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Money, Banking and Financial Institutions 05
Question
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of 15
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Q1. Small Industries Development Bank of India (SIDBI) was established in:
A.
1986
B.
1987
C.
1988
D.
1989
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
D
SIDBI was set up as a subsidiary of IDBI and started operations in April 1990.
Q2. Reserve Bank of India was nationalized in the year
A.
1935
B.
1945
C.
1949
D.
1969
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
C
Established in 1935 as a private bank, it was nationalized on January 1, 1949.
Q3. Since 1983, the RBI’s responsibility for Regional Rural Banks was transferred to
A.
ARDC
B.
SBI
C.
NABARD
D.
PACs
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
C
NABARD now supervises RRBs and provides them with refinance facilities.
Q4. Place where bankers meet and settle mutual claims?
A.
treasury
B.
clearing house
C.
collection centre
D.
dumping ground
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
B
A clearing house facilitates the exchange of checks and balances between different banks.
Q5. Who prints and supplies the currency notes in India?
A.
Security Press Noida
B.
Security Press Mumbai
C.
RBI Delhi
D.
Security Press Nasik
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
D
The Currency Note Press in Nasik and the Bank Note Press in Dewas handle the printing.
Q6. The monetary Policy of the country is framed by
A.
RBI
B.
Ministry of Finance
C.
Government of India
D.
Planning Commission
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
A
The RBI's Monetary Policy Committee (MPC) sets the key interest rates to control inflation.
Q7. ____ was the first complete Commercial Bank of India.
A.
Oudh Commercial Bank
B.
Dena Bank
C.
Imperial Bank
D.
Presidency Bank
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
A
Oudh Commercial Bank (1881) was the first bank with limited liability managed by an Indian board.
Q8. The number of approved share markets (Stock Exchanges) in India is (approx)
A.
24
B.
20
C.
19
D.
23
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
D
There are currently 23 recognized stock exchanges in India, including the BSE and NSE.
Q9. If the RBI adopts an expansionist open market operations policy, it will
A.
buy securities
B.
sell securities
C.
offer more credit
D.
openly announce credit
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
A
Expansionist policy involves buying government securities to inject liquidity into the banking system.
Q10. NABARD was established in which Five Year Plan?
A.
Fourth Plan
B.
Fifth Plan
C.
Sixth Plan
D.
Eighth Plan
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
C
NABARD was set up in 1982, which falls within the Sixth Five Year Plan period (1980-85).
Q11. India changed over to the decimal system of coinage in
A.
Apr-95
B.
Apr-57
C.
Apr-58
D.
Apr-59
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
B
On April 1, 1957, the Indian Rupee was divided into 100 Naye Paise instead of the old anna system.
Q12. Debenture holders of a company are its
A.
shareholders
B.
creditors
C.
debtors
D.
directors
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
B
Debenture holders lend money to a company and are therefore considered creditors who receive interest.
Q13. Money in India consists of
A.
paper currency
B.
current deposits
C.
metallic coins
D.
All of these
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
D
The total money supply (M3) include currency in circulation and demand/time deposits with banks.
Q14. Balance sheet shows
A.
Assets
B.
Liabilities
C.
Both assets and liabilities
D.
Neither of them
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
C
A balance sheet is a financial statement that reports a company's assets, liabilities, and shareholders' equity.
Q15. Who was the winner of new Rupee symbol contest?
A.
S Ravi Chandra
B.
Vijay Singh
C.
Anil Agnihotri
D.
D Udaya Kumar
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
D
The symbol (₹) was designed by D. Udaya Kumar and adopted by the Government of India in 2010.
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