Money and BankingSivakumarPYQs - Prelims0 Welcome to Quiz on Money and Banking Consider the following: 1. Industrial Finance Corporation of India 2. Industrial Credit and Investment Corporation of India 3. Industrial Development Bank of India 4. Unit Trust of India The correct sequence in which the above were established is: 1,2,4,3 1,3,2,4 4,3,2,1 1,4,3,2 Consider the following statements: 1. In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) deliver more credit in comparison to Scheduled Commercial Banks and Regional Rural Banks 2. One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies. Which of the statements given above is/are correct? 1 only 2 only Both 1 and 2 Neither 1 nor 2 Consider the following liquid assets: 1. Demand deposits with the banks 2. Time deposits with the banks 3. Saving deposits with the banks 4. Currency The correct sequence of these assets in the decreasing order of liquidity is 1-4-3-2 4-3-2-1 2-3-1-4 4-1-3-2 What is/are the facility/facilities the beneficiaries can get from the services of Business Correspondent (Bank Saathi) in branchless areas? 1: It enables the beneficiaries to draw their subsidies and social security benefits in their villages. 2 It enables the beneficiaries in the rural areas to make deposits and withdrawals. Select the correct answer using the code given below. 1 only 2 only Both 1 and 2 Neither 1 nor 2 'Basel III Accord' or simply 'Basel III', often seen in the news, seeks to Develop national strategies for the conservation and sustainable use of biological diversity Improve banking sector's ability to deal with financial and economic stress and improve risk management Reduce the greenhouse gas emissions but places a heavier burden on developed countries Transfer technology from developed Countries to poor countries to enable them to replace the use of chlorofluorocarbons in refrigeration with harmless chemicals What is/are the purpose/purposes of the 'Marginal Cost of Funds based Lending Rate (MCLR)' announced by RBI? 1. These guidelines help improve the transparency in the methodology followed by banks for determining the interest rates on advances. 2. These guidelines help ensure availability of bank credit at interest rates which are fair to the borrowers as well as the banks. Select the correct answer using the code given below. 1 only 2 only Both 1 and 2 Neither 1 nor 2 The establishment of 'Payment Banks' is being allowed in India to promote financial inclusion, Which of the following statements is/are correct in this context? 1. Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks: 2. Payment Banks can issue both credit cards and debit cards. 3. Payment Banks cannot undertake lending activities. Select the correct answer using the code given below. 1 and 2 only 1 and 3 only 2 only 1,2 and 3 The term 'Core Banking Solutions' is sometimes seen in the news. Which of the following statements best describes/ describe this term? 1. It is a networking of a bank's branches which enables customers to operate their accounts from any branch of the bank on its network regardless of where they open their accounts. 2. It is an effort to increase RBI's control over commercial banks through computerization. 3. It is a detailed procedure by which a bank with huge non-performing assets is taken over by another bank. Select the correct answer using the code given below. 1 only 2 and 3 only 1 and 3 only 1,2 and 3 With reference to 'Bitcoins', sometimes seen in the news, which of the following statements is/are correct? 1. Bitcoins are tracked by the Central Banks of the countries. 2. Anyone with a Bitcoin address can send and receive Bitcoins from anyone else with a Bitcoin address. 3. Online payments can be sent without either side knowing the identity of the other. Select the correct answer using the code given below. 1 and 2 only 2 and 3 only 3 only 1,2 and 3 The sum of which of the following constitutes Broad Money in India? 1. Currency with the public 2. Demand deposits with banks. 3. Time deposits with banks 4. Other deposits with RBI Choose the correct answer using the codes given below: 1 and 2 1,2 and 3 1,2,3 and 4 1,2 and 4 The farmers are provided credit from a number of sources for their short and long term needs. The main sources of credit to the farmers include: The Primary Agricultural Cooperative Societies, commercial banks, RRBs and private money lenders The NABARD, RBI, commercial banks and private money lenders The District Central Cooperative Banks (DCCB), the lead banks, IRDP and JRY The Large Scale Multi-purpose Adivasis Programme, DCCB, IFFCO and commercial banks As part of the liberalisation programme and with a view to attract foreign exchange, the government and the RBI have, devised two scheme known as FCNR [A] Scheme and FCNR [B] Scheme. Which of the following is/are true regarding these two schemes? 1. Under scheme 'A' RBI bears exchange rate fluctuations. 2. Under scheme 'B' other banks are to meet out the difference in exchange rate fluctuations. 3. Both the schemes stand withdrawn now. 4. Only scheme 'A' has been withdrawn Codes: 3 only 1 and 2 1,2 and 3 1,2 and 4 Consider the following: 1. Currency with the public 2. Demand deposits with banks 3. Time deposits with banks Which of these are included in Broad Money in India? 