MCQ on Principle of Finance and Banking 2

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Objective Questions and Answers of MBA: MCQ on Principle of Finance and Banking 2

Subject: Objective Questions and Answers of MBA: MCQ on Principle of Finance and Banking 2

Part 2: List for questions and answers of Principles of Insurance and Banking

 

Q1. What is the full form of CBS?

a) Core Banking Solution

b) Core Banking Software

c) Core Banking System

d) Core Banking Service

 

Q2. Subprime lending’ is a term applied to the loans made to

a) Those borrowers who do not have a good credit history

b) Those borrowers who have a good credit history

c) Those borrowers who do not have a good debit history

d) Those borrowers who have a good debit history

 

Q3. Which among the following is the act of taking on a risk for a fee?

a) Guidewire

b) Initial Public Offering

c) Predictive analytics

d) Underwriting

 

Q4. Which among the following is called the rate of interest charged by RBI for lending money to various commercial banks by rediscounting of the bills in India?

a) Bank Rate

b) Discount Window

c) Monetary Policy

d) Overnight Rate

 

Q5. Which of the following are to be followed by Commercial Banks for risk management?

a) Basel II norms

b) Basel III norms

c) Basel I norms

d) Solvency II norms

 

Q6. What is the full form of CRR?

a) Cash Reserve Rate

b) Cash Reserve Ratio

c) Cash Recession Ratio

d) Core Reserve Rate 

 

Q7. What is the full form of ‘MAT’?

a) Maximum Alternate Tax

b) Minimum Alternate Tax

c) Maximum Alternate Time

d) Minimum Alternate Time

 

Q8. What is the full form of NDTL?

a) New Demand and Tenure Liabilities

b) Net Demand and Time Liabilities

c) National Deposits and Total Liquidity

d) Net Demand and Tax Liabilities

 

Q9. Which one of the following is known as the recession occurring two times with a small gap in between?

a) Deep Recession

b) Deflation

c) Double-dip Recession

d) Double Inflation

 

Q10. Basel Committee on Banking Supervision” is also known as

a) Bank for International Settlements Committee

b) Banking Regulation Committee

c) Financial Stability Board

d) Global Financial System

 

Q11. What is the full form of NAV?

a) Net Actual Value

b) Net Annual Value

c) Net Asset Value

d) Net Average Value

 

Q12. Who issues ‘Commercial Papers’?

a) A Company to a Bank

b) Banks to Banks

c) Banks to Companies

d) Company to its suppliers 

 

Q13. What is the full form of SWIFT?

a) Safe Window for Interbank Financial Transactions

b) Safe Window In case of Financial Transaction

c) Society for Worldwide Interbank Financial Telecommunication

d) Safe Window Institute For Transactions

 

Q14. Which of the following is known as the concept of a standard contract to buy or sell a specified commodity at a certain date in future and at a market driven price?

a) Forward Contract

b) Futures Contract

c) Market Contract

d) Standard Contract

 

Q15. Which one of the following set up core banking infrastructure for rural banks?

a) IBA

b) NABARD

c) RBI

d) SIDBI

 

Q16. Which organization provides credit history of the borrowers?

a) CIBIL

b) CII

c) FRBI

d) IRDA

 

Q17. Which one of the following organisations has been set up to facilitate connectivity between the Bank’s switches and their ATMs, and inter bank payment gateway for authentication and routing the payment details of various e-commerce transactions?

a) IBA

b) IDRBT

c) IRDA

d) SIDBI

 

Q18. Which is a tool that helps RBI to stabilize money supply and prices of Government securities?

a) EOQ

b) EPQ

c) JIT

d) OMO 

 

Q19. Who regulates the Mutual Funds in India?

a) FRBI

b) SEBI

c) SIDBI

d) RBI

 

Q20. What is ‘fiat money’?

a) The currency is backed by Government Guarantee

b) The currency is backed by tangible assets

c) The currency is backed by gold reserves

d) The currency is backed by budgetary support

 

Part 2: List for questions and answers of Principles of Insurance and Banking

 

Q1. Answer: a

Q2. Answer: a

Q3. Answer: d

Q4. Answer: a

Q5. Answer: a

Q6. Answer: b

Q7. Answer: b

Q8. Answer: b

Q9. Answer: c

Q10. Answer: a

Q11. Answer: c

Q12. Answer: b

Q13. Answer: c

Q14. Answer: b

Q15. Answer: b

Q16. Answer: a

Q17. Answer: b

Q18. Answer: d

Q19. Answer: b

Q20. Answer: a