This quiz works best with JavaScript enabled. Home > General Knowledge > Indian Economy > Banking > Indian Banking System And Capital Market – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Indian Banking System And Capital Market Quiz 1 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Sangita deposited Rs. 80 per month in a cumulative deposite account for six yerars at the rato of 6% per annum, then the account she gets on maturity is A) 5811.20. B) 1200. C) 6810.22. D) 6811.20. Show Answer Correct Answer: D) 6811.20. 2. State whether the statement will be included in estimating the Domestic Income:-Salaries to Indians working in Japanese Embassy in India. A) Yes. B) No. C) None of the above. D) Only (a). Show Answer Correct Answer: B) No. 3. Full form of FERA A) Foreign Exchange Regulation Agency. B) Foreign Exchange Regulation Act. C) Foreign Exchange Repulsive Agent. D) Foreign Expert Regulation Act. Show Answer Correct Answer: B) Foreign Exchange Regulation Act. 4. Private Sector Mutual Funds in India were permitted in [UP PCS 2011] A) 1994. B) 1964. C) 2001. D) 1993. Show Answer Correct Answer: D) 1993. 5. In order to be scheduled to the Reserve Bank of India, a bank should have capital and reserve of not less than: A) 1 lakh. B) 10 lakhs. C) 5 lakhs. D) 50 Iakhs. Show Answer Correct Answer: C) 5 lakhs. 6. Union Bank ATM at highest altitude is situated at A) Ladakh. B) Dharamshala. C) Nathula. D) Leh. Show Answer Correct Answer: C) Nathula. 7. Bank is a ..... organisation which accepts deposits that can be withdrawn on demand. A) Illegal. B) Approved. C) Insolvent. D) Lawful. Show Answer Correct Answer: D) Lawful. 8. The tax which is imposed on the profit of corporate is known as: A) Sales Tax. B) Excise duty. C) Corporate Tax. D) Income Tax. Show Answer Correct Answer: C) Corporate Tax. 9. As per the reports published- in various journals and newspapers the 'small borrowers' in rural areas still prefer to take informal route for their credit needs. Which of the following is the 'informal route' of credit in financial sector? [Punjab & Sindh Bank 2011] A) Loan against gold from financial institute. B) Debit cards. C) Money lender. D) Credit cards. Show Answer Correct Answer: C) Money lender. 10. The first three digits of MICR code represents? A) Pin Code. B) Bank Code. C) Branch Code. D) None of the above. Show Answer Correct Answer: A) Pin Code. 11. What are gilt-edged securities? A) Securities issued by the joint venture companies. B) Securities issued by the private sectors. C) Securities issued by the multinationals. D) Securities issued by the government. Show Answer Correct Answer: D) Securities issued by the government. 12. Which banks do not accept deposits? A) Commercial banks. B) Investment banks. C) Retail banks. D) None of the above. Show Answer Correct Answer: B) Investment banks. 13. RBI Act was passed in ..... A) 1933. B) 1956. C) 1935. D) 1934. Show Answer Correct Answer: D) 1934. 14. All of the following are subsidiaries of the State Bank of India, except: A) State Bank of Bikaner and Jaipur. B) Central Bank of India. C) State Bank of Hyderabad. D) State Bank of Patiala. Show Answer Correct Answer: B) Central Bank of India. 15. How many key elements are there in KYC policy? A) 3. B) 6. C) 5. D) 4. Show Answer Correct Answer: D) 4. 16. Which of the following is not an affiliate of the Reserve Bank of India? A) Unit Trust of India. B) The Industrial Development Bank of India. C) Deposit Insurance Corporation. D) Agricultural Refinance Corporation. Show Answer Correct Answer: A) Unit Trust of India. 17. Electronic vehicles now come under priority lending sector A) True. B) False. C) May be. D) None of above. Show Answer Correct Answer: A) True. 18. Income earned through entrepreneurship is called: A) Loss. B) Profit. C) Operating Surplus. D) Royalty. Show Answer Correct Answer: B) Profit. 19. When was SEBI constituted? A) March 1974. B) March 1982. C) July 1992. D) April 1988. Show Answer Correct Answer: D) April 1988. 20. Which of the following item is not a component of profit? A) Corporation Tax. B) Rent. C) Dividend. D) Corporate Savings. Show Answer Correct Answer: B) Rent. 21. In which year was the major nationalization of banks in India carried out? A) 1947. B) 1991. C) 1951. D) 1969. Show Answer Correct Answer: D) 1969. 