Q. Most modern banking systems are based on
✅ Correct Answer: (D)
fractional reserves.
Banking Services Management (BSM) MCQs and Notes
Q. ………………..is a transaction where by money is borrowed by the debtor on the security of the movable property.
✅ Correct Answer: (A)
hypothication
Q. The VSAT communication network for banks and financial institutionslaunched by RBI is known as
✅ Correct Answer: (D)
infinet
Q. At what frequency can Banks pay interest on Saving Bank Account asper RBI guidelines
✅ Correct Answer: (C)
half yearly
Q. Which commission recommented the foundation of RBI
✅ Correct Answer: (B)
hilton young commission
Q. EXIM Bank was set up on
✅ Correct Answer: (A)
january1, 1982
Q. The banker advances money against immovable property only when the property is ……….to the banker.
✅ Correct Answer: (B)
mortgaged
Q. The area of operation of …………banks are maximum of three geographically neighbouring districts and they are allowed to open branches only in their area of operation.
✅ Correct Answer: (A)
local area banks
Q. What are the four categories as per Kapur Committee recommendations for loan applications under SSI segment
✅ Correct Answer: (A)
upto 2 lacs, upto 15 lacs, upto 25 lacs, and above 25 lacs
Q. Pari Passu charge refers to a charge
✅ Correct Answer: (C)
ranking equally in priority in proportion to the lender’s share of advance