mcq b306fm banking & finance

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DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA PROF. MUBINA ATTARI www.dacc.edu.in UNIT1 : INTRODUCTION 1) We should keep our savings with banks because a) It is safe b) Earns interest c) Can be withdrawn anytime d) All of above 2) Bank does not give loan against a) Gold Ornaments b b) LIC policy c) Lottery ticket d) NSC 3) Bank having maximum number of branches in India a) Reserve Bank of India b) State Bank of India c) Punjab National Bank d) Bank of Baroda 4) 100/- Rupee note is signed by a) Prime Minister b) Finance Minister c) RBI Governor d) None of above 5) ATM password should be kept in a) Personal diary b) Office diary c) Memory d) All of above 6) Industrial Finance Corporation of India, is a Non-Banking Finance Company a) True b) False 7) Nomination can be done in a) Savings Bank account b) Recurring Deposit account c) Fixed Deposit account d) All of above

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Page 1: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

UNIT1 : INTRODUCTION 1) We should keep our savings with banks because

a) It is safe b) Earns interest c) Can be withdrawn anytime d) All of above

2) Bank does not give loan against

a) Gold Ornaments b b) LIC policy c) Lottery ticket d) NSC

3) Bank having maximum number of branches in India

a) Reserve Bank of India b) State Bank of India c) Punjab National Bank d) Bank of Baroda

4) 100/- Rupee note is signed by

a) Prime Minister b) Finance Minister c) RBI Governor d) None of above

5) ATM password should be kept in

a) Personal diary b) Office diary c) Memory d) All of above

6) Industrial Finance Corporation of India, is a Non-Banking Finance Company

a) True b) False

7) Nomination can be done in a) Savings Bank account b) Recurring Deposit account c) Fixed Deposit account d) All of above

Page 2: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

8) Who is the present Governor of RBI? a) K.C. Chakrabarty b) D K Mittal c) Raghuram Rajan d) Monte k Singh Ahluwalia

9) Regional Rural Banks (RRBs) were established by Regional Rural Banks Act in a) 1976 b)1970 c)1971 d)1973

10) Bank does not provide loans for a) Crop loans

b) Education loans c) Home loans d) Drinking & Gambling

11) KYC means a) Know your customer b) Know your character

c) Both of above d) None of above

12) IDBI is the abbreviation of …… a) Industrial Development Bank of India b) Industrial Bank of India c) Industrial Development Bank d) Indian Development Bank of India 13) ATM means

a) Any Time Money b) Auto Truck of Mahindra c) Automated Teller Machine d) None of above

Page 3: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

14) Timely repayment of loans results a) Good reputation b) No tension c) Easily availability of loan in future d) All of above

15) Defaulter of loan means a) Not paying loan instalments b) Bad reputation c) Illegal activities d) None of above

16) Life insurance means a) Insurance of human b) Insurance of life of human and Cattle c) Insurance of Life of Machines d) All of above

17) General Insurance relates to insurance against a) Fire b) Theft c) Burglary d) All of above

18) Aadhaar is

a) 12 digit number card b) Identity proof issued by UIDAI c) Both (a) & (b) d) None of above

19) Which is prohibited for writing on currency notes?

a) Political message b) Religious message c) Personal message d) All of above

Page 4: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

20) PPF means a) Pension Planning Funds b) Person having Pension Facilities c) Public Provident Fund d) Permanent Practitioner’s Forum

21) Interest on Savings Bank Deposits is paid

a) Every month b) Quarterly c) Half yearly d) Yearly

22) While making nomination, signature of nominee is required on

a) Account Opening Form b) Nomination form c) Affidavit d) None of above

23) Highest denomination of currency notes issued by RBI is

a) Rs.100/- b) Rs.500/- c) Rs.1,000/- d) Rs.10,000/-

24) NRI means a) Non Rural Individuals b) Non Rural Immigrants c) Non Resident Indian d) None of above 25) PAN means a) A kind of utensil b) Primary Account Number c) Permanent Account Number d) None of above

