McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) , Bachelor of Arts (BA) , Bachelor of Arts in Economics (BA Economics) , Union Public Service Commission (UPSC) .
Chapters
| 251. |
Which of the following is called a 'banker's cheque' ? [CDS 2002] |
| A. | Demand draft |
| B. | Debit card |
| C. | Pay order |
| D. | Fixed deposit |
| Answer» A. Demand draft | |
| 252. |
Bouncing of cheques has become an offence. What is the punishment for the same: |
| A. | 6 months imprisonment |
| B. | 1year imprisonment |
| C. | 2 years imprisonment |
| D. | 3 years imprisonment |
| Answer» A. 6 months imprisonment | |
| 253. |
The difference between a bank and a non-banking financial institution (NBFI) is that: [IAS 1994] |
| A. | a bank interacts directly with customers while an NBFI interacts with banks and governments |
| B. | a bank indulges in a number of activities relating to finance with a range of customers, while an NBFI is , mainly concerned with the term loan needs of large enterprises |
| C. | a bank deals with both internal and international customers while an NBFI is mainly concerned with the finances of foreign companies |
| D. | a bank's main interest is to help in business transactions and saving/investment activities while an NBFl's main interest is in the stabilisation of the currency |
| Answer» B. a bank indulges in a number of activities relating to finance with a range of customers, while an NBFI is , mainly concerned with the term loan needs of large enterprises | |
| 254. |
The main function of the Exim Bank is: |
| A. | to help RBI in the regulation of foreign exchange |
| B. | to prevent unlicensed transaction |
| C. | to promote exports and curtail imports |
| D. | to conserve foreign exchange |
| Answer» C. to promote exports and curtail imports | |
| 255. |
The main difference between shares and debentures is : |
| A. | debentures can only be issued after shares |
| B. | shareholders receive dividend on shares whereas debenture holders receive interest on debentures |
| C. | debentures can be partly converted into shares whereas shares cannot be converted into debentures |
| D. | shareholders are the owners of the company whereas debenture holders are the creditors of the company |
| Answer» D. shareholders are the owners of the company whereas debenture holders are the creditors of the company | |
| 256. |
In which year, some more commercial banks (in addition to the first lot of 14) were nationalised in India? |
| A. | 1976 |
| B. | 1979 |
| C. | 1980 |
| D. | 1982 |
| Answer» C. 1980 | |
| 257. |
Open market operations of a Central Bank are sale and purchase of: |
| A. | foreign currencies |
| B. | corporate securities |
| C. | trade bills |
| D. | government securities |
| Answer» C. trade bills | |
| 258. |
To prevent recurrence of scams in Indian Capital Market, the Government has assigned regulatory powers to: [IAS 1995] |
| A. | RBI |
| B. | SBI |
| C. | SEBI |
| D. | ICICI |
| Answer» C. SEBI | |
| 259. |
The place where bankers meet and settle their mutual claims and accounts is known as : [Bank PO 1993] |
| A. | treasury |
| B. | clearing House |
| C. | collection Centre |
| D. | dumping Ground |
| Answer» B. clearing House | |
| 260. |
The Imperial Bank of India, after nationalisation was given the name of: |
| A. | Reserve Bank of India |
| B. | Bank of India |
| C. | State Bank of India |
| D. | Indian Overseas Bank |
| Answer» C. State Bank of India | |
| 261. |
Regional Rural Banks are designed to work in which of the following ideals? [IAS 1988] |
| A. | Work on basics of commercial banks |
| B. | Help the targetted groups |
| C. | Keep lending rates lower than cooperative institutions |
| D. | Work on innovative and adaptive ideals |
| Answer» B. Help the targetted groups | |
| 262. |
