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

Question : 1

Which of the following terms is not associated with banking?

a) IFSC

b) MICR

c) CTS

d) FERA

Question : 2

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 : 3

A central bank of a country uses Open Market Operations (OMO) as the primary means of implementing

a) Fiscal policy

b) Monetary policy

c) Tax policy

d) Budgetary policy

Question : 4

Consider the following statements:

1. National Payments Corporation of India (NPCI) helps in promoting the financial inclusion in the country.
2. NPCI has launched RuPay, a card payment scheme.

a) Both 1 and 2

b) 2 only

c) 1 only

d) Neither 1 nor 2

Question : 5

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 : 6

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