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

Question : 1

Consider the following statements with regard to Statutory Liquidity Ratio (SLR)

1. To meet SLR, Commercial banks can use cash only.
2. SLR is maintained by the banks with themselves.
3. SLR restricts the banks leverage in pumping more money into the economy.

a) 2 and 3

b) 1 and 3

c) 1, 2 and 3

d) only 2

Question : 2

Choose the correct statements in the context of Cooperative Banks in India.

1. Cooperative Banks operate on no profit no loss basis.
2. Cooperative Banks are allowed to operate only in the agriculture sector.
3. NABARD is a Cooperative Bank.

a) 1 and 3

b) 1 and 2

c) 1 only

d) All of these

Question : 3

To prevent recurrence of scams in Indian capital market the Government of India has assigned regulatory power to

a) ICICI

b) RBI

c) SBI

d) SEBI

Question : 4

Private Sector Mutual Funds in India were permitted in

a) 2001

b) 1993

c) 1994

d) 1964

Question : 5

In the context of Indian economy, open market operations to :

1. borrowing by scheduled banks from RBI
2. lending by commercial banks to industry and trade
3. purchase and sale of government securities by the RBI
4. None of the above

a) 4 and 1 only

b) 3 only

c) 1 and 2 only

d) 2 and 3 only

Question : 6

Which of the following company is the sole reinsurance company in India?

a) National Insurance Company

b) ICICI Prudential Life Insurance Company

c) Life Insurance Corporation of India

d) General Insurance Corporation