Basics Of Banking And Insurance Set 1

Bachelor of Commerce (B Com)

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This set of Basics of Banking and Insurance Multiple Choice Questions & Answers (MCQs) focuses on Basics Of Banking And Insurance Set 1

Q1 | Indian banks were nationalised in the year
  • 1949
  • 1969
  • 1959
  • 1979
Answer: 1969
Q2 | Bankers are not only purveyors of money but also an important sense they are
  • consumers
  • manufacturers
  • lenders
  • borrowers
Answer: manufacturers
Q3 | Primary functions of a commercial banks are ........... and lending
  • honouring cheques
  • accepting deposits
  • issuing cheques
  • issuing dd
Answer: accepting deposits
Q4 | The total number of public sector banks in India is
  • 14
  • 12
  • 28
  • 22
Answer: 28
Q5 | Indian Institute of Bankers is registered as.............
  • trustee
  • association
  • joint stock company
  • co-op society
Answer: joint stock company
Q6 | The head quarters of National Housing Bank is
  • new delhi
  • mumbai
  • agra
  • hyderabad
Answer: mumbai
Q7 | The Head quarters of Allahabad Bank is
  • allahabad
  • mumbai
  • calcutta
  • delhi
Answer: calcutta
Q8 | The ‘Teller System’ has been introduced by banks to.........
  • canvas more customers
  • make quick payment of cheque
  • clarify enquiries
  • advice customers
Answer: make quick payment of cheque
Q9 | Money at call and short notice of a bank is ............
  • secured advance
  • bankers second line of advance
  • widely distributed loans
  • all the above
Answer: bankers second line of advance
Q10 | The terms drawer, drawee and payee are associated with;
  • cheques
  • promissory notes
  • delivery order
  • hundies
Answer: cheques
Q11 | Where the RBI has no branch the bank which can act as its agent is;
  • any commercial bank
  • any nationalised bank
  • sbi
  • indian bank
Answer: sbi
Q12 | Unless otherwise specified DD or cheques is valid for a period of;
  • 6 months
  • 1 year
  • 3 months
  • one month
Answer: 3 months
Q13 | RBI was nationalised in the year
  • 1941
  • 1949
  • 1943
  • 1935
Answer: 1949
Q14 | The drawee of a cheque is always..........
  • customer
  • minor
  • company
  • bank
Answer: bank
Q15 | Commercial banks in India was organised as.......
  • sole proprietorship
  • joint stock company
  • partnership
  • joint sector
Answer: joint stock company
Q16 | In India ............. banks are nationalised in the year 1969
  • 16
  • 19
  • 14
  • 22
Answer: 14
Q17 | Second nationalisation of commercial banks (6 banks)was in the year
  • 1979
  • 1980
  • 1984
  • 1976
Answer: 1980
Q18 | Cooperative banks are registered under.............
  • rbi act
  • banking regulation act
  • co-operative societies act
  • any of the above
Answer: co-operative societies act
Q19 | The first Regional Rural Bank came into existence on
  • 1972
  • 1964
  • 1975
  • 1977
Answer: 1975
Q20 | The largest public sector bank in India is
  • rbi
  • sbi
  • canara bank
  • indian overseas bank
Answer: sbi
Q21 | RRB Act was enacted in the year
  • 1974
  • 1979
  • 1975
  • 1976
Answer: 1975
Q22 | ............. is the apex institution for rural development and rural credit
  • rbi
  • idbi
  • nabard
  • irbi
Answer: irbi
Q23 | RBI was established in the year
  • 1949
  • 1935
  • 1964
  • 1947
Answer: 1935
Q24 | Medium term loans are meant for a period
  • 3-5 years
  • 5-10 years
  • over 10 years
  • 1-3 years
Answer: 3-5 years
Q25 | Possession of a security practically with the banker is in the case of
  • mortgage
  • pledge
  • hypothecation
  • hire purchase
Answer: pledge
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