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This set of Modern Banking Multiple Choice Questions & Answers (MCQs) focuses on Modern Banking Set 1
Q1 | Demand deposit also known as ___________________.
- current account
- fixed deposit
- capital account
- recurring deposit
Q2 | Bank places certain restriction on withdrawal for _______________ deposit.
- savings deposit
- demand deposit
- current account
- fixed deposit
Q3 | ______________ is the contribution made by the shareholders of the bank.
- loans & advances
- cash in hand
- bills discounted
- share capital
Q4 | __________ was originally the home of commercial banking.
- u.s.a
- england
- britain
- germany
Q5 | ____________ was initially the home of industrial or investment banking.
- italy
- england
- geneva
- germany
Q6 | The trend in India is towards ___________.
- mixed banking
- development banking
- commercial banking
- industrial banking
Q7 | ___________ to ___________ percent of total deposit is kept as cash reserve.
- 5 to 10
- 11 to 15
- 8 to 11
- 9 to 11
Q8 | Commercial banks to expand deposit through expanding their loans and advances is known as___________.
- credit creation
- trade discount
- deposit
- bank advances
Q9 | Rediscounting and giving advance the central bank changes interest at a rate which is knownas __________
- crr
- slr
- bank rate
- credit
Q10 | The nationalization of 14 commercial banks was on?
- 19 july, 1969
- 15 aug, 1972
- 15april, 1980
- 19 jan, 1959
Q11 | The State Bank of India was established under the State Bank of India Act on?
- 1935
- 1948
- 1955
- 1952
Q12 | RBI introduced 14-day intermediate Treasury Bills and 14-day Treasury bills on?
- 1994
- 1997
- 1984
- 1972
Q13 | DIC stands for?
- deposit investment corporation
- deposit insurance corporation
- deposit industrial corporation
- development corporation of india
Q14 | System of banking is guided by the Islamic Law called?
- islamic guide
- islamic banking
- banking regulation act
- shariat
Q15 | Money at call and short notice is also known as?
- capital market
- inter bank call money market
- financial system
- financial call money
Q16 | The process of credit creation by the banking system as a whole is termed as ?
- multiple credit creation
- primary deposit
- credit creation
- single bank credit system
Q17 | The regulator of Indian Money market is?
- sbi
- commercial bank
- rbi
- sebi
Q18 | The regulator of Indian Capital Market is?
- sebi
- sbi
- rbi
- commercial bank
Q19 | Bridge Loan is also known as?
- swing loan
- term loan
- demand loan
- farm loan
Q20 | 182-day Treasury bill was introduced in Indian Money Market in?
- 19992
- 1972
- 1987
- 1952
Q21 | CIBIL stands for?
- credit information bureau ltd
- credit information banking india ltd
- credit investment bureau india ltd
- credit information bureau india ltd
Q22 | The value of money received today will be more than a rupee tomorrow is?
- time value of money
- present value of money
- future value of money
- compound value of money
Q23 | The interest computed on the principal for the entire period of borrowings?
- compound interest
- simple interest
- flat rate interest
- floating rate interest
Q24 | The periodical interval at which interest is added is called?
- floating period
- compounding period
- fixed period
- periodic payment
Q25 | ________Act offer incentive to attract people to invest in housing property.
- sales tax
- income tax act 1961
- banking regulations act
- co-operative societies act