MCQOPTIONS
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MCQOPTIONS
This section includes 269 Mcqs, each offering curated multiple-choice questions to sharpen your Indian Economy knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Which bank launched the Digital Village Project in Akodara village in Gujarat? |
| A. | Yes Bank |
| B. | HDFC Bank |
| C. | ICICI Bank |
| D. | SBI |
| Answer» D. SBI | |
| 2. |
The banks are required to maintain a certain ratio between their cash in hand and total assets. This is called |
| A. | Statutory Bank Ratio (SBR) |
| B. | Statutory Liquid Ratio (SLR) |
| C. | Central Bank Reserve (CBR) |
| D. | Central Liquid Reserve (CLR) |
| Answer» C. Central Bank Reserve (CBR) | |
| 3. |
Note issuing department of RBI should always possess the minimum gold stock of worth- |
| A. | 85 crore |
| B. | 115 crore |
| C. | 200 crore |
| D. | None of these |
| Answer» C. 200 crore | |
| 4. |
Which of the following does not grant any tax rebate? |
| A. | National Saving Certificate |
| B. | Indra Vikas Patra |
| C. | National Saving Scheme |
| D. | Public Provident Fund |
| Answer» C. National Saving Scheme | |
| 5. |
In the list of Top 50 Most Valued Global Banks (in terms of market capitalisation) released by Bloomberg on 17 January 2015, which bank got first rank? |
| A. | HDFC |
| B. | SBI |
| C. | ICBC |
| D. | Yes Bank |
| Answer» D. Yes Bank | |
| 6. |
What are 'Open Market Operations'? |
| A. | Activities of SEBI-registered brokers |
| B. | Selling of currency by the RBI |
| C. | Selling of gilt-edged securities by the Government |
| D. | Sale of shares by FIIs |
| Answer» D. Sale of shares by FIIs | |
| 7. |
Which of following States Achieved 100% financial inclusion? (Each and every family in the State has atleast one bank account) |
| A. | Delhi |
| B. | Maharashtra |
| C. | Kerala |
| D. | Karnataka |
| Answer» E. | |
| 8. |
In which year was the Reserve Bank of India established? |
| A. | 1935 |
| B. | 1940 |
| C. | 1947 |
| D. | 1949 |
| Answer» B. 1940 | |
| 9. |
Reserve Bank of India was nationalised in |
| A. | 1947 |
| B. | 1948 |
| C. | 1949 |
| D. | 1951 |
| Answer» D. 1951 | |
| 10. |
Which amongst the following organisations make major credit policies for the Regional Rural Banks (RRBs) ? |
| A. | NABARD |
| B. | Asian Development Bank |
| C. | World Bank |
| D. | State Bank of India |
| Answer» B. Asian Development Bank | |
| 11. |
Various banks in the country have installed machines which disburse money to general public. The machines are called |
| A. | Coin Dispensing Machines |
| B. | ATMs |
| C. | Debit Card Machines |
| D. | Ledger-Machines |
| Answer» C. Debit Card Machines | |
| 12. |
Which among the following is an asset for a Commercial Bank? |
| A. | Credit to farmers |
| B. | Deposit of public |
| C. | Borrowing from RBI |
| D. | Demand deposits of Industries |
| Answer» D. Demand deposits of Industries | |
| 13. |
When was the NABARD formed? |
| A. | 1952 |
| B. | 1962 |
| C. | 1982 |
| D. | 1992 |
| Answer» D. 1992 | |
| 14. |
India has different categories of commercial banks which of the following is NOT one such category? |
| A. | Nationalised Banks |
| B. | Co-operative Banks |
| C. | Private Banks |
| D. | Commodity Banks |
| Answer» E. | |
| 15. |
Which of the following organisations has the privilege of issuing Bank Notes (Currency) in India? |
| A. | State Bank of India |
| B. | Reserve Bank of India |
| C. | All Nationalised Banks |
| D. | New Note Printing Press in India |
| Answer» C. All Nationalised Banks | |
| 16. |
Many a time we hear about NPA in banking terminology.What is the full form of NPA |
| A. | Non- Performing Assets |
| B. | Negotiable and Preferential Asset |
| C. | New Performing Avenues |
| D. | Net Performing Average |
| Answer» B. Negotiable and Preferential Asset | |
| 17. |
Government of India, for the first time nationalised 14 large Commercial Banks in the year |
| A. | 1956 |
| B. | 1959 |
| C. | 1969 |
| D. | 1971 |
| Answer» D. 1971 | |
| 18. |
Rate of interest is determined by |
| A. | The rate of return on the capital invested |
| B. | Central Government |
| C. | Liquidity Prefernce |
| D. | Commercial Banks |
| Answer» E. | |
| 19. |
If you visit the bank of a bank you will normally not see a department/ section/ counter names as......... |
| A. | cash |
| B. | credit |
| C. | customer care |
| D. | housekeeping |
| Answer» E. | |
| 20. |
Which of the following types of accounts are known as Demat Accounts? |
| A. | Accounts which are Zero Balance Accounts |
| B. | Accounts which are opened to facilitate repayment of a loan taken from the bank No other business can be conducted from there |
| C. | Accounts in which shares of various companies are traded in electronic form |
| D. | Accounts which are operated through internet banking facility |
| Answer» D. Accounts which are operated through internet banking facility | |
| 21. |
Which one of the following is NOT a quantitative credit control technique? |
| A. | Bank Rate |
