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Money, Banking and Financial Institutions 03
Question
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of 15
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Q1. Paper currency first started in India in
A.
1861
B.
1542
C.
1601
D.
1880
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
A
The Paper Currency Act of 1861 gave the Government the monopoly of note issue.
Q2. If CRR is lowered by the RBI, credit creation will
A.
increase
B.
decrease
C.
no impact
D.
None of the above
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
A
Lowering the Cash Reserve Ratio releases more liquidity for banks to lend, thus increasing credit.
Q3. Export-Import bank of India (EXIM Bank) was established in?
A.
1981
B.
1982
C.
1983
D.
1984
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
B
EXIM Bank was established on January 1, 1982, to facilitate international trade from India.
Q4. The Share Price Index (in dollar value) of Mumbai share market is
A.
DOLEX
B.
UREX
C.
FOREX
D.
SENSAX
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
A
The BSE DOLEX-30 is the dollar-linked version of the SENSEX.
Q5. The central banking functions in India are performed by the
A.
Central Bank of India
B.
Reserve Bank of India
C.
State Bank of India
D.
Punjab National Bank
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
B
The RBI is the apex monetary authority and the central bank of the country.
Q6. Banks must maintain a ratio between cash and total assets. This is called:
A.
SBR
B.
SLR
C.
CBR
D.
CLR
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
B
Statutory Liquidity Ratio (SLR) is the minimum percentage of deposits that a bank must maintain in liquid assets (gold, cash, or securities).
Q7. Which one of the following is a retail banking product?
A.
Home loans
B.
Working capital finance
C.
Corporate term loans
D.
Infrastructure financing
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
A
Retail banking targets individual consumers rather than corporations; home loans are a primary example.
Q8. Imperial Bank of India was the old name of?
A.
State Bank of India
B.
United Bank of India
C.
Central Bank of India
D.
Punjab National Bank
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
A
The Imperial Bank was nationalized and renamed the State Bank of India (SBI) in 1955.
Q9. Regulatory powers to prevent scams in Capital Markets are assigned to
A.
RBI
B.
SBI
C.
SEBI
D.
ICICI
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
C
The Securities and Exchange Board of India (SEBI) is the regulator for the securities and capital markets.
Q10. Banking Ombudsman is appointed by
A.
Government of India
B.
State Government
C.
RBI
D.
ECGC
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
C
The RBI appoints the Ombudsman to resolve customer complaints against deficiency in banking services.
Q11. In the second nationalization of commercial banks (1980), how many banks?
A.
4
B.
5
C.
6
D.
8
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
C
Following the 14 banks in 1969, 6 more private banks were nationalized in April 1980.
Q12. Regulatory authority for insurance trade in India?
A.
SEBI
B.
RBI
C.
IRDA
D.
GIC
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
C
The Insurance Regulatory and Development Authority (IRDA) was established in 1999.
Q13. Open market operations refer to the sale and purchase by the RBI of
A.
Foreign Exchange
B.
Gold
C.
Government Securities
D.
All of these
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
C
OMOs are a tool used by the RBI to regulate money supply and interest rates in the economy.
Q14. The index ‘Residex’ is associated with
A.
Share Prices
B.
Mutual Fund Prices
C.
Price Inflation Index
D.
Land Prices
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
D
NHB Residex tracks the movement in prices of residential properties across Indian cities.
Q15. Quantitative credit control by Central Bank includes:
A.
Bank Rate
B.
Open Market Operations
C.
Cash Reserve Ratio
D.
All of these
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
D
These are general tools that affect the total volume of credit in the banking system.
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