Banking and Financial Institutions — Practice

Question 1

A commercial bank is required to hold a specified percentage of its net demand and time liabilities as cash reserves with RBI, earning no interest on this amount. This requirement is known as the

Accepted Answer

B

Question 2

A bank's inclusion in which schedule of the RBI Act, 1934 confers 'scheduled bank' status, along with access to RBI facilities such as bank-rate borrowing and clearing-house membership?

Accepted Answer

A

Question 3

Regional Rural Banks, established under the RRB Act, 1976, are typically jointly owned by the central government, a sponsor public sector bank, and the concerned state government in approximately what ratio?

Accepted Answer

D

Question 4

Which apex institution, established in 1990, has the specific mandate of financing, promoting, and developing India's Micro, Small and Medium Enterprises (MSME) sector?

Accepted Answer

C

Question 5

A bill of exchange, as defined under the Negotiable Instruments Act, 1881, differs from a promissory note in that it

Accepted Answer

A

Question 6

A cheque bearing two parallel transverse lines across its face, with the name of a specific bank written between them, restricting collection to that named bank alone, is an example of

Accepted Answer

D

Question 7

Mutual funds, stock exchanges, and market intermediaries in India are primarily regulated by

Accepted Answer

B

Question 8

Payments banks, a differentiated banking licence category introduced by RBI from 2014-15, are specifically restricted from

Accepted Answer

C

Question 9

Dishonour of a cheque due to insufficient funds, under Section 138 of the Negotiable Instruments Act, 1881, is treated as

Accepted Answer

D

Question 10

When RBI sells government securities outright in the open market, the immediate effect on banking-system liquidity is

Accepted Answer

B

Question 11

The Marginal Standing Facility (MSF), introduced by RBI in 2011, primarily allows a bank facing a sudden liquidity shortfall to

Accepted Answer

C

Question 12

RBI's Priority Sector Lending (PSL) norms mandate banks to direct a specified share of net bank credit toward sectors such as

Accepted Answer

A

Practice — Banking and Financial Institutions

Sign in to save attempts to your dashboard and track your accuracy over time

Find a verified tutor

Join a live course

Browse coaching centres

About

Categories

Support

Documentation

Get Study Tips & Updates

Download Our App

Download for iOS

Download for Android

Popular Cities