MCQOPTIONS
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MCQOPTIONS
This section includes 98 Mcqs, each offering curated multiple-choice questions to sharpen your Indian Banking and Financial System knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Which of the following programs aims at the promotion of savings among rural women? |
| A. | Rashtriya Mahila Kosh |
| B. | Mahila Samriddhi Yojna |
| C. | Indira Mahila Yojna |
| D. | Javhar Rozgar Yojna |
| Answer» C. Indira Mahila Yojna | |
| 2. |
National income is the |
| A. | Net National Product at Market price |
| B. | Net National product at factor coast |
| C. | |
| D. | D. |
| Answer» D. D. | |
| 3. |
Which of the following programs meets the credit needs of poor women? |
| A. | Mahila Samriddhi Yojna |
| B. | Rashtriya Mahila Kosh |
| C. | Indira Mahila Yojna |
| D. | Mahila Samakhya Programme |
| Answer» C. Indira Mahila Yojna | |
| 4. |
In India, inflation is measured by |
| A. | wholesale price index number |
| B. | consumer price index for urban non-manual workers |
| C. | consumer price index for agricultural workers |
| D. | national income deflation |
| Answer» E. | |
| 5. |
Which of the following deals with economic offences? |
| A. | MISA |
| B. | NSA |
| C. | TADA |
| D. | COFEPOSA |
| Answer» E. | |
| 6. |
What does devaluation of a currency mean? |
| A. | decrease in the internal value of money |
| B. | decrease in the external value of money |
| C. | |
| D. | D. |
| Answer» C. | |
| 7. |
What is the main purpose of currency? |
| A. | standard of postponed payments |
| B. | standard of money |
| C. | medium of exchange |
| D. | none of these |
| Answer» D. none of these | |
| 8. |
To get the Net National Product, we deduct what from the Gross National Product? |
| A. | direct taxes |
| B. | imports |
| C. | interim payments |
| D. | loss |
| Answer» E. | |
| 9. |
Which of the following is known as plastic money? |
| A. | bearer cheques |
| B. | credit cards |
| C. | demand drafts |
| D. | gift cheques |
| Answer» C. demand drafts | |
| 10. |
The Government of India acquired the ownership and control of major banks in 1969 whose deposits were not less than |
| A. | Rs 40 crore |
| B. | Rs 50 crore |
| C. | Rs 60 crore |
| D. | Rs 80 crore |
| Answer» C. Rs 60 crore | |
| 11. |
What is Gross National Product? |
| A. | the total output of goods and services produced by the country s economy |
| B. | the total domestic and foreign output claimed by residents of the country |
| C. | the sum of gross domestic product and investment |
| D. | national income minus national expenditure |
| Answer» C. the sum of gross domestic product and investment | |
| 12. |
What are costs which vary with output called? |
| A. | overhead costs |
| B. | indirect costs |
| C. | prime costs |
| D. | all of the above |
| Answer» B. indirect costs | |
| 13. |
Which agency estimates the national income of India? |
| A. | Reserve Bank of India |
| B. | Planning Commission |
| C. | Ministry of Finance |
| D. | |
| Answer» E. | |
| 14. |
Bank rate means |
| A. | interest rate charged by moneylenders |
| B. | interest rate charged by scheduled banks |
| C. | rate of profit of the banking institution |
| D. | the official rate of interest charged by the central bank of the country |
| Answer» E. | |
| 15. |
Deflation is |
| A. | deficit budget |
| B. | reduction in taxation |
| C. | contraction in volume of money or credit that results in a decline of price level |
| D. | increase in public expenditure |
| Answer» B. reduction in taxation | |
| 16. |
The balance of payment comprises |
| A. | a current account of goods and services only |
| B. | a capital account of financial assets only |
| C. | official settlement accounts only |
| D. | all of these |
| Answer» E. | |
| 17. |
What is Net National Product? |
| A. | The money value of final goods and services produced annually in the economy |
| B. | The money value of annual service generation in the economy |
| C. | The money value of tangible goods produced annually in the economy |
| D. | The money value of tangible goods available in the economy |
| Answer» B. The money value of annual service generation in the economy | |
| 18. |
The law of demand states that |
| A. | demand increases with increase in income |
| B. | when income and prices rise, the demand also rises |
| C. | when price falls, demand increases |
| D. | when price increases, demand increases |
| Answer» D. when price increases, demand increases | |
| 19. |
