money supply, banking & financial institutions section 1 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 16 [SSC CGL 2016]

‘Green Banking’ means :

a) Banks financing farmers

b) Banks financing proenvironmental projects

c) Banks financing agriculture

d) Banks financing irrigation projects

Answer: (b)

Green Banking refers to practices and guidelines that make banks sustainable in the economic, environmental, and social dimensions.

Green banking is also known as environment-friendly banking, ethical banking or sustainable banking.

A conventional bank becomes a green bank by directing its core operations towards the betterment of the environment.

Question : 17 [HPPSC (Pre) 2016]

Tarapore Committee was associated with which one of the following?

a) Full capital account convertibility

b) Effect of oil prices on the Indian economy

c) Foreign exchange reserves

d) Special Economic Zones

Answer: (a)

Question : 18

Consider the following statements:

  1. Increase in deposit rate results in higher savings
  2. Increase in deposit rate results in fall in credit off takes
  3. Increase in deposit rate results in increase in investment
Which among the above statements is / are correct?

a) 1 & 3

b) 1 & 2

c) 1, 2, 3

d) Only 1

Answer: (a)

Question : 19

What are “Futures”?

a) Securities or commodities sold or bought with the assumption of delivery at a later stage

b) Particular types and quantities of securities and com-modities bought for selling at higher prices

c) Shares and debentures bought at a cheaper rate and sold later at high rates

d) None of these

Answer: (a)

Question : 20

For which of the following, the Reserve Bank of India has stipulated a maximum Capital Adequacy Requirements in India?

a) Private Sector Banks

b) Local Area Banks

c) Banks that Undertake Insurance Business.

d) Scheduled Commercial Banks

Answer: (b)

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