Quiznetik

Financial Institutions and Markets | Set 1

1. The Reserve Bank of India was established on

Correct : A. April 1, 1935

2. On which commission’s recommendations; Reserve Bank of India was established?

Correct : B. Hilton Young Commission

3. Which among the following is incorrect?

Correct : D. RBI does not regulate the flow of credit

4. Which of the following is true about the restrictions on RBI? (i) It is not to compete with the commercial banks. (ii) It is not allowed to pay interest on its deposits. (iii) It cannot engage directly or indirectly in trade. (iv) It cannot acquire or advice loans against immovable property. (v) It is prohibited from purchasing its own shares or the shares of any other bank or any company or granting loans on such security.

Correct : C. all the above

5. Which of the following is not the work of RBI?

Correct : D. Allocating funds directly to the farmers for agricultural development

6. Which of the following words is not used in Monetary Policy?

Correct : D. Blue chip

7. For issuing / printing currency notes, the RBI has adopted a system –

Correct : A. Minimum Reserve System

8. Central Bank is a

Correct : C. Apex bank.

9. Central Bank is an institution which is

Correct : B. State owned

10. The methods of credit control used by RBI includes (i) Open market operation (ii) Changes in CRR and SLR (iii) Selective credit control (iv) Changes in SLR

Correct : D. (i), (ii), (iii) and (iv

11. The full form of EMI used in the banking sector is

Correct : C. Equated Monthly Installment

12. Bank rate is decided by

Correct : A. Reserve Bank of India

13. The reserves held by the Commercial Banks over and above the statutory minimum with the RBI are called

Correct : C. Excess reserves

14. Banking in India is controlled by

Correct : D. Reserve Bank of India

15. Which of the following is not the function of Reserve Bank of India?

Correct : D. Issuing of one rupee notes and coins.

16. The objectives of monetary policy is / are

Correct : D. Both (a) and (b

17. Bank rate is defined as

Correct : D. Rate which RBI purchases or rediscount bills of exchange of commercial banks.

18. The Reserve Bank of India was nationalized in

Correct : A. 1st January 1949.

19. The Governor of RBI is appointed by

Correct : B. Central Government

20. The chairman of the Central Board of RBI is

Correct : A. Governor

21. Which of the following is true about the functions performed by RBI - (i) It is the Bank of Issue (ii) It acts as banker to the Government (iii) It is the banker of other banks (iv) It regulates the flow of credit

Correct : C. All the Above

22. Which of the following is true about the objectives of RBI trying to achieve- (i) Price Stability (ii) Reduce deficit (iii) Encourage export (iv) Growth

Correct : C. All the Above

23. The custodian of India’s foreign exchange reserve is

Correct : B. Reserve Bank of India (RBI

24. Which of the following is true about the functions of RBI-

Correct : C. Collecting data and publication

25. Which of the following is true that RBI as a banker to the government (i) Maintaining and operating deposit accounts of Central and State Governments. (ii) Receipt and collection of payments to the Central and State Governments. (iii) Making payments on behalf of Central and state Governments. (iv) Providing ways and means advances to the Central and State Governments.

Correct : C. All the Above

26. Which of the following coins is not issued by the RBI ?

Correct : A. Re. 1

27. RBI has withdrawn the circulation of coins in the denomination of 1 paise, 2 paise, 3 paise, 5 paise, 10 paise, 20 paise and 25 paise in which year ?

Correct : B. 2011

28. Which of the following is/ are the Quantitative Instrument of RBI ?

Correct : C. All of the above

29. Which among the following would not help RBI to control the inflation in the country ?

Correct : D. Increase in Repo Rate

30. What would be the impact on cash reserves of the commercial banks if RBI conducts the sale of securities?

Correct : A. Decrease

31. Which of the following works as the agent of RBI while it has no own offices ?

Correct : B. SBI

32. Which of the followong Governors of RBI also served as the Finance Minister of India ?

Correct : D. Dr. Manmohan Singh

33. Which of the following statements is/are not true ?

Correct : D. RBI does not regulate the credit flow.

34. Which is not a function of RBI ?

Correct : C. Assuming the responsibility of the statistical analysis of data related to macro economy of India .

35. To control inflation and tackle the problem of exchange liquidity due to foreign exchange inflows, the RBI

Correct : A. Sells government securities.

36. Ways and Means advanced by RBI refers to

Correct : A. Meeting temporary mismatches between receipts and expenditure.

37. The commercial banks were required to keep some percentages of their time deposits and their demand deposits with the RBI in the form of reserves is known as

Correct : B. Cash reserve ratio

38. Decreasing percentage of statutory liquidity ratio by RBI

Correct : A. Increase the volume credits at the hands of commercial banks.

