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.
| 101. |
With reference to the institution of Banking Ombudsmanin India, which one of the statements is NOT correct? |
| A. | The Banking Ombudsman is appointed by the Reserve Bank of India |
| B. | The Banking Ombudsman can consider complaints from Not-Resident Indians having accounts in India |
| C. | The service provided by the Banking Ombudsman is free of any fee |
| D. | The orders passed by the Banking Ombudsman are final and binding on the parties concerned |
| Answer» E. | |
| 102. |
Consider the following statements for 'India Millennium Deposits' Scheme1. The scheme was launched by the State Bank of India.2. It was intended for Resident Indians only.3. The maturity period of the scheme was six years only.Which of the statements given above is/are correct? |
| A. | 1 and 2 only |
| B. | 1 and 3 only |
| C. | 1, 2 and 3 |
| D. | 1 only |
| Answer» B. 1 and 3 only | |
| 103. |
Which authority supervises the functioning of formal source of credit |
| A. | POUCE |
| B. | CBI |
| C. | SBI |
| D. | RBI |
| Answer» E. | |
| 104. |
What is Repo Rate? |
| A. | It is a rate at which RBI sells Government securities to banks |
| B. | It is a rate at which RBI buys Government securities from banks |
| C. | It is a rate at which RBI allows small loans in the market |
| D. | It is a rate which is offered by banks to their most valued customers or prime customers |
| Answer» C. It is a rate at which RBI allows small loans in the market | |
| 105. |
Which of the following correctly describes what sub prime lending is? |
| A. | Lending to the people who can not return to loan |
| B. | lending to the people who are high-valued customers o the banks |
| C. | Landing to those who are not a regular customer of a bank |
| D. | Both b and c |
| Answer» D. Both b and c | |
| 106. |
Why is the offering to Teaser Loans by commercial banks a cause of economic concern?1. The teaser loans are considered to be an aspect of sup-prime lending and banks may be exposed to the risk of defaulters in futures. 2. In India, the teaser loans are mostly given to inexperienced enterpreneurs to setup manufacturing of export units.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 | |
| 107. |
Which of the following is NOT a banking related term? |
| A. | Outstanding amount |
| B. | Benchmark Prime Lending Rate |
| C. | Explict Guarantee |
| D. | Radiation in |
| Answer» E. | |
| 108. |
Whenever RBI does some Open Market Operation transactions, actually is wishes to regulate which of the following ? |
| A. | Inflation only |
| B. | Liquidity in economy |
| C. | Borrowing powers of the banks |
| D. | Flow of Foreign Direct Investment |
| Answer» C. Borrowing powers of the banks | |
| 109. |
Micro credit or micro finance is a novel approach to banking with the poor. In this approach bank credit is extended to the poor through |
| A. | Self Help Groups |
| B. | Anganwadi |
| C. | Co-operative Credit Societies |
| D. | Reserve Bank of India |
| Answer» B. Anganwadi | |
| 110. |
Which one of the following Indian banks is NOT a nationalised bank? |
| A. | Corporation Bank |
| B. | Dena Bank |
| C. | Federal Bank |
| D. | Vijaya Bank |
| Answer» D. Vijaya Bank | |
| 111. |
Which of the following is NOT a banking related or financial term? |
| A. | Credit worthiness |
| B. | Margin Money |
| C. | Payment gateway |
| D. | Polmerization |
| Answer» E. | |
| 112. |
Which of the following terms indicates a mechanism used by commercial banks for providing credit to the government? |
| A. | Cash Credit Ratio |
| B. | Debt Service Obligation |
| C. | Liquidity Adjustment Facility |
| D. | Statutory Liquidity Ratio |
| Answer» E. | |
| 113. |
Regional rural banks1. have limited area of operation2. have free access in liberal refinance facileter from3. are required to lend only to weaker sectionsCodes |
| A. | 1 and 3 |
| B. | 1, 2 and 3 |
| C. | 1 and 2 |
| D. | 2 and 3 |
| Answer» C. 1 and 2 | |
| 114. |
Quantitative credit controls do not include |
| A. | open market operations |
| B. | back rate |
| C. | cash reserve ration |
| D. | RBI directives |
| Answer» E. | |
| 115. |
