Modern Banking Set 7

Bachelor of Arts in Economics (BA Economics)

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This set of Modern Banking Multiple Choice Questions & Answers (MCQs) focuses on Modern Banking Set 7

Q1 | International Bank for Reconstruction and Development is popularly known as
  • International bank
  • Overseas bank
  • World bank
  • IMF
Answer: World bank
Q2 | Payment of premium by a commercial bank is a part of their........ System.
  • Deposit
  • Agency
  • Exchange
  • Utility
Answer: Agency
Q3 | Unit banks are linked with bigger banks by a system called........
  • Mixed banking
  • Group banking
  • Correspondent banking
  • Network banking
Answer: Correspondent banking
Q4 | Bank is a “factory” of.............
  • Cash
  • Coins
  • Credit
  • Deposit
Answer: Credit
Q5 | NPA stands for.............
  • Normal Profit Achievement
  • Nonperforming Assets
  • Non profit Advances
  • Non performing Agents
Answer: Nonperforming Assets
Q6 | Commercial banks act as income tax consultant. This is a.............. function.
  • Lending
  • Utility
  • Agency
  • Demand.
Answer: Utility
Q7 | .......... Ratio refers to that portion of total deposits of commercial bank which it has tokeep with central bank in the form of cash reserve.
  • SLR
  • CRR
  • PLR
  • REPO
Answer: CRR
Q8 | Non Banking Financial Corporation’s (NBFCs) are otherwise known as...........
  • Narrow banks
  • Para banks
  • Virtual banks
  • Link banks
Answer: Para banks
Q9 | Maximum period for which deposits can be obtained by a NBFC is
  • 5 years
  • 15 years
  • 10 years
  • 2 years
Answer: 10 years
Q10 | In banking sector, KYC stands for
  • Kid and young customers
  • Know youth creditors
  • Know your customers
  • Know your cash requirements.
Answer: Know your customers
Q11 | The process of replacing physical cheque with electronic cheque is..........
  • Demat
  • Remat
  • Truncation
  • Securitisation
Answer: Truncation
Q12 | The Securitisation and Reconstruction of Financial Assets and Enforcement of SecurityInterest Act (SARFASIA) came into effect on.............
  • Jan 2002
  • June 2002
  • May 2000
  • April 2001
Answer: June 2002
Q13 | Commission recommended for the formation of RBI is
  • Narasimham commission
  • Tandem commission
  • Hil Ton Young commission
  • None of these.
Answer: Hil Ton Young commission
Q14 | Dues made by debtors are...............
  • NPA
  • NPS
  • CRR
  • PLR
Answer: NPA
Q15 | ---------- represents the rate at which the central bank absorbs liquidity from thebanks
  • Repo
  • CRR
  • PLR
  • Reverse Repo
Answer: Reverse Repo
Q16 | The first foreign bank which introduced merchant bank in India is
  • Grindlays bank
  • HSBC
  • City bank
  • Ceylon bank
Answer: Grindlays bank
Q17 | The first Indian public sector bank which introduced its own merchant bankdivision in India
  • Canara bank
  • PNB
  • SBI
  • Syndicate bank
Answer: SBI
Q18 | Which of the following is quantitative measure of credit control of RBI
  • Direct action
  • Moral suasion
  • Open market operation
  • Margin requirement
Answer: Open market operation
Q19 | Banking Regulation Act passed in the year
  • 1969
  • 1934
  • 1949
  • 1956
Answer: 1949
Q20 | The first development bank in India is
  • IDBI
  • IFCI
  • ICICI
  • SIDBI
Answer: IFCI
Q21 | ICICI was established in the year
  • 1980
  • 1948
  • 1955
  • 1964
Answer: 1955
Q22 | SIDBI was established as a wholly owned subsidiary of..........
  • IFCI
  • SFC
  • IDBI
  • RBI
Answer: IDBI
Q23 | The apex development bank in India is
  • IFCI
  • IDBI
  • SIDBI
  • RBI
Answer: IDBI
Q24 | The apex financial institution in India is
  • IFCI
  • IDBI
  • NABARD
  • RBI
Answer: RBI
Q25 | ATM stands for...........
  • Any Time Money
  • Automatic Teller machine
  • Automated Teller Machine
  • Automatic Transfer Money
Answer: Automated Teller Machine
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