money supply, banking & financial institutions section 8 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) Not Nationalised
(b) Included in the second schedule of RBI
(c) Based in foreign country
(d) Nationalised
The correct answers to the above question in:
Answer: (b)
Practice Money Supply, Banking and Financial Institutions (money supply, banking & financial institutions section 8) Online Quiz
Discuss Form
Read more money and supply banking financial institutions Based Indian Economy Questions and Answers
Question : 1
Which of the following statements are true regarding the term "Crowd funding"?
- It is a method of financing through the internet/social media
- Small amounts of money are raised from a large number of investors
- It has the potential to increase entrepreneurship
- It is also referred to as marketplace financing
a) (i), (ii) & (iii) only
b) (ii), (iii) & (iv) only
c) (i) & (ii) only
d) All of the above
Answer »Answer: (d)
Crowd funding or marketplace financing refers to a method of funding a project or new venture through small amounts of money raised from a large number of people, typically through a portal (internet/social media) acting as an intermediary.
Crowd funding makes use of the easy accessibility of vast networks of people through social media and crowdfunding websites to bring investors and entrepreneurs together.
Crowd funding has the potential to increase entrepreneurship by expanding the pool of investors from whom funds can be raised beyond the traditional circle of owners.
Question : 2
Consider the following statements regarding ‘Additional Tier 1 bonds’:
- They are part of capital under Basel III norms
- They are perpetual in nature and have no maturity period
- They can be written down in case of bank failure
a) (iii) only
b) (i) & (iii) only
c) (ii) only
d) All of the above
Answer »Answer: (d)
Additional Tier 1 Bonds (AT-1) bonds have several unusual features lurking in their fine print, which make them very different from normal bonds.
One, these bonds are perpetual and carry no maturity date. Instead, they carry call options that allow banks to redeem them after five or 10 years. But banks are not obliged to use this call (redeem) option and can opt to pay only interest on these bonds for eternity.
Two, banks issuing AT-1 bonds can skip interest payments for a particular year or even reduce the bonds’ face value without getting into hot water with their investors, provided their capital ratios fall below certain threshold levels. These thresholds are specified in their offer terms.
Three, if the RBI feels that a bank is tottering on the brink (called point of non-viability) and needs a rescue, it can simply ask the bank to cancel its outstanding
AT-1 bonds without consulting its investors. AT-1 bonds are risky but people invest as it offers a higher interest rate. In case of a Yes Bank crisis, AT-1 bonds worth Rs. 8415 were written down in March 2020. (This means now investors will not get any interest or principal in future).
Under Basel III norms, banks need to have an 11.5% capital requirement in which 9.5% in Tier 1 capital and 2% is Tier 2 capital. Out of 9.5% Tier 1 capital, Additional Tier 1 capital (AT-1 bonds) can be 1.5%.
Question : 3
Consider the following statements with regard to Statutory Liquidity Ratio (SLR) :
- To meet SLR, Commercial banks can use cash only.
- SLR is maintained by the banks with themselves.
- SLR restricts the banks leverage in pumping more money into the economy.
a) 1 and 3
b) 1, 2 and 3
c) 2 and 3
d) only 2
Answer »Answer: (c)
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 securities.
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
SSC STENO: Time & Work Questions Solved Problems with PDF
Free Time and work Aptitude-based Practice multiple questions with solutions, Quiz series, Mock Test & Downloadable PDF for SSC Steno (Grade C & D) 2024 Exam
Continue Reading »
SSC STENO 2024: Free Reading Comprehension MCQ Test PDF
Top Reading Comprehension English Section-wise multiple choice questions and answers, Full Mock Test Series & Online Quiz for SSC Steno Grade C & D 2024 Exam
Continue Reading »
Free Percentage Questions Answers for SSC STENO 2024 Exam
Important Top Percentage Aptitude-based multiple choice questions and answers practice quiz series, Online Mock Test PDF for SSC Steno Grade C & D 2024 Exam
Continue Reading »
Free Antonyms (English) MCQ Test for SSC STENO 2024 Exam
Top Antonyms General English Section-based multiple choice questions and answers, Free Full Test Series & Online Quiz PDF for SSC Steno Grade C & D 2024 Exam
Continue Reading »