Top 50 BOM Scale 2 Banking Questions with Answers

BOM Scale 2 Important Banking Questions with Answers | Scale II & III | Download bank of Maharashtra Previous Question with Answers/ BOM Banking Knowledge Important Questions

Top 50 Bank of Maharashtra  Scale 2 Banking Questions with Answers: Bank of Maharashtra is going to fill Specialist Officers in Scale-II & III to be posted at various Head Office as per requirement. As per the latest announcement, BOM selection process comprises online examination, Group Discussion and Interview. To prepare for Bank of Maharashtra Interview/ online Examination, we have given BOM Banking Knowledge Important Questions with Answers.

Bank of Maharashtra Important Questions with Answers MCQs

1.  The Reserve Bank of India was established on _______.

  1. April 1, 1935
  2. July 12, 1982
  3. May 26, 2006
  4. September 30, 2005

Answer: April 1, 1935

2.  When did the Government appoint for transfer of stake?

  1. 29 June
  2. 26 May
  3. 1 April
  4.  5 April

Answer: 29 June

3.  The ratio of ‘net sales’ to ‘working capital’ is called

  1. Working capital sales ratio
  2. Profitability Ratio
  3. Liquidity Ratio
  4. Solvency Ratio

Answer: Working capital sales ratio

4.  Gross working capital is based on

  1. Accrual Concept
  2. Money Measurement Concept
  3. Going Concern Concept
  4. Realization Concept

Answer: Going Concern Concept

5. Investment is the _______________.

  1. net additions made to the nation’s capital stocks
  2. person’s commitment to buy a flat or house
  3. employment of funds on assets to earn returns
  4. employment of funds on goods and services that are used in production process

Answer: employment of funds on assets to earn returns

6. Market value of the shares are decided by ____________.

  1. the respective companies
  2. the investment market
  3. the government
  4. shareholders

Answer: the investment market

7. Financial Management is mainly concerned with ______________.

  1. All aspects of acquiring and utilizing financial resources for firms activities
  3. Efficient Management of every business
  4. Profit maximization

Answer: All aspects of acquiring and utilizing financial resources for firms activities

8. The underwriter has to take up ________________.

  1. the fixed portions of the issue capital
  2. the unsubscribed part of the agreed portion
  3. the agreed portion or can refuse if
  4. the unfixed portions of the issue capital

Answer: the unsubscribed part of the agreed portion

9. Future value interest factor takes ____________.

  1. Compounding rate
  2. Discounting rate
  3. Deflation rate
  4. Inflation rate

Answer: Compounding rate

10. Which of these is NOT a part of capital receipt?

  1. Recovery of loan
  2. Disinvestment
  3. Borrowing
  4. Tax

Answer: Tax

11. Primary capital markets are the platform where

  1. New securities are issued
  2. New securities are sold
  3. New securities are borrowed
  4. Both (a) Both (a) and (b)

Answer: Both (a) & (b)

12. Businesses in capital markets are normally managed by

  1. Governmental treasury departments and sometimes accessed by the public, also
  2. Private bodies in the financial sectors
  3. International bodies and businesses
  4. None of the above

Answer: Governmental treasury departments and sometimes accessed by the public also

13. Which is the standardized process for the analysis of capital budgeting and also known as future cash flow subtracted from the purchase price?

  1. SEBI
  2. Net Present Value NPV
  3. RBI Reserve Bank Of India
  4. IRDA

Answer: RBI Reserve Bank Of India

14. What is a cross-border exchange?

  1. Trading of foreign currency in India.
  2. The trading of the Indian rupee in exchange for other currencies/ goods.
  3. Hawala transactions in Indian rupee.
  4. Unauthorised remittance of the Indian rupee.

Answer: The trading of the Indian rupee in exchange for other currencies/ goods.

15. SEBI was developed in which year?

  1. 1990
  2. 1989
  3. 1992
  4. 1988

Answer: 1988

16. How many corporations are involved in the BSE Sensex?

  1. 25
  2. 30
  3. 50
  4. 111

Answer: 30

17. Future value interest factor takes ____________.

  1. Compounding rate
  2. Discounting rate
  3. Inflation rate
  4. Deflation rate

Answer: Compounding rate

18. Financial leverage measures ____________.

  1. sensitivity of EBIT with respect of % change with respect to output
  2. % variation in the level of production
  3. sensitivity of EPS with respect to % change in level of EBIT
  4. no change with EBIT and EPS

Answer: sensitivity of EPS with respect to % change in level of EBIT

19. ___________ are financial assets.

  1. Bonds
  2. Machines
  3. Stocks
  4. A and C

Answer: A and C

20. Present value takes _________.

  1. Discounting rate
  2. Compounding rate
  4. Deflation rate

Answer: Discounting rate

21. Most investors are risk averse which means____________.

  1. they will assume more risk only if they are compensated by higher expected return
  2. they will always invest in the investment with the lowest possible risk
  3. they will always invest in the investment with the lowest possible risk
  4. they avoid the stock market due to the high degree of risk

Answer: they avoid the stock market due to the high degree of risk

22. The company’s cost of capital is called ________.

  1. Leverage
  2. Hurdle rate
  3. Risk rate
  4. Return rate

Answer: Hurdle rate

23. Which of the following would be considered a risk-free investment?

  1. Gold
  2. Equity in a house
  3. Treasury bills

Answer: Treasury bills

24. Cost of retained earnings is equal to _______.

  1. Cost of equity
  2. Cost of debt
  3. Cost of term loans
  4. Cost of bank loan

Answer: Cost of equity

25. Beta measures the ________.

  1. Investment risk rate
  2. Market risk
  3. Financial risk
  4. Market and finance risk

Answer: Market risk

26. If a preferred stock issue is cumulative, this means____________.

  1. dividends are paid at the end of the year
  2. unpaid dividends will be paid in the future
  3. dividends is legally binding on the corporation
  4. unpaid dividends are never repaid

