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

Answer: (b)

A central bank uses OMO as the primary means of implementing monetary policy.

Answer: (d)

Answer: (a)

National Bank for Agriculture and Rural Development (NABARD) is an apex development bank in India.

It was established on 12 July 1982 in the sixth five-year plan and its main focus was to uplift rural India by increasing the credit flow for elevation of agriculture and rural non-farm sector and laying down policies and to oversee the operations of the RRBs.

Moreover, Regional Rural Banks grant direct loans and advances to marginal farmers and rural artisans. So both statements are correct.

Answer: (d)

CTS: Cheque Truncation System Cheque,

MICR: Magnetic Ink Character Recognition,

IFSC: Indian Financial System Code

FERA: Foreign Exchange Regulation Act.

Answer: (c)

The main functioning of the banking system is to accept deposits and provide credit. The bank collects deposits from the public.

These are savings, fixed, current and recurring deposits. The bank advances loans to the business community and other members of the public.

The types of bank loans and advances are overdraft, cash credits, loans and discounting of bills of exchange.

Answer: (a)

NPCI is a not-for-profit company formed by various banks, with the primary objective of providing cost-effective payment solutions to the banks.

NPCI’s solutions such as IMPS, BHIM, RuPay, AEPS etc. have indeed helped in financial inclusion. So first is correct and second is correct- NPCI launched Rupay card in 2012, as the 7th payment gateway in the world.