Banking and Financial Market MCQ | 60 Free MCQs
Banking and Financial Market MCQ
1. A scheduled bank is one which has …………….
a. Paid up capital and reserve not less than Rs 5 lakh
b. term deposit of Rs 5 lakh
c. demand deposit of Rs 5 lakh
d. none of these
2. Public sector banks include ……………..
a. Only State Bank of India
b. only nationalized banks
c. only RRB
d. all of these
3. The population for every bank branch in 2015 was ……………..
a. 64000
b. 16000
c. 10300
d. none of these
4. To promote financial inclusion, on 28th August 2014, the following new scheme was introduced
a. Garibi Hatao
b. The Pradhan Mantri Jan Dhan Yojana
c. Mahatma Gandhi National Rural Employment Guarantee Scheme
d. All of these
5. ………….scheme was introduced under operational technology.
a. ATMs
b. Mobile banking
c. Electronic Fund transfer d
d. All of the above
6. Since 1991 commercial banks have succeeded in ……………
a. Expanding branches
b. deposit mobilisation
c. increase in lending
d. all of the above
7. In 2017 advances of commercial banks to the priority sector was …………….
a. 40%
b. less than 40%
c. more than 40%
d. none of these
8. Financial inclusion aims at providing financial services to …………….
a. Industrialists
b. poor people
c. Indian investors abroad
d. none of these
9. In recent years Indian banks have increased their efficiency by ………….
a. Using information technology
b. by reducing the number of employees
c. by increasing number of branches
d. none of these
10. In recent years the number of RRBs has ……………
a. Increased
b. decreased
c. remained constant
d. none of these
| Answers: 1)Paid up capital and reserve not less than Rs 5 lakh 2)all of these 3)none of these 4)The Pradhan Mantri Jan Dhan Yojana 5)All of the above 6)all of the above 7)less than 40% 8)poor peoplet and public asset management 9)Using information technology 10)decreased |
11. Virtual banking aims at rendering banking services through …………
a. Branch expansion
b. advancing cheap credit
c. use of IT services
d. none of these
12. The IRDA Act was passed in the year ………….
a. 1999
b. 1998
c. 2000
d. none of the above
13. Insurance regulatory and development authority was established in ……………. of the following year.
a. 1999
b. 2000
c. 2001
d. none of the above
14. …………% FDI is allowed in the insurance companies.
a. 26%
b. 49%
c. 51%
d. 75%
15. ……………..is a part of the organized sector of Indian money market.
a. Indigenous bankers
b. Loan companies
c. Call money market
d. Money lenders
16. ……………. are the main participants in the call money market.
a. Commercial banks
b. co-operative banks
c. primary dealers
d. all of the above
17. …………….. is not the feature of commercial bills.
a. Short term
b. trade bills
c. issued by RBI
d. High degree of liquidity
18. …………. money market instrument is issued by commercial banks.
a. CPs
b. Commercial bills
c. CDs
d. Treasury bills
19. ……………..measures absorb liquidity from the financial system.
a. Repo
b. reverse repo
c. MSF
d. liquidity trap
20. …………… is the most important constituent of Indian money market
a. RBI
b. SEBI
c. NSE
d. none of these
| Answers: 11)use of IT services 12)1999 13)2000 14)49% 15)Call money market 16) all of the above 17)issued by RBI 18)CDs 19)reverse repo 20)RBI |
21. The …………….. is an active money market player.
a. Government
b. SEBI
c. both a and b
d. all of the above
22. The money market is a market for …………… financial assets.
a. Short term
b. long term
c. both of these
d. none of these
23. ………….. are issued by commercial banks.
a. CPs
b. CDs
c. both of these
d. none of these
24. The ………….. is a useful money market instrument to bring smooth adjustment to short-term liquidity.
a. Repo
b. CP
c. CD
d. all of these
25. Capital market is a market for ……….. .
a. Short term funds
b. Long term funds
c. medium term funds
d. medium and long term funds
26. …………… does not constitute the structure of capital market in India.
a. Gilt edge market
b. Industrial securities market
c. RBI
d. mutual funds
27. The primary market does not include ……………
a. Equity issues
b. GDR issues
c. screen based trading
d. debt issues
28. …………….. measures constitute primary market reforms.
