BCom Second Year (Sem 3 & 4) Banking and Finance – Daily Revision MCQ (English Medium)
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The main difficulty of the barter system that money removed was:
Chapter 1: Money and its Functions
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Answer: D. Lack of double coincidence of wants
In barter, each person must find someone who both has what he wants and wants what he has; money as a medium of exchange removes this need.In Fisher's quantity theory equation MV = PT, the letter V stands for:
Chapter 1: Money and its Functions
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Answer: B. Velocity of circulation of money
In MV = PT, V is the velocity of circulation, i.e. the average number of times a unit of money changes hands in a period.When a bank grants a loan by crediting the amount to the borrower's account, the deposit so created is called a:
Chapter 2: Commercial Banks: Functions and Types
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Answer: A. Derivative deposit
Deposits arising out of loans and advances are derivative deposits; this is how commercial banks create credit.A deposit in which the customer deposits a fixed amount every month for a fixed period and gets the total with interest at maturity is a:
Chapter 2: Commercial Banks: Functions and Types
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Answer: C. Recurring deposit
In a recurring deposit, a fixed sum is deposited at regular (monthly) intervals for a fixed term and repaid with interest on maturity.The portion of a bank's net demand and time liabilities that it must keep as cash balance with the RBI is called the:
Chapter 3: Reserve Bank of India and Monetary Policy
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Answer: D. Cash Reserve Ratio (CRR)
CRR is the share of deposits (NDTL) banks must keep as cash with the RBI; SLR is kept by the bank itself in liquid assets like cash, gold and approved securities.Which payment system settles each fund transfer individually and continuously, in real time, rather than in batches?
Chapter 4: Digital Banking and Payment Systems
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Answer: B. RTGS
RTGS (Real Time Gross Settlement) settles transactions one by one on a gross basis in real time; NEFT settles in batches.SIDBI is the principal financial institution in India for the promotion and financing of:
Chapter 5: Indian Financial System
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Answer: A. Micro, small and medium enterprises (MSMEs)
The Small Industries Development Bank of India (SIDBI) is the apex institution for financing and developing the MSME sector.In the call money market, funds are borrowed and lent among banks for a period of:
Chapter 6: Money Market
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Answer: C. One day (overnight)
Call money is overnight (one day) money; 2–14 days is notice money and 15 days to one year is term money.Which is the oldest stock exchange in Asia?
Chapter 7: Capital Market and SEBI
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Answer: B. Bombay Stock Exchange (BSE)
The Bombay Stock Exchange, started in 1875 as the Native Share and Stock Brokers' Association, is Asia's oldest stock exchange.Which of the following is NOT permitted for a payments bank in India?
Chapter 8: Financial Inclusion and Recent Trends
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Answer: D. Giving loans and advances
Payments banks can accept limited deposits and offer payment and remittance services, but they cannot lend or issue credit cards.
BCom Second Year (Sem 3 & 4): MCQ in other subjects
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All questions are written by PadhaiNotes in our own words from the common syllabus of Maharashtra universities (NEP). Your own university's syllabus may differ a little.