This quiz works best with JavaScript enabled. Home > General Knowledge > Indian Economy > Banking > Indian Banking System And Capital Market – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Indian Banking System And Capital Market Quiz 5 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What does MICR stand for in the context of a cheque? A) Magnetic Ink Code Reader. B) Monetary Information Control Register. C) Magnetic Ink Character Recognition. D) Money Issuance Control Record. Show Answer Correct Answer: C) Magnetic Ink Character Recognition. 2. First phase of CBDC retail pilot covered which cities? A) Delhi, Mumbai, Bengaluru and Bhubaneswar. B) Bhubaneswar, Kolkata, Bengaluru and Mumbai. C) Chennai, Mumbai, Bengaluru and Bhubaneswar. D) Delhi, Mumbai, Kolkata and Bhubaneswar. Show Answer Correct Answer: A) Delhi, Mumbai, Bengaluru and Bhubaneswar. 3. When a bank accept deposits, it becomes ..... A) Principal. B) Debtor. C) Beneficiary. D) Creditor. Show Answer Correct Answer: B) Debtor. 4. Consider the following statements regarding the National Payments Corporation of India (NPCI):It is an initiative of the Reserve Bank of India (RBI) and the Indian Banks' Association (IBA).RuPay card payment scheme was launched by the NPCI.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: C) BOTH 1 & 2. 5. What is the role of 'Over-the Counter Exchange' (OTC)? A) Help in the introduction of multi-tiered markets and import liquidity to them. B) Help to overcome the balance of payment crisis. C) To arrange funds from different foreign banks of developing/ under developing countries. D) All of the above. Show Answer Correct Answer: A) Help in the introduction of multi-tiered markets and import liquidity to them. 6. Formula for calculating interest in recurring deposite account is A) $\frac{P\times n\times r}{100\times2}$. B) $\frac{P\times n\left(n+1\right)\times r}{100\times2\times12}$. C) $\frac{P\times n\times t}{100\times2}$. D) $\frac{P\times n\left(n+1\right)\times r}{100\times2}$. Show Answer Correct Answer: B) $\frac{P\times n\left(n+1\right)\times r}{100\times2\times12}$. 7. On hiring out of locker, the relationship between banker and customer is that of ..... A) Lessor and Lessee. B) Agent and Principal. C) Trustee and Beneficiary. D) Debtor and Creditor. Show Answer Correct Answer: A) Lessor and Lessee. 8. For regulation of the Insurance Trade in the country the Government has formed: [UP PCS 2002] A) SEBI. B) Reserve Bank of India. C) Insurance Regulatory and Development Authority. D) General Insurance Corporation. Show Answer Correct Answer: C) Insurance Regulatory and Development Authority. 9. The person who draws the cheque is called as a ..... A) Payee. B) Banker. C) Drawer. D) Drawee. Show Answer Correct Answer: C) Drawer. 10. ..... is the prescribed standard by the RBI for cheques issued by all Indian banks to facilitate faster clearing. A) Ordered. B) Cancelled. C) CTS 2010. D) Crossed. Show Answer Correct Answer: C) CTS 2010. 11. Which term best describes the process of accepting deposits and granting loans by banks? A) Barter. B) Trading. C) Finance. D) Banking. Show Answer Correct Answer: D) Banking. 12. The banks are required to maintain a certain ratio between their cash in hand and total assets. This is called: [IAS 1998] A) CLR (Central Liquid Reserve). B) SLR (Statutory Liquid Ratio). C) SBRC (Statutory Bank Ratio). D) CBR (Central Bank Reserve). Show Answer Correct Answer: B) SLR (Statutory Liquid Ratio). 13. With reference to India, consider the following statements:1. Retail investors through Demat account can invest in Treasury Bills and Government of India Debt Bonds in the primary market 2. The "Negotiated Dealing System-Ordering Matching" is a government securities trading platform of the Reserve Bank of India. 