a. Abolition of controller of capital issues
b. setting up of NSE
c. setting up of OTCEI
d. none of these
29. Secondary market reforms do not include ……………
a. Screen based trading
b. LAF
c. depository system
d. rolling settlement
30. FIIs are allowed to invest in ……………..
a. Only equity shares
b. only debt shares
c. both the above markets
d. none of these
| Answer: 21)Government 22)Short term 23)CDs 24)Repo 25)medium and long term funds 26)RBI 27)screen based trading 28)Abolition of controller of capital issues 29)LAF 30)both the above markets |
31. The over the counter exchange of India allows the companies to register only in …………..
a. OTCEI
b. OTCEI and NSE
c. OTCEI and BSE
d. none of the above
32. Mutual funds play an important role in the Indian capital market as …………….
a. Speculators in the stock market
b. investment avenue for small investors
c. promoter of large-scale industries
d. Noe of these
33. RBI was nationalized in ………….
a. 1949
b. 1958
c. 2005
d. 1999
34. The Indian banking system consists of ………….
a. Public sector banks
b. private sector banks
c. foreign banks
d. all of the above
35. After nationalization there has been a continuous increase in …………
a. Number of banks
b. number of branches
c. total deposits
d. all the above
36. The number of Local Area Banks reduced to …………
a. 2
b. 3
c. 4
d. 1
37. Banks are allowed to use …………… card as a proof of both identity and address for lower income group people.
a. Aadhar card
b. credit card
c. debit card
d. none of the above
38. The full form of ATM is …………
a. Automated Teller Machine
b. Auto Teller Machine
c. Automated Telly Machine
d. none of these
39. ECS means ………….
a. Electronic cash services
b. electronic clearing services
c. electronic card services
d. electronic credit system
40. The concept of anywhere and anytime banking is related with …………. .
a. electronic-clearing services
b. electronic fund transfer
c. Automated teller machines
d. none of these
| Answer: 31)OTCEI 32)investment avenue for small investors 33)1949 34)all of the above 35)all of the above 36)4 37)Aadhar card 38)Automated Teller Machine 39)electronic clearing services 40)Automated teller machines |
41. …………… Indian bank started its credit card first.
a. SBI
b. central bank of India
c. bank of India
d. yes bank
42. Recent technological developments in the banking sector …………….. .
a. ATMs
b. Online banking
c. Electronic clearing services
d. all of the above
43. …………….. committee was established to introduce the insurance sector reforms.
a. Malhotra
b. Narasimham
c. Rangarajan
d. none of these
44. Life insurance sector was nationalized in …………… .
a. 1834
b. 1907
c. 1912
d. 1956
45. The insurance industry in India consists of …………… .
a. Life insurance
b. non-life insurance
c. both a and b
d. none of these
46. General insurance corporation was formed in …………… .
a. 1972
b. 2001
c. 2015
d. 2018
47. FDI in insurance sector is allowed upto …………….. by Government of India.
a. 26%
b. 49%
c. 51%
d. 100%
48. Malhotra committee was appointed on ……………..
a. Banking sector
b. money market reforms
c. capital market reforms
d. insurance sector reforms
49. ……………… is not a part of the unorganized sector of money market.
a. Loan companies
b. call money market
c. chit funds
d. money lenders
50. ……………… is not a part of unorganized sector of money market .
a. Money lenders
b. indigenous bankers
c. loan companies
d. co-operative banks
| Answer: 41)central bank of India 42)all of the above 43)Malhotra 44)1956 45)both a and b 46)1972 47)49% 48)insurance sector reforms 49)call money market 50)co-operative banks |
51. Money market is a market for ……………. .
a. Short term funds
b. medium term funds
c. long term funds
d. all of the above
52. The commercial bills are rediscounted by ……………. .
a. Indigenous bankers
b. money lenders
c. SIDBI
d. all of the above
53. The organized sector of the Indian money market does not include ………………. .
a. Treasury bills
b. chit funds
c. mutual funds
d. DFHI
54. The clearing corporation of India does not deal with ……………. .
a. Government securities
b. mutual funds
c. certificate of deposits
d. indigenous bankers
55. ………………. is the apex of the Indian money market.
a. World bank
b. UTI
c. RBI
d. GIC
56. …………. are issued by commercial banks.
a. Certificate of deposits
b. commercial bills
c. commercial papers
d. treasury bills
57. Capital market reforms do not include …………….
a. Screen based trading
b. deregulation of interest rates
c. depository system
d. rolling settlement
58. Government securities market is also known as …………..
a. Industrial securities market
b. development of financial institutions
c. Gilt-edge market
d. all of the above
| Answer: 51)Short term funds 52)SIDBI 53)chit funds 54)indigenous bankers 55)RBI 56)Certificate of deposits 57)deregulation of interest rates 58)Gilt-edge market |