Which bank became the first bank to open its branch in China? |
| A. | IDBI Bank |
| B. | HDFC Bank |
| C. | State Bank of India |
| D. | Punjab National Bank |
| Answer» D. Punjab National Bank | |
| 116. |
Which of the following is NOT a banking related system? |
| A. | Portfolio Management |
| B. | Overdraft |
| C. | Treasury Operation |
| D. | Proclamation |
| Answer» E. | |
| 117. |
Which of the following is considered an informal method of getting credit/finance? |
| A. | Internet Banking |
| B. | Branch Visits |
| C. | Telebanking |
| D. | Going to Money lenders |
| Answer» E. | |
| 118. |
Which of the following is NOT a bank or finance company? |
| A. | Barclays |
| B. | BNP Paribas |
| C. | HSBE |
| D. | Lufthansa |
| Answer» E. | |
| 119. |
Which of the followings is an easy way to providing credit to the former community? |
| A. | Kisan Credit Card |
| B. | Indira Vikas Patra |
| C. | National Saving Certificates |
| D. | Loan against gold |
| Answer» B. Indira Vikas Patra | |
| 120. |
Mohammad Yunus, who has been awarded Nobel Peace prize in 2006, is a citizen of |
| A. | Bangladesh |
| B. | Iran |
| C. | Malaysia |
| D. | Pakistan |
| Answer» B. Iran | |
| 121. |
The largest public sector commercial Bank of India is the |
| A. | Bank of India |
| B. | Reserve Bank of India |
| C. | State Bank of India |
| D. | Union Bank of India |
| Answer» D. Union Bank of India | |
| 122. |
Which of the following is NOT a foreign bank operating in India? |
| A. | ABN Amro |
| B. | NSBC |
| C. | Standard Charted Bank |
| D. | Yes Bank |
| Answer» E. | |
| 123. |
The interest rate at which the Reserve Bank of India lends to commercial banks in the short term to maintain liquidity is known as |
| A. | Interest rate |
| B. | Repo rate |
| C. | Bank rate |
| D. | Reverse repo rate |
| Answer» C. Bank rate | |
| 124. |
Which bank was earlier called the 'Imperial Bank of India'? |
| A. | RBI |
| B. | SBI |
| C. | UBI |
| D. | PNB |
| Answer» C. UBI | |
| 125. |
Which one of the following public Sector Bank's emblem figures a dog and the words 'faithful, friendly' in it? |
| A. | Punjab National Bank |
| B. | State Bank of India |
| C. | Oriental Bank of Commerce |
| D. | Syndicate Bank |
| Answer» E. | |
| 126. |
Know Your Customer (KYC) regulations have been introduced in financial transactions under the regulation of |
| A. | Banking companies Act |
| B. | Prevention of money Laundering Act |
| C. | Reserve Ban of India Act |
| D. | Companies Act |
| Answer» C. Reserve Ban of India Act | |
| 127. |
An increase in CRR by the Reserve Bank of Indian results in |
| A. | Decrease in debt of the government |
| B. | Reduction in liquidity in the economy |
| C. | Attracting more FDI in the country |
| D. | More flow of credit to desired sectors |
| Answer» C. Attracting more FDI in the country | |
| 128. |
The Foreign Exchange Reserves of India are kept in the custody of |
| A. | World Bank |
| B. | IMF |
| C. | Reserve Bank of India |
| D. | Prime Minister Rahat Kosh |
| Answer» D. Prime Minister Rahat Kosh | |
| 129. |
Which of the following rates is NOT decided by the Reserve Bank of India? |
| A. | Bank Rate |
| B. | Repo Rate |
| C. | Reverse Repo Rate |
| D. | Income Tax Rates |
| Answer» E. | |
| 130. |
Bad loans in banking terminology are generally known as |
| A. | Prime Loans |
| B. | Prime Asset |
| C. | BPOs |
| D. | NPSs |
| Answer» E. | |
| 131. |
High rates of interest in a law inflation regime.......... |
| A. | attract people to make an investment |
| B. | discourage people to make an investment |
| C. | create atmosphere for capital formation |
| D. | are not favourable for credit expansion |
| Answer» C. create atmosphere for capital formation | |
| 132. |
Which among the following activities can NOT be considered a common activity of a general bank customer? |
| A. | Use of tele-banking |
| B. | Use of ATMs |
| C. | Start of EFT facility |
| D. | Increase of decrease in PLR and announcement of credit policy |
| Answer» E. | |
| 133. |
Which one of the following is NOT an apex institution? |
| A. | State Bank of India |
| B. | NABARD |
| C. | SIDBI |
| D. | State Co-operative Bank |
