BANKING SYSTEM MCQS SET 24

BANKING SYSTEM MCQS SET 24

231) Who among the following served as both the Governor of RBI and Finance Minister of India?
A) C. D. Deshmukh and Manmohan Singh
B) C. Rangarajan and C. D. Deshmukh
C) Y. V. Reddy and Manmohan Singh
D) Subbarao and Bimal Jalan
Answer: C. D. Deshmukh and Manmohan Singh

    
232) In India, the bank NABARD does not provide refinance to :
A) Scheduled Commercial Banks
B) Regional Rural Banks
C) Export-Import Banks
D) State Land Development Banks
Answer: Export-Import Banks

    
233) Which of the following is NOT a development bank in Indian context?
A) IDBI
B) SIDBI
C) NABARD
D) SBI
Answer: SBI

    
234) Which of the following is called a “banker's cheque'?
A) Demand draft
B) Debit card
C) Pay order
D) Fixed deposit
Answer: Demand draft

    
235) Bouncing of cheques may lead to ______.
A) 6 months imprisonment
B) 1 year imprisonment
C) 2 years imprisonment
D) 3 years imprisonment
Answer: 2 years imprisonment
 

236) The difference between a bank and a non banking financial institution (NBFI) is that:
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 NBFI's main interest is in the stabilisation of the currency
Answer: 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
 
    
237) 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
Answer: to promote exports and curtail imports

    
238) The main difference between shares and debentures is :
A) debentures can only be issued after shares
B) shareholders receive dividend on shares whereas debenture holders receive interest on debentures
C) debentures can be partly converted into shares whereas shares cannot be converted into debentures
D) shareholders are the owners of the company whereas debenture holders are the creditors of the company
Answer: shareholders are the owners of the company whereas debenture holders are the creditors of the company
 
    
239) Rajmannar Committee has been constituted to give recommendations on which of the
following issues?
A) Inspection of Banks in North-Easter state
B) Changing in Banking Laws and regarding cheque bounce
C) Individual Bank applications regarding branch license
D) Issuing of Demand Draft
Answer: Changing in Banking Laws and regarding cheque bounce

    
240) Open market operations of a Central Bank are sale and purchase of:
A) foreign currencies
B) corporate securities
C) trade bills
D) government securities
Answer: government securities