Previous Year Solved Question Papers

Previous Year Solved Question Papers

MCQS on Banking Affairs -28

1. Recently RBI has introduced the concept of ‘niche banking’ in India. Which among the following is most correct statement about this?
A. It for ultra high net worth banking individuals.
B. It is related to opening branches in remote villages.
C. It involves mobile firms and supermarket chains.
D. It is not under RBI supervision.
(a) All are true
(b) All are false
(c) b and c are true
(d) a and c are true


2. Which among the following will be the headquarters of proposed Asian Infrastructure Investment Bank and BRICS New Development Bank respectively?
(a) Shanghai and Beijing
(b) Macau and Shanghai
(c) Beijing and New Delhi
(d) Beijing and Shanghai


3. Tarapore Committee submitted its report on “Full Convertibility on Rupee” on-
(a) Current account
(b) Capital account
(c) Both in current as well as in Capital account
(d) Special Drawing Rights (SDR)


4. Which statement of the following false for IMF?
A. It is not an agency of UNO
B. It can grant loan to any country of the world
C. It can grant loan to State Government of a country.
D. It offers only conditional loans.
(a) b, c, d are true
(b) a, c, d are true
(c) b, c, d are true
(d) a, c, d are true


5. Which of the rate is not determined by Reserve Bank of India?
(a) Bank Rate
(b) Cash Reserve Ratio
(c) Statutory Lending Rate
(d) Prime Lending Rate


6. Select the incorrect statements regarding ‘equity linked schemes (ELSS)’
i. They are offered by mutual fund companies, but unlike the mutual funds, they do not have a lock-in period.
ii. They fall under ‘low risk’ and ‘high return’ category.
(a) Only I
(b) Only ii
(c) Both I and ii
(d) Neither i and ii


7. Which of the following statements are correct with regard to RuPay debit card?
1. It is issued by National Payment Corporation.
2. It can be used both within and outside the country.
3. It can be used for unlimited transactions.
4. It can be used only in India for limited value of transactions.

Select the correct answer using the codes given below
(a) 1 and 2 only
(b) 1, 2 and 3 only
(c) 1 and 4 only
(d) 1, 3 and 4 only


8. Which of the monetary policy tool(s) is /are NOT with government securities?
1. Cash Reserve Ratio
2. Repo Rate
3. Statutory Liquidity Ratio
4. Marginal Standing Facility

Select the correct answer using the codes given below:
(a) 1 and 2 only
(b) 1 only
(c) 1 and 4 only
(d) 4 only


9. Select the incorrect statement from the given list:
(a) Banking year of India runs from January to December.
(b) Financial year of the IMF runs from July to June.
(c) Agricultural year of India runs from June to May.
(d) Financial year of the USA and Pakistan one most similar to that of the IMF.


10. Select the correct statement about the Mumbai Inter Bank Bid (MIBID):
(a) The weighted average interest rate at which certain banks in Mumbai are ready to borrow the long term lenders.
(b) The weighted average interest rate at which certain banks in Mumbai are ready to lend for long term purpose.
(c) The weighted average interest rate at which certain banks in Mumbai are ready to borrow from the call money market.
(d) The freighted average interest rate at which certain banks in Mumbai are ready to lend in the call money market.


11. Select the in correct statement regarding a ‘Mutual Fund’ from the given list:
i. The ‘promoter’ of this fund is known as the ‘sponsor’
ii. ‘Trustees’ of the fund are appointed by the ‘sponsor’
iii. ‘Sponsor’ and the ‘trustees’ as a team are responsible to the investors.
(a) Only i
(b) Only ii
(c) i and iii
(d) None of the above


12. ‘Sensitive sector’ as defined by RBI includes(s)-
(a) Capital Market
(b) Real Estate
(c) Commodities
(d) All of the above


13. Select the incorrect statement/statements about the co-operative banks in India from given choices:
i. Co-operative banks are small sized units organized in the cooperative sector, which operate both in urban and non-urban centers.
ii. They are regulated by RBI,Banking Regulation Act, 1949 and Banking laws (Co-operative societies) Act, 1965.
(a) Only I
(b) Only ii
(c) Both i and ii
(d) Neither i and ii


14. What is the basic difference between bank and a non-bank?
(a) While banks allow withdrawal of money from savings accounts, a non-bank does not allow the opening of a saving account.
(b) Current account could be opened in non-banks.
(c) While banks are regulated by the RBI, non-banks are directly regulated by the Ministry of Finance.
(d) All limited companies in India are entitled to set up non-banking institutions.


15. Which one of the following statements regarding ‘financial literacy’ is not true?
(a) Its objective is to make people aware of the risks and rewards of investments so that they can make an informed choice.
(b) India has a formal nationwide structured financial education programme.
(c) This would enhance the effectiveness and integrity of financial markets.
(d) It reduces the government burden in protecting the common person from elements of market failure.


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