| Answer» E. | |
| 134. |
Who amongst the following appoints Banking Ombudsman in each State? |
| A. | Ministry of Social Welfare, Government of India |
| B. | Registrar of Companies |
| C. | The President of India |
| D. | The Reserve Bank of India |
| Answer» E. | |
| 135. |
the availability of cash and other cash-like marketable instruments that are useful in purchase and investments are commonly known as |
| A. | Cash Crunch |
| B. | Liquidity |
| C. | Credit |
| D. | Marketability |
| Answer» C. Credit | |
| 136. |
The EXIM Bank of India was established in |
| A. | 1964 |
| B. | 1976 |
| C. | 1980 |
| D. | 1982 |
| Answer» E. | |
| 137. |
Open market operations of RBI refer to buying and selling of |
| A. | Commercial bills |
| B. | Foreign exchange |
| C. | Gold |
| D. | Government bonds |
| Answer» E. | |
| 138. |
A customer wishes to purchase some US dollars in India. He/she should go to |
| A. | Public Debt Division of the RBI only |
| B. | American Express Bank only |
| C. | RBI or any branch of a bank which is authorized for such business |
| D. | Ministry of Foreign Affairs |
| Answer» D. Ministry of Foreign Affairs | |
| 139. |
Which of the following organisations/banks ha done a commendable work in the field of micro-finance was awarded Nobel Prize also in the past? |
| A. | Grameen Bank of Bangladesh |
| B. | CRY |
| C. | ASHA |
| D. | NABARD |
| Answer» B. CRY | |
| 140. |
Which one of the following statements is correct regarding increase in the Cash Reserve Ratio (CRR) in India ? |
| A. | It increase credit creation |
| B. | It reduces credit creation |
| C. | It does not affect credit |
| D. | It denotes liberal monetary policy |
| Answer» C. It does not affect credit | |
| 141. |
Open Market Operations of Reserve Bank of India refer to |
| A. | Trading in securities |
| B. | Auctioning of Foreign Exchange |
| C. | Transaction in Gold |
| D. | None of these |
| Answer» B. Auctioning of Foreign Exchange | |
| 142. |
Which of the following is/are considered a policy rate(s) in the hands of RBI?1. Repo Rate2. SLR3. InflationCode |
| A. | Only 1 |
| B. | Only 2 |
| C. | Only 3 |
| D. | only 1 and 2 |
| Answer» E. | |
| 143. |
Green Banking means |
| A. | Development of forestry by banks |
| B. | Financing of environmental - friendly projects by banks |
| C. | Financing of irrigation projects by banks |
| D. | None of the above |
| Answer» C. Financing of irrigation projects by banks | |
| 144. |
Which of the following banks is a nationalized bank? |
| A. | ICICI Bank |
| B. | Yes Bank |
| C. | Saraswat Co-operative Bank |
| D. | Reserve Bank of India |
| Answer» E. | |
| 145. |
Who central the activities of indigenous bankers? |
| A. | Lead Bank |
| B. | Regional Rural Bank |
| C. | Reserve Bank of India |
| D. | None of these |
| Answer» E. | |
| 146. |
The Bank Rate is the rate interest at which the Reserve Bank of India provides loans to the |
| A. | Scheduled Commercial Banks |
| B. | Public Sector |
| C. | Corporate Sector |
| D. | Foreign Institutional Investors |
| Answer» B. Public Sector | |
| 147. |
Central Co-operative Banks work at |
| A. | District level |
| B. | State level |
| C. | National level |
| D. | Block level |
| Answer» B. State level | |
| 148. |
Banks have started opening 'No Frill' accounts recently. These accounts are to help which of the following section of customers? |
| A. | Weaker section of society |
| B. | High value customer |
| C. | Students |
| D. | Loan-seekers who were not able to repay their loans take earlier |
| Answer» D. Loan-seekers who were not able to repay their loans take earlier | |
| 149. |
Match List-I (Organisation) with List-II (Year of Foundation) correctly and select your answer using the code given belowList-Ilist-IIF.IFCI1.1948G.ICICI2.1955H.IDBI3.1964J.EXIM Bank4.1971Code F G H J A. 1234B. 2134C. 1243D. 2143 |
| A. | A. |
| B. | B. |
| C. | C. |
| D. | D. |
| Answer» B. B. | |
| 150. |
Which of the following is the most important component of the liablities of Commercial Bank in India ? |
| A. | Time deposits |
| B. | Demon deposits |
| C. | Inter-bank liablities |
| D. | Other borrowings |
| Answer» B. Demon deposits | |