Which one of the following is more effective in controlling prices in the long run? |
| A. | decrease in production |
| B. | increase in production |
| C. | decrease in the rate of interest |
| D. | increase in the rate of employment |
| Answer» C. decrease in the rate of interest | |
| 20. |
A firm is said to be of optimum size when |
| A. | average total cost is at a minimum |
| B. | marginal cost is at a minimum |
| C. | marginal cost is equal to marginal revenue |
| D. | the firm is maximizing its profit |
| Answer» B. marginal cost is at a minimum | |
| 21. |
Through open market operations, the RBI purchase and sell |
| A. | foreign exchange |
| B. | gold |
| C. | government securities |
| D. | all of these |
| Answer» E. | |
| 22. |
All revenues received, loans raised and money received in repayment of loans by the Union government go into |
| A. | Public account of India |
| B. | Contingency fund of India |
| C. | Consolidated fund of India |
| D. | None of the above |
| Answer» D. None of the above | |
| 23. |
Development means economic growth with |
| A. | price stability |
| B. | social change |
| C. | inflation |
| D. | deflation |
| Answer» C. inflation | |
| 24. |
What happens to marginal cost when average cost increases |
| A. | Marginal cost is below average cost |
| B. | Marginal cost is above average cost |
| C. | Marginal cost is equal to average variable cost |
| D. | Marginal cost is equal to average cost |
| Answer» C. Marginal cost is equal to average variable cost | |
| 25. |
Other things being equal, what causes a decrease in demand? |
| A. | rise in the price of the substitute |
| B. | fall in the price of the commodity |
| C. | rise in the income of the consumer |
| D. | rise in the price of the commodity |
| Answer» C. rise in the income of the consumer | |
| 26. |
Land development banks in India are owned by the |
| A. | RBI |
| B. | State governments |
| C. | Commercial banks |
| D. | Cooperative societies |
| Answer» E. | |
| 27. |
Which of the following taxes is levied and collected by the union, but assigned to the states? |
| A. | sales tax |
| B. | octroi |
| C. | excise |
| D. | consignment tax |
| Answer» D. consignment tax | |
| 28. |
The launching of five year plans in India saw the introduction of |
| A. | mixed economy |
| B. | socialist economy |
| C. | capitalist economy |
| D. | closed economy |
| Answer» B. socialist economy | |
| 29. |
Which one of the following was set up during the Seventh Five Year Plan to help the low income groups? |
| A. | NABARD |
| B. | Regional rural bank |
| C. | National Housing Bank |
| D. | UTI Bank |
| Answer» B. Regional rural bank | |
| 30. |
The main objective of IDBI is to |
| A. | Co-ordination, regulation and supervision of the working of other financial institutions such as IFCI, ICICI, UTI, LIC, Commercial Banks and SFCs. |
| B. | Supplementing the sources of other financial institution and thereby widening the scope of their assistance. |
| C. | Planning, promotion and development of key industries and diversifications of industrial growth. |
| D. | All of the above |
| Answer» E. | |
| 31. |
One of the functions of IDBI is to assist other financial institutions by ___ of loans granted for exports. |
| A. | Planning |
| B. | Refinancing |
| C. | Both (a) and (b) |
| D. | None of these |
| Answer» C. Both (a) and (b) | |
| 32. |
The functions of SFCs include |
| A. | Grant of loans and advances to or subscribe to debentures of industrial concerns repayable within a period not exceeding 20 years, with option of conversion into shares or stock of industrial concern. |
| B. | Guaranteeing loans raised by industrial concerns which are repayable within a period not exceeding 20 years. |
| C. | Both (a) and (b) |
| D. | None of these |
| Answer» D. None of these | |
| 33. |
The ICICI has been established to achieve the objectives |
| A. | to assist in the formation, expansion and modernisation of industrial units in the private sector. |
| B. | to stimulate and promote the participation of private capital (both Indian and foreign) in such industrial units |
| C. | Both (a) and (b) |
| D. | None of these |
| Answer» D. None of these | |
| 34. |
Which bank was earlier known as the lmperial bank of lndia? |
| A. | State Bank of lndia |
| B. | Reserve Bank of lndia |
| C. | Bank of Baroda |
| D. | Syndicate Bank |
| Answer» B. Reserve Bank of lndia | |
| 35. |
Which of the following is a statement of objectives (a type of plan) |
| A. | Reduce costs as much as possible |
