Top 80+ Solved Indian Banking System and Capital Market MCQ Questions Answer
Q. Among the following, which one is not a credit rating agency operating in India?
a. CRISIL
b. ICRA
c. Dow Jones
d. CARE
Q. The banks are required to maintain a certain ratio between their cash in hand and total assets. This is called: [IAS 1998]
a. SBRC (Statutory Bank Ratio)
b. SLR (Statutory Liquid Ratio)
c. CBR (Central Bank Reserve)
d. CLR (Central Liquid Reserve)
Q. According to the RBI directions, a NBFC (Non-Banking Finance Company) must possess a Net-owned Fund of the amount:
a. minimum Rs.5 lakh
b. minimum Rs. 10 lakh
c. minimum Rs. 25 lakh
d. minimum Rs. 50 lakh
Q. Participatory Notes (PNs) are associated with which one of the following?
a. Consolidated Fund of India
b. Foreign Institutional Investors
c. United Nations Development Programme
d. Kyoto Protocol
Q. 'Repo rate' is the rate at which: [CDS 2004]
a. the Reserve Bank of India lends to State Government
b. the international aid agencies lend to Reserve Bank of India
c. the Reserve Bank of India lends to banks
d. the banks lend to Reserve Bank of India
Q. The Securities and Exchange Board of India has been set up to : 1. protect the interests of investors 2. to regulate the activities of brokers in the stock market 3. to ensure transparency in operation in the stock market. 4. to encourage a healthy growth of the stock market Choose your answer from:
a. 1 and 2
b. 1, 2 and 4
c. 1, 2 and 3
d. 1, 2, 3 and 4
Q. Which among the following is the oldest Development Financial Institution of India?
a. UTI
b. IDBI
c. ICICI
d. IFCI
Q. Consider the following statements: [IAS 2004] 1. The National Housing Bank, the apex institution in housing finance in India, was set up as a wholly owned subsidiary of the Reserve Bank of India 2. The Small Industries Development Bank of India was established as a wholly owned subsidiary of the Industrial Development Bank of India Which of the statements given above is/are correct?
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
Q. Regional rural banks: 1. have limited area of operation 2. have free access to liberal refinance facilities from NABARD 3. are required to lend only to weaker sections
a. 1 and 3
b. 2 and 3
c. 1, 2 and 3
d. 1 and 2
Q. The arguments to support opening up of the Insurance sector in India were: 1. It will provide wider choice to customers 2. It will infuse competition and efficiency 3. It will widen the base of long term funds 4. It will improve balance of payments position Choose the correct answer from:
a. 1, 2
b. 2, 3
c. 1, 2, 3
d. 1, 2, 3 and 4
Q. Which of the following statements regarding Regional Rural Banks (RRB) in India is/are correct ? 1. The basic aim of setting up the RRBs is to develop rural economy. 2. The area of RRBs is limited to a specific region comprising one or more districts. 3. RRBs are sponsored by Commercial Banks. Select the correct answer using the code given below: [Asstt Commdt 2011]
a. 1 only
b. 1 and 2 only
c. 2 and 3 only
d. 1, 2 and 3
Q. In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities? [CSAT 2011]
a. Commercial Banks
b. Cooperative Banks
c. Regional Rural Banks
d. Microfinance Institutions
Q. What is the role of 'Over-the Counter Exchange' (OTC)?
a. Help in the introduction of multi-tiered markets and import liquidity to them
b. Help to overcome the balance of payment crisis
c. To arrange funds from different foreign banks of developing/ under developing countries
d. All of the above