Page 5: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

26) In Recurring Deposits, a) a fixed sum is deposited every month b) period of deposit is a fixed tenure c) interest is paid at FDR rate d) All of above 27) Bank provides loans for a) Home b) Car c) Education d) All of above 28) National Housing Bank (NHB), was set up on a) 9 July 1988 b) 10 june 1988 c) 20 june 1898 d) 19 june 1985 29) The safest place for keeping money a) A pit dug in the ground b) An iron box c) Bank d) Money lender 30) Gold and silver ornaments should be kept in bank lockers a) It is safe b) No risk of theft c) Both (a) & (b) d) None of above 31) National Bank for Agriculture & Rural Development is the Full form of a) NABARD b) NABADR c) NABAARD d) NAABARD

Page 6: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

32) Coins are issued by a) Government of India b) NABARD c) Public sector banks d) State Bank of India 33) Bank Pass Book is a) Issued by Bank b) Contains transaction details of Bank account c) Shows balance in account d) All of above 34) Banks pays interest on a) Deposits b) Loans c) Both (a) & (b) d) None of above 35) Bank charges interest on a) Deposits b) Loans c) Both (a) & (b) d) None of above 36) NHB is the full name of a) National Housing Bank b) National house bank c) National Banking bonus d) National Housing board 37) Business Correspondent means a) An agent who provides banking services b) An agent of business house c) A type of money lender d) None of above

Page 7: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

38) Internet banking refers to a) Operation of account through internet b) Opening of account through ATM c) Both (a) & (b) d) None of above 39) Nomination once done can a) Not be cancelled b) Be cancelled c) Not be changed d) None of above 40) Who can open bank account? a) Indian citizen b) Non-Resident Indian c) Illiterate d) All of above 41) PAN number is required for a) Deposits less than Rs.50,000/- b) Deposits in excess of Rs.1 lac c) Deposits Rs.50,000/- & above d) All transactions 42) TDS means a) Time Deposit Scheme b) Total Deposit Scheme c) Tax Deducted at Source d) None of above 43) Maximum amount of Cheque a) Rs.100 crore b) No limit c) Rs.1 crore d) None of above

Page 8: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

44) Bank draft is issued by a) Private Sector Banks b) Regional Rural Banks c) Public Sector Banks d) All of above 45) Industrial Development Bank of India is established in a) 1964 b)1965 c)1864 d) 1992 46) Industrial Reconstruction Corporation of India is the abbreviation of a) IFCI b) IRCI c) IIRC d) ICRI 47) The main function of the Export and Import Bank of India is a) To provide assistance to industries. b) To provide assistance to Agriculture c) To provide assistance to steel industries d) none of the above. 48) Export-Import (EXIM) Bank of India is the principal financial institution set up in a) 1982 b) 1983 c) 1985 d) 1986 49) SIDBI is one of the four All India Financial Institutions regulated and supervised by the Reserve Bank of India a) True b) False

Page 9: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

50) National Bank for Agriculture and Rural Development (NABARD) is an apex …………………………….. fully owned by Government of India. a) Development finance institution b) Credit financial institution. c) Agricultural Development institution d) National saving development ANSWER KEY 1d 2c 3b 4c 5c 6a 7d 8c 9a 10d 11a 12a 13c 14d 25a 26a 17d 18c 19d 20c 21c 22d 23d 24d 25d 26d 27d 28a 29c 30c 31a 32a 33d 34a 35b 36a 37a 38a 39b 40d 41c 42c 43b 44d 45a 46b 47d 48a 49a 50a

Page 10: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

UNIT2: FUNCTIONS OF BANK

1). Which bank is known as banker’s bank? a. RBI b. SBI c. PNB d. NABARD 2). Current deposit is also known as ………. a. Savings deposit b. demand deposit c. time deposit. d. recurring deposit 3). which deposits are repayable after the expiry of the fixed period ? a. demand deposit b. time deposit c . savings deposit d. recurring deposit 4) …………… is a credit facility granted by commercial banks to current account holders a. Cash credit b. overdraft c. discounting of bills of exchange d. demand loans 5). The process of …………. begins with banks lending money out of primary deposit. a. credit creation b. cash credit c. debit creation d. over draft