| B. | Reduce costs by 5 percent |
| C. | Make more profits |
| D. | Reduce products prices to capture market |
| Answer» C. Make more profits | |
| 36. |
State-level financial institutions are |
| A. | State Financial Corporations (SFCs). |
| B. | State Industrial Development Corporations (SIDC) |
| C. | State Industrial Investment Corporations (SIIC) |
| D. | All of the above |
| Answer» E. | |
| 37. |
Which of the following schemes are operated by IDBI? |
| A. | Modernisation Assistance Scheme |
| B. | Technical Development Fund Scheme |
| C. | Equipment Finance Scheme |
| D. | All of these |
| Answer» E. | |
| 38. |
The IDBI was established in |
| A. | 1964 |
| B. | 1965 |
| C. | 1966 |
| D. | 1967 |
| Answer» B. 1965 | |
| 39. |
lndustrial Development Bank of India is |
| A. | Wholly-owned Government of India undertaking |
| B. | Wholly-owned subsidiary of Reserve Bank of India |
| C. | A corporation and owned by Government of lndia and public sector banks. |
| D. | Public Limited Company |
| Answer» B. Wholly-owned subsidiary of Reserve Bank of India | |
| 40. |
According to Fayol the terms "Management" and "Administration" are |
| A. | Same |
| B. | Different |
| C. | He did not consider it all. |
| D. | None of the above |
| Answer» B. Different | |
| 41. |
The lDBI underwrites and --------------- the shares and debentures of industrial concern s. |
| A. | imposses on |
| B. | subscribes to |
| C. | targets |
| D. | none of these |
| Answer» C. targets | |
| 42. |
All India financial Institutions are |
| A. | Industrial Development Bank of India (IDBI) |
| B. | Industrial Finance Corporation of India (lFCI) |
| C. | Industrial Credit and Investment Corporation of India (ICICI) |
| D. | All of the above |
| Answer» E. | |
| 43. |
The primary objective of IDBl is to -------- Regulate and Supervise the working of other financial institutions like lFCI, SFCs, UTI. |
| A. | Co-ordinate |
| B. | Control |
| C. | Planning |
| D. | None of these |
| Answer» B. Control | |
| 44. |
The success of E-banking depends upon (i) Multi-layer security system (ii) Risk and surveillance system (iii) Updated flawless softwares (iv) Stringent legal framework |
| A. | (i) and (ii) |
| B. | (i), (ii) and (iii) |
| C. | (ii), (iii) and (iv) |
| D. | (i),(ii), (iii) and (iv) |
| Answer» C. (ii), (iii) and (iv) | |
| 45. |
The main functions of IFCI are - (i) Granting loans and advances for the establishment, expansion diversification and modernisation of industries in corporate and co-operative sectors. (ii) Guaranteeing loans raised by industrial concerns in the capital market, both in rupees and foreign currencies. (iii) Subscribing or underwriting the issue of shares and debentures by industries. Such investment can be held up to 7 years. (iv) Guaranteeing credit purchase of capital goods imported as well as purchased within the country |
| A. | (i) and (ii) |
| B. | (iii), (iv), and (ii) |
| C. | (i), (ii), and (iii) |
| D. | (i), (ii), (iii) and (iv) |
| Answer» E. | |
| 46. |
The main functions of UTI are |
| A. | To mobilise the savings of the community through sale of units. |
| B. | To invest the savings so mobilised in corporate securities such as shares and debentures etc. |
| C. | To serve unit holders along the length and breadth of the country. |
| D. | All of the above |
| Answer» E. | |
| 47. |
The IDBl can grant a ------------ and advances to other financial institutions. |
| A. | Line of credit |
| B. | Loans |
| C. | Both (a) and (b) |
| D. | None of these |
| Answer» D. None of these | |
| 48. |
With a view to encouraging newer classes of entrepreneurs and bringing about wider dispersal of ownership and control of industrial undertakings, lDBI operates a special scheme for supplementing the equity contribution to projects made by small and new entrepreneurs. This scheme is known as |
| A. | Technical Development Fund Scheme |
| B. | Soft Loan Scheme for Modernisation |
| C. | Seed Capital Assistance Scheme |
| D. | None of these |
| Answer» D. None of these | |
| 49. |
The concept of scientific management is developed by |
| A. | Taylor |
| B. | Fayol |
| C. | Marx |
| D. | None of these |
| Answer» B. Fayol | |
| 50. |
In context with India s oil and gas fields consider the following. 1. Only gas Fields 2. Only Oil fields 3. Oil and gas fields. Which among the following option gives the correct order of numbers of fields classified as above? |
| A. | 1, 2, 3 |
| B. | 2, 3, 1 |
| C. | 3, 2, 1 |
| D. | 3, 1, 2 |
| Answer» D. 3, 1, 2 | |