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Writer's pictureArtha Institute of Management

Banking MCQs

1. ____________ allocates saving efficiently in an economy to ultimate userseither for investment in real assets or for consumption.

A. Economic system

B. Banking system

C. Financial system

D. Market system

ANS: C.Financial system

2. Which of the following is not a regulatory institution in Indian financial system?

A. RBI

B. CIBIL

C. SEBI

D. IRDA

ANS: B.CIBIL

3. _____________ is regarded as a queen of Indian financial system.

A. SEBI

B. RBI

C. Finance Ministry

D. BSE

ANS: B.RBI

4. National Housing bank is a fully owned subsidiary of___________.

A. HDFC

B. HSBC

C. RBI

D. HUDCO

ANS: C.RBI

5. Financial institutions are also known as ______________.

A. Financial organization

B. Financial intermediaries

C. Financial system

D. Any of the above

ANS: B.Financial intermediaries

6. ____________is the first development financial institution in India.

A. IDBI

B. ICICI

C. IFCI

D. RBI

ANS: C.IFCI

7. IDBI was established in ____________.

A. 1948

B. 1954

C. 1992

D. 1964

ANS: D.1964

8. ______________is an apex institution to coordinate, supplement and integrate the activities of allexisting specialized financial institutions.

A. IFCI

B. IDBI

C. RBI

D. SEBI

ANS: B.IDBI

9. Which of the following is not an asset held by Commercial Banks?

A. Bills of Exchange

B. Current Account Deposits

C. Money Lent at short Notice

D. Credit Balances with the Reserve Bank

ANS: B.Current Account Deposits

10. Which of the following combinations is correct?

A. NABARD--------Industrial Loan

B. RBI---------------Long term Finance

C. RRB---------------Agriculture Finance

D. IDBI---------------Short Term Loans

ANS: C.RRB---------------Agriculture Finance

11. Which of the following is not an organized sector in India?

A. Nationalized Banks

B. Regional Rural Banks

C. Cooperative Banks

D. Chits and Money lenders

ANS: D.Chits and Money lenders

12. In which year was the Banking Regulation Act passed?

A. 1949

B. 1955

C. 1959

D. 1969

ANS: A.1949

13. When did the National Bank of Agriculture and Rural Development establish?

A. July, 1982

B. July, 1969

C. June, 1951

D. June, 1961

ANS: A.July, 1982

14. Which of the following is the apex institution which handles refinance for agriculture and ruraldevelopment in India?

A. RBI

B. SIDBI

C. NABARD

D. RBI

ANS: C.NABARD

15. At which of the following cities is the Head Office of Reserve Bank of India located?

A. Mumbai

B. New Delhi

C. Kolkata

D. Dehradun

ANS: A.Mumbai

16. “Scheduled bank” in India means a bank _____.

A. Incorporated under the Companies Act, 1956

B. Authorized to the Banking business

C. Governed by the Banking Regulation Act, 1949

D. Included in the Second schedule to the Reserve Bank of India Act 1934

ANS: D.Included in the Second schedule to the Reserve Bank of India Act 1934

17. Which is the largest commercial bank in India?

A. Bank of India

B. Axis Bank

C. State Bank of India

D. HDFC

ANS: C.State Bank of India

18. Co-operative Societies Act was enacted in which year?

A. 1912

B. 1949

C. 1935

D. 1913

ANS: A.1912

19. With whom does the ownership of Public sector banks rest?

A. Government of India

B. Jointly with Government of India and share-holders from the public

C. Jointly with Government of India and State Bank of India

D. Jointly with Government of India and Reserve Bank of India

ANS: A.Government of India

20. In which year was the Bank of Maharashtra established?

A. 1937

B. 1935

C. 1934

D. 1949

ANS: B.1935

21. Urban Cooperative Banks are also called as?

A. Short-term co-operatives

B. Secondary Cooperative Banks

C. Primary Cooperative Banks

D. Long-term co-operatives

ANS: C.Primary Cooperative Banks

22. What is the full-form of NBFC?

A. Non-Bank Financial Competition

B. Non-Bank Foreign Company

C. Non-Banking Financial Company

D. Non-Banking Finance Corporation

ANS: C.Non-Banking Financial Company

23. Who insures banks in India?

A. IRDA

B. EXIM

C. DICGC

D. ECGC

ANS: C.DICGC

24. How many developments banks are there in India?

A. 5

B. 6

C. 7

D. 8

ANS: B.6

25. A bank is a financial intermediary because

A. it acts as the broker between depositor and borrower

B. it acts as the link between the savers and the borrowers

C. it is in the finance industry

D. it is in the intermediary industry

ANS: B.it acts as the link between the savers and the borrowers

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