Page 11: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

6). NBFI s refers to ………. a. Non Banking Financial Industries b .Non Banking Financial Institution c .Net Banking Financial Industries d. Net Banking Financial Institutions 7).Delivery of financial services at affordable costs to the disadvantaged Low income segments of the society known as……….. a. Credit creation b. financial exclusion c. Financial Inclusion d. consumer credit 8).When a deposit of money is received by the banker , the banker becomes the …………? a. creditor b. debtor c. receiver d. customer 9).When a deposit of money is received by the banker , the customer becomes the …………..? a .debtor b. creditor c. customer d. lender 10).The primary relationship between banker and customer is ……………. a. Giver and receiver b. debtor and creditor c. insurer d. insured

Page 12: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

11). A ……….. is a person to whom the management of a particular property is entrusted for the exclusive benefit of a third party a .customer b .beneficiary c . trustee d. agent 12). Bankers Book Evidence Act was comes into existence ---- a. 1881 b. 1891 c. 1890 d.1892 13) . ………… is the right of a creditor to retain possession of the property belonging to the debtor until certain demands of the person in possession are satisfied. a. Lien b. Returning c Surrender d. None of these 14). FDR stands for ………….. a. Fixed Delivery Receipt b. Fixed Deposit Receipt c. Final Deposit Receipt d. Final Delivery Receipt 15). In which year Negotiable Instrument Act was passed ………? a.1981 b.1956 c.1881 d.1984

Page 13: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

16). …………… is a person who draws or makes a cheque a. Drawee b. Drawer c. Payer d. payee 17). In the case of a cheque the drawee will always be a specified ………… with whom the drawer keeps an account. a. person b. partner c. customer d. banker 18)………… is a person to whom the amount of a cheque is payable a. Drawer b. Drawee c. Payee d. Customer 19).Which one of them are correct in the case of parties involved in a cheque ? a. Debtor and Creditor b. Banker and customer c. Drawer, Drawee and Payee d. Drawer and Payee 20). In which types of banking system several banks joins hands with each other for meeting the credit requirements of the large borrower ? a. group banking b. consortium banking c. net banking d. none of these

Page 14: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

21). Th e practice of conducting banking transactions from home rather than at bank branches by means of electronic telecommunication known as------ a. branch banking b. group banking c. chain banking d. home banking 22).NPA means ---- a.Net Performing Assets b. Non-Performing Asset c. Net profit Acceptance d. None of these 23). Example for Foreign Bank is ----- a. Centurion Bank b City Bank c Axis Bank d. All 24). Bank of Baroda is an example for ------- a. Private sector Bank b. Foreign Bank c. Public sector Bank d. None of these 25). Federal Bank is a ------ a. Private sector Bank b. Foreign Bank c. Public sector Bank d. None of these 26). IBRD is also Known as ----- a. Central Bank b. World Bank c. Exim Bank d. All

Page 15: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

27). State financial corporations is an example for -------- a. Industrial Bank b. Foreign Bank c. Public sector Bank d. All 28).----- is a loan for short term temporary financing for Business firms . a. Term loans b. Bridge loans c. Cash credit d. All 29). ------- is a temporary financial arrangement by the bank to draw more than the amount standing to his credit. a. Overdraft b. Bridge loans c. Cash credit d. None of these. 30). General relationship between banker and customer is ----- a. contractual relation ship b. trustee and beneficiary c. Right of agent d. none of these 31). While accepting deposit,a banker becomes ------ and customer is ----- a. Creditor and debtor b. Debtor and Creditor c. None of these . 32). There is no fixed place of repayment in ------- a. debt due from bank b. ordinary commercial debt c. special debt d. None of these

