banking, security market & insurance section 1 Practice Questions Answers Test with Solutions & More Shortcuts
Banking, Security Market & Insurance PRACTICE TEST [5 - EXERCISES]
banking, security market & insurance section 1
banking, security market & insurance section 2
banking, security market & insurance section 3
banking, security market & insurance section 4
banking, security market & insurance section 5
Question : 1
In the context of Indian economy; which of the following is/are the purpose/purposes of ‘Statutory Reserve Requirements’?
- To enable the Central Bank to control the amount of advances the banks can create
- To make the people’s deposits with banks safe and liquid
- To prevent the commercial banks from making excessive profits
- To force the banks to have sufficient vault cash to meet their day-to-day requirements
a) 2 and 3 only
b) 1 and 2 only
c) 1 only
d) 1, 2, 3 and 4
Answer »Answer: (b)
Because Reserve requirements are designed as “precautionary measures” and not to stop banks from “excessive” profit.
Question : 2 [IAS 2017]
What is the purpose of setting up Small Finance Banks (SFBs) in India?
- To supply credit to small business units
- To supply credit to small and marginal farmers
- To encourage young entrepreneurs to set up businesses particularly in rural areas.
a) 1 and 3 only
b) 2 and 3 only
c) 1 and 2 only
d) 1, 2 and 3
Answer »Answer: (c)
While directly or indirectly all three will be encouraged because of Small Finance banks. But when RBI invited applications, the specific purpose were 1 and 2 only.
Question : 3 [IAS 2017]
Which of the following is a most likely consequence of implementing the ‘Unified Payments Interface (UPI)’?
a) FDI inflows will drastically increase.
b) Digital currency will totally replace the physical currency in about two decades.
c) Mobile wallets will not be necessary for online payments.
d) Direct transfer of subsidies to poor people will become very effective.
Answer »Answer: (c)
“A” is the most appropriate choice. Mobile wallets will not be necessary, because your mobile number is directly linked with the bank account using bank’s ‘customized app’ which is built on the UPI platform.
Question : 4
Which of the following statements is/are correct in regard to ‘microfinance’?
- Micro-credit extended by banks to individual is reckoned as a part of their priority sector lending.
- RBI has prescribed a particular model the banks to provide microfinance.
a) Both 1 and 2
b) 2 only
c) 1 only
d) Neither 1 nor 2
Answer »Answer: (c)
Micro-credit extended by banks to individuals is reckoned as a part of their priority sector lending and no particular model has been prescribed for micro-finance and banks have been extended freedom to formulate their own models.
Question : 5
Which of the following grants/grant direct credit assistance to rural households ?
- Regional Rural Banks
- National Bank for Agriculture and Rural Development
- Land Development Banks
a) 1 and 3 only
b) 2 only
c) 1 and 2 only
d) 1, 2 and 3 only
Answer »Answer: (a)
NABARD doesn’t give “direct” credit assistance. It provides credit via intermediaries such as micro finance companies, cooperative society, RRB. Therefore, 2 is false.
IMPORTANT indian economy mcq EXERCISES
Banking, Security Market & Insurance Shortcuts and Techniques with Examples
indian economy MCQ CATEGORIES
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» Introduction to Indian Economy
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» Planning, Economic Development & Five year Plans
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» National Income & Human Development Index
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» Agriculture Sector, Subsidy and Food Processing
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» Industries, Manufacturing & Service Sectors
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» Inclusive growth, Sustainable development and employment
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» Poverty & Unemployment
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» Introduction to Micro Economics
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» Introduction to Macro Economics
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» Macro fundamentals, GDP, Investment, Growth
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» Demand & Supply, Profit Loss, Inflation & Price Index
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» Fiscal Policy, Public Finance and Monetary Policy
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» Money Supply, Banking and Financial Institutions
-
» Taxes Types, Methods & Budgeting Process
-
» Banking, Security Market & Insurance
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