This quiz works best with JavaScript enabled. Home > General Knowledge > Indian Economy > Banking > Indian Banking System And Capital Market – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Indian Banking System And Capital Market Quiz 2 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. RBI may collect from the merchant bankers an initial authorisation fee, an annual fee and renewal fee. A) False. B) True. Show Answer Correct Answer: A) False. 2. The lead merchant bankers under category shall accept a minimum underwriting of ..... A) 20%. B) 100%. C) 0.25%. D) 5%. Show Answer Correct Answer: D) 5%. 3. Full form and Functions of IMFa A) International Marginalised Focus:to provide relief to marginalised people. B) Indian Mutual Funds:to provide people with details about latest trends so as to invest. C) Immigration Money Funding:to provide funding for immigrants. D) International Monetary Fund:overseeing economies, lending countries, and develop them. Show Answer Correct Answer: D) International Monetary Fund:overseeing economies, lending countries, and develop them. 4. Consider the following statements about SEBI:1. Protection of the interest of investors.2. SEBI is the not constitutional institution.3. The regulation and development of securities market.4. Registering the collective investment plans of mutual funds and its regulation A) 1 and 2. B) 2 and 3. C) All the above. D) Only 2. Show Answer Correct Answer: C) All the above. 5. What is the CASA % of Union Bank as on 31.03.2023? A) 35.62%. B) 32.65%. C) 35.42%. D) 36.52%. Show Answer Correct Answer: A) 35.62%. 6. Which of the following correctly define India's Foreign Exchange rate system? A) Fixed. B) Free float. C) Managed float. D) Fixed target of band. Show Answer Correct Answer: C) Managed float. 7. Consider the following statements regarding the EASE 2.0 Index:1. It provides Public Sector Banks a comparative evaluation showing where banks stand on the Reforms Agenda.2. It has been released by the NITI Aayog.Which of the statements given above is/are correct? A) 1 ONLY. B) 2 ONLY. C) BOTH 1 & 2. D) NEITHER 1 NOR 2 . Show Answer Correct Answer: A) 1 ONLY. 8. The central banking functions in India are performed by the: [CPO AC 2003] A) Central Bank. B) State Bank of India. C) Reserve Bank of India. D) Both B and C. Show Answer Correct Answer: C) Reserve Bank of India. 9. Which among the following is not a joint venture of our bank? A) India International Bank (BHD) Malaysia. B) Star Union Dai-chi LifeInsurance Co. Ltd. C) Union Asset Management Co. Pvt. Ltd. D) ASREC India Ltd. Show Answer Correct Answer: C) Union Asset Management Co. Pvt. Ltd. 10. Micro Credit or Micro Finance is a novel approach to the bank with Poor.In this approach bank credit is extended to the poor through A) Aganwadees. B) Credit Societies. C) SHG. D) RBI. Show Answer Correct Answer: C) SHG. 11. RBI publishes the Digital Payments Index at ..... frequency? A) Semi-Annually. B) Monthly. C) Yearly. D) Weekly. Show Answer Correct Answer: A) Semi-Annually. 12. When and where did the modern system of banking begin? A) Madras national bank 1809. B) Bank Of Bengal 1890. C) Bank of Bengal 1809. D) Bank of mumbai 1857. Show Answer Correct Answer: C) Bank of Bengal 1809. 13. ECS is commonly used for the bulk transfer of funds for which of the following purposes? A) Salary payments. B) Account balance inquiries. C) Online shopping. D) Cash withdrawals. Show Answer Correct Answer: A) Salary payments. 14. Which of the following is not in intermediate goods for a farmer? A) Seeds. B) Fertilizers. C) Tractor. D) All of these. Show Answer Correct Answer: C) Tractor. 15. Mohan has a recurring deposit account in a bank for 2 years at 6% p.a. simple interest. If he gets Rs. 1200 as interest at the time of maturity, Find:1. The monthly installment2. the amount of maturity A) 1. 