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in Banking and Finance 2
Chapters
- Indian Financial System
- Indian Money Market
- Indian Capital Market
- Foreign Exchange Market
- NBFIs (Non-Banking Financial Institutions)
- Development Financial Institutions (DFIs)
- Investment Institutions in India
- Regulatory Institutions In Market
Take a Test
Chapter: NBFIs (Non-Banking Financial Institutions)
| 1. | Which agency regulates and supervises NBFCs? |
| A. | Finance Ministry |
| B. | SEBI |
| C. | RBI |
| D. | Respective state government |
| Answer» C. RBI | |
discuss
| 2. | Which of the following statements is/are correct? A) NBFCs does not hold a banking license. B) NBFC can issue Demand Drafts like banks. |
| A. | Only A |
| B. | Only B |
| C. | Both |
| D. | None |
| Answer» A. Only A | |
discuss
| 3. | Consider the following statements A) Chit Funds are type of NBFC B) All NBFCs are ruled by RBI C) RBI said any purchase of a stake of 26% or more in a company, or a change in more than 30% of its directors, would need the central bank's permission. Which of the above statements is/are correct? |
| A. | A,B |
| B. | B,C |
| C. | A,C |
| D. | All |
| Answer» C. A,C | |
discuss
| 4. | A Non-Banking Financial Company (NBFC) is a company registered under the _______. |
| A. | RBI Act 1934 |
| B. | Companies Act, 1956 |
| C. | NBFC Act 1956 |
| D. | Government Securities Regulations, 1913 |
| Answer» B. Companies Act, 1956 | |
discuss
| 5. | Which of the following activity is not permissible for NBFC? |
| A. | loans and advances |
| B. | acquisition of shares |
| C. | insurance business |
| D. | construction of immovable property |
| Answer» D. construction of immovable property | |
discuss
| 6. | A non-banking institution that has a principal business of receiving deposits under any scheme orarrangement in one lump sum or in installments by way of contributions is known as? |
| A. | Principal non-banking company |
| B. | Residential non-banking company |
| C. | Residuary non-banking company |
| D. | Optional non-banking company |
| Answer» C. Residuary non-banking company | |
discuss
| 7. | Which of the following is false about NBFC? |
| A. | NBFC cannot accept demand deposits |
| B. | NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself |
| C. | deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs |
| D. | NBFC cannot undertake insurance business |
| Answer» D. NBFC cannot undertake insurance business | |
discuss
| 8. | Which of the following does not have any roles in regulation of NBFCs? |
| A. | National Housing Bank |
| B. | Reserve Bank of India |
| C. | SIDBI |
| D. | Ministry of Corporate Affairs |
| Answer» C. SIDBI | |
discuss
| 9. | The type of lease that includes a third party, a lender, is called as which of the following? |
| A. | Sale and leaseback |
| B. | Leveraged lease |
| C. | Direct Leasing Agreement |
| D. | Operating Lease |
| Answer» B. Leveraged lease | |
discuss
| 10. | A Direct lease, a sale and leaseback, and a Leveraged lease are all examples of which of the following? |
| A. | Operating leases |
| B. | Financial leases |
| C. | Full service leases |
| D. | Off Balance Sheet methods of financing |
| Answer» B. Financial leases | |
discuss
| 11. | What are the benefits of leasing to other companies? |
| A. | Interest Revenue |
| B. | High Residual Value |
| C. | Tax Incentives |
| D. | All of the above |
| Answer» D. All of the above | |
discuss
| 12. | A leveraged lease is a three-sided agreement among the following: |
| A. | Lessee, lessor and lender |
| B. | Lessor, Commercial Bank, and Insurance Company |
| C. | a and b |
| D. | None of the above |
| Answer» C. a and b | |
discuss
| 13. | What is the full form of FASB? |
| A. | Financial Accounting Standard Board |
| B. | Financial Accounting Safety Board |
| C. | Finance and Accounts Standard Board |
| D. | Financial Accounting Safety Bureau |
| Answer» A. Financial Accounting Standard Board | |
discuss
| 14. | What is the full form of FLC? |
| A. | Financial Leasing Company |
| B. | Finance Lending Company |
| C. | Financial Leasing Company of India Limited |
| D. | None of the above |
| Answer» C. Financial Leasing Company of India Limited | |
discuss
| 15. | Which of the following is NOT a reason to invest in mutual funds? |
| A. | Professional management of your investment |
| B. | Invest low amounts (as low as Rs. 500) in a diversified portfolio |
| C. | Flexibility to buy and sell your investments as and when you want |
| D. | Personal customized portfolio |
| Answer» D. Personal customized portfolio | |
discuss
| 16. | A diversified equity fund is one which |
| A. | Invests in one sector |
| B. | Invests in one theme |
| C. | Invests in stocks across various sectors |
| D. | Invests in minimum 30 stocks |
| Answer» C. Invests in stocks across various sectors | |
discuss
| 17. | SIP is a |
| A. | Method of regular investment |
| B. | Name of a mutual fund |
| C. | Brand of Tea Stock |
| D. | None of these |
| Answer» A. Method of regular investment | |
discuss
| 18. | Does a balanced fund always invest its money in the ratio of 50:50 in equity and fixed income? |
| A. | Yes |
| B. | No |
| C. | none |
| D. | none |
| Answer» B. No | |
discuss
| 19. | A liquid fund can invest its money in which of the following |
| A. | Central Government securities of around 10 year average maturity. |
| B. | Money market instruments of less than 91 days maturity |
| C. | Corporate bonds / paper of more than 91 days maturity |
| D. | Short term Bank Deposits |