| B. | Cash Reserve Ratio (CRR) |
| C. | Statutory Liquidity Ratio (SLR) |
| D. | Increase of interest rate on saving deposit |
| Answer» E. | |
| 22. |
The Narasimhan Committee (1991) on financial reforms proposed for establishment of a |
| A. | Four tier hierarchy of the Banking structure |
| B. | Three tier hierarchy of the Banking Structure |
| C. | Two tier hierarchy of the Banking Structure |
| D. | United Control by the apex institutions |
| Answer» B. Three tier hierarchy of the Banking Structure | |
| 23. |
India's largest Commercial Bank is |
| A. | Central Bank of India |
| B. | State Bank of India |
| C. | Indian Overseas Bank |
| D. | Bank of India |
| Answer» C. Indian Overseas Bank | |
| 24. |
'Interest is the reward for abstinence'. Who says this? |
| A. | Keynes |
| B. | Marshall |
| C. | Malthus |
| D. | David Ricardo |
| Answer» C. Malthus | |
| 25. |
The head office of the State Bank of India (SBI) is located in |
| A. | Kolkata |
| B. | New Delhi |
| C. | Pune |
| D. | Mumbai |
| Answer» E. | |
| 26. |
Which of the following is NOT the function of Reserve Bank of India? |
| A. | Provide Credit facility to the general public |
| B. | Keep Government money in various account heads |
| C. | Keep Foreign Exchange Reserve of the country in safe costody |
| D. | Frame Monetary and Credit Policy |
| Answer» B. Keep Government money in various account heads | |
| 27. |
The Reserve Bank India keeps on changing various ratio/rates frequently Why this is done?1. To keep inflation under control.2. To ensure that Indian rupee does not loose its market value.3. To ensure that banks do not earn huge profits at the cost of public money. |
| A. | Only 1 |
| B. | Only 2 |
| C. | Only 3 |
| D. | All 1, 2 and 3 |
| Answer» E. | |
| 28. |
An instrument of qualitative credit control in India is |
| A. | open market operations |
| B. | credit rationing |
| C. | change in reserve ratio |
| D. | bank rate policy |
| Answer» C. change in reserve ratio | |
| 29. |
As per the news published in various financial newspapers, the RBI is reworking the roadmap on Capital Account Convertibility .If this is done who amongst the following would be able to invest in foreign projects or acquire assets outside India without any restrictions?1. Public Sector Banks.2. Companies which are registered in India.3. Government of India.4. Any individual.Codes |
| A. | Only 1 |
| B. | Only 2 |
| C. | Only 3 |
| D. | All 1, 2 and 3 |
| Answer» B. Only 2 | |
| 30. |
According to the World Bank Report India is a........ |
| A. | Development Country |
| B. | Rich Country |
| C. | Developing Country |
| D. | Low Income Country |
| Answer» E. | |
| 31. |
Banks in India are categorized a Public Sector and Private Sector Banks. Which of the following types of banks are called Public Sector Banks? |
| A. | Those in which Government of India has a controlling stake |
| B. | Those which are giving services to poor sections of society like those living below poverty line, in remote areas or in different areas |
| C. | Those who are governed and regulated by the Reserve Bank of India only. Finance Ministry does not have any control over them |
| D. | Only those banks are called public sector whose shares are traded in Stock Markets. Others are private banks |
| Answer» B. Those which are giving services to poor sections of society like those living below poverty line, in remote areas or in different areas | |
| 32. |
The abbreviation NABARD stands for |
| A. | National Bank for Agricultural and Rural Development |
| B. | National Bank for Agricultural Refinance and Development |
| C. | National Board of Agricultural Research and Development |
| D. | National Academy of Banking of Agricultural Research and Development |
| Answer» B. National Bank for Agricultural Refinance and Development | |
| 33. |
The head of the State Bank of India (SBI) is designated as |
| A. | Executive Director |
| B. | Governor |
| C. | Deputy Governor |
| D. | Chairman |
| Answer» E. | |
| 34. |
Which of the following is the limitation of the ATMs owing to which people are required to visit branches of the bank?1. It does not accept deposits2. It has a limited cash disbursement capacity4. Lack of human interface.Code |
| A. | only 1 |
| B. | only 2 |
| C. | only 3 |
| D. | All 1, 2, and 3 |
| Answer» E. | |
| 35. |
The bank rate means |
| A. | Rate of interest charged by commercial banks from borrowers |
| B. | Rate of interest at which commercial banks discounted bills of their borrowers |
| C. | Rate of interest allowed by commercial banks one their deposits |
| D. | Rate at which RBI purchases or rediscounts bill of exchange of commercial banks |
| Answer» E. | |
| 36. |
Reverse Repo Rate means |
| A. | Injecting liquidity by the Central Bank of a country through purchase of Government Securities |
| B. | Absorption of liquidity from the market by sale of Government Securities |
| C. | Balancing liquidity with a view to enhance economic growth rate |
