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200+ Modern Banking Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Arts in Economics (BA Economics) .

1.

Demand deposit also known as ___________________.

A. current account
B. fixed deposit
C. capital account
D. recurring deposit
Answer» A. current account
2.

Bank places certain restriction on withdrawal for _______________ deposit.

A. savings deposit
B. demand deposit
C. current account
D. fixed deposit
Answer» A. savings deposit
3.

______________ is the contribution made by the shareholders of the bank.

A. loans & advances
B. cash in hand
C. bills discounted
D. share capital
Answer» D. share capital
4.

__________ was originally the home of commercial banking.

A. u.s.a
B. england
C. britain
D. germany
Answer» D. germany
5.

____________ was initially the home of industrial or investment banking.

A. italy
B. england
C. geneva
D. germany
Answer» D. germany
6.

The trend in India is towards ___________.

A. mixed banking
B. development banking
C. commercial banking
D. industrial banking
Answer» A. mixed banking
7.

___________ to ___________ percent of total deposit is kept as cash reserve.

A. 5 to 10
B. 11 to 15
C. 8 to 11
D. 9 to 11
Answer» D. 9 to 11
8.

Commercial banks to expand deposit through expanding their loans and advances is known as ___________.

A. credit creation
B. trade discount
C. deposit
D. bank advances
Answer» A. credit creation
9.

Rediscounting and giving advance the central bank changes interest at a rate which is known as __________

A. crr
B. slr
C. bank rate
D. credit
Answer» C. bank rate
10.

The nationalization of 14 commercial banks was on?

A. 19 july, 1969
B. 15 aug, 1972
C. 15april, 1980
D. 19 jan, 1959
Answer» A. 19 july, 1969
11.

The State Bank of India was established under the State Bank of India Act on?

A. 1935
B. 1948
C. 1955
D. 1952
Answer» C. 1955
12.

RBI introduced 14-day intermediate Treasury Bills and 14-day Treasury bills on?

A. 1994
B. 1997
C. 1984
D. 1972
Answer» B. 1997
13.

DIC stands for?

A. deposit investment corporation
B. deposit insurance corporation
C. deposit industrial corporation
D. development corporation of india
Answer» C. deposit industrial corporation
14.

System of banking is guided by the Islamic Law called?

A. islamic guide
B. islamic banking
C. banking regulation act
D. shariat
Answer» D. shariat
15.

Money at call and short notice is also known as?

A. capital market
B. inter bank call money market
C. financial system
D. financial call money
Answer» B. inter bank call money market
16.

The process of credit creation by the banking system as a whole is termed as ?

A. multiple credit creation
B. primary deposit
C. credit creation
D. single bank credit system
Answer» A. multiple credit creation
17.

The regulator of Indian Money market is?

A. sbi
B. commercial bank
C. rbi
D. sebi
Answer» C. rbi
18.

The regulator of Indian Capital Market is?

A. sebi
B. sbi
C. rbi
D. commercial bank
Answer» A. sebi
19.

Bridge Loan is also known as?

A. swing loan
B. term loan
C. demand loan
D. farm loan
Answer» A. swing loan
20.

182-day Treasury bill was introduced in Indian Money Market in?

A. 19992
B. 1972
C. 1987
D. 1952
Answer» C. 1987
21.

CIBIL stands for?

A. credit information bureau ltd
B. credit information banking india ltd
C. credit investment bureau india ltd
D. credit information bureau india ltd
Answer» D. credit information bureau india ltd
22.

The value of money received today will be more than a rupee tomorrow is?

A. time value of money
B. present value of money
C. future value of money
D. compound value of money
Answer» A. time value of money
23.

The interest computed on the principal for the entire period of borrowings?

A. compound interest
B. simple interest
C. flat rate interest
D. floating rate interest
Answer» B. simple interest
24.

The periodical interval at which interest is added is called?

A. floating period
B. compounding period
C. fixed period
D. periodic payment
Answer» B. compounding period
25.

________Act offer incentive to attract people to invest in housing property.

A. sales tax
B. income tax act 1961
C. banking regulations act
D. co-operative societies act
Answer» B. income tax act 1961
26.

Loan designed for people who wish to sell the existing home and purchase and purchase another?

A. bridge loan
B. housing loan
C. demand loan
D. personal loan
Answer» A. bridge loan
27.

The first joint Stock Bank in India?

