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SSC CGL Exam  >  SSC CGL Test  >   Tier 2 - Study Material, Online Tests, Previous Year  >  Test: Banking - SSC CGL MCQ

Banking - Free MCQ Practice Test with solutions, SSC CGL


MCQ Practice Test & Solutions: Test: Banking (10 Questions)

You can prepare effectively for SSC CGL SSC CGL Tier 2 - Study Material, Online Tests, Previous Year with this dedicated MCQ Practice Test (available with solutions) on the important topic of "Test: Banking". These 10 questions have been designed by the experts with the latest curriculum of SSC CGL 2026, to help you master the concept.

Test Highlights:

  • - Format: Multiple Choice Questions (MCQ)
  • - Duration: 10 minutes
  • - Number of Questions: 10

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Test: Banking - Question 1
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What are the two primary functions of a bank mentioned in the introduction?

Detailed Solution: Question 1

Banks primarily engage in the collection of deposits and the distribution of loans. These functions are crucial for managing the financial transactions of individuals, businesses, and the overall economy.

Test: Banking - Question 2
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Which committee's recommendations guided the substantial reforms in the banking sector in 1991?

Detailed Solution: Question 2

The substantial reforms in the banking sector in 1991 were guided by the recommendations of the Narasimham Committee, led by Shri. M Narasimham. These reforms aimed to support liberalization and facilitate the growth of the private sector.

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Test: Banking - Question 3
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During which phase did the Nationalisation of banks in India take place?

Detailed Solution: Question 3

The Nationalisation of banks in India took place during the Nationalisation Phase, spanning from 1969 to 1991. This phase aimed to address concerns related to private-led banks and ensure broader financial inclusion.

Test: Banking - Question 4
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What was the primary objective behind the nationalisation of banks in the Post-Independence Period?

Detailed Solution: Question 4

The nationalisation of banks in the Post-Independence Period aimed to address the concern that people in rural areas were reliant on money lenders for financial assistance. Nationalisation sought to provide financial inclusion to these areas.

Test: Banking - Question 5
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Which bank, established in 1770, was the first bank in India?

Detailed Solution: Question 5

The first bank in India was the "Bank of Hindustan," established in 1770 in Calcutta. However, it did not succeed and closed its doors in 1832.

Test: Banking - Question 6
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Which phase of the banking sector's development is considered critical for ensuring the stability and profitability of Nationalised Public Sector Banks?

Detailed Solution: Question 6

The ongoing phase, the Liberalisation or Banking Sector Reforms Phase (1991 – till date), is considered critical for ensuring the stability and profitability of Nationalised Public Sector Banks.

Test: Banking - Question 7
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What is the distinctive feature of Small Finance Banks?

Detailed Solution: Question 7

The distinctive feature of Small Finance Banks is their focus on serving unbanked or underbanked segments of the population. They aim to promote financial inclusion by providing accessible banking services to those who have been traditionally excluded from the formal banking sector.

Here are some key points about Small Finance Banks:

  • Target Audience: They primarily cater to underserved individuals and small businesses.
  • Services Offered: They provide a range of banking services, including savings accounts, loans, and payment services.
  • Regulatory Framework: They operate under guidelines set by the Reserve Bank of India, ensuring safety and compliance.
  • Financial Inclusion: Their main goal is to enhance financial access for all segments of society.

Test: Banking - Question 8
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What are the two categories of functions performed by the Reserve Bank of India (RBI)?

Detailed Solution: Question 8

The two categories of functions performed by the Reserve Bank of India (RBI) are: Currency issuance and Monetary policy formulation.

These functions encompass the RBI's role in managing the country's currency and implementing monetary policy to ensure economic stability and growth.

Test: Banking - Question 9
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What type of banking entity is limited to performing only the limited banking functions permitted by the Banking Regulation Act of 1949?

Detailed Solution: Question 9

Payment Banks are a distinct type of bank that performs only the limited banking functions permitted by the Banking Regulation Act of 1949.

Test: Banking - Question 10
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Which type of bank is primarily owned and operated by its members?

Detailed Solution: Question 10

Co-operative Banks are financial entities primarily owned and operated by their members, who are also their customers. They often serve specific local or professional communities.

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About this SSC CGL Practice Test

This test contains 10 MCQs on Banking with detailed solutions for each question. It is part of the SSC CGL Tier 2 - Study Material, Online Tests, Previous Year course on EduRev, designed to align with the current SSC CGL syllabus. Each solution explains not just the correct answer but also gives you an understanding of the topic — not just to attempt the question but also help you prepare for the exam with practice.

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