Banking And Financial Institutions — Part 1 MCQs with Explanations

Escrow account is an account where money is kept safely with a neutral third party until all the agreed conditions between the buyer and seller are fulfilled. In international trade, it is helpful to importers because payment is released only after goods are shipped or documents are submitted as agreed. It is also beneficial to exporters because it assures them that the buyer has already deposited the payment and funds will be released once they meet the contract terms. Therefore, an escrow account protects the interests of both importers and exporters , making the correct answer Option C .

Let's break down why each match is correct: a. RBI - 3. Regulator: The RBI (Reserve Bank of India) is the central bank and regulator of all banks in India. It controls banking operations. b. SBI - 4. Public Bank: SBI (State Bank of India) is a public sector bank . The government owns a significant portion of it. c. Citi Bank - 2. Foreign Bank: Citi Bank is a foreign bank . It's an international bank operating in India. d. Catholic Syrian Bank - 1. Private Bank: Catholic Syrian Bank is a private sector bank . It's owned by individuals or private companies. Correct Answer: Option A: a-3, b-4, c-2, d-1

1, 2 and 3 is the correct answer to “Identify the correct combination of statements with regard to banking in India. 1. For many years the presidency banks had acted as quasi-central banks. 2. The Bank of Hindustan was liquidated during 1829-32. 3. General Bank of India was an unsuccessful bank and was dissolved in 1791. 4. Bank of Calcutta was renamed as Bank of Bengal in 1921.”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

Whole of India, except the State of Jammu & Kashmir is the correct answer to “The coverage of Right to Information Act (RTI), 2005 is:”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

Demand draft is the correct answer to “One of the items is not related with e-banking.”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

Population control measures is the correct answer to “Second generation reforms in our country do not comprise of which one of the following”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

a-3, b-1, c-4, d-2 is the correct answer to “Match List-I with List-II and select the correct answer: List I List II a. Bank rate policy 1. Involving the shortening of the currency of bills eligible for rediscount. b. Credit rationing 2. Involving the purchase and sale of securities in the open market. c. Vanable reserve system 3. Involving the alteration of discount rate. d. Open market operation 4. Involving the variation of the minimum reserves.”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

Open-ended funds are always open to investment and redemption is the correct answer to “With reference to mutual funds, which of the following statements is correct”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

Advances against the Bank's fixed deposits granted to a company is the correct answer to “Credit Exposure does not include:”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

Refinances the rural borrowers obtaining credit from banks is the correct answer to “For the purpose of extending rural banking and agro finance, the NABARD”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

All of the above is the correct answer to “Under Section [S.2(h)] of the RTI Act, 2005 "Other Public Authority" means:”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

AH Willed is the correct answer to “By which scholar insurance defined as "insurance is a social device for making accumulation to meet uncertain losses of capital which is carried out through the transfer of risk of many individual to one person or to a group of persons"”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

Remaining NPA for less than or equal to 12 months is the correct answer to “A sub-standard asset refers to:”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

A unit which is situated in Special Economic Zones and deals in foreign currency only is the correct answer to “Off Shore Banking Unit is:”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

IDBI is the correct answer to “Which one of the following development financial institutions in India has started the special refinance scheme for the resettlement and rehabilitation of voluntary retired workers of the National Textile Corporation of lndia”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

(A) is true, but (R) is false is the correct answer to “Assertion (A): The Central Bank of the country is responsible to maintain stability of the monetary standard which involves currency circulation. Reason (R): The Central Bank is the only authorised entity to do so.”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

Bonus shares is the correct answer to “Capitalization of Reserves is carried out by issue of . . . . . . . . to the existing shareholders.”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

NABARD is the correct answer to “The regulatory authority of Regional Rural Banks is”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

a-3, b-4, c-2, d-1 is the correct answer to “Match List-I with List-II and select the correct answer: List-I List-II a. Reserve Bank of India 1. NPA b. EXIM Bank 2. Facilitating small scale industries c. SIDBI 3. Credit control d. Capital Adequacy 4. Export/Import financing”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

NABARD is the correct answer to “Which of the following is the Regulatory Authority of RRBs”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

High Overhead Costs is the correct answer to “The profitability of public-sector banks is low due to:”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

1, 2, 3, 4 and 5 is the correct answer to “Which of the following are the forms of e-banking? 1. Internet Banking 2. Telephone Banking 3. Electronic Cheque Conversion 4. Electronic Bill Payment 5. Direct Fund Transfer Through RTGS”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

All scheduled commercial banks including RRBs is the correct answer to “Banking Ombudsman Scheme is applicable to the business of:”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

a-1, b-2, c-3, d-4 is the correct answer to “Match the items of List I with List II and denote the correct matching. List-I List-II a. International Bank for Reconstruction and Development 1. 1945 b. International Finance Corporation 2. 1956 c. Asian Development Bank 3. 1966 d. Export-Import Bank of India 4. 1981”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

GIC is the correct answer to “Which of the following was the parent company of New India Insurance”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

1956 is the correct answer to “Life Insurance Corporation of India was nationalized in-”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

Encrypted signature is the correct answer to “E-banking business is essentially regulated by the Information Technology Act, 2000, under which personal signature is replaced by”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

Bench is the correct answer to “The word "Banks" is derived from the Italian word "Banco" which means”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

Manila is the correct answer to “Head Office of the Asian Development Bank located in:”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

1, 3 and 4 is the correct answer to “The profitability of public sector banks is low due to 1. Over-cautions approach to lending 2. Reserve Bank policies 3. High overhead costs 4. Social sector lending”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

None of these is the correct answer to “Which among the following is not associated with NABARD? 1. NIEAF 2. BIR 3. RIDF 4. SHPI Select the correct answer:”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

RBI is the correct answer to “Which one is not related with legal environment of business in India”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

All of the above is the correct answer to “Which of the following statement/s is/are true about Reserve Bank of India”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

Narrow Banking is the correct answer to “When banks invest their deposit accruals in Government securities, it is called:”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

Nationalized Bank is the correct answer to “Capital Adequacy Norms declared in the year, 1996, is applicable to”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

All Scheduled Banks and Co-operative Banks is the correct answer to “Remittance under the Guarantee Bond Scheme can be accepted from:”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

Stealing credit card information is the correct answer to “Skimming' in e-banking is a method of”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

a-4, b-2, c-1, d-3 is the correct answer to “Match the following items of List-I with the items of List-II and and indicate the correct matching. List-I (Name of Organisation) List-II (year of Establishment) a. IDBI 1. 1956 b. ICICI 2. 1955 c. LIC of India 3. 1990 d. SIDBI 4. 1964”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

EXIM bank is the correct answer to “Which of the following is not a development banking institutions”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.

Cost of Loss Financing is the correct answer to “That which covers the cost of self-insurance, loading in insurance premiums and enforcing hedging arrangements is:”. This question is standard in competitive examination syllabi for Banking And Financial Institutions.