Page 16: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

33). Prime lending rate is charged by a. Commercial bank b. Merchant bank c. Co-operative bank d. Development bank

34). When did the banking sector reforms initiates

a. 1996 b. 1901 c. 1991 d. 1989

35). Under which banking aims at targeting customers with large value transaction

a. Whole sale banking b. Merchant banking c. Retail banking d. Internet banking

36). On which rate method, the interest is charged on the full amount of the loan throughout the entire period of loan

a. Fixed rate of interest b. Floating rate of interest c. Flat rate of interest d. Compound rate of interest

37). A type of loan given by one bank to another bank is……..?

a. money at call and short notice b. bridge loan c. term loan d. d .none of these

38) CRR and SLR are monetary policy instruments a. True b. False

Page 17: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

39) Globalization has increased the role of central bank. a. True b. False 40) Which one of the following statements is most appropriate regarding transaction made in money? a. It is the easiest way. b. It is the safest way. c. It is the cheapest way. d. It promotes trade. 41) Which one of the following is a modem form of currency? a. Gold b. Silver c. Copper d. Paper notes 42) Which among the following authorities issues currency notes on behalf of the government? a. Government of India b. The State Bank of India c. National Bank for Agriculture and Rural Development d. Reserve Bank of India 43) In which of the following systems exchange of goods is done without use of money? a. Credit system b. Barter system c. Banking system d. Collateral system 44) Banks provide a higher rate of interest on which of the following accounts? a. Saving account b. Current account c. Fixed deposits for long period d. Fixed deposits for very short period

Page 18: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

45) Banks use the major portion of the deposits to: a. Keep as reserve so that people may withdraw b. Meet their routine expenses c. Extend loans d. Meet renovation of bank 46) What percentage of their deposits is kept as cash by the banks in India? a. 25% b. 20% c. 15% d. 10% 47) The informal source of credit does not include which one of the following? a. Traders b. Friends c. Cooperative Societies d. Moneylenders 48) Which one of the following is the new way of providing loans to the mral poor? a. Co-operative societies b. Traders c. Relatives and friends d. SHGs 49) Why is currency accepted as a medium of exchange? a. Because the currency is authorised by the government of the country. b. Because it is liked by the people who use it. c. Because the use of currency has its origin in ancient times. d. Because the currency is authorised by the World Bank. 50) Who issues the currency notes in India? a. Currency notes are issued by the Finance Commission. b. All the nationalized banks can issue the currency notes. c. Only Reserve Bank of India can issue currency notes. d. Any individual or organization can issue cur¬rency notes with the permission of the govt.

Page 19: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

ANSWER KEY

1a 2b 3b 4b 5a 6b 7c 8b 9b 10b 11c 12b 13a 14b 15c 16b 17d 18c 19c 20b 21d 22b 23b 24c 25a 26b 27a 28b 29a 30b 31b 32b 33a 34c 35a 36c 37a 38a 39a 40a 41d 42d 43b 44c 45c 46c 47c 48d 49a 50c

Page 20: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

Unit3: India Regulatory Authorities in 1). CRR refer s to ………….. a. Cash Reserve Ratio b. Credit Reserve Ratio c. Common Reserve Ratio d. None of these 2). SLR refers to ………….. a. Statutory Liquidity Ratio b. Stability Liquidity Ratio c. Safety Liquidity Ratio d. None of these 3). RBI ACT was comes in to existence…… a.1934 b. 1935 c.1948 d.1945 4). Banking Regulation Act was comes into existence……… a.1949 b. 1934 c. 1956 d .1949 5).The person who seeks protection against a risk and to whom the insurance policy is issued is known as …………. a. Insurer b. customer c. insured d. creditor 6).IRDA stands for …….. a. Insurance Regulatory and Development Authority b. Industrial Development and development Authority c. Insurance Restructuring and Development Authority d. Insurance Refinancing and Development Authority

