Banking And Financial Institutions MCQ

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• Which one is NOT true regarding the Market Stabilization Scheme (MSS)?
  ক

  It absorbs surplus liquidity of enduring nature arising out of large capital flows

  খ

  It absorbs surplus liquidity through sale of short-dated government securities and treasury bills

  গ

  Mobilised surplus liquidity is held in the MSS account with the Reserve Bank of India

  ঘ

  MSS account liquidity can be used for normal government expenditure of capital nature
• Which among the following is NOT true about BASEL?
  ক

  Initially it was named as Committee of Banking Regulations and Supervisory Practices (CBRS)

  খ

  BASEL was established by the Central Bank Governors of fifteen countries

  গ

  It was established by the end of 1974

  ঘ

  Disturbances in international currency and banking markets were responsible for its establishment
• Which one of the following is not the function of the Reserve Bank of India?
  ক

  Issue of Bank notes

  খ

  Custodian of Cash Reserves of Commercial Banks

  গ

  Accepting deposits and advancing loans to public

  ঘ

  Controller of credit
• Repo rate is the rate at which
  ক

  Banks takes money from RBI

  খ

  RBI takes money from banks

  গ

  Government take money from RBI

  ঘ

  Money is taken by one bank from another bank
• Which among the following is NOT a correct statement?
  ক

  The Reserve Bank of India worked as Central Bank of Burma till April 1947

  খ

  The Reserve Bank of India worked as Central Bank of Pakistan till June 1948

  গ

  The Reserve Bank of India worked as Central Bank of Bangladesh from January 1972 to December 1975

  ঘ

  The Reserve Bank of India commenced its operations on 1^st April 1935
• When RBI reduces CRR, it results into
  ক

  Increase in lendable resources

  খ

  Decrease in lendable resources

  গ

  Decrease in deposits

  ঘ

  Increase in deposits
• Which one of the following is used for international money transfer?
  ক

  RTGS

  খ

  NEET

  গ

  SWIFT

  ঘ

  DD
• Which one of the following is not the fund based business of commercial banks?
  ক

  Overdraft facility

  খ

  Issuance of Letters of Credit

  গ

  Acceptance of deposits

  ঘ

  RTGS/NEFT transactions
• Which of the following statements is not correct:
  ক

  The rising interest rate increases the discount rate on cash flows and decreases the market value of that Asset

  খ

  Falling interest rates decrease the market value of Assets or Liabilities

  গ

  When a Bank holds longer term assets than liabilities and if interest rate rises, the market value of Assets falls by more amount than liabilities

  ঘ

  The above C may lead to economic loss
• Second generation reforms in our country do not comprise of which one of the following?
  ক

  Exploiting the knowledge based global economy

  খ

  Growing Indian transnational corporations

  গ

  Population control measures

  ঘ

  Clean environment