9002. 20, 100. B) 1. 10002. 20, 200. C) 1. 12002. 20, 400. D) 1. 8002. 20, 400. Show Answer Correct Answer: D) 1. 8002. 20, 400. 16. Merchant banking activities was originated with the merchant banking division set by A) Yes bank. B) Grinds bays bank. C) None of the above. D) None of above. Show Answer Correct Answer: B) Grinds bays bank. 17. Fill in the blanks:When the goods/srvices are sold for Rs. 15, 000 under intra-state transaction from station A to station B and the rate fo GST is 12% as per GST systemS.P. at station A =?CGST & SGST =?C.P. at station B =?If Profit = Rs. 5000, then S.P. at station B =?GST =?C.P. at station C =? A) S.P. at station A = 15000CGST & SGST = Rs. 900 for bothC.P. at station B = 12000S.P. at station B = 20000GST = 2400C.P. at station C = 25000. B) S.P. at station A = 15000CGST & SGST = Rs. 900 for bothC.P. at station B = 12000S.P. at station B = 20000GST = 2400C.P. at station C =20000. C) S.P. at station A = 15000CGST & SGST = Rs. 900 for bothC.P. at station B = 15000S.P. at station B = 20000GST = 2400C.P. at station C = 20000. D) S.P. at station A = 12000CGST & SGST = Rs. 1800 for bothC.P. at station B = 12000S.P. at station B = 25000GST = 1200C.P. at station C = 25000. Show Answer Correct Answer: C) S.P. at station A = 15000CGST & SGST = Rs. 900 for bothC.P. at station B = 15000S.P. at station B = 20000GST = 2400C.P. at station C = 20000. 18. Which one of the following is not a feature of Limited Liability Partnership firm? [IAS 2010] A) Partners should be less than 20. B) Partnership and management need not be separate. C) Internal governance may be decided by mutual agreement among partners. D) It is a corporate body with perpetual succession. Show Answer Correct Answer: A) Partners should be less than 20. 19. SODEXO meal coupons/ card is categorised as ..... Prepaid Payment Instrument? A) Semi-open. B) Closed. C) Semi-closed. D) Open. Show Answer Correct Answer: C) Semi-closed. 20. What is the maximum number of addresses that can be added in CIF ID? A) 2. B) 3. C) 7. D) 5. Show Answer Correct Answer: C) 7. 21. Co-operative societies act was passed in ..... A) 1903. B) 1906. C) 1913. D) 1912. Show Answer Correct Answer: D) 1912. 22. What is the purpose of the signature line on a cheque? A) To mention the payee's name. B) To authorize the payment. C) To write the amount in words. D) To provide the payer's contact information. Show Answer Correct Answer: B) To authorize the payment. 23. NABARD stands for ..... A) National Bank for Agriculture and Rural Development. B) National Bank for Reconstruction and Development. C) Nominal Area Bank for Agriculture. D) National Bank for Rural Development. Show Answer Correct Answer: A) National Bank for Agriculture and Rural Development. 24. Which type of banking system focuses on expansion through branches? A) Unit Banking. B) Consumer Banking. C) Branch Banking. D) Internet Banking. Show Answer Correct Answer: C) Branch Banking. 25. Positive pay feature is enabled on all cheques for values of ..... and above? A) 50, 000. B) 1, 00, 000. C) 1, 00, 000. D) 10, 00, 000. Show Answer Correct Answer: A) 50, 000. 26. Cooperative Banks that fall under the banking regulation act 1949 are controlled by A) SBI. B) NABARD. C) National Cooperative Union of India. D) Reserve Bank of India. Show Answer Correct Answer: D) Reserve Bank of India. 27. Union Bank was Established on A) 11.09.1919. B) 11.11.1919. C) 19.11.1911. D) 19.11.1919. Show Answer Correct Answer: B) 11.11.1919. 