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

Question : 31

Which among the following is not Tier I Capital?

a) Paid up Capital

b) Revaluation Reserves

c) Statutory Reserves

d) Investment Fluctuation Reserves

Question : 32

Consider the following statements:

1. Banks require prior approval of RBI for appointment of directors
2. Management of Public Sector banks is under dual regulation of Central Govt. & RBI

a) (ii) only

b) Both (i) & (ii)

c) (i) only

d) Neither (i) nor (ii)

Question : 33

Consider the following statement:

1. As per recommendations of the Narasimham Committee, it has been decided that credit facilities granted by banks will be classified into performing and non-performing assets (NPA)
2. NPA is a loan which is in default for more than nine months.

a) 2 only

b) 1 only

c) 1 and 2

d) None of the Above

Question : 34 [UPSC (Pre) 2001]

The Narsimhan Committee for financial sector reforms has suggested reduction in

a) SLR, CRR and Priority Sector Financing

b) CRR, Priority Sector Financing and Financing to capital goods sector

c) SLR and Financing to Capital goods sector

d) SLR and CRR

Question : 35

_______ are conducted by the RBI by selling and buying government securities from banks.

1. Bank rate
2. Cash reserve ratio
3. Open market operations
4. Statutory Liquidity Ratio

a) 2 only

b) 1 only

c) 3 only

d) 4 only