MCQOPTIONS
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MCQOPTIONS
This section includes 3653 Mcqs, each offering curated multiple-choice questions to sharpen your Banking And Financial Awareness knowledge and support exam preparation. Choose a topic below to get started.
| 2051. |
Mortgage is a [IBPS 2011] |
| A. | security on movable property for a loan given by a bank. |
| B. | security on immovable property for a loan given by a bank. |
| C. | concession on immovable property for a loan given by a bank. |
| D. | facility on immovable property for a loan given by a bank. |
| E. | security on immovable property for a deposit received by a bank. |
| Answer» C. concession on immovable property for a loan given by a bank. | |
| 2052. |
One of the major challenges banking industry is facing these days is deliberate efforts of some people to bring money earned through illegal activities in circulation. Which of the following acts has been passed to prevent this activity? [Allahabad Bank 2011] |
| A. | Payment & Settlements Act |
| B. | Banking Regulation Act |
| C. | Negotiable Instruments Act |
| D. | Narcotics and Psychotropic Substance Act |
| E. | Prevention of Money Laundering Act |
| Answer» F. | |
| 2053. |
Whenever some people wish to enter into the business world, it is a must for them to approach a bank. What services do banks provide them in this regard? [Syndicate 2010] (1) Banks act as payment agents by operating current accounts, paying cheques and receiving payments for them. (2) Maintaining account books for them for their day-to-day activities so that they are not required to appoint account/finance personnel on a regular basis. (3) Lending money by way of overdraft, instalment loan, credit or advance for business activities |
| A. | Only (1) |
| B. | Only (2) |
| C. | Only (3) |
| D. | Only (1) & (3) |
| E. | All of these |
| Answer» E. All of these | |
| 2054. |
Which of the following is the most active segment of the money market in India? [Indian Overseas Bank 2011] |
| A. | Call Money/Notice Money Market |
| B. | Repo / Reverse Repo |
| C. | Commercial Paper (CP) |
| D. | Certificate of Deposit (CD) |
| E. | None of these |
| Answer» B. Repo / Reverse Repo | |
| 2055. |
Govt of India has created a special fund called India Micro Finance Equity Fund of Rs. 100 crores. The fund is maintained by [Corporation Bank 2011] |
| A. | IDBI Bank |
| B. | RBI |
| C. | ECGC |
| D. | SIDBI |
| E. | NABARD |
| Answer» E. NABARD | |
| 2056. |
What is Forex? [Punjab & Sindh 2011] |
| A. | It is buying of foreign currency. |
| B. | It is selling of foreign currency. |
| C. | It is buying of one currency and selling of another currency. |
| D. | It is simultaneous buying of one currency and selling of another currency. |
| E. | None of these |
| Answer» E. None of these | |
| 2057. |
Which of the following is not a part of the scheduled banking structure in India? [Indian Overseas Bank 2011] |
| A. | State Co-operative Banks |
| B. | Public Sector Banks |
| C. | Private Sector Banks |
| D. | Regional Rural Banks |
| E. | Moneylenders |
| Answer» F. | |
| 2058. |
Which of the following is not a part of the scheduled banking structure in India? [Corporation Bank 2011] |
| A. | Money Lenders |
| B. | Public Sector Banks |
| C. | Private Sector Banks |
| D. | Regional Rural Banks |
| E. | State Co-operative Banks |
| Answer» B. Public Sector Banks | |
| 2059. |
Many a time we read a term 'SEPA' in financial newspapers. What is the full form of the term? [UBI 2009] |
| A. | Single Exchange Processing Agency |
| B. | Single Euro Payments Area |
| C. | Single Electronic Processing Agency |
| D. | Super Electronic Purchase Agency |
| E. | None of these |
| Answer» C. Single Electronic Processing Agency | |
| 2060. |
What is Call Money? [BOB 2008] |
| A. | Money borrowed or lent for a day or overnight |
| B. | Money borrowed for more than one day but up to 3 days |
| C. | Money borrowed for more than one day but up to 7 days |
| D. | Money borrowed for more than one day but up to 14 days |
| E. | None of these |
| Answer» B. Money borrowed for more than one day but up to 3 days | |
| 2061. |
SEBI extended the time guideline to appoint at least one women in board of director to _____? [IBPS 2014] |