A. idbi
B. icici
C. imperial bank
D. allahabad bank
Answer» C. imperial bank
28.

Repayment of an educational loan is deductable u/s_______ of the Income tax Act

A. 70
B. 80
C. 60
D. 90
Answer» B. 80
29.

BPLR means?

A. bench mark prime lending rate
B. bench mark primary money lending rate
C. bench mark primary loan repayment
D. bank primary lending rate
Answer» A. bench mark prime lending rate
30.

Compound interest is calculated by applying?

A. ci=p(i+r)n-p
B. ci=p(i+r)n
C. ci=pnr
D. ci=p(i+r)(i+r)n
Answer» A. ci=p(i+r)n-p
31.

If interest is changed on full amount of loan(principal) throughout the entire tenure of the loan is?

A. float rate
B. fixed rate
C. flat rate
D. diminishing rate
Answer» C. flat rate
32.

The borrower repays his loan by way of fixed monthly installments to the bank is called?

A. equal month installment
B. equally managed
C. equated monthly installment
D. equated money installment
Answer» D. equated money installment
33.

RBI introduced _________ scheme in 1969?

A. saa
B. village adaptation
C. lead bank
D. dir
Answer» C. lead bank
34.

________act as a Consortium leader of the banking institutions in the district?

A. lead bank
B. social banking
C. core banking
D. district co-operative bank
Answer» A. lead bank
35.

Who introduced micro credit system in social banking segment?

A. geoffery growther of prof.d.r gadgil
B. nobel laureate & mohammed yunus
C. n.d thiwari
D. banking regulation act 1949
Answer» B. nobel laureate & mohammed yunus
36.

“Buy now and Pay later” is the motto of a ______.

A. atm
B. debit card
C. credit card
D. micr
Answer» C. credit card
37.

Credit card allow one to buy goods now and pay later called?

A. buying on credit
B. buying on debit
C. cash credit
D. cash payment
Answer» B. buying on debit
38.

Card issuers, consumers, merchants and payment sever/Service producer are four parties in _________

A. cheque truncation
B. e -purse
C. debit card
D. eft
Answer» B. e -purse
39.

Bank all over the world are enter - linked through satellite provided by __________

A. psam
B. swift
C. eft
D. neft
Answer» B. swift
40.

EFT is also known as

A. easy fund transfer
B. maintenance fund transfer
C. exchange fund transfer
D. paperless banking
Answer» D. paperless banking
41.

FIRPS stands for

A. foreign inward remittance payment scheme
B. foreign investment remittance payment scheme
C. foreign inward remittance payment system
D. foreign investment remittance payment system
Answer» B. foreign investment remittance payment scheme
42.

____________ is a system that facilitates individuals, firms and corporate to electronically transfer funds from any bank branch to any individual having an account with any other bank branch in the country.

A. neft
B. eft
C. saa
D. rtgs
Answer» A. neft
43.

In case of non-credit or delay in credit to the beneficiary account, the NEFT of the respective bank can be contacted to __________

A. ecs
B. kyc
C. cfc
D. ifsc
Answer» C. cfc
44.

___________ is an alpha-numeric code that uniquely identifies a bank branch participating NEFT System.

A. ifs
B. ifsc
C. fsc
D. rtgs
Answer» B. ifsc
45.

IFTP means _________

A. inter-bank finance settlement process
B. inter-bank fund transfer process
C. inter-bank fund transfer programme
D. inter-bank fund transfer payment
Answer» B. inter-bank fund transfer process
46.

In RTGS Minimum amount to be remitted is ___________

A. rs.1,00,000
B. rs.2,00,000
C. rs.1,50,000
D. rs.50,000
Answer» B. rs.2,00,000
47.

In India, RTGS has been implemented on ___________

A. 26 march 2004
B. 26 march 1998
C. 26 march 1994
D. 26 march 2002
Answer» A. 26 march 2004
48.

BACS means ________

A. bankers automated clearing services
B. bankers automatic clearing system
C. bankers automatic collection service
D. bankers automatic clearance scheme
Answer» A. bankers automated clearing services
49.

ECS payment ______ code is essential

A. micr
B. rtgs
C. ifsc
D. cts
Answer» A. micr
50.

MICR is a numeric code that uniquely identifies a bank-branch participating in the ________ scheme.

A. ifsc credit scheme
B. eft credit scheme
C. rtgs credit scheme
D. ecs credit scheme
Answer» D. ecs credit scheme

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