banking, security market & insurance section 3 MCQ Questions & Answers Detailed Explanation

Answer: (c)

The IFSC is an 11-character code with the first four alphabetic characters representing the bank name, and the last six characters (usually numeric, but can be alphabetic) representing the branch.

Answer: (a)

It will remain the same, because banks do not increase the national income. So it remains the same immaterial whether banks are there or not.

Answer: (b)

Financial inclusion is the delivery of financial services, at affordable costs, to sections of disadvantaged and low income segments of society.It includes opening educational centres, opening wealth management centres by Citibank etc. Khan commission had put forward its report on financial inclusion.

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)

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

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.