Banking & Insurance MCQs

1.
Indian Commercial Banks are categorized into:
a) Public sector Banks
b)Foreign Banks
c) Private Sector Banks
d) All of the above
e) None
2. Regional Rural Banks have been set up with the basic objectives of:
a) Providing credit to semi - urban & urban population
b) Providing deposits facilities to farmers
c) Providing credit & deposit facilities to rural areas
d) providing credit, deposit and other banking facilities to people in rural areas
e) None
3. _____ is raised in capital markets
a) Funds through long term securities
b) Long term loans through Govt. securities
c) medium term loans
d) Short - term instruments

e) None
4. Interest on Government secu-rities on fixed basis is known as:
a) Bank rate
b) Coupon
c) Prime Lending Rate
d) Bench mark PLR
e) None
5. __ was not nationalized in 1969:
a) Punjab National Bank
b) Oriental Bank of commerce
c) Bank of Baroda
d) Union Bank of India
e) None
6. In the first round 14 major banks with a liability base of ____ were nationalized:
a) 10 crore or more
b) 20 crore or more
c) 50 crore or more
d) 100 crore or more
e) None
7._____ do not attract TDS:
a) Fixed deposits
b) Reinvestment depositsc) NRO SB

d) NRO FDR
e) Recurring deposits
8. SLR is maintained as a percentage of:
a) Time liabilities
b) Demand liabilities
c) Time and Demand liabilities
d) Gross time and demand liabilities
e) Net demand and time Liabilities
9. The maximum Statutory Liquidity Ratio to be maintained by banks is_____:
a) 25%
b) 30%
c) 35%
d) 40%
e) None
10. CRR funds are kept by the Banks in ____:
a) Cash in hand at branches
b) Balance with other banks
c) Balance in a special Account with RBI
d) Funds in the currency chest
e) None
11. An increase in CRR by RBI leads to:
a) Decrease in deposit
b) increase in deposit
c) Increase in lendable resources
d) Decrease in lendable resources
e) None
12. When RBI reduce the CRR it results into:
a) Decrease in deposit
b) increase in deposit
c) Increase in lendable resources
d) Decrease in lendable resources
e) None
13. What is meant by development Oriented banking?
a) Infrastructure financing
b) Extending loans to States, which are undevelopment
c) Taking up the task of develo-pment of the economy by providing support to under privileged
sections of the society
d) All the above
e) None
14. Principal functions of SIDBI:
a) Promotion of SSI
b) Finance of SSI
c) Development of SSI
d) All the above
e) None
15. ____ heads and conducts the affairs of RBI:
a) Central Board
b) local board
c) Regional board
d) All of the above
e) None
16. RBI Provides ____ for meeting day - to - day receipt and expenditure mismatch to both
Central and State Governments.
a) treasury bills
b) Ways and Means advance
c) date and securities
d) All the above
e) None
17. RBI known as lender of last resort because:
a) It has to meet the credit need of citizens to whom no one else is willing to lend
b) Banks lend to go to RBI as a last resort
c) It comes to help banks in times of crisis
d) All of the above
e) None
18. These days RBI uses Selective credit control measures rather infrequently because of:
a) Deregulation of functions
b) Autonomy given to banks

c) Comfortable liquidity
d) Reasonable inflation level
e) All the above
19. Which is incorrect with regard to powers of RBI:
a) Holds cash reserve banks
b) Controls banking system through licensing
c) Supervises Banking system through inspection
d) None of the above
e) All
20.Intervenes in markets to maintain the external value of the Indian rupee:
a) Exporters
b) Importers
c) RBI
d) IMF
e) None
21. In India, forex rates are determined by:
a) Importers b) Exporters
c) RBI d) Ministry of commerce
e) Demand and supply forces
22. Regional Rural Banks were set up on the recommendations of:
a) Nariman committee
b) Narasimham committee
c) Gadgil committee
d) Puri committee
e) None
23. committee, launched the process of reforms of financial system in India:
a) Gadgil committee
b) Nariman committee
c) Narasimham committee
d) khanna Committee
e) None
24. Which of the following can be categories as a Merchant Banking service?
a) Consultancy on finance to a company
b) Advance in capital structure
c) Managing mergers
d) Helping in finalizing take over
e) All the above
25. The instrument which provides proprietary interest in company and which entitles a
person to dividend on profits, is called?
a) Bond
b) Share
c) Debenture
d) Warrant
e) Any of the above

