Top 150+ Solved Banking and Finance 2 MCQ Questions Answer
Q. The immediate (two-day) exchange of one currency for another is a
a. Forward transaction.
b. Spot transaction.
c. Money transaction.
d. Exchange transaction.
Q. An agreement to exchange dollar bank deposits for euro bank deposits in one month is a
a. Spot transaction.
b. Future transaction.
c. Forward transaction.
d. Monthly transaction.
Q. In the foreign exchange market, if the interest rate on foreign deposits increases, holding everything elseconstant,
a. The expected return schedule for foreign deposits shifts to the right.
b. The dollar depreciates.
c. The foreign currency appreciates.
d. All of the above.
Q. Which of the following statements is/are correct? A) NBFCs does not hold a banking license. B) NBFC can issue Demand Drafts like banks.
a. Only A
b. Only B
c. Both
d. None
Q. A Non-Banking Financial Company (NBFC) is a company registered under the _______.
a. RBI Act 1934
b. Companies Act, 1956
c. NBFC Act 1956
d. Government Securities Regulations, 1913
Q. Which of the following activity is not permissible for NBFC?
a. loans and advances
b. acquisition of shares
c. insurance business
d. construction of immovable property
Q. A non-banking institution that has a principal business of receiving deposits under any scheme orarrangement in one lump sum or in installments by way of contributions is known as?
a. Principal non-banking company
b. Residential non-banking company
c. Residuary non-banking company
d. Optional non-banking company
Q. Which of the following is false about NBFC?
a. NBFC cannot accept demand deposits
b. NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself
c. deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs
d. NBFC cannot undertake insurance business
Q. Which of the following does not have any roles in regulation of NBFCs?
a. National Housing Bank
b. Reserve Bank of India
c. SIDBI
d. Ministry of Corporate Affairs
Q. The type of lease that includes a third party, a lender, is called as which of the following?
a. Sale and leaseback
b. Leveraged lease
c. Direct Leasing Agreement
d. Operating Lease
Q. A Direct lease, a sale and leaseback, and a Leveraged lease are all examples of which of the following?
a. Operating leases
b. Financial leases
c. Full service leases
d. Off Balance Sheet methods of financing
Q. What are the benefits of leasing to other companies?
a. Interest Revenue
b. High Residual Value
c. Tax Incentives
d. All of the above
Q. A leveraged lease is a three-sided agreement among the following:
a. Lessee, lessor and lender
b. Lessor, Commercial Bank, and Insurance Company
c. a and b
d. None of the above
Q. What is the full form of FASB?
a. Financial Accounting Standard Board
b. Financial Accounting Safety Board
c. Finance and Accounts Standard Board
d. Financial Accounting Safety Bureau