banking, security market & insurance section 2 MCQ Questions & Answers Detailed Explanation

Question : 1

‘Basel III’ norms target at which of the following?

1. Improve the banking sector’s ability to absorb shocks arising from financial and economic stress.
2. Improve risk management and governance.
3. Strengthen banks’ transparency.

a) 1 and 3 only

b) 1 and 2 only

c) 1 only

d) 1, 2 and 3

Question : 2

Which of the following is /are example (s) of ‘Near Money’?

1. Treasury Bill
2. Credit Card
3. Saving accounts and small time deposits
4. Retail money market mutual funds

a) 1, 2 and 3

b) 2 only

c) 1 only

d) 1, 3 and 4

Question : 3

Which of the following was established in 1928 as the first printing press for bank notes in India?

a) Bharatiya Reserve Bank Notes Mudran Private Limited (BRBNMPL), Mysore

b) Currency Notes Press (CNP), Nasik

c) Indian Security Press (ISP), Nasik

d) Bharatiya Reserve Bank Notes Mudran Private Limited (BRBNMPL), Salboni

Question : 4

According to the Reserve Bank of India’s guidelines to banks, customers can change up to 20 pieces of soiled currency notes over the counter, free of charge up to a maximum value of

a) Rs.25,000

b) Rs.5,000

c) Rs.28,000

d) Rs.15,000

Question : 5

The one rupee note bears the signature of the

a) Finance Minister

b) Governor, RBI

c) Secretary, Ministry of Finance

d) None of these

Question : 6

Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)?

1. It decides the RBI’s benchmark interest rates.
2. It is a 12-member body including the Governor of RBI and is reconstituted every year.
3. It functions under the chairmanship of the Union Finance Minister.

a) 3 only

b) 1 and 2 only

c) 1 only

d) 2 and 3 only