BANKING SYSTEM MCQS SET 23

BANKING SYSTEM MCQS SET 23

221) Consider the following financial institutions Of India:
1. Industrial Finance Corporation of India (IFCI)
2. Industrial Credit and investment}t Corporation of India (ICICI)
3. Industrial Development Bank of India (IDBI)
4. National Bank for Agriculture and Rural Development (NABARD)
The correct chronological sequence of the establishment of these institutions is:
A) 1,2,3,4
B) 2,3,4,1
C) 3,4,1,2
D) 4,1,2,3
Answer: 1,2,3,4

    
222) What is ECBs?
A) External Commercial Borrowings
B) Existing Commercial Banks
C) External Commercial Banks
D) Exclusive Commercial Borrowings
Answer: External Commercial Borrowings

    
223) ALM stands for:
A) Asset Liasoning Management
B) Asset Level Management
C) Asset Liability Management
D) Assertive Legal Management
Answer: Asset Liability Management

    
224) EXIM Bank was set-up in :
A) 1980
B) 1982
C) 1985
D) 1986
Answer: 1982

    
225) Which of the following activities would Small Industries Development Bank of India (SIDBI) undertake under the new rural industrialisation programme?
1. Consultation in erecting the project
2. Providing marketing assistance and refinance facilities at later stage
3. Running the project during initial stage
A) Only 1 and 2
B) Only 2 and 3
C) Only 2
D) Only 1
Answer: Only 1 and 2


226) National Housing Bank (NHB) was established in:
A) 1988
B) 1989
C) 1991
D) 1998
Answer: 1988

    
227) The structure of capital markets includes:
A) Guilt-edged market
B) Stock market
C) Development financial institutions
D) All the above
Answer: All the above

    
228) Which of the following is at the apex of Industrial Finance in India?
A) Industrial Finance Corporation
B) Reserve Bank of India
C) Industrial Development Bank of India
D) Industrial Credit and Investment Corporation of India
Answer: Industrial Development Bank of India
    

229) Which of the following factors necessitated reforms in the financial and banking sectors in
India in the early 19903?
A) Outmoded technology
B) Poor customer service
C) Inability of financial institutions in meeting the challenges of the market
D) All the above
Answer: All the above
    

230) Which of the following best defines the term 'Letter of Credit' as used frequently in bank
transactions?
A) An order from a bank to another bank abroad authorising the payment of a particular amount to a person named in the letter
B) An unconditional undertaking given by a bank ensuring the payment of a particular amount to the drawee at a given date
C) Letter by a bank to a person stating the terms and conditions of the loan sanctioned to him by the bank
D) Statement showing outstanding" deposits and credits of a bank for a particular period
Answer: Letter by a bank to a person stating the terms and conditions of the loan sanctioned to him by the bank