Banking and Finance 2 MCQs and Notes

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📊 Banking and Finance 2
Q. India’s foreign exchange rate system is?
  • (A) Free float
  • (B) Managed float
  • (C) Fixed
  • (D) Fixed target of band
💬 Discuss
✅ Correct Answer: (B) Managed float
📊 Banking and Finance 2
Q. What is an Indian depository receipt?
  • (A) A deposit account with a public sector bank.
  • (B) It is a depository account with any of the depositories in India.
  • (C) An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company.
  • (D) None of the above is correct.
💬 Discuss
✅ Correct Answer: (A) A deposit account with a public sector bank.
📊 Banking and Finance 2
Q. What is the minimum duration for which term money can be lent/borrowed in money market?
  • (A) 1 day
  • (B) 15 days
  • (C) 30 days
  • (D) 1 year
💬 Discuss
✅ Correct Answer: (B) 15 days
📊 Banking and Finance 2
Q. What is the maximum duration for which term money can be lent/borrowed in money market?
  • (A) 1 day
  • (B) 15 days
  • (C) 30 days
  • (D) 1 year
💬 Discuss
✅ Correct Answer: (D) 1 year
📊 Banking and Finance 2
Q. Which among the following is/are correct regarding Call Money?
  • (A) It is the money lent/borrowed for maximum period of 14 days
  • (B) No Collateral is required in Call Money transaction
  • (C) It is the money lent/borrowed for maximum period of 30 days
  • (D) Banks borrow primarily from the inter-bank (call money) market
💬 Discuss
✅ Correct Answer: (A) It is the money lent/borrowed for maximum period of 14 days
📊 Banking and Finance 2
Q. Which among the following is/are correct regarding Money Market?
  • (A) Money Market is a market for short-term funds.
  • (B) Maturity in this market ranging from overnight to one year.
  • (C) The basic function of money market is to provide efficient liquidity position for commercial banks, financial institution, Mutual funds, insurance companies, corporate etc.
  • (D) Maturity in this market is above one year.
💬 Discuss
✅ Correct Answer: (B) Maturity in this market ranging from overnight to one year.
📊 Banking and Finance 2
Q. Commercial Bill is a type of_____.
  • (A) Promissory Note
  • (B) Cheque
  • (C) Stamp
  • (D) Bill of exchange
💬 Discuss
✅ Correct Answer: (D) Bill of exchange
📊 Banking and Finance 2
Q. Which of the following act defines a Cheque?
  • (A) RBI Act 1934
  • (B) Negotiable Instrument Act 1881
  • (C) Banking Regulation Act 1949
  • (D) Companies Act 2013
💬 Discuss
✅ Correct Answer: (B) Negotiable Instrument Act 1881
📊 Banking and Finance 2
Q. Which is a type of crossing in a cheque?
  • (A) Negotiable Crossing
  • (B) Special Crossing
  • (C) Level Crossing
  • (D) Named Crossing
💬 Discuss
✅ Correct Answer: (B) Special Crossing

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