This quiz works best with JavaScript enabled. Home > General Knowledge > Indian Economy > Banking > Indian Banking System And Capital Market – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Indian Banking System And Capital Market Quiz 4 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Negotiable Instrument Act came into effect in the year ..... A) 1869. B) 1911. C) 1881. D) 1885. Show Answer Correct Answer: C) 1881. 2. Which of the following organisations prepare rural credit plans on annual basis for all districts in India, which in turn form the base for annual credit plans of all rural financial institutions? [RBI Grade B Officer 2011] A) SIDBI. B) NABARD. C) Indian Bank's Association. D) RBI. Show Answer Correct Answer: B) NABARD. 3. In which year, some more commercial banks (in addition to the first lot of 14) were nationalised in India? A) 1976. B) 1980. C) 1979. D) 1982. Show Answer Correct Answer: B) 1980. 4. On merging the 3 presidency banks i.e. Bank of Bengal, Bombay and Madras, which bank was established? A) RBI. B) Central Bank of India. C) SBI. D) Imperial Bank of India. Show Answer Correct Answer: D) Imperial Bank of India. 5. Open market operations of a Central Bank are sale and purchase of: A) Corporate securities. B) Trade bills. C) Foreign currencies. D) Government securities. Show Answer Correct Answer: B) Trade bills. 6. All calculations in Recurring Deposite Account are based on A) Simple Interest. B) Compound Interest. C) Both Option Simple and Compond Interest. D) Time. Show Answer Correct Answer: A) Simple Interest. 7. Merchant banks deal with funds raised through ..... and capital market. A) Secondary Market. B) Primary Market. C) Money market. D) Securities market. Show Answer Correct Answer: C) Money market. 8. Which of the following is now a punishable offence by a Bank Account holder ? [Bank PO 1990] A) If a post-dated cheque is issued. B) Issuing a cheque without signature. C) If a cheque is not crossed. D) If a cheque drawn by him is dishonoured for insufficiency of funds in his account. Show Answer Correct Answer: D) If a cheque drawn by him is dishonoured for insufficiency of funds in his account. 9. Microfinance is the provision of financial services to people of low-income groups. This includes both the consumers and the self-employed. The service/services rendered under micro-finance is/are:1. Credit facilities2. Savings facilitie 3. Insurance facilities 4. Fund Transfer facilitiesSelect the correct answer using the codes given below the lists: A) 1 only. B) 1 and 4 only. C) 2 and 3 ony. D) 1, 2, 3 and 4. Show Answer Correct Answer: D) 1, 2, 3 and 4. 10. The RBI has regional offices at various places. At which of the following places it does not have an office? [RBI Grade B Officer 2011] A) Lucknow. B) Nagpur. C) Kota. D) Panaji. Show Answer Correct Answer: C) Kota. 11. Medicine supply to the Earthquake victim in India by British Government is: A) Net Factor Income from Abroad. B) Capital Transfer. C) Factor Income. D) Current transfer. Show Answer Correct Answer: D) Current transfer. 12. Which among the following is not among the 4 E's of Payments Vision 2025? A) Everyone. B) E-Payments. C) Everytime. D) E-Rupee. Show Answer Correct Answer: D) E-Rupee. 13. A Scheduled Bank is one which is included in the: [CPO SI 2002] A) II Schedule of Banking Regulation Act. B) II Schedule of Constitution. C) II Schedule of Reserve Bank of India Act. D) None of the above. Show Answer Correct Answer: A) II Schedule of Banking Regulation Act. 14. I'm a promise of payment, written with care, Bearer or Order, the choice you declare. Cross me and guard me, don't let me stray. A) Cheque. B) Demand Draft. C) Pay-in-slip. D) NEFT. Show Answer Correct Answer: A) Cheque. 15. Which of the following is at the apex of Industrial Finance in India? [UDC 1995] A) Industrial Finance Corporation. B) Reserve Bank of India. C) Industrial Development Bank of India. D) Industrial Credit and Investment Corporation of India. Show Answer Correct Answer: C) Industrial Development Bank of India. 16. What is the mandate of the KV Kamath Committee formed by the Reserve Bank of India? A) Financial parameters for restructuring of loans. B) Forex Reserve Management. C) Potential impact of COVID-19 pandemic on MSME credit. D) Monetary Policy Framework Targets . Show Answer Correct Answer: A) Financial parameters for restructuring of loans. 17. ..... are the source of finance, which is provided by the banks to the companies to meet the short-term financial requirement. A) Credits. B) Loans. C) Advances. D) Bills. Show Answer Correct Answer: B) Loans. 