3. The "Central Depository Services Ltd" is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange.Which of the statements given above is/are correct? A) 1 ONLY. B) 1 AND 2 ONLY. C) 3 ONLY. D) 2 AND 3 ONLY. Show Answer Correct Answer: B) 1 AND 2 ONLY. 14. The lowering of Bank Rate by the Reserve Bank of India leads to A) (c.) No change in the liquidity in the market. B) (b.) Less liquidity in the market. C) (a.) More liquidity in the market. D) (d.) Mobilization of more deposits by commercial banks. Show Answer Correct Answer: C) (a.) More liquidity in the market. 15. State whether the statement will be included in estimating Domestic Income:-Profit earned by a resident of India from his company in Singapore. A) Yes. B) No. C) Only (a). D) None of these. Show Answer Correct Answer: B) No. 16. Where is the Nodal Branch for CBDT Situated? A) Mumbai. B) Bangalore. C) Bardoli. D) Dhantoli. Show Answer Correct Answer: D) Dhantoli. 17. The Imperial Bank of India, after nationalisation was given the name of: A) State Bank of India. B) Reserve Bank of India. C) Bank of India. D) Indian Overseas Bank. Show Answer Correct Answer: A) State Bank of India. 18. Consider the following statementsOther things remaining unchanged, market demand for a good might increase if1. Price of its substitute increases 2. Price of its complement increases 3. The good is an inferior good and income of the consumers increases 4. Its price fallsWhich of the above statements are correct? A) 1 and 4 only. B) 2, 3 & 4. C) 1, 3 & 4. D) 1, 2 and 3. Show Answer Correct Answer: A) 1 and 4 only. 19. Which of the following statement is NOT correct about the SEBI A) At present it is a statutory body. B) SEBI is managed by 6 members. C) At present it is a non statutory body. D) It got statutory powers by an ordinance in 1992. Show Answer Correct Answer: C) At present it is a non statutory body. 20. The administrative head office of SEBI is at ..... A) Bombay. B) New Delhi. C) Chennai. D) Kolkata. Show Answer Correct Answer: A) Bombay. 21. The basic regulatory authority for mutual funds and stock markets lies with the: A) Government of India. B) Reserve Bank of India. C) Securities and Exchange Board of India. D) Stock Exchanges. Show Answer Correct Answer: C) Securities and Exchange Board of India. 22. The primary objective of Unit Trust of India is: A) To accumulate funds for public investment expenditure. B) To promote the investment habit among those who have not been able to diversify investment risk. C) To diffuse the benefit of development among the masses. D) To assist the industries in financial difficulties. Show Answer Correct Answer: B) To promote the investment habit among those who have not been able to diversify investment risk. 23. In India, the bank NABARD does not provide refinance to : [CDS 2002] A) Scheduled Commercial Banks. B) Regional Rural Banks. C) Export-Import Banks. D) State Land Development Banks. Show Answer Correct Answer: C) Export-Import Banks. 24. Bouncing of cheques has become an offence. What is the punishment for the same: A) 6 months imprisonment. B) 1year imprisonment. C) 2 years imprisonment. D) 3 years imprisonment. Show Answer Correct Answer: A) 6 months imprisonment. 25. Merchant bank is an organization that: ..... A) Underwrites securities for cooperat. B) Involved in owernship of commercial ventures. C) All of the above. D) None of above. Show Answer Correct Answer: C) All of the above. 26. Role of merchant banking is Innovation. A) False. B) True. Show Answer Correct Answer: B) True. 27. How many themes and Action points are there in EASE 5.0? A) 5, 22. B) 5, 21. C) 6, 22. D) 6, 21. Show Answer Correct Answer: A) 5, 22. 28. The system of value added taxation is applicable to: A) Excise duties. B) Taxes on agricultural income. C) Estate duty. D) Income tax. Show Answer Correct Answer: A) Excise duties. 29. Mr. Gupta opened a recurring deposite account in a bank. He deposited Rs. 2, 500 per month for two years. At the time of maturity he got Rs. 67, 500. Find:1. The total interest earned by Mr. Gupta2. The rate of interest per annum A) 1. Rs. 85002. 12%. B) 1. Rs. 85002. 10%. C) 1. Rs. 75002. 12%. D) 1. Rs. 75002. 