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MCQs on Banking and Finance

SET 1:- 50 MCQs

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MCQs on Banking and Finance

Q.1 Which of the following statements is/are correct about MUDRA ?

1. CGF(Credit Guarantee Fund) is expected to guarantee more than

1,00,000 Crore rupees worth of loans micro and small units in the
first instance.
2. It will reduce the credit risk to Banks and other financial intermediaries.
a. Only 1
b. Only 2
c. Both
d. None

Q.2 Minimum age required to open SB account in the bank

a)8 years
b)10 years
c)12 years
d)None of above

Q.3 Which of the following is not a schemes offered by MUDRA bank?

a. Shishu
b. Nari
c. Kishor
d. Tarun

Q.4 Which of the following is an unsecured money market instrument issued in the form of a promissory note ?
a. Demand Draft
b. Primary Lending Certificates
c. Commercial Paper
d. All of these

Q.5 Interest on Savings Bank Deposits is paid

a)Every month
b)Quarterly
c)Half yearly
d) Yearly

Q.6 As per MSMED Act 2006, In providing or rendering of services Small Enterprise is an enterprise where
investment in plant and machinery does not exceed _____
A. 8 crore
B. 7 crore
C. 6 crore
D.2 crore

Q.7 Which are the banks covered under the Banking Ombudsman Scheme, 2006?
A. Scheduled Commercial Banks
B. Regional Rural Banks
C. Scheduled Primary Co-operative Banks
D. All of these

Q.8 Which of the following is the headquarters of Bank for International Settlements?
A. Italy
B. Germany
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MCQs on Banking and Finance
C. Switzerland
D. USA

Q.9 Which of the following is an example of Demand Liability?

A. Fixed Deposit
B. Current Account
C. Savings Account
D. Both (C) and (B)

Q.10 If the compensation sought from the Banking Ombudsman is beyond _____the Banking Ombudsman may
reject a complaint at any stage.
A. Rs. 5 lakh
B. Rs. 10 lakh
C. Rs. 15 lakh
D. Rs. 20 lakh

Q.11 MUDRA Card is a debit card on which payment platform ?

a) RuPay
b) Visa
c) MasterCard
d) M pay

Q.12 Which of the following bank notes is referred to as Specified Bank Note(SBN)?
A. 1000
B. 100
C. Old series of 500 note
D. Both (A) and (C)

Q.13 Maximum investment in Sovereign Gold Bonds allowed is

A. 100 grams
B. 200 grams
C. 500 grams
D. 400 grams

Q.14 BHIM app has been named after?

A. Subhash Chandra Bose
B.Chandra Shekhar Azad
C. Pandit Deen Dayal Upadhyaya
D. Dr. B R Ambedkar

Q.15 Which of the following is the regulator for overseeing insolvency proceedings?
A. Bank Board Bureau
B. Insolvency & Bankruptcy Board of India
C. Indian Banking Association
D. All of these

Q.16 With respect to Basel III norms what is CCB ?

a) Capital counter Buffer
b) Capital cyclic buffer
c) Capital conservation buffer
d) Core Capital Buffer
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MCQs on Banking and Finance
Q.17 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

Q.18 The deposits covered under the DICGC Act.....

a) Savings Account
b) Current Account
c) Fixed Deposit
d) Recurring Deposit
e) All of the above

Q.19 Among the following, which is not a subsidiary of RBI?

a. NHB
b. NABARD
c. DICGC
d. IDBI

Q.20 What is P in APBS ?

a) Payment
b) Priority
c) Pension
d) Pending

Q.21 Is there a limit on the amount of money that can be received using BHIM?
A. 5000
B. 1000
C. 10000
D. 20000
E. No limit

Q.22 UPI is built over the ______ infrastructure.

A. NEFT
B. RTGS
C. IMPS
D. All of these

Q.23 Who is the chairman of Insolvency and Bankruptcy Boardof India ?

