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Money, Banking and Financial Institutions 06
Question
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Q1. Gilt-edged market means
A.
bullion market
B.
market of government securities
C.
market of guns
D.
market of pure metals
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
B
Gilt-edged securities are government-backed bonds that are considered safe investments.
Q2. What is the animal on the insignia of the RBI?
A.
Lion
B.
Tiger
C.
Panther
D.
Elephant
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
B
The RBI seal features a Tiger and a Palm tree.
Q3. Narsimham Committee recommendations are regarding which sector?
A.
Banking
B.
Industries
C.
Rural
D.
Service
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
A
The Narasimham Committee (1991 and 1998) provided the blueprint for banking sector reforms in India.
Q4. In India, Inflation is measured by the:
A.
National Income Deflation
B.
Wholesale Price Index number
C.
Consumer Price Index
D.
None of above
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
C
While WPI was used historically the RBI now uses CPI (Combined) as the primary measure for inflation targeting.
Q5. The apex organisation of industrial finance in India is-
A.
IDBI
B.
RBI
C.
ICICI
D.
IFCI
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
A
Industrial Development Bank of India (IDBI) was established to provide credit and other financial facilities for industries.
Q6. Industrial Development Bank of India (IDBI) established in
A.
1964
B.
1965
C.
1966
D.
1967
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
A
IDBI was created in 1964 to provide long-term credit for industrial projects.
Q7. General Insurance Corporation (GIC) was established in?
A.
1971
B.
1972
C.
1973
D.
1974
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
B
GIC was incorporated in 1972 following the nationalization of the non-life insurance business.
Q8. Banking regulation act was passed in?
A.
1947
B.
1948
C.
1949
D.
1950
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
C
The Banking Regulation Act, 1949, gives the RBI the power to supervise and regulate banks in India.
Q9. Ratio between cash in hand and total assets that banks maintain?
A.
Statutory Liquid Ratio
B.
Cash Reserve Ratio
C.
Liquid Ratio
D.
Statutory Ratio
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
A
SLR is the mandatory liquid assets (cash, gold, securities) banks must keep besides CRR.
Q10. Short-term finance is usually for a period ranging up to
A.
5 months
B.
10 months
C.
12 months
D.
8 months
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
C
Short-term finance refers to credit required for working capital for a period of up to one year.
Q11. State Financial Corporations mainly develop:
A.
Irrigation
B.
small-scale
C.
medium-scale
D.
medium and small-scale
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
D
SFCs were established to provide term finance to small and medium enterprises (SMEs).
Q12. The first wholly Indian Bank was set up in
A.
1794
B.
1894
C.
1896
D.
1902
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
B
Punjab National Bank (PNB), founded in 1894, was the first bank managed solely by Indians.
Q13. Which is the biggest Commercial Bank in India:
A.
ICICI Bank
B.
HDFC Bank
C.
State Bank of India
D.
Punjab National Bank
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
C
State Bank of India (SBI) is the largest public sector bank in the country.
Q14. ‘Pure Banking, Nothing Else’ is a slogan of:
A.
ICICI Bank
B.
HDFC Bank
C.
SBI Bank
D.
UTI Bank
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
C
This is the well-known advertising slogan for the State Bank of India.
Q15. How many banks were nationalized in 1969?
A.
16
B.
14
C.
15
D.
20
ANSWER & SOLUTION
MARK FOR REVIEW
Correct Answer:
B
On July 19, 1969, the Government of India nationalized 14 major private commercial banks.
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