MCQ model questions for Principles of Banking
Sample Questions and Answers Multiple Choice
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Q1: Which of the following instruments is used by public to directly lend to the Government?
a. Bank Deposits b. Public Provident Fund d. T-Bills d. Certificates of Deposit
Q2: Inter-bank term money refers to borrowing among banks for
a. Overnight b. Two days c. More than 14 days d. Less than 14 days
Q3: Certificates of Deposits have to be of a minimum value of
a. Rupees 1 lakh b. Rupees 10 lakh c. Rupees 25 lakh d. Rupees 1 crore
Q4: Commercial paper can be issued
a. By all corporates b. By all corporates with net worth of at least Rs. 10 crores
c. By all corporates with net worth of at least Rs. 5 crores d. Can be issued only by banks
Q5: Commercial Bills market is a part of
a. Organised money market b. Unorganised money market c. Stock market d. None of the above
Q6: Which of the following statements is not true?
a. Call money market deals with overnight loans
b. As special cases, few Fls like LIC, UTI can borrow in the call money market
c. Call loans are made on a ‘clean’ basis
d. Is a part of organised money market
Q7: A scheduled commercial bank is one:
a. Which is included in the Second Schedule of the RBI Act 1934
b. Which is included in the Banking Regulation Act, 1949
c. Both (a) and (b)
d. None of the above
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Q8: Indigenous bankers are regulated by
a. Reserve Bank of India b. Ministry of Finance c. Registrar of Co-operative Societies d. None of the above
Q9: What is approximately the population size served by a branch currently?
a. 15,000 b. 25,000 c. 35,000 d. 65,000
Q10: What is the current SLR requirements of banks?
a. 40°/o of the deposits b. 25°/o of the deposits c. 31°/o of the deposits d. 28°/o of the deposits
Q11: What is the CRR effective from August 4, 2007?
a. 5.5% b. 6.0% c. 6.5% d. 7.0%
Q12: What is the stipulated share of the priority sector in the net bank credit?
a. 35°10 b. 20°10 c. 40°10 d. 45°10
Q13: Mutual funds are regulated by
a. Association of Mutual Funds of India(AMFI) b. Securities and Exchange Board of India (SEBI) c. Reserve Bank of India d. None of the above
Q14: A growth fund is
a. One in which the money is invested in equities
b. One in which the money is invested in government bonds
c. One in which the money is invested equally inequity and bonds
d. Money is invested only in money market instruments
Q15: ARCIL is an example of
a. A financial institution b. A mutual fund c. An asset management company setup to acquire NPAs of banks d. A discount and financing house
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