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250+ Indian Banking and Financial System Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Union Public Service Commission (UPSC) .

51.

Technical consultancy Organisations were set up by........................

A. IFCI
B. IDBI
C. RBI
D. SEBI
Answer» B. IDBI
52.

ICICI was set up in ........................

A. 1955
B. 1964
C. 1989
D. 1935
Answer» A. 1955
53.

........................ assists mainly to industrial undertakings in the private sector

A. IFCI
B. IDBI
C. ICICI
D. SEBI
Answer» C. ICICI
54.

LIC was established in........................

A. 1956
B. 1964
C. 1989
D. gcv1935
Answer» A. 1956
55.

UTI was set up in the year ........................

A. 1956
B. 1964
C. 1969
D. 1948
Answer» B. 1964
56.

................known as Brettonwood twins

A. IDBI and IFCI
B. IDBI and UTI
C. IBRD and IMF
D. RBI and SEBI
Answer» C. IBRD and IMF
57.

World bank is also known as........................

A. IMF
B. ADB
C. IBRD
D. UNICEF
Answer» C. IBRD
58.

World bank was set up in ........................

A. 1945
B. 1946
C. 1947
D. 1948
Answer» A. 1945
59.

IMF commenced financial operation on........................

A. 1945
B. 1946
C. 1947
D. 1948
Answer» C. 1947
60.

Which of the following gives long term finance?

A. IDBI
B. ICICI
C. IFCI
D. All the above
Answer» D. All the above
61.

Which of the following is a fee based service

A. hire purchase
B. Leasing
C. capital issue management
D. Underwriting.
Answer» C. capital issue management
62.

Find the odd one out

A. commercial paper
B. share certificate
C. certificate of deposit
D. Treasury bill.
Answer» B. share certificate
63.

The process of managing the sales ledger of a client by a financial service company is called

A. forfaiting
B. factoring
C. leasing
D. None of these.
Answer» B. factoring
64.

Mutual funds are very popular in

A. USA
B. UK
C. Japan
D. India
Answer» A. USA
65.

In India, the company which actually deals with the corpus of the mutual fund is called

A. sponsor company
B. trustee company
C. asset management company
D. Mutual fund Company.
Answer» C. asset management company
66.

The first bank in India to start factoring business is

A. Canara bank
B. SBI
C. Punjab National Bank
D. Allahabad Bank.
Answer» B. SBI
67.

An asset with a physical value is called

A. Financial asset
B. Non financial asset
C. Fictitious asset
D. Fixed asset
Answer» B. Non financial asset
68.

An asset which derives its value because of a contractual claim is

A. Financial asset
B. Non financial asset
C. Fictitious asset
D. Fixed asset
Answer» A. Financial asset
69.

Gold is -----------asset

A. Financial asset
B. Non financial asset
C. Fictitious asset
D. Intangible asset
Answer» B. Non financial asset
70.

Cash is --------------asset

A. Financial asset
B. Non financial asset
C. Fictitious asset
D. Intangible asset
Answer» A. Financial asset
71.

-------------is a whole sale market for short term debt instrument.

A. capital market
B. forex market
C. money market
D. any of the above
Answer» C. money market
72.

Money lent in the inter-bank market for 15 days or more is called -----------

A. Call money
B. Term money
C. Money at short notice
D. All the above
Answer» B. Term money
73.

Call money is a loan given for a period of

A. 15 days
B. 30 days
C. 1 day
D. 1 year
Answer» C. 1 day
74.

When money lent for more than a day but up to a fortnight is called

A. Call money
B. Term money
C. Money at short notice
D. None of the above
Answer» C. Money at short notice
75.

CBLO stands for

A. Collateralised Borrowing and Lending Obligation
B. Central Banks Lending Obligation
C. Commercial Bank and Lending Option
D. None of these
Answer» A. Collateralised Borrowing and Lending Obligation
76.

