money supply, banking & financial institutions section 3 MCQ Questions & Answers Detailed Explanation
MOST IMPORTANT indian economy mcq - 12 EXERCISES
-
500+ Banking & Money Supply GK MCQ Quiz PDF For IBPS Exam »
-
Top 500+ Indian Financial System GK MCQ Live Quiz For SSC »
-
Top 500+ Money Supply & Banking Functions GK MCQ Quiz PDF »
-
New Banking & Financial Institutions GK MCQ Quiz For RRB »
-
Top 500+ Money Supply Methods & Concepts GK MCQ For UPSC »
-
Banking & Financial Institutions Features GK MCQ Quiz PDF »
-
New 500+ Money Supply Concepts Types Formulas GK MCQ Quiz »
-
499+ Indian Monetary Aggregates & Money Supply GK MCQ PDF »
-
Top 500+ Money & Banking Questions And Answers Test PDF »
-
New Banking & Money Supply Questions And Answers Test PDF »
-
Top 500+ Money Supply Trends & Developments MCQ For IBPS »
-
Top 500+ Banking & Financial Institutions GK MCQ Test PDF »
The following question based on Money Supply, Banking and Financial Institutions topic of indian economy mcq
(a) HDFC Bank
(b) ICICI Bank
(c) Axis Bank
(d) State Bank of India (SBI)
The correct answers to the above question in:
Answer: (c)
Recently RBI included HDFC Bank under the list of DSIB, while SBI and ICICI were already in the list.
Practice Money Supply, Banking and Financial Institutions (money supply, banking & financial institutions section 3) Online Quiz
Discuss Form
Read more money and supply banking financial institutions Based Indian Economy Questions and Answers
Question : 1
"Enhanced Access and Service Excellence (EASE)" is linked to which of the following:
a) e-Governance
b) Digital India Programme
c) Public sector bank reforms
d) None of the above
Answer »Answer: (c)
Government is planning a bank recapitalization program under which it will issue bonds of Rs. 80,000 crore in FY 2017-18.
This recapitalization programme has been integrated with an ambitious reform agenda, under the rubric of an "Enhanced Access and Service Excellence (EASE)" programme and the six pillars to achieve this include
- Customer responsiveness,
- Responsible banking,
- Credit offtake,
- PSBs as Udyami Mitra,
- Deepening financial inclusion, and
- Digitalisation and developing personnel.
Question : 2
Consider the following statements regarding "Exchange Traded Funds (ETF)":
- ETFs are traded like stocks and can be bought and sold throughout the day
- ETFs can be used as a vehicle for disinvestment
- ETFs offers the benefit of diversification of risks
a) (i) & (ii) only
b) (ii) & (iii) only
c) (i) only
d) All of the above
Answer »Answer: (d)
The concept of a mutual fund is that various investors/individuals put their money in a fund and this fund is used to purchase shares or bonds of various companies thus diversifying the risk of the investors. The fund is managed by experts and individuals/investors don’t trade the share/bonds directly.
The fund managers decide which companies to invest in and from which companies to exit. If the share price or bond price of the companies increase then the value of the fund also increases and investors gain.
If some individual wants to put money into the mutual fund then it can be done only once after the market has closed for that given day.
Exchange-Traded Funds (ETFs) are almost similar to mutual funds but they differ in the sense that ETFs are traded on the stock exchange throughout the day.
So, if an investor wants to purchase an ETF, they can always purchase it from the stock exchange/market throughout the day, just like the shares of any company.
The Central government announced in the budget 2018-19 that they will be creating an ETF of various central public sector companies so that to attract investors to purchase ETFs, and through which the disinvestment can be done.
So, when an investor is purchasing the shares of the ETF, he is indirectly purchasing the shares of various companies from which the ETF has been created.
Question : 3
Consider the following statement:
- IRDA is a multimember nodal agency
- It is vested with regulatory powers in respect of the insurance sector similar to those vested in SEBI in respect of the capital markets and of RBI for the banking sector.
- The IRDA Act, 1999 cleared the way for private sector entry into the insurance business.
a) 2 only
b) 1 only
c) 3 only
d) All of the Above
Answer »Answer: (d)
IRDA is a multimember nodal agency. It is vested with regulatory powers in respect of the insurance sector similar to those vested in SEBI in respect of the capital markets and of RBI for the banking sector.
