MCQ on Principle of Finance and Banking 4

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Objective Questions and Answers of MBA: MCQ on Principle of Finance and Banking 4

Subject: Objective Questions and Answers of MBA: MCQ on Principle of Finance and Banking 4

Part 4: List for questions and answers of Principles of Insurance and Banking

 

Q1. What is the full form of FIMMDA?

a) Fixed Income Money Markets and Derivatives Association

b) Foreign Income Money Markets and Derivatives Association

c) Floating Income Money Markets and Derivatives Association

d) Fixed Income Money Markets and Derivatives Affiliation

 

Q2. Which one of the following provides banking services to all villages having a population upto 2000?

a) Plan for Financial Inclusion

b) Plan for Financial Exclusion

c) Plan for Financial Inclusion Technology

d) None of the above

 

Q3. What is the full form of FSDC?

a) Financial Security and Development Council

b) Financial Stability and Development Council

c) Financial Security and Development Convention

d) Fiscal Stability and Development Council

 

Q4. What is the full form of LIBOR?

a) Local Indian Bank Offered Rate

b) London-India Bureau Of Regulations

c) Liberal International Bank Official Ratio

d) London Inter Bank Offered Rate

 

Q5. Which one of the following is called the frequent changes made by Banks in their product profile?

a) Product Control

b) Product Enhancement

c) Product Enrichment

d) Product Marketing

 

Q6. What does the letter ‘M’ depict in the term SME as used in the financial world?

a) Maximum

b) Medium

c) Market

d) Mutual 

 

Q7. Which organization provides guarantee to the exporters?

a) Exim Bank

b) Export Credit Guarantee Corporation

c) Reserve Bank of India

d) Registrar of companies

 

Q8. Which of the following defines ‘Para Banking’ services?

a) Eligible financial services rendered by banks

b) Services provided through business correspondents

c) Services provided to armed forces personnel

d) Utility services provided by banks

 

Q9. Under whose chairmanship did RBI constitute a Working Group for making balance of payments manual?

a) Anand Sinha

b) Deepak Mohanty

c) Harun Rashid Khan

d) Kamalesh Chandra Chakrabarty

 

Q10. What does ‘Nomination’ for a deposit account in the bank mean?

a) Mandate given by the close relatives of the depositor to settle the death claim in case of death of the depositor

b) Mandate decided by the bank to settle the death claim of its depositor

c) Mandate of the depositor in favor of one or more persons to claim the amount on death of the depositor

d) Mandate of the depositor in favor of a close relative who can claim the amount on death of the depositor

 

Q11. What does RTGS enable?

a) Immediate transfer of money from customer of one bank to customer of another bank

b) Immediate transfer of money from customer of one bank to customer of another branch within the same bank

c) Immediate transfer of money from customer of one bank to customer of another country

d) Immediate transfer of money from customer of one bank to customer of RBI 

 

Q12. Which of the following permit cheque operation?

a) Savings bank accounts and fixed deposit accounts

b) Current accounts and fixed deposit accounts

c) Savings bank accounts and cash accounts

d) Savings bank accounts and current accounts

 

Q13. What happens if a crossed cheque is presented for payment?

a) It can be paid only through a banker

b) It cannot be paid at all

c) It can be paid across the counter in another bank

d) None of the above

 

Q14. Under which sector will banking sector fall?

a) Agricultural sector

b) Industrial sector

c) Service sector

d) None of the above

 

Q15. Which is known as the arrangement when more than one banks allow credit facilities to one party in cordination with each other?

a) Amortization

b) Consortium

c) Moratorium

d) Subvention

 

Q16. What is an Indian Depository Receipt?

a) An instrument in the form of deposit receipt issued by Indian depositories

b) An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company

c) A deposit account with a Public Sector Bank

d) A depository account with any of Depositories in India

 

Q17. What is Call Money?

a) Money borrowed or lent for a day or over night

b) Money borrowed for more than one day but up to 3 days

c) Money borrowed for more than one day but up to 7 days

d) Money borrowed for more than one day but up to 14 days 

 

Q18. What is the most powerful tool used by the Reserve Bank of India to control inflation?

a) Raise interest rates

b) Raise current supply

c) Reduce current supply

d) Reduce interest rates

 

Q19. What does crossing of cheques make them?

a) Invalid document

b) Ineligible to endorse to a person other than the payee

c) Remain the same

d) Ineligible to get cash across the bank counter

 

Q20. What happens when a bank dishonours a cheque?

a) It is called settlement of the cheque

b) It is called withdrawing of the cheque

c) It is called nullifying of the cheque

d) It is called return of the cheque unpaid

 

Part 4: List for questions and answers of Principles of Insurance and Banking

 

Q1. Answer: a

Q2. Answer: a

Q3. Answer: b

Q4. Answer: d

Q5. Answer: d

Q6. Answer: b

Q7. Answer: b

Q8. Answer: d

Q9. Answer: b

Q10. Answer: d

Q11. Answer: a

Q12. Answer: d

Q13. Answer: a

Q14. Answer: c

Q15. Answer: b

Q16. Answer: b

Q17. Answer: a

Q18. Answer: a

Q19. Answer: b

Q20. Answer: d