Banking and Insurance MCQ



1. Which bank is the sponsor of Prathama Gramin Bank?
a) Bank of Baroda
b) Indian Bank
c) Punjab National Bank
d) Syndicate Bank

Answer: d) Syndicate Bank 

Prathama Bank is the first Regional Rural Bank established on 2 October 1975.


2. Which of the following is not a public sector bank in India?
a) Andhra Bank
b) Federal Bank
c) IDBI Bank
d) Vijaya Bank

Answer: b) Federal Bank 

Federal Bank Limited is a major Indian commercial bank in the private sector headquartered at Aluva, Kerala.

3. What is the expanded form of the term ALM used in banking sector?
a) Asset Liability Maintenance
b) Asset Liability Management
c) Asset Liability Manipulation
d) Asset Liability Maximisation

Answer: b) Asset Liability Management

ALM is the practice of managing risks that arise due to mismatches between the assets and liabilities.

4. Which of the following is not a part of India's Money Market?
a) Banks
b) Bill Markets
c) Call Money Market
d) Indian Gold Council

Answer: d) Indian Gold Council

The Money market in India is the money market for short-term and long-term funds with maturity ranging from overnight to one year in India including financial instruments that are deemed to be close substitutes of money.

5. Which one of the following does not belong to regulatory bodies in India?
a) FMC
b) IRDA
c) PFRDA
d) SEBI

Answer: d) SEBI 

Reserve Bank of India, Insurance Regulatory and Development Authority, Forward Market Commission India, Pension Fund Regulatory and Development Authority are the regulatory bodies in India.

6. Which one of the following is the special drawing rights given by the International Monetary Fund to its member countries?
a) Cold money
b) Hot money
c) Paper gold
d) None of these

Answer: c) Paper gold 

It is an accounting entry. It is used only among governments and IMF for balance of payment settlements.

7. In pursuance of which one of the following was the General Insurance Corporation of India was formed?
a) General Insurance Business (Nationalisation) Act, 1972
b) Insurance Act, 1938
c) Insurance Amendment Act, 2002
d) IRDA Act 1999

Answer: a) General Insurance Business (Nationalisation) Act, 1972 

8. What does the letter 'S' denote in the term IFSC?
a) Subscriber
b) State
c) System
d) Source

Answer: c) System 

The Indian Financial System Code (IFSC Code) is an alphanumeric code that uniquely identifies a bank-branch participating in the Real Time Gross Settlement (RTGS) and the National Electronic Funds Transfer (NEFT) Systems.
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