The NSDL established in

A. August 1996
B. August 1998
C. January 1996
D. January 1998
Answer» A. August 1996
77.

In a private placement the maximum number of investors shall not exceed

A. 51
B. 49
C. 100
D. 25
Answer» B. 49
78.

Merchant banks in India started in

A. 1955
B. 1969
C. 1972
D. 1992
Answer» B. 1969
79.

Merchant banks concept in India introduced by

A. SBI
B. PNB
C. ANZ Grindlays
D. City bank
Answer» C. ANZ Grindlays
80.

SENSEX is the index of

A. BSE
B. NSE
C. OTCEI
D. CSE
Answer» A. BSE
81.

NIFTY is the index of

A. BSE
B. NSE
C. OTCEI
D. CSE
Answer» B. NSE
82.

The first Indian equity index is

A. Nifty
B. Sensex
C. Dollex
D. Defty
Answer» B. Sensex
83.

........... is a product whose value is derived from the value of underlying asset

A. Repo
B. T-bills
C. G.sec
D. Derivatives
Answer» D. Derivatives
84.

BOLT stands for

A. Borrowing or Lending Trade
B. Bombay Online Trading
C. Bond or Loan Transaction
D. None of these
Answer» B. Bombay Online Trading
85.

--------------is also known as “G.Secs”

A. Gold Traded Fund (GTF)
B. General Securities
C. Govt. Securities
D. Growth oriented fund
Answer» C. Govt. Securities
86.

.................. are negotiable instrument issued by an overseas depository

A. ADR
B. GDR
C. IDR
D. Any of the above
Answer» D. Any of the above
87.

Perpetual bond is also known as

A. Deep discount bond
B. Irredeemable bond
C. Bearer bond
D. Registered bond
Answer» B. Irredeemable bond
88.

Zero Coupon Bond is also known as

A. Deep discount bond
B. Irredeemable bond
C. Bearer bond
D. Zero Interest bond
Answer» A. Deep discount bond
89.

Secured Premium Notes (SPN) always issued with...........

A. Premium
B. Discount
C. Detachable Warrant
D. Coupon
Answer» C. Detachable Warrant
90.

................ bonds permit the bond holder to invest the interest income again in host bonds

A. Deep discount bond
B. Junk bonds
C. Bearer bond
D. Bunny bonds
Answer» D. Bunny bonds
91.

...............bonds are high risk and high yield bonds developed in USA

A. Deep discount bond
B. Junk bonds
C. Bearer bond
D. Bunny bonds
Answer» B. Junk bonds
92.

ESOP stands for

A. Equity share option Plan
B. Equity shares Option premium
C. Employee stock Option Plan
D. Equity Stock Option Plan
Answer» C. Employee stock Option Plan
93.

QIPs Stands for

A. Quality investment Project
B. Qualified investment Plan
C. Qualified Institutional Placement
D. Qualitative Investment Premium
Answer» C. Qualified Institutional Placement
94.

What you mean by “STRIPS”

A. Separate Trade Register of Initial Public Securities offer
B. Stock Trading Register of Interest and Principal Securities
C. Separate Trading of Registered Interest and Principal of Securities
D. Share Transfer and Registrar of Indian Public Securities issues
Answer» C. Separate Trading of Registered Interest and Principal of Securities
95.

Gilt Edged Securities are

A. Govt. Securities
B. Company’s securities
C. Any of the above
D. None of these
Answer» A. Govt. Securities
96.

In India, forfaiting services are offered by

A. RBI
B. SBI
C. EXIM bank
D. All the above
Answer» C. EXIM bank
97.

The small investors’ gateway to enter into big companies is —————

A. Equity shares
B. Preference shares
C. Bonds
D. Mutual fund
Answer» D. Mutual fund
98.

Money Market mutual fund is also known as---------------

A. Growth fund
B. Balanced fund
C. Income fund
D. Cash fund
Answer» C. Income fund
99.

————— fund invests in highly liquid securities like commercial paper.

A. Open ended fund
B. Close ended fund
C. Balanced fund
D. MMMF
Answer» D. MMMF
100.

The idea of providing factoring services in India was first thought by —————

A. Vaghul committee
B. Malhotra Committee
C. Tanden Committee
D. None of these
Answer» A. Vaghul committee

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