MCQS on Banking and Insurance (Part-1)

1) Demand deposit also known as ---------------- . 

a) Current a/c 

b) Fixed Deposit a/c 

c) Capital a/c 

d) Recurring Deposit 

2) Commercial banks to expand deposit through expanding their loans and advances is known as--------. a) Credit creation 

b) Trade discount 

c) Deposit 

d) Bank advances 

3) Rediscounting and giving advance the central bank charges interest at a rate which is known as --------------. 

a) CRR 

b) SLR 

c) Bank rate 

d) Credit 

4) The nationalization of 14 commercial bank was on -----------------------. 

a) 19 July 1969 

b) 15 Aug 1972 

c) 15 April 1980 

d) 19 Jan 1959 

5) The State Bank of India was established under the State Bank of India Act on ----------------. 

a) 1935 

b) 1948 

c) 1955 

d) 1952 

6) ----------------commission recommended the formation of a central bank in 1926. 

a) Narasimham Committee 

b) Bretton Wood Committee 

c) Hilton Young Committee 

d) Banking Enquiry Committee 

7) Overdraft is a credit facility granted by commercial bank to------------- holders. 

a) Current a/c 

b) Cash a/c 

c) Capital a/c 

d) Reserve Fund 

8) Money at call and short notice is also known as----------------------. 

a) Capital market 

b) Interbank call money market 

c) Financial system. 

d) Financial call money

 9) Creation of derivative deposit out of the money from primary deposit is called--------------------- 

a) Cash credit 

b) Lending money 

c) Credit creation 

d) Loan and advances 

10) The first joint stock Bank in India? 

a) IDBI

 b) ICICI 

c) Imperial Bank 

d) Allahabad Bank 

11) “Buy now pay latter” is the motto of a--------------------- 

a) ATM 

b) Debit card 

c) Credit card 

d) MICR 

12) E-purse is a prepaid card and is known as -----------------. 

a) Stored value card 

b) Electronic card 

c) E-cash 

d) Electronic credit card 

13) ----------------means the transfer of money from one bank a/c to another electronically 

a) EFT 

b) SWIFT 

c) NEFT 

d) E-purse 

14) Bank a/c over the world are inter-linked through satellite provided by------------------. 

a) PSAM 

b) SWIFT 

c) EFT 

d) NEFT 

15) In India , RTGS has been implemented on --------- .

 a) 26 March 2004 

b) 26 March 1998

 c) 26 March 1994 

d) 26 March 2002 

16) -------------is a funds transfer mechanism where account to another bank account is real time. 

a) NEFT 

b) EFT 

c) ECS 

d) RTGS 

17) MICR is a------------------digital code. 

a) 9 

b) 11 

c) 7 

d) 13 

18) CTS was introduced RBI in-------. 

a) February 1995 

b) January 2006 

c) July 2004 

d) February 2008 

19) ------------------------ Conversion of physical cheque into electronic form for transmission to the paying bank. 

a) CTS 

b) ECS 

c) RTGS 

d) None of the above 

20) CORE stands for---------------- . 

a) Central operations of Exchange 

b) Centralized Online Real time Exchange 

c) Challenge of Online Real time Exchange

 d) Centralized Online Real time Efficiency