| A. | 31st December 2014 |
| B. | 31st March 2015 |
| C. | 30th June 2015 |
| D. | 31st December 2015 |
| E. | None of these |
| Answer» C. 30th June 2015 | |
| 2062. |
Which of the following Acts helps a bank in its day to day activities? [IBPS Main 2015] |
| A. | Competition Act |
| B. | Negotiable Instruments Act |
| C. | Hindu Marriage Act |
| D. | Hindu Succession Act |
| E. | NRI Act |
| Answer» B. Negotiable Instruments Act | |
| 2063. |
What is the name of BRICS Bank? [IBPS 2014] |
| A. | Federative Republic Bank |
| B. | New Republic Bank |
| C. | New Development Bank |
| D. | New BRICS Bank |
| E. | None of these |
| Answer» D. New BRICS Bank | |
| 2064. |
Which of the following come under Policy Framework for Investment Decisions as outlined by the OECD? [SBI 2014] |
| A. | Policy coherence |
| B. | Importance of transparency approach to policy formulation |
| C. | Regular evaluation of policies on investment environment |
| D. | Corporate governance |
| E. | All of the above |
| Answer» F. | |
| 2065. |
Which of the following is an investment advisory discipline? [IBPS 2013] |
| A. | Corporate Industrial Finance |
| B. | Offshore Banking |
| C. | Wholesale Banking |
| D. | Wealth Management |
| E. | Trade Finance |
| Answer» E. Trade Finance | |
| 2066. |
A bank without any branch network that offers its services remotely through online banking, telephone/mobile banking and interbank ATM network alliances is known as [IBPS 2013] |
| A. | Universal Banking |
| B. | Indirect Bank |
| C. | Door Step Bank |
| D. | A Direct Bank |
| E. | Unit Banking |
| Answer» E. Unit Banking | |
| 2067. |
Drawing, accepting, making or issuing of any promissory note, hundi or bill of exchange expressed to be payable to bearer on demand by a person other than the Reserve Bank of India or the Central Government is prohibited under [IBPS 2011] |
| A. | Banking Regulation Act, 1949 |
| B. | Section 31 (1) of the Reserve Bank of India Act, 1934 |
| C. | Negotiable Instruments Act, 1881 |
| D. | Indian Contract Act, 1872 |
| E. | None of the above |
| Answer» C. Negotiable Instruments Act, 1881 | |
| 2068. |
With a view to facilitating payment of balance in the deposit account to the person named by the depositor without any hassles in the event of death of the account holder, the following facility was introduced for bank accounts in our country: [IBPS 2011] |
| A. | Will |
| B. | Registration |
| C. | Nomination |
| D. | Indemnity |
| E. | Guarantee |
| Answer» D. Indemnity | |
| 2069. |
Interest on savings bank account is now calculated by banks on [IBPS 2011] |
| A. | minimum balance during the month |
| B. | minimum balance from 7th to last day of the month |
| C. | minimum balance from 10th to last day of the month |
| D. | maximum balance during the month |
| E. | daily product basis |
| Answer» D. maximum balance during the month | |
| 2070. |
Fixed deposits and recurring deposits are [IBPS 2011] |
| A. | repayable after an agreed period. |
| B. | repayable on demand. |
| C. | not repayable. |
| D. | repayable after death of depositors. |
| E. | repayable on demand or after an agreed period as per bank's choice. |
| Answer» B. repayable on demand. | |
| 2071. |
Which of the following is a correct statement? [IBPS 2011] |
| A. | Normally no interest is paid on current deposit accounts. |
| B. | Interest is paid on current accounts at the same rate as term deposit accounts. |
| C. | The rate of interest on current account and savings account are the same. |
| D. | No interest is paid on any deposit by the bank. |
| E. | Savings deposits are the same as current deposits. |
| Answer» B. Interest is paid on current accounts at the same rate as term deposit accounts. | |
| 2072. |
The usual deposit accounts of banks are [IBPS 2011] |
| A. | Current accounts, electricity accounts and insurance premium accounts |
| B. | Current accounts, post office savings bank accounts and term deposit accounts |
| C. | Loan accounts, savings bank accounts and term deposit accounts |
| D. | Current accounts, savings bank accounts and term deposit accounts |
| E. | Current bill accounts and term deposit accounts |
| Answer» E. Current bill accounts and term deposit accounts | |
| 2073. |
