Basic Banking Knowledge MCQ Questions Answers Objective Paper

16) As per news in various newspapers ‘kfw’ Group released another instalment of its financial aid to India. kfw is an Organisation/ bank based in—

a)  France

b) Japan

c) Italy

d) Germany

View Answer
Option – d)


17) Under provisions of which one of the following Acts. The RBI issued directives to the Banks in India?

a) RBI Act

b) Essential Commodities Act

c) RBI and Banking Regulation Act

d) None of these

View Answer
Option – c)


18) Which of the following nation is considered the originator of the concept of Micro Finance?

a) India

b) Bangladesh

c) South Africa

d) USA

View Answer
Option – b)


19) Which of the following is NOT a banking/finance related term?

a) Credit wrap

b) Diffusion

c) Held to Maturity

d) Exposure limited

View Answer
Option – b)


20) At which one of the following rate, the central Bank lends to banks against government securities?

a) Repo Rte

b) Reverse Repo Rate

c) Bank Rate

d) SLR

View Answer
Option – a)


21)Which one of the following is a driving force influencing the industrial growth of an economy ?

a) Economic factors only

b) Investment only

c) Innovation/ Market Base only

d) all (1),(2) and (3)

View Answer
Option – d)

22) The rate of interest in savings bank account is stipulated by

a) The concerned bank

b) RBI

c) Indian Bank Association

d)Government of India

View Answer
Option – b)

23) Which of the following is not a part of the scheduled banking structure in India ?

a) Money Lenders

b) Public Sector Banks

c) Private Sector Banks

d) Regional Rural Bank

View Answer
Option – a)

24) The main function of I. M. F. is to

a) Finance investment loans to developing countries

b) Act as a private sector lending arm of the World Bank

c) Help to solve balance of payment problems of member countries

d) Arrange international deposits from banks

View Answer
Option – c)

25)Which of the following have provided bailout package to Ireland to deal with its debt crisis ?

a) EU only

b) IMF only

c) World Bank only

d) Only (1) and (2) above

View Answer
Option – d)

26) In corporate Hedging, which of the following types of risks can be covered ?

a) Liquidity risk

b) Currency risk

c) Credit risk

d) Transaction risk

View Answer
Option – a)

27) Bank of Rajasthan is now merged with which of the following banks ?

a) Axis Bank

b) IDBI Bank

c) ICICI Bank

d) HDFC Bank

View Answer
Option – c)

28) A decreasing current ratio indicates –

a) A stable liquidity

b) An increasing liquidity

c) A strained liquidity

d) None of these

View Answer
Option – c)

29) The Rupee notes contain the signature of –

a) Finance Secretary, GOI

b) Chairman, State Bank of India

c) Governor, Reserve Bank of India

d) Finance Minister, GOI

View Answer
Option – c)

30) Zero balance account is generally allowed to be opened for –

a) Salaried class

b) Businessman

c) Foreign customers

d) Children

View Answer
Option – a)


31) Basel-II norms are associated with which of the following aspects of the banking Industry ?