Banking and Finance MCQ Questions and Answers
Q1: What will bank customers pay for using safe deposit locker facilities?
Answer: Rent on locker
Q2: Which of the following NBFCs converted itself into a commercial bank?
Answer: Kotak Mahindra
Q3: What happens if a crossed cheque is presented for payment?
Answer: It can be paid only through a banker.
Q4: What is call money?
Answer: Money borrowed for more than one day but up to 14 days.
Q5: What is the most powerful tool used by the Reserve Bank of India to control inflation?
Answer: Raise interest rate.
Q6: Which is the instrument used by RBI under general credit control?
Answer: Cash Reserve Ratio (CRR)
Q7: Which one of the following is the ratio of the loan principal to the appraised value?
Answer: Loan-to-loan-value-ratio
Q8: What is the minimum capital that needs to be compulsorily maintained in all scheduled banks in RBI?
Answer: 5 lakhs
Q9: Who decides to maintain the quantity of coins?
Answer: Government of India
Q10: Which bank is the lender of last resort?
Answer: RBI
Q11: Which service is considered the most valuable extended by banks?
Answer: Cheques and loans to far-off places
Q12: According to RBI, open market operations are?
Answer: Trading in securities, Auctioning, and Transfer of Gold
Q13: Who was the first RBI Governor of India?
Answer: Chintaman Dwarkanath Deshmukh (C.D Deshmukh)
Q14: Indigenous banks are controlled by?
Answer: Registered co-operative institutions
Q15: The banking ombudsman was established under the Banking Regulation Act 1949 in the year?
Answer: 1995
Q16: Which is India’s vast private sector bank?
Answer: HDFC
Q17: Where is RBI Head Office?
Answer: Mumbai
Q18: Which bank in 2004 took up banking company trading activity?
Answer: IDBI
Q19: The rates fixed by the central bank for short-term loans against public securities are?
Answer: Repo Rate
Q20: The main function of banks as per the 1949 Banking Regulation Act?
Answer: Accepting Cash payments
Q21: Smart cards were introduced as per the direction of which committee?
Answer: Saraf Committee
Q22: Which bank introduced the prepaid card for the first time?
Answer: ICICI
Q23: As per the direction of RBI, savings account receives interest at the time interval of?
Answer: 6 MONTHS
Q24: Current account savings are?
Answer: Non-sensitive rate
Q25: The primary relationship between the customer and banker starts when?
Answer: When the customer opens an account
Q26: Which of the following is the most important relationship between a banker and a customer?
Answer: DEBTOR AND CREDITOR
Q27: Taking loans after being a customer of the bank is known as?
Answer: Debtor
Q28: Who directs commercial banks to realize the cheques of distant Bank branches?
Answer: RBI
Q29: The term “Garnishee” is taken from which Latin word?
Answer: Garnire
Q30: Which account permits the overdrawing of money?
Answer: Current Account
Q31: The apex institution that gives agriculture-related Finance?
Answer: NABARD
Q32: Which of the following is not a part of the Indian money market?
Answer: Indian Gold Council
Q33: When was the State Bank of India nationalized?
Answer: 1949
Q34: What happens if a crossed cheque is presented for payment?
Answer: It can be paid only through a banker
Q35: Which bank of India is called the “Bankers Bank”?
Answer: RBI
Q36: Expand RTGS.
Answer: Real-Time Gross Settlement
Q37: Who circulates the money in circulation in India?
Answer: RBI
Q38: Which quantitative credit control method is used by RBI?
Answer: Bank Rate
Q39: The first public sector bank that gave public capital is?
Answer: Oriental Bank of Commerce
Q40: Under which commission was RBI established?
Answer: The Hilton Young Commission
Q41: Expand EEFC.
Answer: Exchange Earners’ Foreign Currency Account
Q42: Which bank receives deposits from the public?
Answer: Commercial Bank
Q43: The rate at which RBI exchanges bills at a discount is?
Answer: Bank Rate
Q44: Major Assets of commercial banks?
Answer: Commercial loans and Deposits
Q45: Ombudsman is the authority appointed by?
Answer: Central Government
Q46: Agricultural finance is given as per the direction of?
Answer: NABARD