Page 21: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

7). IRDA Act was passed in the year a.1948 b.2000 c.1999 d.1956 8) Hull insurance related in the case of ………. a. building b. life c. machine d. ship 9). In the case of life insurance HLV refers to…………. a. Home Legal Value b. Human Life Value c. Human Legal Value d House Length Value 10)………. of a life policy means transferring the rights of the insured in respect of the policy to another one a. Nomination b. Consideration c. Assignment d. Agreement

11). Both assignment and nomination are possible in the case of ………… insurance policies a. life b. fire c. marine d. vehicle

Page 22: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

12)…………….. is the price paid by the insured for the risk undertaken by the insurer a. Wages b. premium c. salary d. compensation 13)……………….. schemes are intended to insure a group of individual together a. Insurance b. wages c. salary d. group insurance 14). Insurance Act was comes into existence on ……. a.1956 b. 1948 c.1938 d 1988 15). Reinstatement policy is related in the case of which policy a. A Life insurance policy b. Marine insurance policy c. Fire insurance policy d. Group insurance policy 16)…………. means selling of insurance policies and products through banking firms a. Assurance b. bancassurance c. insurance d. policy 17). Life Insurance Corporation of India was formed in the year ……. a.1948 b.1964 c.1956 d. 1988

Page 23: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

18). The General Insurance Corporation of India was formed in the year ……. a.1973 b. 1948 c. 1956 d.1984 19).General Insurance Corporation of India Act was formed in ---- a. 1973 b.1963 c. 1972 d.1962 20). Which risk may result in loss or gain ? a. particular risk b. pure risk c. speculative risk d. fundamental risk 21). ………. Risk are arises due to changes in the economic policies of the government. a. speculative risk b. particular risk c. dynamic risk d. financial risk 22). Risk which arises if there is no change in the economic policies of the government is a. dynamic risk b. static risk c. particular risk d. financial risk

23). Writing off the policy before its actual maturity is known as ---- a. Nomination b. Foreclosure c. Surrender d. None of these

Page 24: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

24). -------Insurance covers many persons under one contract a. Public insurance b. Group insurance c. Personal accident insurance d. None of these 25).------ is the rate at which the central bank rediscounts the bills of commercial banks a. Bank Rate Policy b. Central bank rate c. Credit rate d. None of these 26).------- is the deliberate attempt by the central bank to influence the volume of credit available in the country. a. OMO b. SLR c. BRP d. None of these 27).----- is the deliberate attempt by the RBI to influence the volume of available in the country. a. Bank Rate Policy. b. Open Market Operations c. Qualitative credit control. d. All 28) .-----------------------insurance is a cash value policy that provides life time protection by paying a lump sum death benefits. a. Endowment insurance b. Term insurance c. Whole life insurance d. Life insurance

Page 25: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

29) ----------------- insurance policy pay the assured sum on maturity of the policy or on the death of the insured whichever is ealier a. Endowment insurance b. Term insurance c. Whole life insurance d. Life insurance 30)When the life insurance corporation of India was formed? a. August 1 1956 b. November 1 1956 c. September 1 1956 d. January 1 1956 31)In Insurance the consideration is known as a. Money b. Fund c. Return d. Premium 32). IRDA based in a. Hyderabad b. Kolkkatta c. Mumbai d. Chennai 33) Insurance is defined as a a. Contract b. Social device c. Co-operative device d. All 34) which of the following is called bankers cheque ? a. demand draft b. debit card c. pay order d. fixed deposit

Page 26: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

35)RBI was nationalized in the year_______ (a)1949 b)1935 c) 1934 36) The RBI is establish in the year _____ (a1934 b)1935 c) 1949 37) Growth with ______is one of the important objectives of monetary policy of the RBI. (a) Price feasibility b) Price Stability c)Price liability 38) Forecasting or fixing rate of inflation is called______ a) deflation targeting b) Inflation targeting c) both 39) _____is considered as an alternative to CB (a) currency Board, b) National Board c) Both 40)Central bank is that bank which controls ______ (a)credit b) assets c) gold 41)The inflation target at present for India is_____ (a) 5% b) 3% c) 4%

