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.
| 51. |
Which of the following acts as a mediator between those who have surplus funds and those who are in need of these funds? |
| A. | The President |
| B. | The government |
| C. | Bank |
| D. | RBI |
| Answer» D. RBI | |
| 52. |
Which of the following is/are the measure (S) taken by the Reserve Bank of India (RBI) to ease the liquidity crunch in the country?1. Cut in cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR)2. Increase the flow of Foreign Direct Investment (FDI)3. Supply of additional currency notes in the market.Codes |
| A. | Only 1 |
| B. | Only 2 |
| C. | Only 3 |
| D. | All 1, 2 and 3 |
| Answer» B. Only 2 | |
| 53. |
Micro Credit means1. Loans of small amount to people in unorganised sector.2. Loans to Self-Help Groups.3. Loans amounting 50 lakhs to 5 crores to Medium and Small Industrial Units.Codes |
| A. | Only 1 |
| B. | Only 2 |
| C. | Only 1 and 2 |
| D. | All 1, 2 and 3 |
| Answer» D. All 1, 2 and 3 | |
| 54. |
The Bank rate is the rate at which |
| A. | A bank lends to the public |
| B. | The RBI lend to the public |
| C. | The RBI gives credit to the commercial banks |
| D. | The Government of India lends to other countries |
| Answer» D. The Government of India lends to other countries | |
| 55. |
As we all know in Indian lurrency market is regulated by the Reserve Bank of India (RBI), while 'currency futures' are jointly regulated by the RBI and which of the following other banks? |
| A. | NABARD |
| B. | SIDBI |
| C. | SBI |
| D. | SEBI |
| Answer» E. | |
| 56. |
Consider the following1. Regional Rural Bank2. Lead Bank Plan3. NABARD4. State Bank of IndiaThe correct chronological sequence of establishing of these banks is |
| A. | 4, 3, 2, 1 |
| B. | 4, 2, 1, 3 |
| C. | 2, 3, 4, 1 |
| D. | 2, 1, 4, 3 |
| Answer» C. 2, 3, 4, 1 | |
| 57. |
Which among the following sectros contributes most to the saving in India ? |
| A. | Banking and financial sector |
| B. | Private corporate sector |
| C. | Export sector |
| D. | Household sector |
| Answer» E. | |
| 58. |
Which bank in India performs duties of Central Bank? |
| A. | Central Bank of India |
| B. | State Bank of India |
| C. | both 'a' and 'b' |
| D. | Reserve Bank of India |
| Answer» E. | |
| 59. |
Which of the following committees has given its recommendations on 'Financial Inclusion'? |
| A. | Rakesh Mohan Committee |
| B. | Rangrajan Committee |
| C. | Sinha COmmittee |
| D. | Kelkar Committee |
| Answer» C. Sinha COmmittee | |
| 60. |
Narasimhan Committee is related to |
| A. | Nank Sector Reform |
| B. | Heavy industry Development |
| C. | Insurance Sector Reform |
| D. | 'a' and 'c' are correct |
| Answer» B. Heavy industry Development | |
| 61. |
Which of the following is NOT a banking related terms? |
| A. | SME Finance |
| B. | Overdraft |
| C. | Drawing power |
| D. | Equinox |
| Answer» E. | |
| 62. |
The lowering of Bank Rate by the Reserve Bank of India leads to |
| A. | More liquidity in the market |
| B. | Less liquidity in the market |
| C. | No change in the liquidity in the market |
| D. | Mobilization of more deposits by commercial banks |
| Answer» B. Less liquidity in the market | |
| 63. |
The Monetary Policy of India is announced by the |
| A. | Prime Minister of India |
| B. | Governor of the RBI |
| C. | Union Finance Minister |
| D. | Union Commerce Minister |
| Answer» C. Union Finance Minister | |
| 64. |
An agreement, which in fact is a contract, between the RBI and Banks for the sale and repurchase of Government securities and short term treasury bills at a future date and for which the RBI indicate 'the interest rate' is generally known as |
| A. | Repo Rate |
| B. | Bank Rate |
| C. | Reverse Repo Rate |
| D. | Prime Lending Rate |
| Answer» B. Bank Rate | |
| 65. |
Who amongst the following has decided to withdraw its nominee directors from the boards of the private sector banks? |
| A. | Registrar of Compaines |
| B. | Reserve Bank of India |
| C. | State Governments |
| D. | Registrar of Co-operative Societies |
| Answer» C. State Governments | |
| 66. |
Bank Rate is the rate |
| A. | At which banks lend money to the depositors |
| B. | At which Reserve Bank of India lends money to commercial Banks |
| C. | The rate at which banks lend to the Industrial Financial Institutions |
| D. | None of the above |
| Answer» C. The rate at which banks lend to the Industrial Financial Institutions | |
| 67. |