If the cash-reserve ratio is lowered by the Central bank, what will be its effect on credit creation? |
| A. | Decrease |
| B. | Increase |
| C. | No change |
| D. | None of these |
| Answer» B. Increase | |
| 263. |
Which of the following is not an asset held by commercial banks? |
| A. | Bills of exchange |
| B. | Current account deposits |
| C. | Credit balances with the Reserve Bank |
| D. | Money lent at short notice |
| Answer» B. Current account deposits | |
| 264. |
The primary objective of Unit Trust of India is: |
| A. | to assist the industries in financial difficulties |
| B. | to diffuse the benefit of development among the masses |
| C. | to accumulate funds for public investment expenditure |
| D. | to promote the investment habit among those who have not been able to diversify investment risk |
| Answer» D. to promote the investment habit among those who have not been able to diversify investment risk | |
| 265. |
Which of the following is now a punishable offence by a Bank Account holder ? [Bank PO 1990] |
| A. | If a cheque is not crossed |
| B. | If a post-dated cheque is issued |
| C. | If a cheque drawn by him is dishonoured for insufficiency of funds in his account |
| D. | Issuing a cheque without signature |
| Answer» C. If a cheque drawn by him is dishonoured for insufficiency of funds in his account | |
| 266. |
Which of the following are the functions of the Central Bank of India? [Railways 1992]
|
| A. | 1 and 3 |
| B. | 1, 2 and 3 |
| C. | 1, 2 and 4 |
| D. | 1, 2, 3 and 4 |
| Answer» D. 1, 2, 3 and 4 | |
| 267. |
Which of the following are under the purview of Industrial Development Bank of India?
|
| A. | 1, 2 and 3 |
| B. | 2, 3 and 4 |
| C. | 1, 3 and4 |
| D. | 1, 2 and 4 |
| Answer» B. 2, 3 and 4 | |
| 268. |
Which of the following constitute short-term sources of finance for small scale industries? 1. Private money lenders 2. Loans by commercial banks 3. Credit Guarantee schemes 4. National Small Industries Corporation |
| A. | 1, 2 and 3 |
| B. | 1 only |
| C. | 1, 2 and 4 |
| D. | 1, 2, 3 and 4 |
| Answer» A. 1, 2 and 3 | |
| 269. |
Which of the following provides the largest part of the demand for loanable funds in India? |
| A. | Farmers |
| B. | Private-house purchasers |
| C. | Corporate businesses |
| D. | Hire-purchase borrowers |
| Answer» C. Corporate businesses | |
| 270. |
A crossed cheque is one, which can be encashed only: [IFS 1991] |
| A. | by the drawee |
| B. | through a bank, |
| C. | at the State Bank of India |
| D. | after it has been transferred to another person |
| Answer» B. through a bank, | |
| 271. |
Which one of the following Indian banks is not a nationalized bank? [IAS 2006] |
| A. | Corporation Bank |
| B. | Dena Bank |
| C. | Federal bank |
| D. | Vijaya Bank |
| Answer» C. Federal bank | |
| 272. |
Which of the following is not an affiliate of the Reserve Bank of India? |
| A. | Unit Trust of India |
| B. | The Industrial Development Bank of India |
| C. | Agricultural Refinance Corporation |
| D. | Deposit Insurance Corporation |
| Answer» A. Unit Trust of India | |
| 273. |
The basic regulatory authority for mutual funds and stock markets lies with the: |
| A. | Government of India |
| B. | Reserve Bank of India |
| C. | Securities and Exchange Board of India |
| D. | Stock Exchanges |
| Answer» C. Securities and Exchange Board of India | |
| 274. |
What is the difference between Debentures and Equity? |
| A. | Debentures are sealed bonds acknowledging that money has been borrowed; equity is a shareholder's share voting rights in proportion to his shareholding |
| B. | An equity shareholder cannot withdraw his amount whereas debentures can be withdrawn by taking back the amount |
| C. | Equity shareholding is more risky, compared to debentures which are bound to return good interest on the principal |
