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This set of Modern Banking Multiple Choice Questions & Answers (MCQs) focuses on Modern Banking Set 4

Q1 | Second nationalisation of commercial banks (6 banks)was in the year
  • 1979
  • 1980
  • 1984
  • 1976
Q2 | Cooperative banks are registered under.............
  • RBI Act
  • Banking Regulation Act
  • Co-operative societies act
  • Any of the above
Q3 | The first Regional Rural Bank came into existence on
  • 1972
  • 1964
  • 1975
  • 1977
Q4 | The largest public sector bank in India is
  • RBI
  • SBI
  • Canara Bank
  • Indian Overseas Bank
Q5 | RRB Act was enacted in the year
  • 1974
  • 1979
  • 1975
  • 1976
Q6 | ............. is the apex institution for rural development and rural credit
  • RBI
  • IDBI
  • NABARD
  • IRBI
Q7 | RBI was established in the year
  • 1949
  • 1935
  • 1964
  • 1947
Q8 | Medium term loans are meant for a period
  • 3-5 years
  • 5-10 years
  • Over 10 years
  • 1-3 years
Q9 | Possession of a security practically with the banker is in the case of
  • Mortgage
  • Pledge
  • Hypothecation
  • Hire purchase
Q10 | Maximum number of withdrawals permitted per half year weather by cheque orotherwise in saving bank account
  • 100
  • 200
  • 50
  • No limit
Q11 | The banker’s obligation to pay his customers cheque is a duty towards............
  • The drawee
  • The drawer
  • The holder
  • The payee
Q12 | Collateral security means
  • Advance against supply bills
  • Share and debentures
  • Goods pledged to the bank
  • Additional security
Q13 | RBI issues currency notes on the basis of............
  • Minimum reserve
  • General reserve
  • Proportional reserve
  • Gold reserve
Q14 | The term “Reserve” in Reserve bank of India indicates
  • Reserved for govt. Business alone
  • It keeps reserves of all commercial banks
  • No special significance
  • It keeps foreign currency
Q15 | SBI was established in the year
  • 1954
  • 1956
  • 1955
  • 1964
Q16 | For opening new branch of a bank should obtain the sanction of..........
  • Central government
  • State government
  • RBI
  • All the above
Q17 | Negotiable Instrument Act was passed in the year
  • 1856
  • 1875
  • 1881
  • 1882
Q18 | NABARD is administered by
  • RBI
  • SBI
  • Board of Directors
  • Central govt.
Q19 | A depositor can withdraw money from the bank any number of time in.............
  • Fixed deposit
  • Savings bank
  • Current a/c
  • Recurring deposit
Q20 | A cheque is deemed stale after
  • One month
  • 3 months
  • 6 months
  • One year
Q21 | Bank rate policy is aimed at
  • Development of banks
  • Helping loan takers
  • Stabilising internal price level
  • None of these.
Q22 | Bank of England was established in the year
  • 1586
  • 1612
  • 1694
  • 1656
Q23 | Garnishee order is to restrain a banker from
  • Receiving deposit
  • Making payment
  • Accepting bills
  • Crossing of cheques
Q24 | A banker need not bother too much to open an account in the name of a person whenreceiving.........
  • Term deposit
  • Demand deposit
  • Saving deposit
  • Call deposit
Q25 | Primary relationship between banker and customer is that of
  • Dealer and customer
  • Principal and agent
  • Debtor and creditor
  • Vender and buyer