Banking MCQs | Multiple Choice Questions, State Bank, Commercial Banks

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BANKING MULTIPLE CHOICE QUESTIONS (MCQS) TEST. CENTRAL BANK (STATE BANK), COMMERCIAL BANKS, AND OTHER FINANCIAL INSTITUTES’ RELATED QUESTIONS AND ANSWERS (QUIZ).

BANKING MCQS

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1. Monetary policy of a country is managed by
(A) central bank
(B) finance ministry
(C) commercial banks
(D) board of revenue

2. A central Bank differs from a commercial bank in that:
I. It is the bank of the state
II. It has largest reserves
III. It oversees commercial banking system
(A) I only
(B) I and II only
(C) I and III only
(D) I, II, and III

3. The interest rate at which commercial banks can borrow money from the central bank is known as
(A) yield
(B) repo
(C) discount rate
(D) policy rate

4. Treasury Bills (or T–Bills) are issued by government to _____ money.
(A) lend
(B) borrow
(C) invest
(D) save

5. Which of the following is considered as the safest investment?
(A) Treasury Bills
(B) Stocks
(C) Corporate bonds
(D) Government bonds

ANSWERS: BANKING MCQS
1. (A) central bank
2. (C) I and III only
3. (D) policy rate
4. (B) borrow
5. (A) Treasury Bills. Next: Banking MCQs 6–10