28. Which of the following best defines the term 'Letter of Credit' as used frequently in bank transactions? [SBI PO 1991] A) An order from a bank to another bank abroad authorising the payment of a particular amount to a person named in the letter. B) An unconditional undertaking given by a bank ensuring the payment of a particular amount to the drawee at a given date. C) Letter by a bank to a person stating the terms and conditions of the loan sanctioned to him by the bank. D) Statement showing outstanding"- deposits and credits of a bank for a particular period. Show Answer Correct Answer: C) Letter by a bank to a person stating the terms and conditions of the loan sanctioned to him by the bank. 29. Bank rate is decided by which of the following? A) State bank of India. B) Reserve Bank of India. C) SEBI. D) Government of India. Show Answer Correct Answer: B) Reserve Bank of India. 30. What is the theme for the fifth cohort of regulatory sandbox? A) It is theme neutral. B) Prevention of financial frauds. C) Retail payments. D) Cross-border payments. Show Answer Correct Answer: A) It is theme neutral. 31. A dealer in a city buys some goods worth Rs. 6000 from the same city. If the rate of GST is 18%, find how much will the dealer pay for the goods bought. A) Rs. 6080. B) Rs. 7080. C) Rs. 6050. D) Rs. 7050. Show Answer Correct Answer: B) Rs. 7080. 32. Word Bull and Big are associated with which branch of commercial activity? [UP PCS 2002] A) Share Market. B) Manufacturing. C) Foreign Trade. D) Banking. Show Answer Correct Answer: A) Share Market. 33. Which among the following is not true about the UPI-PayNow linkage? A) It was the first such linkage to include participation from non-banking financial companies (NBFCs) in the world. B) It is a cross-border linkage between India's Unified Payments Interface (UPI) and Singapore's PayNow. C) An Indian user can remit up to INR 60, 000 in a day. D) Person to Person (P2P) remittances are not permitted under the linkage. Show Answer Correct Answer: D) Person to Person (P2P) remittances are not permitted under the linkage. 34. The strength of economy of any country basically depends on a sound and ..... banking system. A) Solvent. B) Emerging. C) Strengthened. D) Financial. Show Answer Correct Answer: A) Solvent. 35. GNPfc = NNPmp +..... $-$ A) Indirect Tax. B) Depreciation. C) Subsidy. D) Denied. Show Answer Correct Answer: B) Depreciation. 36. Employees are eligible to acquire maximum of ..... houses in their entire career in the bank by availing loan under IHLS A) 2. B) 1. C) 5. D) 3. Show Answer Correct Answer: A) 2. 37. Which of the following is incorrect about Union Monthly Plus? A) The menu for account opening is FOAAC. B) Product code is 380. C) Loan facility available is up to 80% of deposit amount. D) Scheme Code is RDFLX. Show Answer Correct Answer: C) Loan facility available is up to 80% of deposit amount. 38. What is the minimum amount required for cash remittance with one armed guard? A) 5 crore. B) 50 lakh. C) 20 lakh. D) 2 crore. Show Answer Correct Answer: B) 50 lakh. 39. State whether the given statement will be included in estimating the Domestic income:-Profit earned by Indian Employees working in the Japanese Embassy in India A) Yes. B) No. C) Both (a) and (b). D) None of these. Show Answer Correct Answer: B) No. 40. The balance of payments of a country is a systematic record of A) All import and transactions of a during a given period normally a year. B) Goods exported from a country during a year. C) Economic transaction between the government of one country to another. D) Capital movements from one country to another. Show Answer Correct Answer: A) All import and transactions of a during a given period normally a year. 41. ..... operates in inter bank call money market. A) Commercial Banks. B) Central Bank (RBI). C) Financer house of India. D) Co-operative Banks. Show Answer Correct Answer: C) Financer house of India. 42. Functional of financial services exclude: ..... A) Mobilisation of savings. B) Collection Tax. C) Allocation of funds. D) None of above. Show Answer Correct Answer: B) Collection Tax. 43. Old age pension given by Government of India comes under: A) Current Transfer. B) Factor Income. C) Domestic Factor Payment. D) Capital Transfer. Show Answer Correct Answer: A) Current Transfer. 