MCQOPTIONS
Saved Bookmarks
MCQOPTIONS
This section includes 80 Mcqs, each offering curated multiple-choice questions to sharpen your Economic Organisations and Regulatory Bodies in India knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
RBI promotes commercial banking by |
| A. | Providing cheap rediscounting facilities to banks |
| B. | Providing liberalized rediscounting facilities to banks |
| C. | Giving subsidies to new bank |
| D. | All of the above |
| Answer» E. | |
| 52. |
Which of the following are quantitative control methods |
| A. | Bank rate & CRR |
| B. | Statutory Liquididty ratio |
| C. | Open market operations |
| D. | All of the above |
| Answer» E. | |
| 53. |
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 | |
| 54. |
The National Housing Bank (NHB) was set up in India as a wholly-owned subsidiary of |
| A. | Reserve Bank of India |
| B. | State Bank of India |
| C. | ICICI Bank |
| D. | None of the above |
| Answer» B. State Bank of India | |
| 55. |
Consider the following statements 1. Small Industry Development Bank of India (SIDBI) was set-up as a whole owned subsidiary of the RBI. 2. SIDBI has taken over the responsibility of administering Small Industry Development Fund managed by the IDBI. Which of the statements given above .is/are correct? |
| A. | Only 1 |
| B. | Only 2 |
| C. | Both 1 and 2 |
| D. | Neither 1 nor 2 |
| Answer» C. Both 1 and 2 | |
| 56. |
Consider the following statements regarding BASEL Standards: 1. Under BASEL-II, banks and financial institutions have to reserve money in a fixed amount to tackle international financial risks. 2. Under Basel-III tier 3 capital has to be maintained as earlier which is used for market risk. Which of the above statement is/are correct? |
| A. | Only 1 |
| B. | Only 2 |
| C. | Both |
| D. | None of these |
| Answer» B. Only 2 | |
| 57. |
Consider the following statements about SEBI: 1. Protection of the interest of investors. 2. SEBI is the not constitutional institution. 3. The regulation and development of securities market. 4. Registering the collective investment plans of mutual funds and its regulation. Choose correct options |
| A. | 1 and 2 |
| B. | 2 and 3 |
| C. | All of the above |
| D. | Only 3 |
| Answer» D. Only 3 | |
| 58. |
As per the circular of the RBI, what is correct about the core investment companies? |
| A. | All those non-banking finance companies, which invest not less than 90% of their total assets in the form of shares and securities for non-trading purposes. |
| B. | All the corporate houses with net-owned funds not less than Rs. 2,000 crore invested in the core sector for at least 10 years. |
| C. | Both (a) and (b) correct. |
| D. | None of these |
| Answer» B. All the corporate houses with net-owned funds not less than Rs. 2,000 crore invested in the core sector for at least 10 years. | |
| 59. |
Consider the following statements: 1. SEBI will be the authority to grant general permission to Qualified Foreign Investors for investment under Portfolio Investment Scheme (PIS) route that is similar to FIIs. 2. The prescribed limits for FIIs and NRIs are not applicable to the QFIs. Select the correct above statement. |
| A. | Only 1 |
| B. | Only 2 |
| C. | 1 and 2 |
| D. | None of these |
| Answer» E. | |
| 60. |
Consider the committee as the step by the RBI to check the functioning of the Micro Finance Institutions (MFIs) operating in India. |
| A. | Raguram Rajan |
| B. | Bimal Jalan |
| C. | Y.H.Malegam Committee |
| D. | Y.V.Reddy Committee |
| Answer» D. Y.V.Reddy Committee | |
| 61. |
If the cash reserve ratio is lowered by the Reserve Bank of India, its impact on credit creation will be: |
| A. | Decrease |
| B. | It increase |
| C. | No effect |
| D. | None of these |
| Answer» C. No effect | |
| 62. |
What do you mean by Scheduled Banks: |
| A. | The Bank which is already nationalised. |
| B. | The Bank which is not nationalised |
| C. | The Banks whose headquarters is situated abroad. |
| D. | The Banks whose name is listed in 2nd schedule of RBI. |
| Answer» E. | |
| 63. |
Consider the following statements and select correct: 1. The cash part of SLR of the bank is known as Till money . 2. Till money of commercial banks is the part of CRR. 3. Banks with no Till money are not allowed to operate by the RBI. |
| A. | 1, 2 and 3 are correct |
| B. | 2 and 3 are correct |
| C. | Only 3 is correct |
