Top 350+ Solved Banking and Insurance MCQ Questions Answer
Q. The main objective of the Reserve Bank of India is:
a. accept deposits from the public
b. give loans and advances
c. maintain price stability
d. provide remittance facilities
Q. Two types of Commercial banks have been stipulated by Section_______ of the Reserve Bank of India Act, 1934:
a. 42(6)(b)
b. 24(6)(b)
c. 42(6)(a)
d. 24 (6)(a)
Q. Quantitative measure for credit control by the RBI includes:
a. Discriminatory Interest Rate
b. Ceiling on Credit
c. Cash Reserve Ratio
d. Directives
Q. There are three parties to a bank draft:
a. The drawer bank branch, The drawee bank branch, The payee
b. The drawee bank branch, the payee, the purchaser of the draft
c. The payee, the purchaser of the draft, the drawer bank branch
d. The drawer bank branch, the drawee bank branch, the purchaser of the draft
Q. The legal obligation to honour cheques is subject to:
a. The cheque being post-dated
b. The cheque being drawn on another bank
c. The cheque being drawn by the depositor
d. The cheque being drawn on the account where there is insufficient balance
Q. When the cash reserve ratio (CRR) is increased by the RBI, it will:
a. Increase the supply of money in the economy
b. Decrease the supply of money in the economy
c. No impact on the supply of money in the economy
d. Initially increase the supply but later on decrease automatically.
Q. Agency services rendered by a bank to its customers as their agent include:
a. Receipt of deposits
b. Act as executors of wills
c. Issue letters of credit
d. Purchase foreign exchange
Q. Currency notes of Rupee 1 and its subsidiary coins are issued by the
a. RBI
b. SBI
c. Ministry of Finance, Government of India
d. Securities & Exchange Board of India.
Q. _________is an instrument which is used for transfer of funds
a. Cheque book
b. Demand draft
c. Pass book
d. None
Q. ___________are the banks whose main objectives is to provide financial assistance to economically weaker sections of the society.
a. Co-operative B
b. Commercial B
c. Industrial B
d. Development B
Q. Which bank has given the instructions to the commercial banks regarding theimmediate credit of outstation cheque?
a. RBI
b. Central Bank
c. World Bank
d. All of the above
Q. Payment of cheque can be stopped by
a. Beneficiary
b. Nominee
c. Drawer of cheque
d. All of the above
Q. Bank draft is issued by
a. Private Sector Bs
b. Regional Rural Bs
c. Public sector Bs
d. All of the above