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

Question : 1

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 : 2

Consider the following statements in regard to ‘Marginal Standing Facility (MSF)’ of RBI :

1. It will help in reducing volatility in the overnight lending rates in the inter-bank market.
2. The borrowing under the MSF should be over and above the statutory liquidity requirement.

a) Both 1 and 2

b) 2 only

c) 1 only

d) Neither 1 nor 2

Question : 3

In which of the following years India switched over to decimal currencies?

a) 1957

b) 1956

c) 1955

d) 1960

Question : 4

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 : 5

Which of the following is a most likely consequence of implementing the ‘Unified Payments Interface (UPI)’?

a) FDI inflows will drastically increase.

b) Digital currency will totally replace the physical currency in about two decades.

c) Mobile wallets will not be necessary for online payments.

d) Direct transfer of subsidies to poor people will become very effective.

Question : 6

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