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

Answer: (c)

Devaluation happens in countries with a fixed exchange rate. In a fixed-rate economy, the government decides what its currency should be worth compared with that of other countries.

The exchange rate can change only when the government decides to change it. If a government decides to make its currency less valuable, the change is called devaluation. Depreciation happens in countries with a floating exchange rate.

A floating exchange rate means that the global investment market determines the value of a country’s currency.

Answer: (a)

According to Indian Reserve Bank. Non performing assets in commercial bank means the loans in which interest or principal amount is not recovered.

Answer: (d)

Currency notes and coins are called fiat money. They don’t have intrinsic value like a gold or silver coin. The currency-deposit ratio measures the relationship between the cash people have on hand and what they have in their accounts.

Answer: (a)

It was established on 12 July 1982 in the sixth five-year plan by a special act by the parliament and its main focus was to uplift rural India by increasing the credit flow for elevation of agriculture & rural non-farm sector.

Answer: (c)

According to Section 2 of the Coinage Act, 2011, a “Coin” does not include the credit card, debit card, postal order and money issued by any bank, post office or financial institution.

Answer: (d)

ICICI, the first Indian bank has launched “Smart Vault” a fully automated locker facility using robotic technology to access lockers (available 24x7, including weekends and after banking hours.) from state vault.