Top 80+ Solved Indian Banking System and Capital Market MCQ Questions Answer
Q. Which of the following activities would Small Industries Development Bank of India(SIDBI) undertake under the new rural industrialisation programme? [Bank PO 1994] 1. Consultation in erecting the project 2. Providing marketing assistance and refinance facilities at later stage 3. Running the project during initial stage
a. Only 1and 2
b. Only 2 and 3
c. Only 2
d. Only 1
Q. Which of the following is at the apex of Industrial Finance in India? [UDC 1995]
a. Industrial Finance Corporation
b. Reserve Bank of India
c. Industrial Development Bank of India
d. Industrial Credit and Investment Corporation of India
Q. Which of the following best defines the term 'Letter of Credit' as used frequently inbank transactions? [SBI PO 1991]
a. An order from a bank to another bank abroad authorising the payment of a particular amount to a person named in the letter
b. An unconditional undertaking given by a bank ensuring the payment of a particular amount to the drawee at a given date
c. Letter by a bank to a person stating the terms and conditions of the loan sanctioned to him by the bank
d. Statement showing outstanding"- deposits and credits of a bank for a particular period
Q. In India, the bank NABARD does not provide refinance to : [CDS 2002]
a. Scheduled Commercial Banks
b. Regional Rural Banks
c. Export-Import Banks
d. State Land Development Banks
Q. Which of the following is called a 'banker's cheque' ? [CDS 2002]
a. Demand draft
b. Debit card
c. Pay order
d. Fixed deposit
Q. Bouncing of cheques has become an offence. What is the punishment for the same:
a. 6 months imprisonment
b. 1year imprisonment
c. 2 years imprisonment
d. 3 years imprisonment
Q. The difference between a bank and a non-banking financial institution (NBFI) is that: [IAS 1994]
a. a bank interacts directly with customers while an NBFI interacts with banks and governments
b. a bank indulges in a number of activities relating to finance with a range of customers, while an NBFI is , mainly concerned with the term loan needs of large enterprises
c. a bank deals with both internal and international customers while an NBFI is mainly concerned with the finances of foreign companies
d. a bank's main interest is to help in business transactions and saving/investment activities while an NBFl's main interest is in the stabilisation of the currency
Q. The main function of the Exim Bank is:
a. to help RBI in the regulation of foreign exchange
b. to prevent unlicensed transaction
c. to promote exports and curtail imports
d. to conserve foreign exchange
Q. The main difference between shares and debentures is :
a. debentures can only be issued after shares
b. shareholders receive dividend on shares whereas debenture holders receive interest on debentures
c. debentures can be partly converted into shares whereas shares cannot be converted into debentures
d. shareholders are the owners of the company whereas debenture holders are the creditors of the company
Q. In which year, some more commercial banks (in addition to the first lot of 14) werenationalised in India?
a. 1976
b. 1979
c. 1980
d. 1982
Q. Open market operations of a Central Bank are sale and purchase of:
a. foreign currencies
b. corporate securities
c. trade bills
d. government securities
Q. To prevent recurrence of scams in Indian Capital Market, the Government has assignedregulatory powers to: [IAS 1995]
a. RBI
b. SBI
c. SEBI
d. ICICI
Q. The place where bankers meet and settle their mutual claims and accounts is known as : [Bank PO 1993]
a. treasury
b. clearing House
c. collection Centre
d. dumping Ground
Q. The Imperial Bank of India, after nationalisation was given the name of:
a. Reserve Bank of India
b. Bank of India
c. State Bank of India
d. Indian Overseas Bank