banking, security market & insurance section 2 MCQ Questions & Answers Detailed Explanation

Question : 1

The main functioning of the banking system is to

a) provide credit and subsidies

b) accept deposits and subsidies

c) accept deposits and provide credit

d) accept deposits, provide credit and subsidies

Question : 2

Which of the following terms is not associated with banking?

a) IFSC

b) MICR

c) CTS

d) FERA

Question : 3

Consider the following liquid assets:

1. Demand deposits with the banks
2. Time deposits with the banks
3. Savings deposits with the banks
4. Currency

a) 2-3-1-4

b) 4-3-2-1

c) 1-4-3-2

d) 4-1-3-2

Question : 4

Why is the offering of ‘teaser loans’ by commercial banks a cause of economic concern?

1. The teaser loans are considered to be an aspect of sub-prime lending and banks may be exposed to the risk of defaulters in future.
2. In India, teaser loans are mostly given to inexperienced entrepreneurs to set up manufacturing or export units.

a) Both 1 and 2

b) 2 only

c) 1 only

d) Neither 1 nor 2

Question : 5

Which one of the following is different from the others from the point of view of ownership?

a) Debenture of a company

b) Bank Fixed Deposit

c) Kisan Vikas Patra

d) LIC Policy

Question : 6

Which of the following was established in 1928 as the first printing press for bank notes in India?

a) Bharatiya Reserve Bank Notes Mudran Private Limited (BRBNMPL), Mysore

b) Currency Notes Press (CNP), Nasik

c) Indian Security Press (ISP), Nasik

d) Bharatiya Reserve Bank Notes Mudran Private Limited (BRBNMPL), Salboni