This quiz works best with JavaScript enabled. Home > General Knowledge > Indian Economy > Banking > Indian Banking System And Capital Market – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Indian Banking System And Capital Market Quiz 3 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Stock Exchanges play, role in an economy which may be termed as [UBI PO 2010] A) A gambling-where many investors get ruined. B) Harmful to proper capital markets. C) Useful but need strict regulation. D) A very important segment to regulate inflation. Show Answer Correct Answer: C) Useful but need strict regulation. 2. To regulate scam in Indian capital market, which of the following body has regulatory power: A) SEBI. B) RBI. C) SBI. D) None of these. Show Answer Correct Answer: A) SEBI. 3. In India which of the following organizations takes care of the agriculture and rural development credit needs? A) NABARD. B) FCI. C) ICAR. D) IDBI. Show Answer Correct Answer: A) NABARD. 4. During the pre-independence period, which bank was the central bank of India? A) Reserve Bank of India. B) State Bank of India. C) Bank of Bombay. D) Bank of Hindustan. Show Answer Correct Answer: A) Reserve Bank of India. 5. Recurring Deposite Account is also known as ..... amount A) Current. B) Saving Deposit. C) Cumulative Deposit. D) Fixed Deposit. Show Answer Correct Answer: C) Cumulative Deposit. 6. Which of the following is not true about the Reserve Bank of India? A) It regulates the currency and credit system of India. B) It maintains the exchange value of the rupee. C) Foreign exchange reserves are kept by RBI. D) One rupee notes and coins are issued by RBI. Show Answer Correct Answer: D) One rupee notes and coins are issued by RBI. 7. Central record keeping agency (CRA) for the new Pension system is: A) NSDL. B) PFRDA. C) CSDL. D) IRDA. Show Answer Correct Answer: A) NSDL. 8. The National Housing Bank was set up in India as a wholly-owned subsidiary of which one of the following? [IAS 2007] A) Life Insurance Corporation of India. B) ICICI Bank. C) State Bank of India. D) Reserve Bank of India. Show Answer Correct Answer: D) Reserve Bank of India. 9. What does "KYC" stand for in the banking and financial sector? A) Know Your Customer. B) Know Your Credit. C) Keeping Your Cash. D) Know Your Currency. Show Answer Correct Answer: A) Know Your Customer. 10. For the following transaction from Delhi to Jaipur, fill in the blanks to find the amount of bill:-MRP = Rs 50, 000, Discount % = 20%, GST = 28%Discount =? Selling Price =?CGST =?SGST=?IGST=?Amount of Bill =? A) Discount = 12, 000Selling Price = 40, 000CGST = NASGST= NA IGST= 11, 200Amount of Bill = 51, 200. B) Discount =10, 000Selling Price =40, 000CGST = 5600SGST= 5600IGST= NAAmount of Bill = 50, 200. C) Discount =10, 000Selling Price =40, 000CGST = NASGST= NA IGST= 11, 200Amount of Bill = 51, 200. D) Discount =10, 000Selling Price =40, 000CGST = NASGST= NA IGST= 11, 200Amount of Bill = 50, 200. Show Answer Correct Answer: C) Discount =10, 000Selling Price =40, 000CGST = NASGST= NA IGST= 11, 200Amount of Bill = 51, 200. 11. The first Bank established in India was A) Bank of Hindustan. B) State Bank of India. C) Punjab National Bank. D) Traders Bank. Show Answer Correct Answer: A) Bank of Hindustan. 12. Debenture holders of a company are its: A) Debtors. B) Shareholders. C) Directors. D) Creditors. Show Answer Correct Answer: D) Creditors. 13. Which of the following is not a normal resident of a country? A) An Indian working in American Embassy. B) A branch of WHO in India. C) An American tourist in India. D) An Indian working in WHO situated in India. Show Answer Correct Answer: C) An American tourist in India. 14. What is the animal on the insignia of the RBI ? [CPO SI 2002] A) Tiger. B) Lion. C) Panther. D) Elephant. Show Answer Correct Answer: C) Panther. 