Accounts are allowed to be operated by cheques in respect of [IBPS 2011] |
| A. | Both savings bank accounts and fixed deposit accounts |
| B. | Savings bank accounts and current Accounts |
| C. | Both savings bank accounts and loan accounts |
| D. | Both savings bank accounts and cash accounts only |
| E. | Both current accounts and fixed deposit accounts |
| Answer» C. Both savings bank accounts and loan accounts | |
| 2074. |
As per the newspaper reports, some economically developed states only hold about 60% of the total 'Demat Accounts' in India. A demat Account is [BOI 2008] |
| A. | an account which is opened by the people of the lower income groups of society. |
| B. | an account in which trading of the shares is done. |
| C. | an account which can be opened only by minors. |
| D. | an account which can be operated by big corporate houses and are mainly business accounts like current acounts. |
| E. | None of these |
| Answer» C. an account which can be opened only by minors. | |
| 2075. |
An agreement, which in fact is a contract, between the RBI and banks for the sale and repurchase of government securities and short-term treasury bills at a future date and for which the RBI indicates 'the interest rate'/ is generally known as |
| A. | repo rate |
| B. | bank rate |
| C. | reverse repo rate |
| D. | prime lending rate |
| E. | None of these |
| Answer» D. prime lending rate | |
| 2076. |
Reverse repo means |
| A. | injecting liquidity by the Central Bank of a country through purchase of government securities |
| B. | absorption of liquidity from the market by sale of government securities |
| C. | balancing liquidity with a view to enhance economic growth rate |
| D. | improving the position of availability of the securities in the market |
| E. | All of the above |
| Answer» C. balancing liquidity with a view to enhance economic growth rate | |
| 2077. |
The Interest rate at which the RBI lends to commercial banks in the short-term to maintain liquidity is known as |
| A. | interest rate |
| B. | repo rate |
| C. | reverse repo rate |
| D. | bank rate |
| E. | All of the above |
| Answer» F. | |
| 2078. |
At which of the following rates does the Central Bank lend to banks against government securities? |
| A. | Repo Rate |
| B. | Reverse Repo Rate |
| C. | Bank Rate |
| D. | SLR |
| E. | CRR |
| Answer» F. | |
| 2079. |
RBI provides Ways and Means Advances (WMA) to |
| A. | Central Government |
| B. | State Government |
| C. | Both |
| D. | None |
| Answer» C. Both | |
| 2080. |
As we all know. Cash Reserve Ratio (CRR) is the percentage of the deposits keep in reserve with them. This ratio is also known as |
| A. | Repo rate |
| B. | Reverse repo rate |
| C. | SLR |
| D. | Liquidity ratio |
| E. | None of these |
| Answer» E. None of these | |
| 2081. |
Which of the following rates signals the RBI's long-term outlook on interest rates? |
| A. | Repo rate |
| B. | Reverse repo rate |
| C. | Bank rate |
| D. | SLR |
| E. | CRR |
| Answer» D. SLR | |
| 2082. |
IRDA with its headquarters at ............. is the Regulatory Authority for all insurance companies in India including the Life Insurance Corporation of India. |
| A. | Hyderabad |
| B. | Bengaluru |
| C. | Mumbai |
| D. | Delhi |
| E. | Chandigarh |
| Answer» B. Bengaluru | |
| 2083. |
The Reserve Bank of India was set-up on the recommendations of the |
| A. | Narasimham Committee |
| B. | Hilton-Young Commission |
| C. | Mahalanobis Committee |
| D. | Fazal Ali Commission |
| E. | None of the above |
| Answer» C. Mahalanobis Committee | |
| 2084. |
When RBI acts as a baker to the government, what does it do? |
| A. | RBI keeps bank accounts of the government |
| B. | RBI carries out government transactions |
| C. | RBI advises the government on all financial and monetary matters |
| D. | All of the above |
| E. | None of these |
| Answer» E. None of these | |
| 2085. |
At which rate the RBI lends short-term money to the bank? |
| A. | PLR |
| B. | CRR |
| C. | Repo rate |
| D. | Reverse repo rate |
| E. | None of these |
| Answer» D. Reverse repo rate | |
| 2086. |
Shares of companies notified by SEBI can be traded only when these are in ....... form |
| A. | physical |
| B. | dematerialised |
| C. | Either [a] and [b] |
| D. | centralised |