18. The Reserve Bank of India (RBI) acts as a bankers' bank. This would imply which of the following? (2012)1. Other banks retain their deposits with the RBI.2. The RBI lends funds to the commercial banks in times of need.3. The RBI advises the commercial banks on monetary matters.Select the correct answer using the codes given below: A) 2 and 3 only. B) 1 and 2 only. C) 1 and 3 only. D) 1, 2 and 3. Show Answer Correct Answer: D) 1, 2 and 3. 19. In NEFT, when are the settlement batches typically processed on weekdays? A) Daily, at a fixed time. B) Hourly intervals. C) Every Hour. D) Half-hourly intervals. Show Answer Correct Answer: D) Half-hourly intervals. 20. Basel Committee has given its recommendations on which of the following aspects of banking operations? [RBI Grade B Officer 2011] A) Priority sector lending. B) Risk Management. C) Micro financing. D) All of the above. Show Answer Correct Answer: D) All of the above. 21. Legal Entity Identifier (LEI) is a code required for all transactions of? A) Rs 70 cr and above. B) Rs 60 cr and above. C) Rs 10 cr and above. D) Rs 50 cr and above. Show Answer Correct Answer: D) Rs 50 cr and above. 22. Which of the following is not a fee-based financial service? A) Lease financing. B) Profit management. C) Issue management. D) Corporate counseling. Show Answer Correct Answer: B) Profit management. 23. The National Stock Exchange functions from: A) Mumbai. B) New Delhi. C) Nagpur. D) Kolkata. Show Answer Correct Answer: A) Mumbai. 24. Regional rural banks act was passed in ..... A) 1976. B) 1974. C) 1975. D) 1973. Show Answer Correct Answer: A) 1976. 25. What is the maximum limit for an IMPS transaction in India? A) ₹ 10, 00, 000. B) No Limit. C) ₹ 5, 00, 000. D) ₹ 2, 00, 000. Show Answer Correct Answer: C) ₹ 5, 00, 000. 26. Which of the following is not a regulatory institution in the Indian Financial System? A) CIBIL. B) SEBI. C) RBI. D) IRDA. Show Answer Correct Answer: A) CIBIL. 27. Formal merchant banking activity in india was orginated in A) 1969. B) 1963. C) 1974. D) None of above. Show Answer Correct Answer: A) 1969. 28. Which of the following is not a subsidiary of Union Bank of India? A) Union Bank of India(UK) Ltd. B) UBI Services Ltd. C) Andhra Bank Financial ServicesLtd. D) Corporation Bank Financial services Ltd. Show Answer Correct Answer: D) Corporation Bank Financial services Ltd. 29. Banking requlation act was passed in ..... A) 1969. B) 1949. C) 1959. D) 1939. Show Answer Correct Answer: B) 1949. 30. Participatory Notes (PNs) are associated with which one of the following? A) Consolidated Fund of India. B) Kyoto Protocol. C) Foreign Institutional Investors. D) United Nations Development Programme. Show Answer Correct Answer: C) Foreign Institutional Investors. 31. Which electronic fund transfer system is typically used for high-value transactions and settles transactions individually and in real-time? A) IMPS. B) RTGS. C) NEFT. D) ECS. Show Answer Correct Answer: B) RTGS. 32. Which one of the following Public Sector banks' emblem figures a dog and the words 'faithful, friendly' in it ? [CDS 2010] A) State Bank of India. B) Syndicate Bank. C) Punjab National Bank. D) Oriental Bank of Commerce. Show Answer Correct Answer: B) Syndicate Bank. 33. Which regulatory body controls the market in India? A) RBI. B) IRDA. C) SEBI. D) TRAI. Show Answer Correct Answer: C) SEBI. 34. Which among these is not a parameter under the RBI-Digital Payments Index? A) Payment Safety. B) Payment enablers. C) Consumer centricity. D) Payment performance. Show Answer Correct Answer: A) Payment Safety. 35. If Ram gots Rs. 6455 at the end of one year at the rate fo 14% p.a. in a Recurring Deposite Account then, his monthly instalment will be A) 100. B) 500. C) 300. D) 250. Show Answer Correct Answer: B) 500. 36. A person who has the habit of resorting to the same place or person to do business A) Bank. B) RBI. C) Customer. D) Businessman. Show Answer Correct Answer: C) Customer. 37. The word bank is derived from Italian word ..... A) Banco. B) Banko. Show Answer Correct Answer: A) Banco. 38. What is the Official What's App number for UNION VIRTUAL CONNECT? A) 9666606060. B) 9619333333. C) 9223008486. D) 9223008586. Show Answer Correct Answer: A) 9666606060. 39. Issue management is an important function of ..... and ..... A) Public manager and merchant banker. B) Bank manager and lead manager. C) Merchant banker and lead manager. D) None of the above. Show Answer Correct Answer: C) Merchant banker and lead manager. 40. GST rates applicable on goods and services are: A) 0%, 6%, 12%, 18%, 28%. B) 0%, 5%, 12%, 16%, 28%. C) 0%, 5%, 12%, 18%, 26%. D) 0%, 5%, 12%, 18%, 28%. Show Answer Correct Answer: D) 0%, 5%, 12%, 18%, 28%. 41. Lead of merchant banker should advice the issuer to enter into ..... intermediary for the purpose of issue management. A) Agreement. B) Arrangement. C) Memorandam of association. D) None of above. Show Answer Correct Answer: C) Memorandam of association. 