None-Performing Assets (NPA) in commercial banks mean |
| A. | Bank deposits which are not invested |
| B. | Capital assets not in use |
| C. | Loans in which interest or principal amount is not recovered |
| D. | Loan interest rate loans |
| Answer» D. Loan interest rate loans | |
| 68. |
In India, the first bank of limited liabilities managed by Indians and founded in 1881 was |
| A. | Hindustan Commercial Bank |
| B. | Oudh Commercial Bank |
| C. | Punjab National Bank |
| D. | Punjab and Sind Bank |
| Answer» C. Punjab National Bank | |
| 69. |
The Tarapore committee was appointed by the RBI to examine the issue of |
| A. | Capital Account Convertibility of the rupee |
| B. | Current Account convertibility of the rupee |
| C. | Both a and b |
| D. | Trade Sector Reforms |
| Answer» B. Current Account convertibility of the rupee | |
| 70. |
The National Housing Bank (NHB) was set up in India as a wholly-owned subsidiary of which one of the following? |
| A. | State Bank of India |
| B. | Reserve Bank of India |
| C. | ICICI Bank |
| D. | Life Insurance Corporation of India |
| Answer» C. ICICI Bank | |
| 71. |
RBI's open market operation transactions are carried out with a view to regulate |
| A. | Liquidity in the economy |
| B. | Prices of essential commodities |
| C. | Inflation |
| D. | All of the above |
| Answer» E. | |
| 72. |
The functions of the Lead Bank are performed by |
| A. | State Bank of India |
| B. | Reserve Bank of India |
| C. | Any Bank |
| D. | A bank designed for this purpose |
| Answer» E. | |
| 73. |
Which of the following rates/ratios is NOT covered under the Monetary and Credit Policy of RBI? |
| A. | Bank Rate |
| B. | Repo Rate |
| C. | Cash Reserve Ratio |
| D. | Exchange Rate of Foreign Currencies |
| Answer» E. | |
| 74. |
The Central banking functions in India are performed by the |
| A. | Punjab National Bank |
| B. | Central Bank of India |
| C. | State Bank of India |
| D. | Reserve Bank of India |
| Answer» E. | |
| 75. |
The Banks are required to maintain a certain ratio between their cash in hand and total assets. This is called |
| A. | SLR |
| B. | SBR |
| C. | CBR |
| D. | CRR |
| Answer» E. | |
| 76. |
Which of the following is an international forum to discuss and implement supervisory norms in all the banks of the world? |
| A. | Basel Committee |
| B. | UN Charter on Commercial Laws |
| C. | World Trade Organisation |
| D. | International Board of Banks and Finance |
| Answer» B. UN Charter on Commercial Laws | |
| 77. |
Which one of the following rates is NOT determined by the Reserve Bank of India? |
| A. | CRR |
| B. | SLR |
| C. | Repo Rate |
| D. | Prime Lending Rate |
| Answer» E. | |
| 78. |
With reference to India, consider the following 1. Nationalization of Banks2. Formation of Regional Rural Banks3. Adoption of Village by Bank BranchesWhich of the above can be considered as steps taken to achieve the 'financial inclusion' in India? |
| A. | 1 and 2 only |
| B. | 2 and 3 only |
| C. | 3 only |
| D. | 1, 2 and 3 |
| Answer» E. | |
| 79. |
Insurance service provided by various banks is commonly known as |
| A. | Investment Banking |
| B. | Porttolio Management |
| C. | Merchant Banking |
| D. | Bancassurance |
| Answer» E. | |
| 80. |
What is the full form of NBFC as used in the financial sector? |
| A. | New Banking Finance Company |
| B. | National Banking and Finance Corporation |
| C. | New Business Finance and Credit |
| D. | None of the above |
| Answer» B. National Banking and Finance Corporation | |
| 81. |
Consider the following pairsLarge BankCountry of Origin1. ABN Amro BankNetherlands2. Barchlays BankUK3. Kookmin BankSouth KoreaWhich of the above pais (s) is / are correctly matched? |
| A. | 1 only |
| B. | 2 only |
| C. | 1 and 2 |
| D. | 1, 2 and 3 |
| Answer» E. | |
| 82. |
A lot of Banks in India these days are offering M-Banking facility to their customers. What is the full form of 'M' in M-banking? |
| A. | Money |
| B. | Marginal |
| C. | Message |
| D. | Mobile Phone |
| Answer» E. | |
| 83. |
Which one of the following is NOT a function of Reserve Bank of India? |
| A. | Credit control |
| B. | As apex body of scheduled commercial banks |
| C. | Formation of monetary policy |
| D. | Credit creation |
| Answer» E. | |
| 84. |
Many times we read in newspapers that the RBI has revised certain rates/ratios under LAF. What is the full form of LAF? |
| A. | Liquidity Adjustment Facility |