1 and 2 1 and 3 2 and 3 1,2 and 3 Consider the following financial institutions of India: 1. Industrial Finance Corporation of India (IFCl) 2. Industrial Credit and Investment Corporation of India (IClCl) 3. Industrial Development Bank of India (IDBI) 4. National Bank for Agriculture and Rural Development (NABARD) The correct chronological sequence of the establishment of these institutions is: 1,2,3,4 2,3,4,1 3,4,1,2 4,1,2,3 Consider the following statements: 1. The National Housing Bank the apex institution of housing finance in India, was set up as a wholly owned subsidiary of the Reserve Bank of India 2. The Small Industries Development Bank of India was established as a wholly owned subsidiary of the Industrial Development Bank of India Which of the statements given above is/are correct? 1 only 2 only Both 1 and 2 Neither 1 nor 2 Consider the following statements 1. Reserve Bank of India was nationalized on 26 January, 1950 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? 1 only 2 only Both 1 and 2 Neither 1 nor 2 Which one of the following Indian banks is not a nationalized bank? Corporation Bank Dena Bank Federal Bank Vijaya Bank Consider the following statements: 1. Life Insurance Corporation of India is the oldest insurance company in India. 2. National Insurance Company Limited was nationalized in the year 1972 and made a subsidiary of General Insurance Corporation of India. 3. Headquarters of United Indian Insurance Company Limited are located at Chennai. Which of the statements given above are correct? 1,2 and 3 1 and 2 only 2 and 3 only 1 and 3 only The National Housing Bank was set up in India as a wholly owned subsidiary of which one of the following? State Bank of India Reserve Bank of India ICICI Bank Life Insurance Corporation of India With reference to the Non-banking Financial Companies (NBFCs) in India, consider the following statements: 1. They cannot engage in the acquisition of securities issued by the government. 2. They cannot accept demand deposits like Savings Account Which of the statement given above is/ are correct? 1 only 2 only Both 1 and 2 Neither I nor 2 In India, the interest rate on savings accounts in all the nationalized commercial banks is fixed by Union Ministry of Finance Union Finance Commission Indian Banks' Association None of the above. With reference to the institution of Banking Ombudsman in, India, which one of the statements is not correct? The Banking Ombudsman is appointed by the Reserve Bank of India. The Banking Ombudsman can, consider complaints from Non-Resident Indians having accounts in India. The orders passed by the Banking Ombudsman are final and binding on the parties concerned. The service provided by the Banking Ombudsman is free of any fee. With reference to India, consider the following: 1. Nationalization of Banks 2 Formation of Regional Rural Banks 3. Adoption of villages by Bank Branches Which of the above can be considered as steps taken to achieve the "financial inclusion" in India? 1 and 2 only 2 and 3 only 3 only 1,2 and 3 Consider the following statements: The functions of commercial banks in India include 1. Purchase and sale of shares and securities on behalf of customers 2. Acting as executors and trustees of wills Which of the statements given above is/are correct? 1 only 2 only Both 1 and 2 Neither 1 nor 2 The basic aim of Lead Bank Scheme is that Big banks should try to open offices in each district There should be stiff competition among the various nationalized banks Individual banks should adopt particular districts for intensive development All the banks should make intensive efforts to mobilize deposits Which of the following grants/ grant direct credit assistance to rural households? 1. Regional Rural Banks 2. National Bank for Agriculture and Rural Development 3. Land Development Banks Select the correct answer using the codes given below. 1 and 2 only 2 only 1 and 3 only 1,2 and 3 Which one of the following statements correctly describes the meaning of legal tender money? The money which is tendered in courts of law to defray the fee of legal cases The money which a creditor is under compulsion to accept in settlement of his claims The bank money in the form of cheques, drafts, bills of exchange, etc. The metallic money in circulation in a country The Service Area Approach was implemented under the purview of Integrated Rural Development Programme Lead Bank Scheme Mahatma Gandhi National Rural Employment Guarantee Scheme National Skill Development Mission The Narasimham Committee for financial sector Reforms has suggested reduction in SLR and CRR SLR, CRR and Priority Sector Financing SLR and Financing to capital goods sector CRR, Priority Sector Financing and Financing to capital goods sector Priority Sector Lending by banks in India constitutes the lending to Agriculture Micro and small enterprises Weaker sections All of the above In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities? Commercial Banks Cooperative Banks Regional Rural Banks Microfinance Institutions With reference to digital payments, consider the following statements: 1. BHIM app allows the user to transfer money to anyone with a UPI-enabled bank account. 