| D. | Both debenture and equity holders have the right of voting irrespective of the proportion of holdings but debentures are of lower value than equity |
| Answer» A. Debentures are sealed bonds acknowledging that money has been borrowed; equity is a shareholder's share voting rights in proportion to his shareholding | |
| 275. |
Which of the following organisations in India is mainly' working to meet the credit needs of all types of agricultural and rural development activities? |
| A. | FCI |
| B. | IDBI |
| C. | NABARD |
| D. | ICAR |
| Answer» C. NABARD | |
| 276. |
Which of the following combinations is correct? [IFS 1989] |
| A. | NABARD-Industrial Loans |
| B. | IDBI-Short term loans |
| C. | RBI-Long term finance |
| D. | RRB-Agricultural finance |
| Answer» D. RRB-Agricultural finance | |
| 277. |
Which one of the following Public Sector banks' emblem figures a dog and the words 'faithful, friendly' in it ? [CDS 2010] |
| A. | Punjab National Bank |
| B. | Syndicate Bank |
| C. | Oriental Bank of Commerce |
| D. | State Bank of India |
| Answer» B. Syndicate Bank | |
| 278. |
Which one of the following statements is not correct? [CDS 2009] |
| A. | The National Association of Securities Dealers Automated Quotations known as NASDAQ, is an American stock exchange |
| B. | Nikkei is the stock market index for the Tokyo Stock Exchange |
| C. | S and P CNX Nifty is the index for 50 large companies on the Bombay Stock Exchange |
| D. | Hang Seng Indexes record daily changes of the largest companies of the Hong Kong stock market |
| Answer» C. S and P CNX Nifty is the index for 50 large companies on the Bombay Stock Exchange | |
| 279. |
Which bank gives long term loan to farmers? |
| A. | NABARD |
| B. | Land Development Bank |
| C. | SBI |
| D. | Rural banks |
| Answer» B. Land Development Bank | |
| 280. |
Consider the following statements:
|
| A. | 1, 2 and 3 |
| B. | 1 and 2, only |
| C. | 2 and 3, only |
| D. | 1 and 3, only |
| Answer» C. 2 and 3, only | |
| 281. |
In 1921, the Presidency Banks of Bengal, Madras and Bombay were nationalised to give birth to: |
| A. | Punjab National Bank |
| B. | Syndicate Bank |
| C. | State Bank of India |
| D. | Punjab and Sindh Bank |
| Answer» C. State Bank of India | |
| 282. |
The oldest stock exchange of India is : |
| A. | Bombay Stock Exchange |
| B. | Ahmedabad Stock Exchange |
| C. | Bangalore Stock Exchange |
| D. | Hyderabad Stock Exchange |
| Answer» A. Bombay Stock Exchange | |
| 283. |
Consider the following statements:
|
| A. | 1 only |
| B. | 2 only |
| C. | Both 1 and 2 |
| D. | Neither 1 nor 2 |
| Answer» D. Neither 1 nor 2 | |
| 284. |
The National Housing Bank was set up in India as a wholly-owned subsidiary of which one of the following? [IAS 2007] |
| A. | State Bank of India |
| B. | Reserve Bank of India |
| C. | ICICI Bank |
| D. | Life Insurance Corporation of India |
| Answer» B. Reserve Bank of India | |
| 285. |
In some parts of India, farmers face acute distress because of heavy burden of debt from non-institutional renders. Who can be called a non-institutional lender? [RBI Grade B Officer 2011] |
| A. | Small Banks |
| B. | Grameen Banks |
| C. | Credit Cooperative Societies |
| D. | Money Lenders |
| Answer» D. Money Lenders | |
| 286. |
Which of the following organisations prepare rural credit plans on annual basis for all districts in India, which in turn form the base for annual credit plans of all rural financial institutions? [RBI Grade B Officer 2011] |
| A. | SIDBI |
| B. | NABARD |
| C. | RBI |
| D. | Indian Bank's Association |
| Answer» B. NABARD | |
| 287. |
The RBI has regional offices at various places. At which of the following places it does not have an office? [RBI Grade B Officer 2011] |
| A. | Kota |
| B. | Nagpur |
| C. | Lucknow |
| D. | Panaji |
| Answer» A. Kota | |
| 288. |