44. The early growth of merchant banking in the country is assigned to the A) Foreign exchange regulations act 1973. B) Fema. C) Income tax act. D) None of above. Show Answer Correct Answer: A) Foreign exchange regulations act 1973. 45. The Securities and Exchange Board of India was not entrusted with the function of A) Ensuring Fair Practices by Companies. B) Promotion of efficient service by brokers. C) Improving the earning of equity holders. D) Investor Protection. Show Answer Correct Answer: C) Improving the earning of equity holders. 46. Central banking and merchant banking both involve the provision of financial service and advice. A) False. B) True. Show Answer Correct Answer: A) False. 47. ..... is an institution that deal with money and credit. A) Bank. B) RBI. C) Government. D) NABARD. Show Answer Correct Answer: A) Bank. 48. Nationalisation of banks was done with the purpose of: A) Improving security of deposits. B) Improving credit facilities. C) Financing the industries. D) Consolidating the economy. Show Answer Correct Answer: D) Consolidating the economy. 49. Indian Oversees Bank sponsers Tamilnadu Grama Bank A) True. B) False. C) Maybe. D) None of above. Show Answer Correct Answer: B) False. 50. ..... covers the entire range of services provided by a merchant banker. A) Cooperate counselling. B) Project counselling. C) Credit syndication. D) None of above. Show Answer Correct Answer: A) Cooperate counselling. 51. Which financial body has asked intermediaries and companies to make regulatory payments in digital mode? A) RBI. B) BSE. C) NSE. D) SEBI. Show Answer Correct Answer: D) SEBI. 52. Relationship of the banker and the hirer in case of safe deposit lockers is ..... A) Licensor & licensee. B) Lessor and lessee. C) Bailor and bailee. D) Principal and agent. Show Answer Correct Answer: A) Licensor & licensee. 53. Which of the following is the Banker of the Banks? [Railways 1995] A) IDBI. B) SBI. C) RBI. D) SBI and RBI. Show Answer Correct Answer: C) RBI. 54. Which of the following combinations is correct? [IFS 1989] A) NABARD-Industrial Loans. B) RRB-Agricultural finance. C) RBI-Long term finance. D) IDBI-Short term loans. Show Answer Correct Answer: B) RRB-Agricultural finance. 55. For auto sweep in SB PLUS minimum threshold balance is RS ..... A) 50, 000. B) 35, 000. C) 25, 000. D) 30, 000. Show Answer Correct Answer: B) 35, 000. 56. Which of the following is the apex institution which handles refinance for agriculture and rural development in India? A) SEBI. B) SIDBI. C) RBI. D) NABARD. Show Answer Correct Answer: D) NABARD. 57. To prevent recurrence of scams in Indian Capital Market, the Government has assigned regulatory powers to: [IAS 1995] A) SBI. B) ICICI. C) RBI. D) SEBI. Show Answer Correct Answer: D) SEBI. 58. Under GST, 'value addition' refers to A) Tax plus profit. B) Expenses 'Plus Profit'. C) Cost plus tax 'Profit'. D) Cost plus tax. Show Answer Correct Answer: B) Expenses 'Plus Profit'. 59. Which type of cheque is payable to the person whose name is written on the face of the cheque? A) Bearer Cheque. B) Crossed Cheque. C) Order Cheque. D) Open Cheque. Show Answer Correct Answer: C) Order Cheque. 60. Which of the following is/are the potential impact(s) of sale of Government securities by the Reserve Bank of India?Increase in liquidity in the market.Increase in interest rates.Select the correct answer using the code given below: A) 1 ONLY. B) 2 ONLY. C) BOTH 1 & 2. D) NEITHER 1 NOR 2 . Show Answer Correct Answer: B) 2 ONLY. ← PreviousNext →Related QuizzesIndian Economy QuizzesGeneral Knowledge QuizzesIndian Banking System And Capital Market Quiz 1Indian 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