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

Question : 1

In India, one-rupee coins and notes and subsidiary coins are issued by

a) The State Bank of India

b) The Central Government

c) The Reserve Bank of India

d) The Unit Trust of India

Question : 2

The banks are required to maintain a certain ratio between their cash in hand and total assets. This is called

a) Central Bank Reserve (CBR)

b) Statutory Liquid Ratio (SLR)

c) Statutory Bank Ratio (SBR)

d) Central Liquid Reserve (CLR)

Question : 3

Which of the following institutions is the umbrella organization for all retail payment systems in India?

a) CDSL

b) CCIL

c) RBI

d) NPCI

Question : 4

Which of the following definitions are in correct?

1. Basis points: increase in interest rates in percentage terms.
2. Repo rate: rate at which commercial banks borrow from the RBI by selling their securities or financial assets to the RBI for a longperiod of time.
3. Reverse repo rate: rate of interest at which the central bank borrows funds from commercial banks for a short duration.
4. Cash reserve ratio: minimum percentage of cash deposits that banks must keep with itself to avoid liquidity issues.

a) (ii) & (iv)

b) (ii), (iii) & (iv)

c) (i) & (ii)

d) (iii) & (iv)

Question : 5

Which is credit rating agency in India?

a) All of these

b) CARE

c) ICRA

d) CRISIL

Question : 6

The Word ‘Actuaries’ is related to

a) None of the above

b) Insurance

c) Share Market

d) Banking