| D. | Only 2 is correct |
| Answer» E. | |
| 64. |
Which of the following is/are treated as like artificial currency: |
| A. | SDR |
| B. | ADR |
| C. | GDR |
| D. | None of these |
| Answer» B. ADR | |
| 65. |
The national housing bank was set up in India as a wholly owned subsidiary of which of the following: |
| A. | ICICI Bank |
| B. | RBI and LIC Banks |
| C. | RBI |
| D. | None of these |
| Answer» D. None of these | |
| 66. |
Consider the following statements i. American depositary receipts are securities of a non-US company that trade in the US financial markets. ii. ADR is a negotiable security which represents securities of companies that is foreign to the market which the DR trades. Which of the statements given above is/are correct? |
| A. | Only 1 |
| B. | Only 2 |
| C. | Both 1 and 2 |
| D. | Neither 1 nor 2 |
| Answer» D. Neither 1 nor 2 | |
| 67. |
Which one of the following Banks in India had started the special promotional and developmental activities to meet the twin objectives of balanced regional development and accelerated industrial growth in the country? |
| A. | SIDBI |
| B. | |
| C. | C. |
| D. | D. |
| Answer» C. C. | |
| 68. |
Fiscal policy refers to |
| A. | Sale and purchase of securities by RBI |
| B. | Government taxes, expenditure and borrowings |
| C. | Government borrowings from abroad |
| D. | Sharing of its revenue by Central Government with States |
| Answer» C. Government borrowings from abroad | |
| 69. |
Which one of the following development Financial Institutions in India has started the special refinance scheme for the resettlement and rehabilitation of Voluntary Retired workers of the National Textile Corporation (NIC)? |
| A. | IDBI |
| B. | SIDBI |
| C. | ICICI |
| D. | None of these |
| Answer» C. ICICI | |
| 70. |
RBI pays interest on CRR balances of banks at _____. |
| A. | Bank Rate |
| B. | Repo Rate |
| C. | Bank Rate minus 2% |
| D. | Zero % |
| Answer» E. | |
| 71. |
Which is distributary agency of Kisan Credit Card Scheme? |
| A. | NABARD |
| B. | SBI |
| C. | Rural Development Bank |
| D. | Regional Rural Bank and Commercial Banks |
| Answer» E. | |
| 72. |
Which of the following is not associated with the risk involved in ADRs? |
| A. | Political risk. |
| B. | Exchange rate risk. |
| C. | Inflationary risk. |
| D. | None of the above. |
| Answer» E. | |
| 73. |
Which of the following does not constitute a benefit of DRs for the issuer? |
| A. | Offer a new avenue for raising equity capital. |
| B. | Broaden and diversify a company s investor base. |
| C. | Enhance a company s visibility and status. |
| D. | None of the above. |
| Answer» E. | |
| 74. |
Which of the following is not an advantage of ADRs? |
| A. | Cost-effectiveness. |
| B. | Diversification of investment. |
| C. | Reduction in administration cost |
| D. | None of the above. |
| Answer» E. | |
| 75. |
ADRs that do not qualify or are not intended to be listed on stock exchanges are referred to as |
| A. | Level 1 ADRs |
| B. | Level 2 ADRs. |
| C. | Level 3 ADRs. |
| D. | None of the above |
| Answer» B. Level 2 ADRs. | |
| 76. |
Issuance of DRs is based on the increase of demand in the |
| A. | Local market. |
| B. | International market. |
| C. | Existing shareholders. |
| D. | |
| Answer» C. Existing shareholders. | |
| 77. |
Depositary receipts that are traded in an international market other than the United States are referred to as |
| A. | Global depositary receipts |
| B. | International depositary receipts. |
| C. | Open market depositary receipts. |
| D. | None of the above. |
| Answer» B. International depositary receipts. | |
| 78. |
An instrument representing ownership interest in securities of a foreign issuer is referred to as |
| A. | An ownership certificate. |
| B. | |
| C. | C. |
| D. | D. |
| Answer» C. C. | |
| 79. |
What are the functions of IRDA? |
| A. | Registration of insurance companies. |
| B. | To regulate the insurance industry and protect the customers. |
| C. | To frame regulations regarding Insurance market |
| D. | All of the above |
| Answer» E. | |
| 80. |
Legislation gives which body the power to specify a code of conduct for surveyors and loss assessors? |
| A. | Institute of Insurance and Risk Management |
| B. | Insurance Regulatory and Development Authority. |
| C. | Life Insurance Council. |
| D. | Securities and Exchange Board of India |
| Answer» C. Life Insurance Council. | |