Page 27: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

42) Monetary policy in India is formulated by ______ a. fiscal policy committee b. fiscal policy committee. c. general committee

43)RBI’s monetary policy has to sub serve the ____, economic & social objectives a. national, b. local, c. state

44) Transparency improves _________ of CB a. accountability b. credibility c. both 45) _____is the apex bank of the banking sector of an economy. a. BOI b. SBI c. RBI 46) Transparency improves accountability of CB. a. True b. False 47) Globalization has increased the role of central bank. a. True b. False 48) The RBI was established as a private shareholders bank a. True b. False 49)RBI’s monetary policy has to sub serve the national, economic & social objectives a. True b. False

Page 28: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

50) The RBI is totally autonomous and independent of the government. a. True b. False ANSWER KEY

1a 2a 3a 4a 5c 6a 7c 8d 9c 10a 11b 12b 13d 14c 15c 16b 17c 18a 19c 20c 21c 22b 23b 24b 25a 26a 27b 28d 29d 30c 31d 32a 33d 34a 35a 36a 37b 38b 39a 40a 41c 42b 43a 44b 45c 46b 47a 48a 49a 50b

Page 29: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

Unit 4: Technology in banking 1) EFT stands for……..

a) Electronic Fund Transmission b) Electronic Fund Transfer c) Electronic Feature Transfer d) None of these

2)Which bank was introduced first ATM machine in India? a) RBI b) HSBC c) PNB d) ICICI bank 3)CDM refers to …………. a) Cash Deposit Machine b) Credit Development Method c) Cash Development Method d) Cash Development Machine 4) ECS refers to …………… a) Easy Cash Service b) Electronic Clearing Service c) Electronic cash service d) Easy Clearing Service 5)NEFT refers to…………... a) National Economic Fund Transfer b) National Economic Fund Transfer c) National Electronic Fee Transfer d) none of these 6)IFSC stands for …………..

a) Indian Financial System Code b) International Financial System Code c) Indian Fund Service Code d) None of these

Page 30: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

7)RTGS stands for …………… a) Real Time Gross Settlement b) Real Term Gross Settlement c) Real Time Goal Settlement d) Real Term Goal Settlement

8)SWIFT stands for ……………..

a) Society for Worldwide Internet Financial Telecommunications b) Solution for Worldwide Interbank Financial Telecommunications c) Society for Worldwide Internet Financial Telecommunications d) Solution for Worldwide Interbank Financial Telecommunications

9)CBS stands for ……..

a) Code Banking Solutions b) Core Banking Solutions c) common Banking Solutions d) Credit Banking Solutions

10)CTS refers to ………..

a) Cheque Truncation System b) Cheque Transaction System c) Cheque Truncation Solution d) Cheque Transaction Solution

11)Credit Information Bureau India Limited is India’s first credit rating agency which was incorporated in the year……

a) 1988 b) 2000 c) 2005 d) 1995

12)KYC refers to………….

a) Know Your Customer b) Know Your Credit c) Know Your City d) Know Your Company

Page 31: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

13)A cheque bears a date earlier than the date on which it is presented to the bank it is called ………………

a) post-dated cheque b) ante- dated cheque c) outstation cheque d) local cheque

14)MICR refers to………………..

a) Magnetic Ink Character Recognition b) Magnetic Information Character Recognition c) Magnetic Ink Code Recognition d) Magnetic Icon Character recognition

15)Delivery of banks service to a customer at his office or home by using electronic technology is called ----

a) ATM b) EFT c) E-Banking d) None of these

16)The amount is instantly credited to the account of the customer in -----

a) ATM b) EFT c) CDM d) None of these

17)Virtual banking is also called -----

a) Internet Banking b) Home banking c) Mobile banking d) None of these

18)Plastic money is ----

a) Debit card b) Credit card c) ATM card d d) None of these

Page 32: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

19)KCC is ---- a) Kissan credit card b) Kissan customer card c) Key Credit Card d) None of these 20)------- is based on the voice processing facility available with the bank computers. a) Internet Banking b) Tele Banking c) Mobile Banking d) All 21)------bank can accept deposit only ,but cannot lend .

