banking, security market & insurance section 1 MCQ Questions & Answers Detailed Explanation

Question : 1

Which of the following statements is/are correct in regard to ‘microfinance’?

1. Micro-credit extended by banks to individual is reckoned as a part of their priority sector lending.
2. RBI has prescribed a particular model the banks to provide microfinance.

a) Both 1 and 2

b) 2 only

c) 1 only

d) Neither 1 nor 2

Question : 2

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

a) 1 and 3 only

b) 2 only

c) 1 and 2 only

d) 1, 2 and 3 only

Question : 3

Who among the following can join the National Pension System (NPS)?

a) All State Government employees joining the services after the date of notification by the respective State Governments

b) Persons of age from 21 to 55 only

c) Resident Indian citizens only

d) All Central Government employees including those of Armed Forces joining the services on or after 1st April, 2004

Question : 4

What is the purpose of setting up 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 businesses particularly in rural areas.

a) 1 and 3 only

b) 2 and 3 only

c) 1 and 2 only

d) 1, 2 and 3

Question : 5

In the context of Indian economy; which of the following is/are the purpose/purposes of ‘Statutory Reserve Requirements’?

1. To enable the Central Bank to control the amount of advances the banks can create
2. To make the people’s deposits with banks safe and liquid
3. To prevent the commercial banks from making excessive profits
4. To force the banks to have sufficient vault cash to meet their day-to-day requirements

a) 2 and 3 only

b) 1 and 2 only

c) 1 only

d) 1, 2, 3 and 4