MCQ on Principle of Finance and Banking 5

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Objective Questions and Answers of MBA: MCQ on Principle of Finance and Banking 5

Subject: Objective Questions and Answers of MBA: MCQ on Principle of Finance and Banking 5

Part 5: List for questions and answers of Principles of Insurance and Banking

 

Q1. What are NEFT and RTGS about?

a) Cheque truncation process

b) Electronic fund transfer from bank to bank

c) Electronic payment products within a bank

d) Various deposit products

 

Q2. With whom does the ownership of Public sector banks rest?

a) Wholly with Government of India

b) Jointly with Government of India and share-holders from the public

c) jointly with Government of India and State Bank of India

d) jointly with Government of India and Reserve Bank of India

 

Q3. Which of the following is not the part of organized sector of India Money Market?

a) Chit Funds

b) Mutual Funds

c) Non-Banking Financial Companies

d) Reserve Bank of India

 

Q4. What does RBI regulate through Open Market Operation Transactions?

a) Flow of Foreign Direct Investment

b) Borrowing powers of the banks

c) Inflation

d) Liquidity in economy

 

Q5. What is the full form of EFT?

a) Electronic Funds Transfer

b) Efficient Funds Transfer

c) Effective Funds Transfer

d) Electronic Foreign Transfer

 

Q6. What happens if a cheque is post dated?

a) Bank on whom it is drawn will not honour the cheque before the date of the cheque

b) Bank on whom it is drawn has to honour the cheque before the date of the cheque

c) Bank on whom it is drawn has to refer to RBI to honour the cheque before the date of the cheque

d) Bank on whom it is drawn has to refer to court to honour the cheque before the date of the cheque 

 

Q7. Which is the instrument used by RBI under general credit control?

a) CRR

b) SLR

c) Bank Rate

d) Exchange Control

 

Q8. When an account should be treated as “out of order?

a) If the outstanding balance is less than the sanctioned limit/drawing power and no credits continuously for 90 days

b) If the outstanding balance is less than the sanctioned limit/drawing power and no credits continuously for 60 days

c) If the outstanding balance is less than the sanctioned limit/drawing power and no credits continuously for 30 days

d) If the outstanding balance is less than the sanctioned limit/drawing power and no credits continuously for one year

 

Q9. When was the first Land Mortgage Bank established?

a) 1920

b) 1925

c) 1931

d) 1935

 

Q10. What is the cost of credit expressed as a percentage on a yearly basis called?

a) APR

b) APY

c) WPI

d) None of these

 

Q11. What is the percentage rate reflecting the total amount of interest paid on a deposit account called?

a) APR

b) APY

c) WPI

d) None of these 

 

Q12. In which type of banking, electronic financial transactions are done?

a) E-Banking

b) Internet Banking

c) M-Banking

d) Universal Banking

 

Q13. Which one of the following helps the consumers protect their credit identities and recover from identity theft?

a) FACTA

b) FCRA

c) FDCPA

d) FOIA

 

Q14. Which one of the following gives consumers the right to see their credit records and correct mistakes?

a) FACTA

b) FCRA

c) FDCPA

d) FOIA

 

Q15. Which of the following is the amount of Funds borrowed by the government to meet the expenditures?

a) Fiscal Deficit

b) Current account

c) Fiscal policy

d) Public finance

 

Q16. Which one of the following is a set of United State statutes added as Title VIII of the Consumer Credit Protection Act?

a) FACTA

b) FCRA

c) FDCPA

d) FOIA

 

Q17. Which one of the following is open for public inspection and copying?

a) FACTA

b) FCRA

c) FDCPA

d) FOIA 

 

Q18. Which one of the following belongs to the time when a company makes the first offering of the shares to the public?

a) CSO

b) IPO

c) REPO

d) WTO

 

Q19. Which one of the following is a financial ratio that gives a measure of a company’s ability to meet its financial losses?

a) Cash Reverse Ratio

b) Leverage Ratio

c) Statutory Liquidity Ratio

d) Loan-to-Value Ratio

 

Q20. Which one of the following is the ratio of the loan principal to the appraised value?

a) Combined Loan To Value: (CLTV) ratio

b) Loan-to-Value Ratio

c) Mortgage Loan

d) Statutory Liquidity Ratio 

 

Part 5: List for questions and answers of Principles of Insurance and Banking

 

Q1. Answer: b

Q2. Answer: b

Q3. Answer: a

Q4. Answer: d

Q5. Answer: a

Q6. Answer: a

Q7. Answer: c

Q8. Answer: a

Q9. Answer: a

Q10. Answer: a

Q11. Answer: b

Q12. Answer: a

Q13. Answer: a

Q14. Answer: b

Q15. Answer: a

Q16. Answer: c

Q17. Answer: d

Q18. Answer: b

Q19. Answer: b

Q20. Answer: b