Basel Committee has given its recommendations on which of the following aspects of banking operations? [RBI Grade B Officer 2011] |
| A. | Marketing of bank products |
| B. | Priority sector lending |
| C. | Risk Management |
| D. | All of the above |
| Answer» D. All of the above | |
| 289. |
Who amongst the following has never held post of the Governor of the RBI? [RBI Grade B Officer 2011] |
| A. | C. Rangarajan |
| B. | L.K. Jha |
| C. | Manmohan Singh |
| D. | Usha Thorat |
| Answer» D. Usha Thorat | |
| 290. |
'Sub Prime Lending' is a term applied to the loans made to ___ [Punjab & 5indh Bank 2011] |
| A. | those borrowers who do not have a good credit history. |
| B. | those who wish to take loan against the mortgage of tangible assets. |
| C. | those who have a good credit history and are known to bank since 10 years. |
| D. | those borrowers who are most preferred customers of the Bank. |
| Answer» A. those borrowers who do not have a good credit history. | |
| 291. |
As per the reports published- in various journals and newspapers the 'small borrowers' in rural areas still prefer to take informal route for their credit needs. Which of the following is the 'informal route' of credit in financial sector? [Punjab & Sindh Bank 2011] |
| A. | Credit cards |
| B. | Loan against gold from financial institute |
| C. | Debit cards |
| D. | Money lender |
| Answer» D. Money lender | |
| 292. |
Who amongst the following was never a Governor of the RBI ? [SBI Associates Clerk 2011] |
| A. | Bimal Jalan |
| B. | Y. V. Reddy |
| C. | Arup Roy Choudhury |
| D. | C. Rangarajan |
| Answer» C. Arup Roy Choudhury | |
| 293. |
In the world of commodity exchanges-the' concept of "A standard contract to buy or sell a specified commodity at a certain date in future and at a market driven price" – is known as [UBI PO 2010] |
| A. | Future contract |
| B. | Forward contract |
| C. | Market contract |
| D. | Standard contract |
| Answer» A. Future contract | |
| 294. |
Stock Exchanges play, role in an economy which may be termed as [UBI PO 2010] |
| A. | hardly useful |
| B. | useful but need strict regulation |
| C. | harmful to proper capital markets |
| D. | a gambling-where many investors get ruined |
| Answer» B. useful but need strict regulation | |
| 295. |
Which one of the following is not a feature of Limited Liability Partnership firm? [IAS 2010] |
| A. | Partners should be less than 20 |
| B. | Partnership and management need not be separate |
| C. | Internal governance may be decided by mutual agreement among partners |
| D. | It is a corporate body with perpetual succession |
| Answer» A. Partners should be less than 20 | |
| 296. |
Which of the following statements is/are correct?
|
| A. | 1 only |
| B. | 2 only |
| C. | 3 only |
| D. | 1 and 3 |
| Answer» A. 1 only | |
| 297. |
Private Sector Mutual Funds in India were permitted in [UP PCS 2011] |
| A. | 1964 |
| B. | 1993 |
| C. | 1994 |
| D. | 2001 |
| Answer» B. 1993 | |
| 298. |
Which of the following is the basis for determining the national income? |
| A. | Total revenue of the State |
| B. | Net profit earned and expenditure incurred by the State |
| C. | Production of goods and services |
| D. | All of the above |
| Answer» C. Production of goods and services | |
| 299. |
Which of the following is not a method of estimating national income? [I. Tax & Central Excise 1991] |
| A. | Income method |
| B. | Value-added method |
| C. | Expenditure method |
| D. | Export-import method |
| Answer» D. Export-import method | |
| 300. |
The national income of India is estimated mainly through: [CBI 1993] |
| A. | production method alone |
| B. | expenditure method alone |
| C. | production and expenditure methods |
| D. | production and income methods |
| Answer» D. production and income methods | |
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