banking, security market & insurance section 4 MCQ Questions & Answers Detailed Explanation

Answer: (d)

The general superintendence and direction of the RBI are entrusted with the 21-member- Central Board of Directors—the Governor (currently Dr Urjit R. Patel), four Deputy Governors, two Finance Ministry representatives, ten government-nominated directors to represent important elements from India’s economy, and four directors to represent local boards headquartered at Mumbai, Kolkata, Chennai and New Delhi.

Answer: (a)

SLR used by bankers indicates the minimum percentage of deposits that the banks have to maintain in the form of gold, cash or other approved government securities.

Answer: (c)

Cooperative Banks operate on no profit no loss basis, and they operate in all sectors including agriculture sector.

NABARD is not a Cooperative Bank. National Bank for Agriculture and Rural Development (NABARD) is an apex development bank in India.

Answer: (b)

Open market operation: When RBI buys/sells securities in open market, in case of OMO, first party permanently sells the Government security to second party. Second party is free to do whatever it wants with that security.

Answer: (d)

GIC of India (GIC) is the sole reinsurance company in the Indian insurance market with over four decades of experience.

Answer: (d)

Devaluation leads to a country’s exports becoming less expensive as the currency is deliberately adjusted down to other currencies, making imports more expensive, making domestic consumers less likely to purchase them thus the domestic companies are encouraged to substitute imports.