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Money, Banking and Financial Institutions 02
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Q1. Gilt-edged market means:
A.
Market of Bullion
B.
Market of Govt. Securities
C.
Market of Guns
D.
Market of Pure Metals
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
B
Gilt-edged securities are high-grade investment bonds offered by the government with low risk.
Q2. Inflation is measured in India on the basis of:
A.
WPI
B.
CPI
C.
GDP Deflator
D.
All of the above
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
D
While CPI is now the primary anchor for RBI policy, WPI and the GDP deflator are also key measures.
Q3. In India, the first bank of limited liability managed by Indians was:
A.
Oudh Commercial Bank
B.
Punjab National Bank
C.
Imperial Bank
D.
Reserve Bank
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
A
Established in 1881, Oudh Commercial Bank was the first limited liability bank with an Indian board.
Q4. Which committee recommended the formation of RRBs?
A.
Narsimham Committee
B.
Mistry Committee
C.
Verma Committee
D.
Goiporia Committee
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
A
The Narsimham Working Group (1975) recommended RRBs to cater to rural credit needs.
Q5. A situation where we have high inflation and low growth is called:
A.
Deflation
B.
Stagflation
C.
Reflation
D.
Recession
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
B
Stagflation occurs when the economy faces stagnant growth and high unemployment alongside high inflation.
Q6. Which is the oldest stock exchange in Asia?
A.
Tokyo Stock Exchange
B.
BSE (Bombay)
C.
NSE (National)
D.
Shanghai Stock Exchange
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
B
Established in 1875, the Bombay Stock Exchange (BSE) is Asia's oldest stock exchange.
Q7. The ‘Bull’ and ‘Bear’ terms are used in:
A.
Banking
B.
E-commerce
C.
Stock Market
D.
Agriculture
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
C
A 'Bull' expects prices to rise, while a 'Bear' expects prices to fall in the stock market.
Q8. Which index is used to measure the change in the price of a basket of consumer goods?
A.
WPI
B.
CPI
C.
SENSEX
D.
NIFTY
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
B
The Consumer Price Index (CPI) measures the average change over time in prices paid by consumers.
Q9. The ‘Lead Bank Scheme’ was introduced by the RBI in:
A.
1969
B.
1975
C.
1982
D.
1991
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
A
Following the Gadgil Study Group, the Lead Bank Scheme was launched in 1969 to promote district-level banking.
Q10. The headquarters of SEBI is located in:
A.
New Delhi
B.
Kolkata
C.
Mumbai
D.
Chennai
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
C
The Securities and Exchange Board of India is headquartered in Bandra Kurla Complex, Mumbai.
Q11. In which year was the ‘National Bank for Agriculture and Rural Development’ set up?
A.
1980
B.
1982
C.
1985
D.
1990
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
B
NABARD was established on July 12, 1982, on the recommendations of the Shivaraman Committee.
Q12. What is the ‘Base Year’ for the current WPI in India?
A.
2004-05
B.
2011-12
C.
2015-16
D.
2020-21
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
B
The government updated the base year for the Wholesale Price Index to 2011-12.
Q13. The term ‘SENSEX’ is related to which stock exchange?
A.
NSE
B.
BSE
C.
MCX
D.
NCDEX
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
B
The SENSEX is the benchmark index of the Bombay Stock Exchange (BSE).
Q14. What is ‘Call Money’?
A.
Money lent for 1 day
B.
Money lent for 1 month
C.
Money for purchasing shares
D.
International currency
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
A
Call money is a short-term loan that is repayable on demand, usually used for inter-bank transactions.
Q15. Which organization regulates the Insurance sector in India?
A.
RBI
B.
SEBI
C.
IRDAI
D.
PFRDA
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
C
The Insurance Regulatory and Development Authority of India (IRDAI) is the apex body for insurance.
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