banking, security market & insurance section 5 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (c)

Answer: (b)

The Cash Reserve Ratio is the amount of funds that the banks are bound to keep with the Reserve bank of India as a portion of their Net Demand and Time Liabilities (NDTL).

When RBI increases the CRR, fewer funds are available with banks as they have to keep larger portions of their cash in hand with RBI. This means that banks will now have less money to play with.

This resulted in a reduction in liquidity in the economy.

Answer: (a)

Financial inclusion or inclusive financing is the delivery of financial services at affordable costs to sections of disadvantaged and low-income segments of society.

For financial inclusion ‘Know your customer (KYC) norms should be relaxed and no-frills account should be opened for low-income segments which are looking for basic banking only.

Along with general-purpose credit cards should be issued and bank branches should be opened in unbanked rural areas.

Answer: (a)

1 st July is celebrated as the establishment date of the State Bank of India. On 1 July 1955, the Imperial Bank of India became the State Bank of India.

SBI is a multinational banking and financial services company based in India. It is a government-owned corporation with its headquarters in Mumbai.

SBI : Indian Multinational public sector banking and financial services company.

Chairperson : Rajnish Kumar.

Answer: (d)

The baseline “Aapka bhala, Sabki bhalai” is associated with Bandhan Bank limited.