39. If the RBI wants to control the speculation on the price of essential commodities, adopted a measure known as

Correct : C. Selective credit control

40. The RBI’s function of Banker to Government implies

Correct : C. Manages public debt by issuing government loans

41. Which of the following is a commercial bank?

Correct : A. State Bank of India

42. Which one of the following is near money?

Correct : D. All of the above

43. In July 1969, 14 major Indian scheduled banks were nationalised and 6 more banks were nationalised in

Correct : A. April 1980

44. The liabilities of a bank are

Correct : B. Time deposits and shares

45. The recent conversion of Financial Institutions into Commercial Banks or Non-Banking Finance Companies (NBFCs) under the regulatory aspect of RBI was suggested by

Correct : A. Narasimham Committee

46. Which property the paper money does not possess

Correct : C. Duality

47. Rupee is a coin

Correct : B. Token money

48. Which one of the following is not included in the function of money

Correct : A. Make demand and supply

49. Convertible money means

Correct : B. Government can give gold against it

50. Commercial banks create

Correct : A. Credit money

51. The most important features of money is

Correct : A. General acceptability

52. Which movement encourage the formation of commercial banks

Correct : A. Swadeshi movement

53. In which year was the Banking Regulation Act passed?

Correct : A. 1949

54. What is the most widely used tool of monetary policy?

Correct : C. Discount rate

55. Banking sector comes under which of the following sectors?

Correct : C. Service sectors

56. Who is responsible for the supply of coins in India?

Correct : B. Ministry of finance

57. Difference between total receipt and total expenditure is

Correct : B. budget deficit

58. The commercial banks in India are governed by

Correct : C. Indian Banking Regulation Act 1949

59. Which of the following limits the power of credit creation by commercial bank

Correct : D. None of the above

60. Deposits which arise from granting of loans are called

Correct : B. derivative deposits

61. Which among the following is considered to be the most liquid asset?

Correct : B. Money

62. The first financial institution set up in India

Correct : D. IFCI

63. In order to control credit and investment , the central bank of a country should

Correct : A. Sell securities in the open market and hike the cash reserve ratio

64. Which one of the following is not an instrument of credit control in the banking system?

Correct : C. Tax rate

65. The commercial bank do not perform one function out of the following

Correct : C. Issues currency notes

66. Credit creation power of the commercial banks gets limited by which of the following?

Correct : D. All the above

67. Number of times a unit of money change hands in the course of a year is called

Correct : C. Velocity of money

68. Assets – liability =

Correct : C. Capital

69. The assets can be convert into cash within a short period like one year or less are known as

Correct : A. Current asset

70. Debentures is also name as

Correct : B. Bond

71. A bills of exchange when drawn requires

Correct : C. Acceptance

72. The following is not a type of liability

Correct : A. Short term

73. Whichof the following is most liquid measure of money supply in India

Correct : A. M1

74. Which of the following money supply is used by RBI?

Correct : A. Currency notes

75. The term ‘bank liquidity’ means

Correct : C. Its capacity to convert its assets into cash

76. Accounting equation is base of

Correct : C. Double entry system

77. Anything used as money must be

Correct : D. Readily acceptable

78. Which of the following can change money supply

Correct : D. State Bank

79. Which of the following increase money supply in the country?

Correct : A. Purchase of bonds by State Bank

80. ‘One man one vote’ principle in Co-operative Society was recommended by

Correct : B. Mac Lagan Committee

81. Which of the following organizational structure is followed by cooperatives in India?.

Correct : B. Federal structure

82. The structure of cooperative banking system in India is federal and pyramid type of

Correct : B. three-tier

83. The Urban Credit Cooperative are also commonly known as

Correct : A. Urban Cooperative Banks

84. The first District Cooperative Banks was established at ____________ in 1910.

Correct : D. Ajmer in Rajasthan

85. Co-operative movement originated first in

Correct : B. England

86. Interest rate of Deposit of cooperative credit societies are fixed by

Correct : A. Registrar

87. The land mortgage banks grant _______________ to the farmers against the conveyance of land as security.

Correct : C. long term loans

88. The National Co-operative Development Corporation (NCDC) was established in

Correct : D. March 1963

89. Co-operative banks

Correct : B. are of ‘unit banking type’

90. The first Development banks in India was

Correct : D. IFCI

91. Development banks provide

Correct : C. both medium-term and long-term credits

92. What is the apex organisation of Industrial Finance in India?

Correct : C. Industrial Development Bank of India

93. Which of the following is not an affiliate of the Reserve Bank of India?

Correct : D. Unit Trust of India

94. The National Housing Bank was set up in India as wholly-owned subsidiary of which one of the following?

Correct : C. Reserve Bank of India

95. Which of the following organizations in India is mainly working to meet the credit needs of all types of agricultural and rural development?

Correct : B. NABARD

96. The Industrial Development Banks of India (IDBI) was set up in

Correct : B. July 1964

97. The Industrial Reconstruction Corporation of India (IRCI) was set up in

Correct : A. 1971

98. The Industrial Reconstruction Corporation of India (IRCI) was converted into a statutory corporation called the Industrial Reconstruction Bank of India (IRBI) in

Correct : D. March 1985

99. The National Small Industries Corporation (NSIC) was set up by Government of India in

Correct : B. 1955

100. Changing the role and growth of Financial institutions, in recent years, Select Financial Institutions viz.,IDBI, ICICI Ltd., EXIM Bank, SIDBI and NABARD have been brought under the supervisory purview of the

Correct : A. Reserve Bank of India (RBI