Answer: unpaid dividends will be paid in the future

27. Short term sources are

  1. Bank credit
  2. Commercial papers
  3. Public deposit
  4. All of the above

Answer: Commercial papers

28. Which of the following is not a characteristic of investments companies?

  1. pooled investing
  2. diversification
  3. managed portfolios
  4. reduced expenses

Answer: reduced expenses

29. A company having easy access to the capital markets can follow a ____________ dividend policy

  1. liberal
  3. strict
  4. Varying

Answer: liberal

30. Financial leverage is also known as.

  4. Interest on debt

Answer: Trading on equity 

31. Net asset value takes into account____________.

  1. both realized and unrealized capital gains
  2. only realized capital gains
  3. only unrealized capital gains
  4. neither realized nor unrealized capital gains.

Answer: both realized and unrealized capital gains

32. A firm will have favourable leverage if its _____ are more than the debt cost

  1. debt
  2. equity
  4. earnings

Answer: earnings

33. Which of the following is not an objective of financial management?

  1. Maximization of wealth of shareholders
  2. Mobilization of funds at an acceptable cost
  3. Maximization of profits
  4. Ensuring discipline in the organization.

Answer: Ensuring discipline in the organization.

34. Treasury bills are traded in the __________.

  1. money market
  2. government market
  3. capital market
  4. regulated market

Answer: money market

35. Which of the following stock exchange is derecognized by SEBI on 19.11.2014 on the allegations of serious irregularities in its functioning?

  1. Bombay Stock Exchange
  2. Delhi Stock Exchange
  3. Calcutta Stock Exchange
  4. Bangalore Stock Exchange

Answer: Delhi Stock Exchange

36. Liability- side of the balance-sheet comprises:

  1. Capital and reserve
  2. Long-term liabilities
  3. Current liabilities
  4. All of the above

Answer: All of the above

37. Minimum cash reserves fixed by law constitute ___

  1. A percentage of aggregate deposits of the bank
  2. A percentage of aggregate loans and advances of the bank
  3. A percentage of capital & reserves of the bank
  4. None of these

Answer: A percentage of aggregate deposits of the bank

38. Acceptance of deposits by non – banking financial companies is regulated by RBI under:

  1. Non – banking financial companies acceptance of public deposits (Revenue Bank) directions 1998
  2. Non – banking financial companies acceptance of government deposits (Revenue Bank) directions, 1998
  3. Non – banking financial companies acceptance of private deposits (Revenue Bank) directions, 1998
  4. Non- banking financial companies acceptance of deposits money lenders (Revenue Bank) directions, 1998

Answer: Non – banking financial companies acceptance of public deposits (Revenue Bank) directions 1998

39. If a company, which is not a non – banking financial company wants to collect public deposits, it is governed by ___ Act

  1. RBI Act 1934
  2. Banking companies Act
  3. Companies Act 1956
  4. Central Government

Answer: Companies Act 1956

40. In India, it is necessary to have license from the RBI for opening a new branch. This is a requirement under ____ Act

  1. Section 22 of banking Regulation Act
  2. Section 22 of RBI Act
  3. KYC Guidelines by RBI
  4. Section 22 of NABARD

Answer: Section 22 of banking Regulation Act

41. Which award is given for an Outstanding Woman Reporter in India ?

  1. Chameli Devi Jain Award
  2. Patrakarita Award
  3. Padma Shree Award
  4. Mahila Patrakar Award.

Answer: Chameli Devi Jain Award

42. In April 2013, A Bill has been introduced in the Lok Sabha to raise the authorised capital of the Regional Rural Banks to Rs _____ .

  1. 1000 Crore
  2. 500 Crore
  3. 2500 Crore
  4. 5 Crore

Answer: 500 Crore

43. In Take Out Financing there is/are how many parties involve ?

  1. One
  2. Three
  4. Four

Answer: Three

44. In India, main Products of Retail Banking are ________.

  1. Loan products
  2. Card Products
  3. Deposit Products

Answer: All of these

45. Microcredit is defined as _____.

  1. It is the small credit given to poor
  2. It is the instalment given by Farmers against Loan.
  3. It is the amount given by Govt. for Small Industries Development.
  4. None of these.

Answer: It is the small credit given to poor

46. In which year, Credit Guarantee Corporation created ?

  1. 1975
  2. 1971
  3. 1975
  4. 2001

Answer: 1971

47. A draft issued by the bank has been lost by the payee. He sends a letter to the issuing bank to stop payment. Bank will:

  1. Note caution and will advice the payee to contact purchaser of the draft
  2. Not act on the request
  3. Performs no action
  4. Stop payment

Answer: Note caution and will advice the payee to contact purchaser of the draft

48. Mutual funds are required to be registered with:

  1. AMFI
  2. SEBI
  3. IBA
  4. RBBI

Answer: SEBI

49. What is Yield Curve Risk?

  1. It is a line of graph plotting the yield of all maturities of a particular instrument
  2. Yield curve can be twisted to the desired direction through the intervention of RBI.
  3. Yield curve changes its slope and shape from time to time.
  4. All of the above

Answer: All of the above

50. The biggest international financial centre in the world:

  1. Frankfurt
  2. Geneva
  3. London
  4. New York

Answer: London

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