The IRDA Act, 1999 cleared the way for private sector entry into the insurance business.
Question : 4
Which among the following correctly defines the Net Interest Income?
a) Interest earned on advances
b) Total interest earned on advances and investment
c) Interest earned on investments
d) Difference between interest earned and interest paid
Answer »Answer: (d)
Question : 5
Consider the following statements regarding RBI:
- RBI regulates interest rates on savings & Time deposits in commercial banks
- RBI regulates "Money Market"
a) (ii) only
b) Both (i) & (ii)
c) (i) only
d) Neither (i) nor (ii)
Answer »Answer: (a)
RBI has deregulated interest rates on term/ time deposits since Oct 1997.
RBI had deregulated interest rates on savings deposits since May 2011.
RBI regulates three categories of financial markets; money markets, government securities markets and foreign exchange markets.
Question : 6
Consider the following statements regarding Cash Reserve Ratio (CRR):
- It helps in securing monetary stability and managing liquidity in the economy
- There is no limit on CRR without any floor or ceiling rate
a) (ii) only
b) Both (i) & (ii)
c) (i) only
d) Neither (i) nor (ii)
Answer »Answer: (b)
“In terms of Section 42(1) of the RBI Act, 1934 the Reserve Bank, having regard to the needs of securing the monetary stability in the country, prescribes the CRR for Scheduled Commercial Banks (SCBs) without any floor or ceiling rate”.
The other purpose of CRR is to manage liquidity (RBI can increase CRR to decrease liquidity in the economy) and it also ensures that a part of the bank’s deposit is with the Central Bank and is hence, safe.
As a depositor, the CRR and SLR requirements together ensure that some portion of the deposits with Indian banks remain secure, even if banks make poor lending decisions.
In absence of the CRR and SLR requirements, to make more profits banks may lend most of the deposits and if there is a sudden rush to withdraw, banks will struggle to meet the repayments to the depositors. The maximum limit for SLR is 40%.
GET Money Supply, Banking and Financial Institutions PRACTICE TEST EXERCISES
money supply, banking & financial institutions section 1
money supply, banking & financial institutions section 2
money supply, banking & financial institutions section 3
money supply, banking & financial institutions section 4
money supply, banking & financial institutions section 5
money supply, banking & financial institutions section 6
money supply, banking & financial institutions section 7
money supply, banking & financial institutions section 8
money supply, banking & financial institutions section 9
money supply, banking & financial institutions section 10
money supply, banking & financial institutions section 11
money supply, banking & financial institutions section 12
Money Supply, Banking and Financial Institutions Shortcuts and Techniques with Examples
Verbal Reasoning
Question & Answer Quiz
Non Verbal Reasoning
Question & Answer Quiz
Quantitative Aptitude
Question & Answer Quiz
Computer MCQ
Question & Answer Quiz
General English
Question & Answer Quiz
History GK
Question & Answer Quiz
Polity GK
Question & Answer Quiz
Geography GK
Question & Answer Quiz
Economy GK
Question & Answer Quiz
General Awareness GK
Question & Answer Quiz
Recently Added Subject & Categories For All Competitive Exams
100+ Quadratic Equation Questions Answers PDF for Bank
Quadratic Equation multiple choice questions with detailed answers for IBPS RRB SO. more than 250 Attitude practice test exercises for all competitive exams
Continue Reading »
IBPS Aptitude Linear Equations MCQ Questions Answers PDF
Linear equations multiple choice questions with detailed answers for IBPS RRB SO. more than 250 Attitude practice test exercises for all competitive exams
Continue Reading »
New 100+ Compound Interest MCQ with Answers PDF for IBPS
Compound Interest verbal ability questions and answers solutions with PDF for IBPS RRB PO. Aptitude Objective MCQ Practice Exercises all competitive exams
Continue Reading »
100+ Mixture and Alligation MCQ Questions PDF for IBPS
Most importantly Mixture and Alligation multiple choice questions and answers with PDF for IBPS RRB PO. Aptitude MCQ Practice Exercises all Bank Exams
Continue Reading »