22. Which fund transfer system is known for its batch processing and is commonly used for salaries, dividends, and bulk transactions? A) ECS. B) NEFT. C) IMPS. D) RTGS. Show Answer Correct Answer: B) NEFT. 23. Which of the following is called a 'banker's cheque' ? [CDS 2002] A) Demand draft. B) Debit card. C) Pay order. D) Fixed deposit. Show Answer Correct Answer: A) Demand draft. 24. Which among the following steps is most likely to be taken at the time of an economic recession? A) Increase in expenditure on public projects. B) Increase in tax rates accompanied by reduction of interest rate. C) Cut in tax rates accompanied by increase in interest rate. D) Reduction of expenditure on public projects. Show Answer Correct Answer: A) Increase in expenditure on public projects. 25. Chairman of SEBI is appointed for a period of A) Maximum 3 years. B) Maximum 6 years. C) Maximum five years. D) Tenure not fixed. Show Answer Correct Answer: D) Tenure not fixed. 26. MICR is a ..... digit code. A) 15. B) 9. C) 11. D) 18. Show Answer Correct Answer: B) 9. 27. Which of the following is a final expenditure? A) Vegetable purchased by a restaurant. B) Scooter purchased by a dealer. C) Milk purchased by a tea-maker. D) Computer purchased by a school. Show Answer Correct Answer: D) Computer purchased by a school. 28. What is the difference between Debentures and Equity? A) Debentures are sealed bonds acknowledging that money has been borrowed; equity is a shareholder's share voting rights in proportion to his shareholding. B) An equity shareholder cannot withdraw his amount whereas debentures can be withdrawn by taking back the amount. C) Equity shareholding is more risky, compared to debentures which are bound to return good interest on the principal. D) Both debenture and equity holders have the right of voting irrespective of the proportion of holdings but debentures are of lower value than equity. Show Answer Correct Answer: A) Debentures are sealed bonds acknowledging that money has been borrowed; equity is a shareholder's share voting rights in proportion to his shareholding. 29. 'Sub Prime Lending' is a term applied to the loans made to ... [Punjab & 5indh Bank 2011] A) Those borrowers who do not have a good credit history. B) Those who wish to take loan against the mortgage of tangible assets. C) Those who have a good credit history and are known to bank since 10 years. D) Those borrowers who are most preferred customers of the Bank. Show Answer Correct Answer: A) Those borrowers who do not have a good credit history. 30. What is the Electronic Clearing System (ECS) primarily used for in the banking sector? A) Managing physical branch operations. B) Automating electronic fund transfers. C) Managing ATM withdrawals. D) Handling customer inquiries. Show Answer Correct Answer: B) Automating electronic fund transfers. 31. Which system is not 24*7 A) CTS. B) RTGS. C) NACH. D) NEFT. Show Answer Correct Answer: A) CTS. 32. NEFT system is managed by? A) IDRBT. B) NPCI. C) RBI. D) ReBIT. Show Answer Correct Answer: C) RBI. 33. What is the missed call number for Balance Inquiry in Union Bank? A) 9223008486. B) 9619333333. C) 9666606060. D) 9223008586. Show Answer Correct Answer: D) 9223008586. 34. Find odd one:Authorization criteria of merchant bankers A) Professional competence. B) All business performed. C) Capital adequacy. D) None of above. Show Answer Correct Answer: B) All business performed. 35. Which of the following is not a feature of Bharat Bill Payment System (BBPS) A) Multiple payment modes. B) Instant confirmation. C) Bill aggregation. D) Loan disbursement. Show Answer Correct Answer: D) Loan disbursement. 36. What is the minimum amount that can be transferred through RTGS in India? A) ₹ 5, 00, 000. B) ₹ 10, 00, 000. C) ₹ 1, 00, 000. D) ₹ 2, 00, 000. Show Answer Correct Answer: D) ₹ 2, 00, 000. 37. NABARD was established in A) 1982. B) 1985. C) 1987. D) 1980. Show Answer Correct Answer: A) 1982. 38. The maturity value of a recurring deposite account is Rs. 11, 364 in 4 years. In the monthly deposite is Rs. 200 then the rate of interest is A) 7%. B) 9%. C) 10%. D) 8%. Show Answer Correct Answer: B) 9%. 39. Reserve Bank of India was nationalised in A) 1949. B) 1969. C) 1946. D) 1935. Show Answer Correct Answer: A) 1949. 40. Co-operative movement in India is a ..... tier structure A) 2. B) 4. C) 1. D) 3. Show Answer Correct Answer: D) 3. 