8%. Show Answer Correct Answer: C) 1. Rs. 75002. 12%. 30. Which is the correct option for Number of Zonal & Regional Offices of Union Bank? A) 18, 134. B) 18, 120. C) 25, 125. D) 20, 120. Show Answer Correct Answer: A) 18, 134. 31. For the following transaction within Delhi, fill in the blanks to find the amount of bill:-MRP = Rs. 12, 000, Discount % = 30%, GST = 18%Amount on the Bill is A) 9910. B) 9900. C) 9914. D) 9912. Show Answer Correct Answer: D) 9912. 32. The present chairman of SEBI is ..... A) CB Bhave. B) UK Sinha. C) Vijay Khelkar. D) Ajay Tyagi. Show Answer Correct Answer: D) Ajay Tyagi. 33. Which one is not true about the benefits of the proposed digitization of Kisan Credit Cards? A) It will make the lending more efficient. B) It will entail automation of various processes within banks. C) It will increase the Turn Around Time for loan disbursement. D) It will reduce costs for borrowers. Show Answer Correct Answer: C) It will increase the Turn Around Time for loan disbursement. 34. Which of the following is not an asset held by commercial banks? A) Current account deposits. B) Money lent at short notice. C) Credit balances with the Reserve Bank. D) Bills of exchange. Show Answer Correct Answer: A) Current account deposits. 35. The main function of the Exim Bank is: A) To help RBI in the regulation of foreign exchange. B) To prevent unlicensed transaction. C) To promote exports and curtail imports. D) To conserve foreign exchange. Show Answer Correct Answer: C) To promote exports and curtail imports. 36. If the cash-reserve ratio is lowered by the Central bank, what will be its effect on credit creation? A) Decrease. B) Increase. C) No change. D) None of these. Show Answer Correct Answer: B) Increase. 37. Regional Rural Banks are designed to work in which of the following ideals? [IAS 1988] A) Work on basics of commercial banks. B) Help the targetted groups. C) Keep lending rates lower than cooperative institutions. D) Work on innovative and adaptive ideals. Show Answer Correct Answer: B) Help the targetted groups. 38. The difference between a bank and a non-banking financial institution (NBFI) is that: [IAS 1994] A) A bank interacts directly with customers while an NBFI interacts with banks and governments. B) A bank indulges in a number of activities relating to finance with a range of customers, while an NBFI is , mainly concerned with the term loan needs of large enterprises. C) A bank deals with both internal and international customers while an NBFI is mainly concerned with the finances of foreign companies. D) A bank's main interest is to help in business transactions and saving/investment activities while an NBFl's main interest is in the stabilisation of the currency. Show Answer Correct Answer: B) A bank indulges in a number of activities relating to finance with a range of customers, while an NBFI is , mainly concerned with the term loan needs of large enterprises. 39. Who cancelled Sahara Mutual Fund license on 28th July'15? A) BSE. B) Supreme Court. C) SEBI. D) CRISIL. Show Answer Correct Answer: C) SEBI. 40. The oldest stock exchange of India is : A) Bangalore Stock Exchange. B) Ahmedabad Stock Exchange. C) Hyderabad Stock Exchange. D) Bombay Stock Exchange. Show Answer Correct Answer: D) Bombay Stock Exchange. 41. Merchant banking in India has been given a specific direction by RBI Regulation. A) False. B) True. Show Answer Correct Answer: A) False. 42. When Raj stayed in a hostel for 2 days he had to pay Rs 7080 including 18% GST. What is the tariff of th hostel for a unit of accomodation? A) Rs. 2500. B) Rs. 3000. C) Rs. 2000. D) Rs. 3500. Show Answer Correct Answer: B) Rs. 3000. 43. Which bank is considered the oldest in India, established in 1770? A) State Bank of India. B) Bank of Hindustan. C) Punjab National Bank. D) Reserve Bank of India. Show Answer Correct Answer: B) Bank of Hindustan. 44. SEBI has allowed celebs to endorse which products? A) Stocks and Shares. B) Mutual funds. C) Dividend. D) Insurance. Show Answer Correct Answer: B) Mutual funds. 