15. Which of these is not a consumer goods? A) Use of bread by a household. B) Use of sugar by a family. C) Use of milk by a household. D) Use of seed by a farmer. Show Answer Correct Answer: D) Use of seed by a farmer. 16. When was SEBI constituted? (a) April, 1988 (b) March, 1982 (c) July, 1992 (d) Dec. 1974 A) April, 1988 (. B) Dec. 1974. C) July, 1992. D) March, 1982. Show Answer Correct Answer: C) July, 1992. 17. What is the primary function of a bank? A) Selling goods and services. B) Lending money. C) Manufacturing products. D) Providing healthcare services. Show Answer Correct Answer: B) Lending money. 18. Who among the following is not a present Executive Director of our bank? A) Shri Nitesh Ranjan. B) Shri Ramasubramanian S. C) Shri Rajneesh Karnataka. D) Shri Nidhu Saxena. Show Answer Correct Answer: C) Shri Rajneesh Karnataka. 19. Credit can be created by A) Commercial Banks. B) Foreign Banks. C) Private Banks. D) RBI. Show Answer Correct Answer: A) Commercial Banks. 20. A merchant bank can help an organization specifically in promotion functions A) Sponsoring the issue. B) Marketing. C) All of the above. D) None of above. Show Answer Correct Answer: C) All of the above. 21. Merchant banks shall not associate with any business other than that of the securities market. A) False. B) True. Show Answer Correct Answer: B) True. 22. A ..... cheque can be encashed at the bank counter. A) Crossed. B) Bearer. C) Post dated. D) Stale. Show Answer Correct Answer: B) Bearer. 23. How many banks were nationalized during the 1969 nationalization of banks in India? A) 05. B) 10. C) 14. D) 19. Show Answer Correct Answer: C) 14. 24. The largest Public Sector Bank in India is: [CDS 1991] A) State Bank of India. B) Punjab National Bank. C) Central Bank. D) Indian Overseas Bank. Show Answer Correct Answer: A) State Bank of India. 25. Who was the founder of Union Bank? A) Dr. Bhogaraju Pattabhi Sitaramayya. B) Shri Khan Bahadur Haji Abdullah. C) MohanDas Karamchand Gandhi. D) Seth Seetharamji KisonDayal Poddar. Show Answer Correct Answer: D) Seth Seetharamji KisonDayal Poddar. 26. Which one of the following is likely to be one of the most inflationary in its effects? A) Repayment of public debt. B) Creation of new money to finance a budget deficit. C) Borrowing from the banks to finance a budget deficit. D) Borrowing from the public to finance a budget deficit. Show Answer Correct Answer: B) Creation of new money to finance a budget deficit. 27. Who is responsible for the collection and publication of monetary and financial information? A) Finance Commission. B) Finance Ministry. C) Reserve Bank of India. D) Auditor and Comptroller General of India. Show Answer Correct Answer: C) Reserve Bank of India. 28. Bank rate is the rate at which: A) The Government of India lends to other countries. B) The Reserve Bank of India lends to the public. C) A bank lends to the public. D) The Reserve Bank of India gives credit to commercial banks. Show Answer Correct Answer: D) The Reserve Bank of India gives credit to commercial banks. 29. Open Market Operations means: A) Sale of agricultural products in the government regulated Mandis. B) Sale and purchase of bonds and securities to the commercial banks by the RBI. C) Sale and purchase of bonds and securities by the RBI to the government. D) Sale and purchase of bonds and securities by the commercial banks to the customers. . Show Answer Correct Answer: B) Sale and purchase of bonds and securities to the commercial banks by the RBI. 30. The number of Banks nationalised since 1969 is : [PCS 1994] A) 14. B) 8. C) 12. D) 20. Show Answer Correct Answer: D) 20. 31. SGST is applicable when A) Goods are sold from one GST dealer to a customer. B) Goods are sold by a GST dealer to another GST dealer. C) Inter-state supply. D) Goods are sold within a state. Show Answer Correct Answer: D) Goods are sold within a state. 