26. Which of the following provides proper definition of a Mutual Funds?
a) It is an association of members of public
b) These members want to invest in financial instrument
c) They want to invest in financial instrument assts of business sector
d) All the above
e) None
27. Which of the following organisations/agencies works solely to monitor and arrange flow
of agriculture credit in India?
a)NABARD
b) SIDBI
c) RBI
d)SEBI
e) None of these
28. The currency notes of which of the following denominations are not printed in India ?
a) Rs. 5
b) Rs. 10
c) Rs. 50
d) Rs. 2500
e) Rs. 1000
29. Which of the following is not the name of a bank functioning in India?
a) Central Bank of India
b) UCO Bank
c) Aegon Religare
d) Dena Bank
e) ICICI Bank
30. When banks accept a fixed sum of money from an individual for a definite term and pay on
maturity with interest, the deposit is known as :
a) Term Deposit
b) Demand Deposit
c) Bond
d) Mortgage
e) Advance.
31. Which of the following terms NOT used in banking/finance related matters ?
a) Discount Rate
b) Letter of credit
c) Policy Rate
d) Exchange rate
e) Base rate
32. Who amongst the following is the chief of SEBI?
a) Milind Bhave
b) UK Sinha
c) Shashikath Verma
d) Shyamala Gopinath
e) None of these
33. Which of the following is a leading electronic-payment tec-hnology firm?

a) Visa
b) Max
c) BSE
d) Sensex
e) SWAP
34. Global Market means market of :
a) USA
b) China
c) OPEC members
d) European union countries
e) All major countries and their alliances
Answers:
1) d; 2) d; 3) a; 4) b; 5) b; 6) c; 7) e; 8) e; 9) d; 10) c;
11) d; 12) c; 13) c; 14) d; 15) a; 16) b; 17) c; 18) e; 19) d; 20) c;
21) e; 22) b; 23) c; 24) e; 25) b; 26) d; 27) a; 28) d; 29) c; 30) a;
31) e; 32) b; 33) a; 34) e;

Banking & Insurance MCQs

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1.

Indian Commercial Banks are categorized into:

a) Public sector Banks

c) Private Sector Banks

d) All of the above

a) Providing credit to semi - urban & urban population

b) Providing deposits facilities to farmers

c) Providing credit & deposit facilities to rural areas

3. _____ is raised in capital markets

a) Funds through long term securities

b) Long term loans through Govt. securities

c) medium term loans

d) Short - term instruments

4. Interest on Government secu-rities on fixed basis is known as:

c) Prime Lending Rate

d) Bench mark PLR

5. __ was not nationalized in 1969:

a) Punjab National Bank

b) Oriental Bank of commerce

d) Union Bank of India

d) 100 crore or more

7._____ do not attract TDS:

b) Reinvestment depositsc) NRO SB

8. SLR is maintained as a percentage of:

c) Time and Demand liabilities

d) Gross time and demand liabilities

e) Net demand and time Liabilities

9. The maximum Statutory Liquidity Ratio to be maintained by banks is_____:

10. CRR funds are kept by the Banks in ____:

a) Cash in hand at branches

b) Balance with other banks

c) Balance in a special Account with RBI

d) Funds in the currency chest

11. An increase in CRR by RBI leads to:

c) Increase in lendable resources

d) Decrease in lendable resources

12. When RBI reduce the CRR it results into:

c) Increase in lendable resources

d) Decrease in lendable resources

13. What is meant by development Oriented banking?

b) Extending loans to States, which are undevelopment

d) All the above

14. Principal functions of SIDBI:

d) All the above

d) All of the above

b) Ways and Means advance

c) date and securities

d) All the above

17. RBI known as lender of last resort because:

b) Banks lend to go to RBI as a last resort

c) It comes to help banks in times of crisis

d) All of the above

b) Autonomy given to banks

d) Reasonable inflation level

e) All the above

19. Which is incorrect with regard to powers of RBI:

a) Holds cash reserve banks

b) Controls banking system through licensing

c) Supervises Banking system through inspection

d) None of the above