| D. | Improving the position o availability of the securities in the market |
| Answer» C. Balancing liquidity with a view to enhance economic growth rate | |
| 37. |
Consider the Following statements segarding Reserve Bank of India1.It is a banker of the Central Government.2. It formulates and administers monetary policy.3. It acts as an agent of the Government in respect of India.4. It handles the borrowing programme of Government of India.Which of the statements are correct? |
| A. | 1 and 2 |
| B. | 3 and 4 |
| C. | 2, 3 and 4 |
| D. | 1, 2, 3, and 4 |
| Answer» B. 3 and 4 | |
| 38. |
When the Reserve Bank of India announces an increase of the Cash Reserve Ratio (CRR), what does it mean? |
| A. | The Commercial banks will has been money to lend |
| B. | The Reserve Bank of India will have less money to lend |
| C. | The Union Government will have less money to lend |
| D. | The commercial banks will have move money to lend |
| Answer» B. The Reserve Bank of India will have less money to lend | |
| 39. |
Many a time we read in newspaper about the benefits of National Electronic Funds Transfer (NEET), a delivery service launched by the bank. Why do banks advocate for such delivery channels?1. It is a system in which no physical transfer taxes place, hence risk is very low.2. In this system banks are not required to transfer any money actually to the account of the customer. Only book adjustment is done. Hence actual fund is not needed.3. This facility is available to anybody at any place. Even having a bank account is not at all necessary.Codes |
| A. | Only 1 is correct |
| B. | Only 2 is correct |
| C. | Only 3 is correct |
| D. | Both 1 and 2 are correct |
| Answer» E. | |
| 40. |
Open market operations, one of the measures taken by RBI in order to control credit expansion in the economy, means |
| A. | Sale or purchase of Government Securities |
| B. | Issuance of different types of bonds |
| C. | Auction of gold |
| D. | To make available direct finance to borrowers |
| Answer» B. Issuance of different types of bonds | |
| 41. |
A Bank / Financial Organisation these days relies heavily on e-commerce for its transaction. As a part of system security, it has introduced the organisation's security awarness manual. This seep of the organisation can be classified under which one of the following categories of measures for a business? |
| A. | Preventive |
| B. | Compliance |
| C. | Corrective |
| D. | Detective |
| Answer» B. Compliance | |
| 42. |
Which of the following is India's largest public sector Commercial Bank at present? |
| A. | IDBI Bank |
| B. | ICICI Bank |
| C. | AXIS Bank |
| D. | SBI |
| Answer» C. AXIS Bank | |
| 43. |
If the Cash Reserve Ratio (CRR) is lowered by the RBI, its impact on credit creation will be |
| A. | increase |
| B. | decrease |
| C. | no impact |
| D. | none of the other |
| Answer» B. decrease | |
| 44. |
Which of the following is a formal source of credit? |
| A. | Money lender |
| B. | Relative |
| C. | Trader |
| D. | Commercial Bank |
| Answer» E. | |
| 45. |
Which of the following is the name of the bank founded by the winner of the Nobel Peace Prize 2006 Mr. Muhammad Yunus? |
| A. | Bank for the poor |
| B. | Swadeshi Bank |
| C. | Rashtriya Bank |
| D. | Grameen Bank |
| Answer» E. | |
| 46. |
As per RBI directives, which of the following functions can not be outsourced by the Banks? |
| A. | Opening and closing of accounts |
| B. | Cash collections from the parties |
| C. | Recovery of bad loand |
| D. | Credit cards and Debit cards |
| Answer» B. Cash collections from the parties | |
| 47. |
Consider the following statements with regard to Statutory Liquidity Ratio (SLR)1. To meet SLR, commercial banks can use cash only.2. SLR is maintained by the banks with themselves.3. SLR restricts the banks leverage in pumping more money into the economy.Which of the statements given above is/are correct? |
| A. | 1, 2 and 3 |
| B. | 1 and 3 only |
| C. | 2 and 3 only |
| D. | 2 only |
| Answer» D. 2 only | |
| 48. |
Which of the following organisations/agencies recently decided to provide grades to the merchant bankers so that they can track the market and ensure that only good issues arrive in the market? |
| A. | RBI |
| B. | SEBI |
| C. | AMFI |
| D. | Registrar of Companies |
| Answer» C. AMFI | |
| 49. |
As reported in some major financial newspapers, many times it is said that 'Other Income' boosts the profit of a bank to a substantial level. What is this 'Other Income' for a bank?1. Commission for selling insurance policies.2. fee for providing various services (like ATM/Extra Cheque etc.).3. Interest on advances and loans.Codes |
| A. | Only 1 |
| B. | Only 2 |
| C. | Both 1 and 2 |
| D. | Only 3 |
| Answer» D. Only 3 | |
| 50. |
What is the major sourve of revenue for the commercial banks? |
| A. | The difference between what is charged from borrowers and what is paid to depositors |
| B. | Revenue from the share market |
| C. | Fixed deposits |
| D. | None of the above |
| Answer» B. Revenue from the share market | |