32. The primary relationship, which flows from the essential functions of a bank is of ..... A) Debtor and Creditor. B) Agent and Principal. C) Trustee and Beneficiary. D) Lessor and Lessee. Show Answer Correct Answer: A) Debtor and Creditor. 33. Which amidst the following rural banks has been named after a river? [NDA 2002] A) Varada Grameen Bank. B) Thar Anchalik Grameen Bank. C) Aravali Kshetriya Grameen Bank. D) Prathama Bank. Show Answer Correct Answer: A) Varada Grameen Bank. 34. What menu will be used for first level verification for a RTGS of 11 lakhs? A) HPORDM. B) UPLRTGS. C) HRTGS. D) HRTGSV. Show Answer Correct Answer: D) HRTGSV. 35. What is the maximum limit for a single NEFT transaction in India? A) No Limit. B) ₹ 10, 00, 000. C) ₹ 5, 00, 000. D) ₹ 2, 00, 000. Show Answer Correct Answer: A) No Limit. 36. 'Repo rate' is the rate at which: [CDS 2004] A) The international aid agencies lend to Reserve Bank of India. B) The Reserve Bank of India lends to banks. C) The Reserve Bank of India lends to State Government. D) The banks lend to Reserve Bank of India. Show Answer Correct Answer: D) The banks lend to Reserve Bank of India. 37. In India, the Central Bank's function as the "lender of last resort" usually refers to which of the following?1. Lending to trade and industry bodies when they fail to borrow from other sources 2. Providing liquidity to the banks having a temporary crisis 3. Lending to governments to finance budgetary deficitsSelect the correct answer using the code given below A) 1 and 2 only. B) 2 only. C) 2 and 3 only. D) 3 only. Show Answer Correct Answer: B) 2 only. 38. From the following mentioned places, which place is not having a Union Bank Call Centre? A) Bangalore. B) New Delhi. C) Hyderabad. D) Mumbai. Show Answer Correct Answer: B) New Delhi. 39. One of them is not the regulatory function of SEBI A) Regulating the business in stock exchange. B) Registration and regulating the working of Stock Brokers, Sub-Brokers, Merchant Bankers, Depository participants and other intermediaries. C) Regulation of Collective Investment Schemes. D) Conducting research and publishing market information which are useful to all market participants. Show Answer Correct Answer: D) Conducting research and publishing market information which are useful to all market participants. 40. Ramesh deposited Rs. 200 per month for 36 months in a banks recurring deposite amount at the rate of 11% per annum, then the interest earned by him is A) Rs. 1222. B) Rs. 1221. C) Rs. 1220. D) Rs. 1200. Show Answer Correct Answer: B) Rs. 1221. 41. The acronym SRO, being used in the capital market for various market participants, stands for which one of the following? [CDS 2008] A) Self-Regulatory Organisations. B) Small Revenue Operators. C) Securities Roll-back Operators. D) Securities Regulatory Organisations. Show Answer Correct Answer: A) Self-Regulatory Organisations. 42. The Reserve Bank of India issues: A) All the currency notes. B) All the currency notes except the one rupee note. C) All the currency notes except the hundred rupee note. D) Only notes of Rs. 10 and above. Show Answer Correct Answer: B) All the currency notes except the one rupee note. 43. Who amongst the following was never a Governor of the RBI ? [SBI Associates Clerk 2011] A) Y. V. Reddy. B) Arup Roy Choudhury. C) D. Subbarao. D) C. Rangarajan. Show Answer Correct Answer: B) Arup Roy Choudhury. 44. Indian GST model has ..... rate structure A) 4. B) 6. C) 3. D) 5. Show Answer Correct Answer: A) 4. 45. Which one of the following Indian banks is not a nationalized bank? [IAS 2006] A) Dena Bank. B) Federal bank. C) Vijaya Bank. D) Corporation Bank. Show Answer Correct Answer: B) Federal bank. 46. Which Anti Virus is being used in Our Bank? A) McAfee. B) Symantec. C) Norton. D) Quick Heal. Show Answer Correct Answer: A) McAfee. 47. How many languages are supported by Vyom app? A) 11. B) 10. C) 12. D) 13. Show Answer Correct Answer: D) 13. 