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This set of Banking Services Management (BSM) Multiple Choice Questions & Answers (MCQs) focuses on Banking Services Management Set 9

Q1 | The term bank is derived from the German word ‘Banc’ which means…….
  • Security
  • Safety
  • Money
  • Joint stock fund
Q2 | On…………14 banks with deposit of 50 crores or more taken over by the Governmentof India
  • 1st April 1947
  • 19th July 1969
  • 1st November 1954
  • 31st March 1975
Q3 | How many banks were nationalized India in the second stretch?
  • 6
  • 9
  • 10
  • 15
Q4 | Schedule banks are those banks which are included in the ………….
  • Second schedule of the Reserve Bank of India Act 1934
  • Third schedule of the Reserve Bank of India Act 1934
  • Fifth schedule of the Reserve Bank of India Act 1934
  • None of the above
Q5 | ………..is continues arrangement between a Commercial Bank and a business concernfor the purchase of book debt of the business concern.
  • Leasing
  • Venture capital finance
  • Factoring
  • Credit rating
Q6 | Who regulates the money circulation in India?
  • SBI
  • RBI
  • NABARD
  • Commercial Banks
Q7 | Reserve Bank of India was nationalized in the Year
  • 1947
  • 1948
  • 1949
  • 1950
Q8 | What is the expansion of IDBI?
  • Industrial development bank of India
  • Institutional development bank of India
  • Insurance development bank of India
  • None of the above
Q9 | Credit rationing is a…………. method of credit control
  • Quantitative
  • Qualitative
  • Direct
  • Continues credit control
Q10 | “Sans recourse” means….
  • I am not afraid
  • Do not touch me
  • Ask the drawer
  • Without liability to me
Q11 | The first bank established in India was….
  • Bank of Bengal
  • Bank of Hindustan
  • Allahabad Bank
  • Punjab National Bank
Q12 | “Customer” is defined in ………….
  • Banking Regulation Act
  • Negotiable instrument Act
  • RBI Act
  • None of these
Q13 | Internet is the cheapest of all banking channel and helps banks to gain substantially in termsof……. Cost
  • Auditing
  • Deposit
  • Investment
  • Transaction
Q14 | The RBI was originally constituted as a shareholder bank with a share capital of ….
  • 50 lakh
  • 100 lakh
  • 10 crore
  • 5 crore
Q15 | ………..constitute the largest source of funds for the bank
  • Cash
  • Loan
  • Deposit
  • Commission
Q16 | Collection of cheques for the customer is a ……………… function of banks
  • Agency
  • Trustee
  • lending
  • Innovative
Q17 | After a customer closed his account…..
  • The banker is not liable to observe the secrecy of his account
  • The banker still liable to keep secrecy
  • The banker’s duty of secrecy comes to an end in terms of the provisions of the Negotiable Instrument Act
  • None of the above.
Q18 | A mandate may continue to be operative even in the case of……………….
  • Death of the agent
  • Lunacy of the agent
  • Insolvency of the agent
  • None of these
Q19 | A document issued by the bank to acknowledge the receipt of a fixed sum of moneydeposited…. Is called
  • Collection receipt
  • Pay in slip
  • Fixed deposit receipt
  • Bond
Q20 | The endorser will not liable to the holder on dishonor of a negotiable instrument if hemakes….
  • Sans-recourse endorsement
  • Facultative endorsement
  • Sans-frais endorsement
  • None of the above
Q21 | The relationship between a banker and its customer is basically ……
  • A debtor and a creditor
  • A trustee and the beneficiary
  • A principal and agent
  • None of the above
Q22 | Cancellation of crossing can be done by
  • Holder of the cheque
  • payee of the cheque
  • Drawer of the cheque
  • None of the above
Q23 | Merchant banking includes
  • Managing issues of shares
  • Opening branches in mandis or bazaars
  • Financing intermediary businessman
  • None of the above
Q24 | Banks create money by
  • Liberal credit
  • Differential instrument
  • Accepting deposit
  • All of the above
Q25 | ….banks are those banks which are incorporated outside India and their head offices are alsosituated outside India
  • Foreign banks
  • Scheduled banks
  • Non- scheduled banks
  • Commercial banks