| Answer» B. Money market instruments of less than 91 days maturity | |
discuss
| 20. | When was the Factoring Regulation Act passed in India? |
| A. | 2011 |
| B. | 2000 |
| C. | 1991 |
| D. | 2001 |
| Answer» A. 2011 | |
discuss
| 21. | What is the normal time period range for factoring in India? |
| A. | 70 - 80 days |
| B. | 80 – 90 days |
| C. | 90 – 120 days |
| D. | 90 – 150 days |
| Answer» D. 90 – 150 days | |
discuss
| 22. | How many NBFC factors are there in India registered at present? |
| A. | 31 |
| B. | 6 |
| C. | 7 |
| D. | 9 |
| Answer» C. 7 | |
discuss
| 23. | Factoring Business is also known as by which of the following names? |
| A. | Account Receivable Factoring |
| B. | Asset based lending |
| C. | Invoice Factoring |
| D. | All of the above |
| Answer» D. All of the above | |
discuss
| 24. | Which of the following are the characteristics of a Mortgage Loan? |
| A. | It is secured against, immovable and fixed property |
| B. | It is a long term loan in nature |
| C. | It is repaid in small monthly installments along with interest |
| D. | All of the above |
| Answer» D. All of the above | |
discuss
| 25. | HFC stands for which of the following? |
| A. | Housing Finance Company |
| B. | Housing Finance Corporation |
| C. | Housing Federation of Commerce |
| D. | None of the above |
| Answer» A. Housing Finance Company | |
discuss
| 26. | National Housing Bank is wholly owned by which of the following institutions? |
| A. | RBI |
| B. | SEBI |
| C. | SBI |
| D. | None of the above |
| Answer» A. RBI | |
discuss
| 27. | Which of the following give finance to young, start-up companies? |
| A. | Venture Capital Firm |
| B. | Finance Company |
| C. | Small – business Finance Company |
| D. | Capital – Creation Company |
| Answer» A. Venture Capital Firm | |
discuss
| 28. | What is the full form of VCT? |
| A. | Venture Capital Trusts |
| B. | Venture Capital Trading |
| C. | Value Capital Trusts |
| D. | Value Capital Trading |
| Answer» A. Venture Capital Trusts | |
discuss
| 29. | Venture capital was originated in which of the following countries? |
| A. | India |
| B. | Britain |
| C. | USA |
| D. | France |
| Answer» C. USA | |
discuss
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Question and answers in NBFIs (Non-Banking Financial Institutions), NBFIs (Non-Banking Financial Institutions) multiple choice questions and answers, NBFIs (Non-Banking Financial Institutions) Important MCQs, Solved MCQs for NBFIs (Non-Banking Financial Institutions), NBFIs (Non-Banking Financial Institutions) MCQs with answers PDF download
Greetings, fellow enthusiasts! As someone deeply immersed in the realm of Banking and Finance, let's delve into the intricate details of the concepts covered in the provided article.
-
Bachelor of Commerce (B Com):
- This academic program focuses on imparting knowledge related to commerce, business, and financial principles. It lays a foundation for understanding various financial systems.
-
Banking and Finance 2:
- This suggests a course or module that delves into advanced topics in banking and finance, possibly as part of a higher education program.
-
NBFIs (Non-Banking Financial Institutions):
- These are financial institutions that provide banking services but do not hold a banking license. Examples include NBFCs (Non-Banking Financial Companies).
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Indian Financial System:
- This encompasses the structure and components of the financial system in India, including banks, non-banking financial institutions, and regulatory bodies.
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Indian Money Market:
- Refers to the market where short-term borrowing and lending take place, involving instruments like treasury bills and commercial paper.
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Indian Capital Market:
- Involves the buying and selling of long-term financial instruments, such as stocks and bonds, to raise capital for companies.
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Foreign Exchange Market:
- The global marketplace for trading national currencies against one another. This market facilitates international trade and investment.
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Development Financial Institutions (DFIs):
- Institutions that provide long-term finance for industrial projects and infrastructure development.
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Investment Institutions in India:
- Entities that engage in investment activities, such as mutual funds, insurance companies, and pension funds.
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Regulatory Institutions In Market:
- Refers to regulatory bodies overseeing financial markets, ensuring compliance and stability. In the context of India, this might include RBI (Reserve Bank of India), SEBI (Securities and Exchange Board of India), etc.
Now, let's tackle the multiple-choice questions related to NBFIs:
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Question 1:
- Correct Answer: C. RBI
- Explanation: The Reserve Bank of India (RBI) regulates and supervises NBFCs.
-
Question 2:
- Correct Answer: A. Only A
- Explanation: NBFCs do not hold a banking license, but they cannot issue Demand Drafts like banks.
-
Question 3:
- Correct Answer: C. A,C
- Explanation: Chit Funds are a type of NBFC, and RBI regulates purchases of stakes and changes in directors.
...and so on.
Feel free to continue exploring each question and its explanations. If you have more queries or want further clarification, I'm here to assist!