48. A payment made periodically to a landlord for the use of property for a specific period of time is called: A) Royalty. B) Rent. C) Interest. D) Profit. Show Answer Correct Answer: B) Rent. 49. Which of the following item is not a component of 'Operating Surplus'? A) Royalty. B) Bonus. C) Interest. D) Rent. Show Answer Correct Answer: B) Bonus. 50. How do we define the terms bull and bear with regard to stock markets? A) A bull is an optimistic operator who first buys and then sells shares in expectation of the price going up; a bear is a pessimistic market operator who sells the shares in expectation of buying them back at a lower price. B) There is nothing significantly different as both operate in the capital market. C) Bull is one who first sells a share and then buys it at a lower price; bear means one who first buys and then sells it in expectation of prices going up. D) A bull is ready to buy any share; a bear only deals in government securities. Show Answer Correct Answer: A) A bull is an optimistic operator who first buys and then sells shares in expectation of the price going up; a bear is a pessimistic market operator who sells the shares in expectation of buying them back at a lower price. 51. State bank of india started merchant banking in ..... followed by icici in ..... A) 1980, 1981. B) 1978, 1980. C) 1973, 1974. D) None of above. Show Answer Correct Answer: C) 1973, 1974. 52. In 1921, the Presidency Banks of Bengal, Madras and Bombay were nationalised to give birth to: A) Punjab National Bank. B) Syndicate Bank. C) State Bank of India. D) Punjab and Sindh Bank. Show Answer Correct Answer: C) State Bank of India. 53. Which of the following is not a type of Risk in banking Sector A) Credit Risk. B) Liquidity Risk. C) Market Risk. D) Account Risk. Show Answer Correct Answer: D) Account Risk. 54. In India, the first bank of limited liability managed by Indians and founded in 1881 was: A) Hindustan Commercial Bank. B) Oudh Commercial Bank. C) Punjab National Bank. D) Punjab and Sind Bank. Show Answer Correct Answer: B) Oudh Commercial Bank. 55. What is the minimum amount that can be transferred through NEFT? A) ₹ 1 LAKH. B) ₹ 15 LAKHS. C) ₹ 10 LAKHS. D) ₹ 2 LAKHS. Show Answer Correct Answer: A) ₹ 1 LAKH. 56. Merchant Bank can not provide loan to individuals and small business A) True. B) False. Show Answer Correct Answer: A) True. 57. Category 1 of merchant banker can act as: ..... A) All issue management functions. B) Underwriter. C) Consultant. D) None of above. Show Answer Correct Answer: A) All issue management functions. 58. A merchant banking is a financial institutions conducting money market activities and a lending A) Underwriting and financial advice. B) Investment service. C) All of above. D) None of above. Show Answer Correct Answer: C) All of above. 59. Why is the offering of "teaser loans" by commercial banks a cause of economic concern?1. The teaser loans are considered to be an aspect of sub-prime lending and banks may be exposed to the risk of defaulters in future.2. In India, the teaser loans are mostly given to inexperienced entrepreneurs to set up manufacturing or export units.Which of the statements given above is/are correct? A) 1 only. B) 2 only. C) Both 1 and 2. D) Neither 1 nor 2. Show Answer Correct Answer: C) Both 1 and 2. 60. When the cash reserve ratio (CRR) is increased by the RBI, it will: A) Increase the supply of money in the economy. B) Decrease the supply of money in the economy. C) No impact on the supply of money in the economy. D) Initially increase the supply but later on decrease automatically. . Show Answer Correct Answer: B) Decrease the supply of money in the economy. ← PreviousNext →Related QuizzesIndian Economy QuizzesGeneral Knowledge QuizzesIndian Banking System And Capital Market Quiz 1Indian Banking System And Capital Market Quiz 2Indian 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