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50 MCQs On Banking & Finance
50 MCQs On Banking & Finance
2. Indian corporates can now invest in joint ventures and subsidiaries abroad to the extent
of ______% of their net worth.
4. To accelerate growth of services exports from India and to create a unique brand, a new
scheme called ‘_____’ has been introduced in the New Foreign Trade Policy.
5. The New Foreign Trade Policy envisages India’s share in merchandise trade to
________ within the period 2004-09.
a) 50 b) 100 c) 30 d) 66
10. The Government of India has recently announced a scheme for providing short term
loans to farmers at concessional rate of ____% p.a. up to an amount of Rs.___ lac.
a) 7, 1 b) 7, 3 c) 5, 1 d) 5, 3
11. The provision to be made on Standard assets for the current year is :
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a) 0.25% b) 0.40% c) 0.40% for all loans except loans to Priority Sector
d) 0.40% on all loans, except loans to direct Agri & SME segments, for which the
provision is 0.25%
13. Which bank in India ranks number one in India in terms of market capitalization?
14. Which is the first mutual fund in the country to offer redemption of its units through
ATMs of HDFC Bank and VISA ?
15. The stake of SBI in its joint venture with TCS, C-Edge, is :
16. A Bank’s aggregate capital market exposure has been capped at ___% of its net worth.
a) 5 b) 10 c) 40 d) 25
18. Credit limits to dealers in agricultural machinery up to Rs.___ lacs are classified as
priority sector advances.
a) 25 b) 30 c) 40 d) 20
19. The minimum maturity period for Commercial Paper (CP) is _____ days.
a) 14 b) 30 c) 45 d) 7
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21. Value added tax (VAT) is a type of tax levied on value added by any economic activity,
and covers :
24. As per RBI benchmark for allocation of bank credit, women beneficiaries should receive
at least ____% of net bank credit.
a) 5 b) 10 c) 15 d) 1
25. Export credit should be a minimum of ___% of net bank credit for scheduled
commercial banks.
a) 12 b) 15 c) 10 d) 3
26. Loans to software industry up to a limit of Rs._______ are classified as priority sector
advances.
27. The Demutualisation Ordinance amending the Securities Contracts (Regulation) Act,
1956 deals with :
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a) goods b) services c) intellectual property d) investments in other countries
e) all of these f) a, b & c
29. Which committee had recommended the amalgamation of RRBs promoted by sponsor
banks?
30. India has entered into Comprehensive Economic Co-operation Agreeement with which
of the following countries recently:
31. Bharat Nirman is a four-year business plan embarked by the Government of India for
providing rural infrastructure in the areas of :
33. South Asian Free Trade Area (SAFTA) covers _____________ countries.
34. MCA21 is :
35. The name of Microsoft Corporation India’s IT initiative for setting up IT kiosks in rural
areas is named :
37. Which credit card company has tied up the Railways to issue a credit cum loyalty card?
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a) ICICI Cards b) SBI Cards c) ABN Amro Cards d) Citibank
38. Financial Network Services, the Australian banking software firm, has recently been
acquired by :
39. SBI has applied to open branches in Pakistan, as per the recent agreement between
India and Pakistan, at :
41. Export Oriented Units can retain _____% of their export earnings in foreign currency.
a) 50 b) 100 c) 80 d) 66.67
42. Foreign investment in private banks, (in aggregate including FDI, FII, NRI, etc.) in India
is permitted up to ____%
a) 99 b) 74 c) 49 d) 24
43. The minimum shareholding of RBI in SBI should be ___% as per SBI Act.
a) 50 b) 59 c) 51 d) 55
47. For declaring dividend, banks should have a CRAR of at least ____% for the preceding
2 years, and net NPA of less than _____%.
a) 11, 3 b) 9, 7 c) 10, 5 d) 9, 5
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48. After ________, foreign banks operating in India will be freed of RBI imposed
restrictions on their operations and treated on par with Indian banks.
49. Under Section 19(1) of the Banking Regulation Act, 1949, para- banking activities refer
to :
50. The percentage of profit that a bank is required to transfer to its reserve fund as per
Banking Regulation Act is ______%.
a) 25 b) 20 c) 30 d) 50
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MCQ ON BANKING, FINANCE AND ECONOMY - TEST - I
ANSWERS:
1 C 2 A 3 D 4 D 5 A 6 B 7 D 8 B 9 C 10 B
11 D 12 C 13 B 14 A 15 D 16 C 17 D 18 B 19 D 20 C
21 D 22 D 23 E 24 A 25 A 26 B 27 C 28 F 29 B 30 A
31 E 32 C 33 A 34 D 35 B 36 C 37 B 38 B 39 A 40 C
41 B 42 B 43 D 44 D 45 F 46 D 47 B 48 B 49 F 50 B