| B. | Legal Adjustment Facility |
| C. | Long-term Achievement Facility |
| D. | Legal Adjustment Formality |
| Answer» B. Legal Adjustment Facility | |
| 85. |
Which one of the following banks give long term loans to agriculture? |
| A. | State Co-operative Bank |
| B. | Commercial Bank |
| C. | Primary Credit Society |
| D. | Land Development Bank |
| Answer» B. Commercial Bank | |
| 86. |
As we all know cash Reserve Ratio (CRR) is the percentage of the deposit banks deep in reserve with them. This ratio is also known as |
| A. | Rape Rate |
| B. | Reverse Repo Rate |
| C. | SLR |
| D. | Liquidity Ratio |
| Answer» E. | |
| 87. |
Which of the following is the mostimportant component of the liablities of commercial banks in India? |
| A. | Demand deposits |
| B. | Time deposits |
| C. | Inter-bank liablities |
| D. | Other borrowings |
| Answer» E. | |
| 88. |
The head office of the National Bank for Agriculture and Rural Development (NABARD) is located in |
| A. | New Delhi |
| B. | Hyderabad |
| C. | Mumbai |
| D. | Lucknow |
| Answer» D. Lucknow | |
| 89. |
A proportion of the total deposits and reserves of the Commercial Banks with the Reserve Bank of India is called |
| A. | Balance of Payment |
| B. | Bank Guarantee |
| C. | Caution Money |
| D. | Cash Reserve Ratio |
| Answer» E. | |
| 90. |
In India, the bank NABARD does not provide refinance to |
| A. | Scheduled Commercial Banks |
| B. | Regional Rural Banks |
| C. | State Land Development Banks |
| D. | Export-Import Bank |
| Answer» E. | |
| 91. |
The head quarter of RBI is situated at |
| A. | Delhi |
| B. | Kolkata |
| C. | Chennai |
| D. | Mumbai |
| Answer» E. | |
| 92. |
Since 1983, the RBI'S responsibility with respect to regional rural bank was transferred to |
| A. | CBI |
| B. | ARDC |
| C. | SBI |
| D. | NABAR |
| Answer» E. | |
| 93. |
Which of the following organisations is NOT associated with the financial banking sector in India? |
| A. | NABARD |
| B. | BSE |
| C. | ISRO |
| D. | ECGC |
| Answer» D. ECGC | |
| 94. |
The stance of RBI's monetary policy is |
| A. | inflation control with adequate liquidity for growth |
| B. | improving credit quality of Banks |
| C. | strengthening credit delivery machanism |
| D. | Any of the above |
| Answer» E. | |
| 95. |
Which one of the following is a private bank? |
| A. | Allahabad Bank |
| B. | Punjab and Sind Bank |
| C. | Punjap National Bank |
| D. | Punjab Bank |
| Answer» E. | |
| 96. |
Bank deposits that can be withdrawn without notice are called |
| A. | Account payee deposits |
| B. | Fixed deposits |
| C. | Variable deposits |
| D. | Demand deposits |
| Answer» E. | |
| 97. |
Many times we see banks advertise-'Anywhere Banking Anytime Banking'. Which of the following products/facilities launched by banks make it possible for the customers to avail banking services 24 hours all seven days?1. ATM2. Internet Banking3. Universal cheque facilityCodes |
| A. | only 1 |
| B. | only 2 |
| C. | Both 1 and 2 |
| D. | only 3 |
| Answer» D. only 3 | |
| 98. |
The finance Minister of India as well as the Governor, Reserve Bank of India have stressed on 'Financial Inclusion' as an important objective of the banking sector.What do they mean by 'Financial Inclusion'?1. Reaching banking services of all sections of the society in all parts of the country.2. Providing all sorts of financial aids/grants to the people living below poverty line as a social welfare measure without earning any profit.3. This means that banks henceforth should open their branches in rural areas only.Codes |
| A. | Only 1 |
| B. | Only 2 |
| C. | Only 1 and 2 |
| D. | Only 2 and 3 |
| Answer» B. Only 2 | |
| 99. |
Consider the following statements1. Reserve Bank of India was nationalized on 1 January, 1949.2. The borrowing programme of the Government of India is handled by the Department of Expenditure, Ministry of Finance.Which of the statements given above is/are correct? |
| A. | 1 only |
| B. | 2 only |
| C. | Both 1 and 2 |
| D. | neither 1 nor 2 |
| Answer» B. 2 only | |
| 100. |
Many a time we come across a term in banking sector 'Retail Banking'. What does it really mean? In simple words Retail Banking is to provide banking services |
| A. | only to individual customers in an integrated manner |
| B. | entirely to agriculture sector only |
| C. | only to Self-Help Group for their survival |
| D. | only to big corporates and business houses |
| Answer» B. entirely to agriculture sector only | |