41. A person or an institution who normally resides in country and whose economic interest lies in that country is known as: A) Normal Resident of a country. B) Non-resident of a country. C) Both (a) and (b). D) None of these. Show Answer Correct Answer: A) Normal Resident of a country. 42. When a Bank manages properties of its customers, it becomes a ..... A) Debtor. B) Beneficiary. C) Trustee. D) Creditor. Show Answer Correct Answer: C) Trustee. 43. "Momentum 2.0" -India's first virtual shopping app for the metro was launched by? A) Delhi. B) Hyderabad. C) Kolkata. D) Chennai. Show Answer Correct Answer: A) Delhi. 44. Which bank gives long term loan to farmers? A) NABARD. B) Land Development Bank. C) SBI. D) Rural banks. Show Answer Correct Answer: B) Land Development Bank. 45. Find out factor payment from the following: A) Subsidies. B) Income Tax. C) Old Age Pension. D) Profit. Show Answer Correct Answer: D) Profit. 46. What is the theme for this year's Digital Payments Awareness Week? A) Safe Practices in Digital Transactions. B) E-Payments for Everyone, Everywhere, Everytime. C) Digital Payment Apnao, Auron ko bhi sikhao. D) Har payment digital. Show Answer Correct Answer: C) Digital Payment Apnao, Auron ko bhi sikhao. 47. Indian Government Bond yields are influenced by which of the following?1. Actions of the United States Federal Reserve 2. Actions of the Reserve Bank of India 3. Inflation and short-term interest rates.Select the correct answer using the code given below A) 1 & 2 only. B) 2 only. C) 1 & 3only. D) 1, 2 and 3. Show Answer Correct Answer: D) 1, 2 and 3. 48. The minimum capital required to set up a Local area bank in India is ..... A) 1 crore. B) 5 crore. C) 10 crore. D) 50 crore. Show Answer Correct Answer: B) 5 crore. 49. According to the RBI directions, a NBFC (Non-Banking Finance Company) must possess a Net-owned Fund of the amount: A) Minimum Rs.5 lakh. B) Minimum Rs. 10 lakh. C) Minimum Rs. 50 lakh. D) Minimum Rs. 25 lakh. Show Answer Correct Answer: D) Minimum Rs. 25 lakh. 50. NBFC is a company registered under ..... A) The Companies Act, 1956. B) Co-operative society Act. C) The RBI Act. D) The Indian Contract Act. Show Answer Correct Answer: C) The RBI Act. 51. Merchant bankers are:..... A) Merchant. B) Banks. C) Neither merchants nor banks. D) None of above. Show Answer Correct Answer: C) Neither merchants nor banks. 52. Which document is a prepayment instrument that allows a bank's customer to withdraw money from their account to the card? A) Credit Card. B) Debit Card. C) Demand Draft. D) Electronic Clearing Service (ECS). Show Answer Correct Answer: B) Debit Card. 53. ..... accounts are opened by the persons who want to save some part of their income either to earn interest on deposit or for safety purposes. A) Current. B) Term. C) Recurring. D) Savings. Show Answer Correct Answer: D) Savings. 54. In 1969, What amount of deposit with a bank was the minimum requirement for a bank to be nationalised? A) 150 crore. B) 500 crore. C) 50 crore. D) 750 crore. Show Answer Correct Answer: C) 50 crore. 55. Which among the following is the oldest Development Financial Institution of India? A) ICICI. B) IFCI. C) IDBI. D) UTI. Show Answer Correct Answer: B) IFCI. 56. Mr. Pankaj took Health insurance policy for his family nad paid Rs. 900 as SGST. Find the total annual premium paid by him for his policy, rate of GST being 18% A) Rs. 12000. B) Rs. 8000. C) Rs. 10000. D) Rs. 9000. Show Answer Correct Answer: C) Rs. 10000. 57. Which of the following is not correct about EDGE? A) Excellence. B) Digitisation. C) Growth. D) Employees. Show Answer Correct Answer: A) Excellence. 58. RBI Innovation Hub is located at? A) Mumbai. B) Nagpur. C) Hyderabad. D) Bengaluru. Show Answer Correct Answer: D) Bengaluru. 59. The place where bankers meet and settle their mutual claims and accounts is known as : [Bank PO 1993] A) Treasury. B) Collection Centre. C) Dumping Ground. D) Clearing House. Show Answer Correct Answer: D) Clearing House. 60. IRDP is poverty alleviation programme in ..... area A) Urban. B) Rural. C) Semi urban. D) None of above. Show Answer Correct Answer: B) Rural. Next →Related QuizzesIndian Economy QuizzesGeneral Knowledge QuizzesIndian Banking System And Capital Market Quiz 2Indian Banking System And Capital Market Quiz 3Indian Banking System And Capital Market Quiz 4Indian Banking System And Capital Market Quiz 5Indian Banking System And Capital Market Quiz 6 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books