banking, security market & insurance section 2 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 16

Why is the offering of ‘teaser loans’ by commercial banks a cause of economic concern?

1. The teaser loans are considered to be an aspect of sub-prime lending and banks may be exposed to the risk of defaulters in future.
2. In India, teaser loans are mostly given to inexperienced entrepreneurs to set up manufacturing or export units.

a) Both 1 and 2

b) 2 only

c) 1 only

d) Neither 1 nor 2

Question : 17 [IAS 2017]

Consider the following statements:

1. National Payments Corporation of India (NPCI) helps in promoting the financial inclusion in the country.
2. NPCI has launched RuPay, a card payment scheme.

a) Both 1 and 2

b) 2 only

c) 1 only

d) Neither 1 nor 2

Question : 18 [CDS-2013-II]

The main functioning of the banking system is to

a) provide credit and subsidies

b) accept deposits and subsidies

c) accept deposits and provide credit

d) accept deposits, provide credit and subsidies

Question : 19

Which of the following terms is not associated with banking?

a) IFSC

b) MICR

c) CTS

d) FERA

Question : 20

Consider the following liquid assets:

1. Demand deposits with the banks
2. Time deposits with the banks
3. Savings deposits with the banks
4. Currency

a) 2-3-1-4

b) 4-3-2-1

c) 1-4-3-2

d) 4-1-3-2