| E. | None of these |
| Answer» C. Either [a] and [b] | |
| 2087. |
In 1991, the SLR was as high as |
| A. | 25% |
| B. | 30% |
| C. | 38.5% |
| D. | 39.5% |
| E. | 40% |
| Answer» D. 39.5% | |
| 2088. |
Headquarters of Reserve Bank of India is in |
| A. | New Delhi |
| B. | Mumbai |
| C. | Kolkata |
| D. | Chennai |
| E. | Hyderabad |
| Answer» C. Kolkata | |
| 2089. |
The first Governor of the Reserve Bank of India from 1st April, 1935 to 30th June, 1937 was |
| A. | Sir Osbome Smith |
| B. | Sir James Taylor |
| C. | CD Deshmukh |
| D. | Sir Benegal Rama Rao |
| E. | KG Ambegaonkar |
| Answer» B. Sir James Taylor | |
| 2090. |
The bank rate means |
| A. | rate of interest charged by commercial banks from borrowers |
| B. | rate of interest at which commercial banks discounted bills of their borrowers |
| C. | rate of interest allowed by commercial banks on their deposits |
| D. | rate at which RBI purchases or rediscounts bills of exchange of commercial banks |
| E. | None of the above |
| Answer» E. None of the above | |
| 2091. |
Quantitative instrument of RBI can be |
| A. | Bank Rate Policy (BRP) |
| B. | Cash Reserve Ratio (CRR) |
| C. | Statutory Liquidity Ratio (SLR) |
| D. | All of the above |
| E. | None of these |
| Answer» E. None of these | |
| 2092. |
Which of the following acts govern the RBI functions? |
| A. | RBI Act, 1934 |
| B. | Banking Regulation Act, 1949 |
| C. | Companies Act, 1956 |
| D. | Foreign Exchange Regulation Act, 1973 |
| E. | Foreign Exchange Management Act, 1999 |
| Answer» B. Banking Regulation Act, 1949 | |
| 2093. |
Which of the following is/are functions of the RBI? I. Acts as the currency authority. II. Controls money supply and credit. III. Manages foreign exchange. IV. Serves as a banker to the government. Select the correct answer using the codes given below: |
| A. | I and II |
| B. | II and III |
| C. | I, II and III |
| D. | All of these |
| E. | None of these |
| Answer» E. None of these | |
| 2094. |
The RBI is not expected to perform the function of |
| A. | the banker to the government |
| B. | accepting deposit from commercial banks |
| C. | accepting deposit from commercial public |
| D. | issue of currency |
| E. | None of these |
| Answer» D. issue of currency | |
| 2095. |
All venture Capital Funds must be registered with |
| A. | RBI |
| B. | SEBI |
| C. | Registrar of Companies |
| D. | Either [a] or [b] |
| E. | None of these |
| Answer» C. Registrar of Companies | |
| 2096. |
Who supplies interest-charts for different maturities and for different rates of interest? |
| A. | IBA |
| B. | RBI |
| C. | Government of India |
| D. | IBRD |
| E. | Other than the given options |
| Answer» B. RBI | |
| 2097. |
Under which section of the Reserve Bank of India Act, the Reserve Bank has the sole right of note issue? |
| A. | Section 20 |
| B. | Section 22 |
| C. | Section 25 |
| D. | Section 28 |
| E. | Section 30 |
| Answer» C. Section 25 | |
| 2098. |
Which of the following statements about the money market is/are true? |
| A. | Not all commercial banks deal for their customers in the secondary market |
| B. | Money markets are used extensively by businesses both to warehouse, surplus funds and to raise short-term funds |
| C. | The single most influential participant in the US money market is the US Treasury Department |
| D. | Both [a] and [b] |
| E. | All of the above |
| Answer» E. All of the above | |
| 2099. |
Open market operations, one of the measures taken by RBI in order to control credit expansion in the economy, means |
| A. | sale or purchase of government securities |
| B. | issuance of different types of bonds |
| C. | auction of gold |
| D. | to make available direct finance to borrowers |
| E. | None of these |
| Answer» B. issuance of different types of bonds | |
| 2100. |
The Reserve Bank of India keeps on changing various ratios/rates frequently. Why is this done? I. To keep inflation under control. II. To ensure that Indian rupee does not lose its market value. III. To ensure that banks do not earn huge profits at the cost of public money. Select the correct answer using the codes given below: |
| A. | Only I |
| B. | Only II |
| C. | Only III |
| D. | All of these |
| E. | None of these |
| Answer» B. Only II | |