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

Answer: (b)

A central bank uses OMO as the primary means of implementing monetary policy.

Answer: (d)

Answer: (a)

National Bank for Agriculture and Rural Development (NABARD) is an apex development bank in India.

It was established on 12 July 1982 in the sixth five-year plan and its main focus was to uplift rural India by increasing the credit flow for elevation of agriculture and rural non-farm sector and laying down policies and to oversee the operations of the RRBs.

Moreover, Regional Rural Banks grant direct loans and advances to marginal farmers and rural artisans. So both statements are correct.

Answer: (b)

In 1991, India faced a serious balance of payment crisis and was forced to sharply devalue its currency. The country was in the grip of high inflation, low growth and the foreign reserves were not even worth meeting three weeks of imports.

Under these situations, the currency was devalued to 17.90 against the dollar. In July of 1991, the Indian Government devalued the rupees by between 18 and 19%. The Government also changed its trade policy higher restrictive to a system of tradable EXIM SCRIPS.

Answer: (a)

State Bank of India became the first public sector lender to launch wealth management service, a space dominated by private and foreign players, to cater to fast-growing affluent segment of the country.