money supply, banking & financial institutions section 3 MCQ Questions & Answers Detailed Explanation

Question : 1

Prime Minister, on 8th of Nov 2016, declared that the existing Rs. 500 and Rs. 1000 notes will not be legal tender. This was done under which of the following Act.

a) Banking regulation Act 1949

b) Payment and Settlement Systems Act 2007

c) RBI Act 1934

d) Does not require any statutory backing

Question : 2

With reference to the governance of public sector banking in India, consider the following statements.

1. Capital infusion into public sector banks by the Government of India has steadily increased in the last decade.
2. To put the public sector banks in order, the merger of associate banks with the parent State Bank of India has been affected.

a) Only 2

b) Neither 1 nor 2

c) Both 1 and 2

d) Only 1

Question : 3

Consider the following statements regarding the recent amendments done in IBC 2016:

1. It is applicable for corporate debtor and corporate guarantor
2. New management is ringfenced from offences committed by the erstwhile management

a) (ii) only

b) Both (i) & (ii)

c) (i) only

d) Neither (i) nor (ii)

Question : 4

A speculator who enters into a purchase transaction with a view to sell in the near future when the price would have risen is called a

a) Bison

b) Boar

c) Bear

d) Bull

Question : 5

Bull and bear are related to which commercial activity ?

a) International trade

b) Stock market

c) Banking

d) E-commerce

Question : 6

Which of the following are the provisions of the SARFAESI Act which enables banks to reduce their non-performing assets (NPAs)?

1. Enforcement of Security interests by secured creditors (Banks/ Financial Institutions).
2. Transfer of non-performing assets to asset reconstruction company which will then dispose of those assets and realise the proceeds.
3. To provide a legal framework for securitization of assets.
4. Assisting banks in making the credibility track record of customers under the Credit Information Bureau of India (CIBIL).

a) 1, 2 and 3

b) 1 and 2

c) 2, 3 and 4

d) 1, 2, 3 and 4