A. M.S. Sahoo
B. Raghunath Mallick
C. Dr. Shashank Saksena
D. Ms. Suman Saxena

Q.24 If a depositor is a senior citizen, his total income is below the taxable limit, He/She can
submit ________ to the bank requesting them not to deduct any TDS on their interest.
A. Form 15G
B. Form 15H
C. Form 61
D. Form 60
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MCQs on Banking and Finance
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MCQs on Banking and Finance
Q.25 '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

Q.26 "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

Q.27 Which organization provides credit history of the borrowers?

a) CIBIL
b) Credit rating agencies
c) FRBI
d) IRDA

Q.28 What will be the impact if Reserve Bank of India reduces the Bank Rate by 1%?
a. Less liquidity in the market
b. More liquidity in the market
c. No change in the market liquidity
d. Mobilization of more deposits by commercial banks

Q.29 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

Q.30 Which of the following not correct about UPI?

a) It is developed by NPCI
b) It is built over IMPS framework
c) Aaadhar number can be used to transfer funds
d) the upper limit per UPI transaction is Rs. 10 Lakh

Q.31 The NBFCs are allowed to accept/renew public deposits for a minimum period of 12 months and maximum
period of ?
a) 24 months
b) 36 months
c) 60 months
d) 100 months

Q.32 IDRBT ,training institution for bankers established by RBI is located at ?

a) New Delhi
b) Hyderabad
c) Kolkata
d) Nainital
Q.33 The Bankers Institute of Rural Development (BIRD) promoted by NABARD located at ?
a) Lucknow
b) Hyderabad
c) Kolkata
d) Nainital
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MCQs on Banking and Finance

Q.34 ......... is a bank led model which allows online interoperable financial inclusion
transaction at PoS (MicroATM) through the Business correspondent(BC) of any bank using the Aadhaar
authentication.
A. Immediate Payment Service(IMPS)
B. Aadhar Enabled Payment System (AEPS)
C. Cheque Truncation System(CTS)
D. National Financial Switch (NFS)

Q.35 How many digits code are there in Mobile Money Identifier(MMID)?
A. Six Digit code
B. Seven Digit code
C. Eight Digit code
D. Nine Digit code

Q.36 The National Financial Switch, the largest shared automated teller machines in India, is
run by ____?
A. Reserve Bank of India
B. National Payments Corporation of India
C. National Information Centre
D. IDRBT

Q.37 What is ‘L’ in ELSS ?

a) Liquidity
b) Liability
c) Linked
d)None

Q.38 Which one of the following is called as initial repayment holiday given to a borrower for
repayment of loan?
a) Amortization
b) Moratorium
c) Subvention
d) None of these

Q.39 What is the maximum loan amount under under “Shishu” category of Mudra scheme?
a. Rs. 20000
b. Rs. 50000
c. Rs. 1 Lac
d. Rs. 5 Lac

Q.40 As per the provisions of which act all financial institutions have to maintain a record for all form of
transactions?
a. Companies Act, 1956
b. Credit Information (Companies Regulation Act, 2005)
c. Information Technology Act, 2000
d. PMLA Act, 2002
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MCQs on Banking and Finance

Q.41 FCNR accounts can be opened and maintained as _________?

a) Savings Bank Account
b) Term Deposits Account
c) Recurring Deposit Account
d) Current Accounts
Q.42 Which of the following is/are associated with the fiscal policy?
1. Marginal Standing Facility
2. Devaluation of Currency
3. Market Stabilization Scheme
(a) 1 & 2 (b) Only 3 (c) 2 & 3 (d) Only 2

Q.43 _____________are the beneficiaries of the “Reverse Mortgage Scheme”.

(a) Government employees

(b) Senior citizens
(c) Unemployed persons
(d) Persons of BPL category

Q.44 What does FSDC stand for?

(a) Financial Security and Development Council

(b) Financial Stability and Development Council
(c) Fiscal Security and Development Council
(d) Fiscal Stability and Development Council

Q.45 SWIFT is a commonly used acronym in the banking industry. The ‘I’ in SWIFT stands for_____________.
(a) Interbank
(b) International
(c) Intercom
(d) Indian

Q.46 Under which act does RBI issue directives to banks?

(a) PMLA Act, 2002
(b) RBI Act, 1934
(c) DICGC Act, 1961
(d) Banking Regulation Act, 1949

Q.47 As per , Reserve Bank of India (RBI) the existing asset reconstruction companies (ARCs)
must have a minimum corpus of Rs. 100 crore by ....
a) March 2019
b) April 2018
c) April 2019
d) July 2021

Q.48 Truncated cheque is defined in section ______ of Negotiable Instruments Act?

a) 6a
b) 35 A
c) 6b
d) 21 A
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MCQs on Banking and Finance

Q.49 What is the full form of ‘SIP’ ?

a) Systematic Insurance Plan
b) Systematic Investment Plan
c) Subsidized Insurance Premium
d) Standard Investment Premium

Q.50 Which category of Banks comes under Differential Banking ?

a) Regional Rural Banks
b) Scheduled Commercial Banks
c) Payment Banks
d) NBFcs