45. A small loan amount given to low income households or groups is known as A) Cash Credit. B) Rural Credit. C) Simple Credit. D) Micro Credit. Show Answer Correct Answer: D) Micro Credit. 46. When was the Reserve Bank of India taken over by the Government? [PCS 1994] A) 1948. B) 1956. C) 1945. D) 19S2. Show Answer Correct Answer: A) 1948. 47. What is the theme of the first global hackathon-HARBINGER-organised by RBI? A) Inclusive Digital Services. B) Alternate authentication mechanism for digital payments. C) Creating a sustainable financial world. D) Smarter Digital Payments. Show Answer Correct Answer: D) Smarter Digital Payments. 48. Which of the following Indian Naval Ship is having Union Bank ATM? A) INS Viraat. B) INS Vikramaditya. C) INS Vikrant. D) INS Talwaar. Show Answer Correct Answer: A) INS Viraat. 49. The Committee on Financial Sector Reforms was headed by: A) Viral Acharya . B) Rangarajan. C) Urjit Patel. D) Raghuram Rajan. Show Answer Correct Answer: D) Raghuram Rajan. 50. A crossed cheque is one, which can be encashed only: [IFS 1991] A) At the State Bank of India. B) After it has been transferred to another person. C) By the drawee. D) Through a bank,. Show Answer Correct Answer: D) Through a bank,. 51. For auto sweep in SB PLUS minimum resultant balance should be RS ..... A) 40000. B) 10000. C) 25000. D) 35000. Show Answer Correct Answer: C) 25000. 52. I'm electronic magic, funds on the go, Swift and secure, in a timely flow. Real-time transfers, without delay, Which service am I? A) NEFT. B) IMPS. C) RTGS. D) All of these. Show Answer Correct Answer: C) RTGS. 53. Who amongst the following has never held post of the Governor of the RBI? [RBI Grade B Officer 2011] A) L.K. Jha. B) Usha Thorat. C) Bimal Jalan. D) Manmohan Singh. Show Answer Correct Answer: B) Usha Thorat. 54. Round the clock, I never sleep, Instant transfers, my promise I keep. From mobiles and banks, I serve you best, Who am I? Put your mind to the test! A) NEFT. B) IMPS. C) RTGS. D) ECS. Show Answer Correct Answer: B) IMPS. 55. Which one of these is not a part of PROJECT POWER? A) Revisit products and places. B) Employees. C) Outreach and Connect. D) Publicity and advertising. Show Answer Correct Answer: A) Revisit products and places. 56. State whether the statement will be included in estimating the Domestic income:-Broker's Commission on the sale of an old car. A) Yes. B) No. C) Both (a) and (b). D) None of these. Show Answer Correct Answer: A) Yes. 57. The price of any currency in international market is decided by the1. World Bank2. demand for goods/services provided by the country concerned3. stability of the government of the concerned country4. economic potential of the country in questionWhich of the statements given above are correct? A) 1, 2, 3 and 4. B) 2 and 3 only. C) 3 and 4 only. D) 1 and 4 only. Show Answer Correct Answer: B) 2 and 3 only. 58. What is the primary duty of a banker in the banker-customer relationship? A) Maximizing profits for the bank. B) Safeguarding customer's interests and funds. C) Promoting government policies. D) Providing investment advice. Show Answer Correct Answer: B) Safeguarding customer's interests and funds. 59. State the formula of National Income at Factor Cost A) National Income at Market Price $\times$. B) National Income at Market Price $-$. C) National Income at Market Price $-$. D) National Income at Market Price + Indirect Tax. Show Answer Correct Answer: B) National Income at Market Price $-$. 60. In some parts of India, farmers face acute distress because of heavy burden of debt from non-institutional renders. Who can be called a non-institutional lender? [RBI Grade B Officer 2011] A) Small Banks. B) Grameen Banks. C) Micro Finance Institutions. D) Money Lenders. Show Answer Correct Answer: D) Money Lenders. ← 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 4Indian Banking System And Capital Market Quiz 6 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books