BANKING SYSTEM MCQS SET 19

BANKING SYSTEM MCQS SET 19

181) Word Bull and Big are associated with which branch of commercial activity?
A) Foreign Trade
B) Banking
C) Share Market
D) Manufacturing
Answer: Share Market

    
182) 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
Answer: 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

    
183) What do you understand by Bear raid?
A) An attempt to bring down the price of strong short selling
B) Simultaneous 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
Answer: An attempt to bring down the price of strong short selling

    
184) Consider the following statements:
1. Reserve Bank of India was nationalized on 26 January, 1950
2. The borrowing programme of the Government of India is handled by the Department of Expenditure, Ministry of Finance
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
Answer: Neither 1 nor 2
    

185) What are gilt-edged securities?
A) Securities issued by the multinationals
B) Securities issued by the government
C) Securities issued by the private sectors
D) Securities issued by the joint venture companies
Answer: Securities issued by the government


186) The functions of the Reserve Bank of India are:
1. issuing all notes and coins
2. distributing all notes and coins
3. formulating monetary policy
4. acting as agent of Government in respect of India's membership of the IMF
A) 1, 3 and 4
B) 2 and 3
C) 2, 3 and 4
D) 1, 2, 3 and 4
Answer: 2, 3 and 4

    
187) The central banking functions in India are performed by the:
A) Central Bank
B) State Bank of India
C) Reserve Bank of India
D) Both (b) and (c)
Answer: Reserve Bank of India

    
188) Normally banks accept Fixed Deposit for a maximum period of:
A) 5 years
B) 7 years
C) 12 years
D) Any number of years
Answer: Any number of years

    
189) Bank rate is the rate at which:
A) a bank lends to the public
B) the Reserve Bank of India lends to the public
C) the Government of India lends to other countries
D) the Reserve Bank of India gives credit to commercial banks
Answer: the Reserve Bank of India gives credit to commercial banks
    

190) Which of the following committee launched the process of reforms of financial system in India?
A) Nariman Committee
B) Narsimham Committee
C) Gadgil Committee
D) Puri Committee
Answer: Narsimham Committee