2. While a chip-pin debit card has four factors of authentication, BHIM app has only two factors of authentication. Which of the statements given above is/are correct? 1 only 2 only Both 1 and 2 Neither I nor 2 Consider the following statements: 1. Capital Adequacy Ratio (CAR) is the amount that banks have to maintain in the form of their own funds to offset any loss that banks incur if the account holders fail to repay dues. 2. CAR is decided by each individual bank. Which of the statements given above is/are correct? 1 only 2 only Both 1 and 2. Neither 1 nor 2 If you withdraw Rs. 1,00,000 in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be To reduce it by 1,00,000 To increase it by approx 1,00,000 To increase it by more than 1,00,000 To leave it unchanged Which one of the following best describes the term "Merchant Discount Rate" sometimes seen in news? The incentive given by a bank to a merchant for accepting payments through debit cards pertaining to that bank. The amount paid back by banks to their customers when they use debit cards for financial transactions for purchasing goods or services. The charge to a merchant by a bank for accepting payments from his customers through the bank's debit cards. The incentive given by the Government, to merchants for promoting digital payments by their customers through Point of Sale (PoS) machines and debit cards. Which of the following is not included in the assets of a commercial bank in India? Advances Deposits Investments Money at call and short notice In the context of the Indian economy, non-financial debt includes which of the following? l. Housing loans owed by households 2. Amounts outstanding on credit cards 3. Treasury bills Select the correct answer using the code given below: 1 only 1 and 2 only 3 only 1,2 and 3 The Chairman of public sector banks are selected by the Banks Board Bureau Reserve Bank of India Union Ministry of Finance Management of concerned bank Consider the following statements: 1. National Payments Corporation of India (NPCI) helps in promoting the financial inclusion in the country. 2. NPCI has launched RuPay, a card payment scheme. Which of the statements given above is/are correct? 1 only 2 only Both 1 and 2 Neither 1 nor 2 Which of the following is a most likely consequence of implementing the 'Unified Payments interface (UPI)"? Mobile wallets will not be necessary for online payments. Digital currency will totally replace the physical currency in about two decades. FDI inflows will drastically increase. Direct transfer of subsidies to poor people will become very effective. What is the purpose of setting up of Small Finance Banks (SFBs) in India? 1. To supply credit to small business units 2. To supply credit to small and marginal farmers 3. To encourage young entrepreneurs to set up business particularly in rural areas. Select the correct answer using the code given below: 1 and 2 only 2 and 3 only 1 and 3 only 1,2 and 3 'Mission Indradhanush' launched by the Government of India pertains to Immunization of children and pregnant women Construction of smart cities across the country India's own search for the Earth-like planets in outer space New Educational Policy In the context of independent India's economy, which one of the following was the earliest event to take place? Nationalization of Insurance companies Nationalization of State Bank of India Enactment of Banking Regulation Act Introduction of First Five-Year: Plan Why is the offering of "teaser loans" by commercial banks a cause of economic concern? 1. The teaser loans are considered to be an aspect of sub-prime lending and banks may be exposed to the risk of defaulters in future. 2. In India, the teaser loans are mostly given to inexperienced entrepreneurs to set up manufacturing or export units. Which of the statements given above is/are correct? 1 only 2 only Both 1 and 2 Neither 1 nor 2 'Pradhan Mantri Jan-Dhan Yojana' has been launched for providing housing loan to poor people at cheaper interest rates promoting women's Self-Help Groups in backward areas promoting financial inclusion in the country providing financial help to the marginalized communities Microfinance is the provision of financial services to people of low-income groups. This includes both the consumers and the self-employed. The service/services rendered under microfinance is/are: 1. Credit facilities 2. Savings facilities 3. Insurance facilities 4. Fund Transfer facilities Select the correct answer using the codes given below the lists? 1 only 1 and 4 only 2 and 3 only 1,2,3 and 4 With reference to 'Urban Cooperative Banks' in India, consider the following statements: 1. They are supervised and regulated by local boards set up by the State Governments. 2. They can issue equity shares and preference shares. 3. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966. Which of the statements given above is/are correct? 1 only 2 and 3 only 1 and 3 only 1, 2 and 3 Time's up 0
