust |
| C. | birla mutual |
| D. | kotak mahindra |
| Answer» D. kotak mahindra | |
| 127. |
Which is the current revision & year of UCPDC? |
| A. | ucpdc 500, 1993 |
| B. | ucodc 400, 1993 |
| C. | ucpdc 300, 1973 |
| D. | none of these |
| Answer» A. ucpdc 500, 1993 | |
| 128. |
The rate of which discounting the bills of first class banks is done by RBI is called |
| A. | bank rate |
| B. | prime lending rate |
| C. | loan rate |
| D. | discounting rate |
| Answer» A. bank rate | |
| 129. |
Banking ombudsman has been constituted under which act? |
| A. | banking regulation act |
| B. | rbi act |
| C. | sbi act |
| D. | copra |
| Answer» B. rbi act | |
| 130. |
The major objective of ……..was to ensure financial safety, soundness, and solvency of banks |
| A. | prudential norms |
| B. | risk norms |
| C. | profit norms |
| D. | none of these |
| Answer» A. prudential norms | |
| 131. |
A unit of the Unit Trust of India is a |
| A. | share |
| B. | debenture |
| C. | negotiabl |
| D. | instrument |
| Answer» D. instrument | |
| 132. |
Indian Banks Association (IBA) has a common net working system forsharing the ATM facilities in Mumbai, which is known as |
| A. | atm network |
| B. | shared payment network system |
| C. | cash network |
| D. | none of these |
| Answer» B. shared payment network system | |
| 133. |
Arbitrage is |
| A. | buying and selling in two markets simultaneously |
| B. | a rate of interest |
| C. | a fe |
| D. | arbitrage is a dispute |
| Answer» A. buying and selling in two markets simultaneously | |
| 134. |
E E F C denotes |
| A. | exchange earners foreign currency account |
| B. | importer’s account with bank |
| C. | account maintain |
| D. | by a exporter with rbi |
| Answer» A. exchange earners foreign currency account | |
| 135. |
For which of the following currencies is the Indian rupee quotedagainst 100 units of the foreign currency |
| A. | deutsche mark |
| B. | pound |
| C. | japanese yen |
| D. | us dollars |
| Answer» C. japanese yen | |
| 136. |
Exchange risk in case of foreign currency Non Resident (Banks)scheme (FCNB) is borne by |
| A. | rbi |
| B. | depositor |
| C. | govt. of india |
| D. | concerned bank |
| Answer» D. concerned bank | |
| 137. |
Consortium Advances refer to |
| A. | concurrent borrowings |
| B. | multiple financing |
| C. | joint financing by more than one bank |
| D. | financing of consignment business |
| Answer» C. joint financing by more than one bank | |
| 138. |
NABARD refinance for financing Self Help Groups is to the extent of |
| A. | 25% |
| B. | 50% |
| C. | 75% |
| D. | 100% |
| Answer» D. 100% | |
| 139. |
The term Allonge refers to |
| A. | the sheets of paper used in writing a deed |
| B. | the stamps affixed on document |
| C. | a sheet of paper attach |
| D. | to mortgage deed for the purpose of witness |
| Answer» D. to mortgage deed for the purpose of witness | |
| 140. |
……………is a system of banking in which one bank carries on its business through a network of branches spread all over the country. |
| A. | chain banking |
| B. | unit banking |
| C. | branch banking |
| D. | none of these |
| Answer» C. branch banking | |
| 141. |
As the credit card gives the overdraft facilities and additional………….power to customer. |
| A. | lending |
| B. | deposit |
| C. | borrowing |
| D. | creating |
| Answer» C. borrowing | |
| 142. |
………..represents short-term loans granted either to the discount houses or to other banks which are obtainable at call. |
| A. | balance with other banks |
| B. | money at call and short notice |
| C. | bills discount |
| D. | cash in hand |
| Answer» B. money at call and short notice | |
| 143. |
Banking ombudsman means |
| A. | person appointed to recover dues from defaulting borrowers |
| B. | a person to whom customer can approach for redress of his grievances |
| C. | a person appoint |
| D. | to settle dispute between employees and management |
| Answer» B. a person to whom customer can approach for redress of his grievances | |
| 144. |
NGO is the term associated with |
| A. | shg |
| B. | pmry |
| C. | seeuy |
| D. | agri. advances |
| Answer» A. shg | |
| 145. |
Full form of SLR |
| A. | statutory liquidity ratio |
| B. | state level recovery |
| C. | sundry leverage ratio |
| D. | state liquidity reserve |
| Answer» A. statutory liquidity ratio | |
| 146. |
C.R.A. in banking parlance stands for |
| A. | credit rating association |
| B. | credit rating agency |
| C. | credit risk assessment |
| D. | none of these |
| Answer» C. credit risk assessment | |
| 147. |
E.P.S. in share market stands for |
| A. | earning per share |
| B. | electronic payment system |
| C. | employee pension scroll |
| D. | equated payment system |
| Answer» A. earning per share | |
| 148. |
The Securitization and Reconstruction of Financial Asset and enforce of Security Interest Act came into force from |
| A. | 21.08.02 |
| B. | 21.06.02 |
| C. | 21.07.02 |
| D. | 21.12.02 |
| Answer» B. 21.06.02 | |
| 149. |
The powers of the Board of Directors to borrow from the bank are mentioned in |
| A. | article of association |
| B. | memorandum of association |
| C. | special resolution |
| D. | a & b |
| Answer» B. memorandum of association | |
| 150. |
The currency Euro has been introduced w.e.f. |
| A. | 01.01.99 |
| B. | 01.01.2000 |
| C. | 01.08.99 |
| D. | 01.03.99 |
| Answer» A. 01.01.99 | |
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