Are you looking to test your knowledge of bank management? If so, this article is for you! Here we provide a comprehensive collection of Bank Management Multiple Choice Questions (MCQs) with Answer in PDF format for easy reference.
You will find a wide range of questions covering different topics of bank management. These MCQs are designed to help you understand the key concepts related to banking and help you prepare for various exams.
Bank Management 50 MCQs with Answer in Pdf
1. ___ refers to the merger of companies which are in similar line of business.
Ans. Horizontal mergers
2. ___ refers to the merger of companies which are from the same industry and which are engaged in mutually beneficial lines of business or could be for improving the competitive strengths.
Ans. Vertical mergers
3. ___ refers to the merger of companies which are in different lines of business unrelated to each other.
Ans. Diagonal merger
4. ___ is a process whereby a division of a company is transferred to another company and the transferee company must issue, in consideration of the de-merger, its shares to the shareholders of the de-merged company on a proportionate basis.
Ans. De-merger
5. The ___ of the target company is arrived and the acquiring company makes an offer that is a multiple of the earnings of the target company.
Ans. Price earnings ratio
6. The net asset value of a company, calculated by ___ minus intangible assets (patents, goodwill, etc.) and liabilities.
Ans. total assets
7. ___ a comparison is made between the target bank and banks engaged in similar line of business taking into account the geographic locations, profitability, and any other required traits.
Ans. Comparable Analysis,
8. An ___ approach is used wherein the value of the assets of the loss making targeted firm is assessed to understand the real value of the targeted company.
Ans. asset based
9. ___ is applied to all income generating assets.
Ans. Discounted Cash Flow Analysis
10. By focusing more on issues relating to the merger, the top management will have more time for their core business which benefits their main business. (True/False)
Ans. False
11. During mergers, dilution in earnings per share up to 10% for the acquiring bank in the short term is accepted. (True/False)
Ans. False
12. The factor that have an impact on international mergers and acquisitions is corporate governance.
Ans. True
13. Before arriving at a purchase price, both the buyer and the seller of the targeted company should assess the other’s risk and return profile based on past financial data. (True/False)
Ans. True
14. In the case of securitisation, the organisation to which pools of assets are assigned or sold is called ‘market maker’. (True/False) Ans. False
15. Export forfaiting calls for issuance of letter of credit. (True/False)
Ans. False
16. Factor is an authorised transactor of business for another. (True/False)
Ans. True
17. Debt Management is a service offered by factor. (True/False)
Ans. True
18. The licence for opening a foreign bank is issued by the Reserve Bank of India. (True/False)
Ans. True
19. WOS means Wholly Owned Subsidiary. (True/False)
Ans. True
20. The minimum capital required for foreign banks to operate in India is Rs. 3 billion. (True/False)
Ans. True
21. ___ arises due to the lowering quality of some of the borrowers and the default in committed repayments due to inability or unwillingness of the borrower or reduction in the value of security.
Ans. Credit risk
22. Banks are put to a heavy loss due the occurrence of these frauds which are known as ___.
Ans. Cyber frauds
23. Bank computerisation started in the year ___ and it has picked up momentum after the submission of the Rangarajan committee report in 1984.
Ans. 1981
24. Reserve Bank of India as the central bank of the country is responsible for introduction or amendment of regulations. (True/False)
Ans. True
25. RBI has made it compulsory for all the public and private sector banks in India to bring all their branches under a single umbrella, namely Core Banking Solution (CBS). (True/False)
Ans. True
26. Globalisation has made Indian banks move towards technology driven products and services. (True/False)
Ans. True
27. With the implementation of technology in banks, the security challenges have decreased.
Ans. False
28. Before the advent of technology, payments were made through cheques and ___.
Ans. Credit transfer
29. Each customer is issued an ATM debit card with a ___.
Ans. Personal Identification Number (PIN)
30. An ___ATM is connected to the database and real time access is available to the customer.
Ans. Online
31. Each credit card issued has a specific limit up to which the customer can make purchases which is known as the___.
Ans. Card limit
32. ___ is the preferred mode of settlement of large value of interbank payments.
Ans. RTGS
33. Truncation can be made only by the involved banks and the clearing house. Truncation should be done only to reduce the time taken for realisation. (True/False)
Ans. True
34. Computerising processes have made banking products and services inexpensive and easy to use. (True/False)
Ans. True
35. Proper classification of information assets is vital for its safety and security. (True/False)
Ans. True
36. ___ is a modified solution between centralised and decentralised deployments.
Ans. Virtualisation
37. Banks should have a strong monitoring process in place to identify events and unusual activity pattern that can impact the security of ___.
Ans. IT asset
38. The capital requirements for foreign bank’s WOS are the same as that of Indian private banks. (True/False)
Ans. True
39. The licence to foreign banks is granted under the provisions of BR Act, 1949. (True/False)
Ans. True
40. India issues a single class of banking licence to foreign banks. (True/False)
Ans. True
41. ___ of the bank includes bank planning, technology, and personnel development.
Ans. Internal performance
42. Technology up-gradation will help banks to minimise ___.
Ans. Operating cost
43. ___ solution has been implemented in all banks and it is widely accepted by customers.
Ans. Core banking
44. The ___ side of the balance sheet includes various types of deposits and capital.
Ans. Liability
45. ___ statement includes all incomes and expenditures and net profit or loss for the year.
Ans. Profit and loss
46. ___ is an important ratio which helps to analyse banks’ financial condition.
Ans. Return on equity
47. ___ is equal to the percentage of total interest income minus the total interest expense divided by the average earning asset.
Ans. Net interest margin
48. Average rate of ___ is the optimal rate under NIM for any bank.
Ans. 3.90%
49. Average ROA of any bank should be in the range of 12.4%. (True/False)
Ans. False
50. Optimal rate of return on equity is 0.84% for any bank. (True/False)
Ans. False
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Conclusion
Bank Management MCQs with Answer in Pdf is an invaluable resource for anyone looking to gain a better understanding of the banking industry.
It provides an organized way to learn about the subject matter and can be used as a reference guide when needed. The PDF format makes it easy to access the material from any device and is also conveniently printable.
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