42. What is the central bank in the United States called? A) Federal Reserve. B) Bank of America. C) Federal Reserve board. D) Reserve bank of America. Show Answer Correct Answer: A) Federal Reserve. 43. ..... is regarded as the fourth element of the financial system. A) Financial institutions. B) Financial markets. C) Financial services. D) Financial instruments. Show Answer Correct Answer: C) Financial services. 44. Financial services companies exclude: ..... A) Inurance companies. B) Co-operative Banks. C) Sole proprietor. D) Commercial banks. Show Answer Correct Answer: C) Sole proprietor. 45. Select the leading bank in banking sector A) IDBI. B) BANDHAN. C) HDFC. D) Bank of Maharashtra. Show Answer Correct Answer: C) HDFC. 46. Retail banking means A) Retail Outlets. B) Wholesale banking. C) Banking for corporates. D) Banking for individuals. Show Answer Correct Answer: D) Banking for individuals. 47. Who appoints the chairman of SEBI? A) Central Government. B) Stock Exchange. C) Investors. D) Brokers. Show Answer Correct Answer: A) Central Government. 48. What do you understand by Bear raid? A) An attempt to bring down the price of strong short selling. B) Simulataneous buying of shares and debentures in view of getting more values in near future. C) Higher rate of price paid for the particular government share or debentures. D) Any of the above. Show Answer Correct Answer: A) An attempt to bring down the price of strong short selling. 49. The best way, a bank can avoid loss is to : A) Lend only to bank's old customers. B) Lend only to individuals known to the bank. C) Accept sound collateral. D) Give only short-term loans. Show Answer Correct Answer: B) Lend only to individuals known to the bank. 50. Which one of the following statements is not correct? [CDS 2009] A) The National Association of Securities Dealers Automated Quotations known as NASDAQ, is an American stock exchange. B) Nikkei is the stock market index for the Tokyo Stock Exchange. C) S and P CNX Nifty is the index for 50 large companies on the Bombay Stock Exchange. D) Hang Seng Indexes record daily changes of the largest companies of the Hong Kong stock market. Show Answer Correct Answer: C) S and P CNX Nifty is the index for 50 large companies on the Bombay Stock Exchange. 51. When was the Reserve Bank of India (RBI) established? A) 1947. B) 1951. C) 1929. D) 1935. Show Answer Correct Answer: D) 1935. 52. Transfer income is: A) One side payment. B) Factor income. C) Factor payment. D) Mixed Income. Show Answer Correct Answer: A) One side payment. 53. A rapid increase in the rate of inflation is sometimes attributed to the "base effect" . What is "base effect" ? A) It is the impact of drastic deficiency in supply due to failure of crops. B) It is the impact of the surge in demand due to rapid economic growth. C) It is the impact of the price levels of previous year on the calculation of inflation rate. D) None of the statements (a), (b) and (c) 'given above is correct in this context. Show Answer Correct Answer: C) It is the impact of the price levels of previous year on the calculation of inflation rate. 54. Which of the following is true regarding RTGS transactions? A) They have no upper limit. B) They are typically used for small-value transactions. C) They are not available on weekends and bank holidays. D) They involve batch processing. Show Answer Correct Answer: A) They have no upper limit. 55. Power to recognize Stock Exchange vests with A) Central Government. B) RBI. C) SIDBI. D) SEBI. Show Answer Correct Answer: D) SEBI. 56. Which of the following provides the largest part of the demand for loanable funds in India? A) Hire-purchase borrowers. B) Corporate businesses. C) Farmers. D) Private-house purchasers. Show Answer Correct Answer: B) Corporate businesses. 57. Which is not a Banking Stock A) Bank of America. B) Bank of India. C) No Bank. D) Yes Bank. Show Answer Correct Answer: C) No Bank. 58. UPI system is managed by? A) RBI. B) IDRBT. C) CCIL. D) NPCI. Show Answer Correct Answer: D) NPCI. 59. Which of the following organisations in India is mainly' working to meet the credit needs of all types of agricultural and rural development activities? A) FCI. B) ICAR. C) IDBI. D) NABARD. Show Answer Correct Answer: D) NABARD. 60. Which menu is used to collect the penalty in Locker? A) LKPM. B) LKCM. C) LKKM. D) LKRCM. Show Answer Correct Answer: D) LKRCM. ← 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 3Indian Banking System And Capital Market Quiz 5Indian Banking System And Capital Market Quiz 6 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books