a) Consortium Bank b) Payment Bank c) Small Finance Bank d) None of these

22)------- Banks can issue ATM Debit cards but no Credit cards. a) Payment Bank b) Consortium Bank c) Small Finance Bank d) None of these 23)------- banks accept deposits but customer balance should not exceed Rs.1 lakh

a) Small Finance Bank b) Consortium Bank c) Payment Bank d) None of these.

24)------ is to perform lending activities among weaker sections of the community.

a) Small Finance Bank b) Consortium Bank c) Payment Bank d) All

Page 33: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

25)----- are norms for banks aimed at mitigating the risk and strengthening the capital structure of the banks of member countries.

a) IRAC rules b) BASEL norms c) Capital Adequacy Norms d) None of these

26).To strengthen the capital base of banks RBI laid down -------

a) IRAC rules b) BASEL norms c) Capital Adequacy Norms d) None of these

27)For providing transparency in accounting and reporting procedures of banks -- -- are introduced in 1992

a) IRAC rules b) BASEL norms c) Capital Adequacy Norms d) None of these

28)------ banking refers to the use of technology and communication systems in delivering banking products and services to customers.

a) Hi-tech banking b) Virtual banking c) PC d) Home banking.

29)Which of the following is known as plastic money

a) Credit card b) Debit card c) None of these d) Both of these

Page 34: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

30)Debit card means a) Pay later b) Pay now c) Both of these d) None of these 31)Which type of loans have less prone to the risk of becoming NPA a) Retail loans b) Whole sale loans c) Gold loans d) Mortage loans 32)Which is the fastest possible money transfer system through banking channel a) RTGS b) EFT c) ATM d) None of these 33)Paperless banking is known as

a) RTGS b) Internet banking c) EFT d) mobile banking

34)Those banking services based on the voice processing facility available with the bank computers

a) Internet banking b) Home banking c) E banking d) Tele banking

35)Cash which is stored electronically on a microchip is called

a) E purse b) Debit card c) AYM d) Credit card

Page 35: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

36) Electronic money is called as______ money a) E-cash, b) b) E-money, c) E-Rupee

37) RTGS stands for _____

a) Real time goods settlement b) Real time gross settlement c) Real time gross standardize

38) E-payments are increased due to_____

a) online work b) online payments c) online shopping

39) There is competition between _______ banking and e- banking

a) traditional b) Modern c) private

40) There is ____ in terms of transaction with E-banking

a) privacy b) risk c) freedom

41)Electronic money is called as E-cash money

a) True b) False

42) E-banking has no disadvantages

a) True b) False

43)There is no competition between traditional banking and e- banking

a) Ture b) False

Page 36: MCQ B306FM Banking & Finance

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject: Banking and Finance Subject code: B306 FM Class: SY BBA

PROF. MUBINA ATTARI www.dacc.edu.in

44) There is risk in E-banking

a) True b) False

45) E-banking will lead to new type of job opportunity

a) True b) False

46) Reserve bank is the central bank of USA

a) True b) False

47)…………………….is the fastest possible money transfer system through banking channel

a) RTGS b) EFT c) ATM d) None of these

48) RBI was introduced first ATM machine in India?

a) True b) False

49) Cash which is stored electronically on a microchip is called Credit Card

a) True b) False

50) E-payments are increased due to on line shopping.

a) True b) False

ANSWER KEY

1b 2b 3a 4b 5d 6a 7a 8d 9b 10a 11b 12a 13b 14a 15c 16c 17a 18b 19a 20b 21b 22a 23c 24a 25b 26c 27a 28a 29d 30b 31a 32a 33c 34d 35a 36b 37b 38c 39a 40b 41b 42b 43b 44b 45a 46a 47a 48b 49a 50a