1. The Industrial Credit and Investment Corporation of India (ICICI) was established as a private
sector development bank at the initiative of the World Bank in
Correct : B. 1955
2. The Export-Import Bank of India was set up by the Government of India on
Correct : C. January 1,1982
3. With the government take-off of all the life insurance companies in India, the Life Insuarnce
Corporation of India (LIC) was formed in
Correct : D. 1956
4. The Unit Trust of India (UTI) was set up in
Correct : A. 1984
5. ICICI is a
Correct : B. Private sector institution
6. Which one of the following institutions provide medium-term finance to industries?
Correct : A. UTI
7. Among Mutual Funds Industry in India, the top and dominating position is held by
Correct : D. UTI
8. Venture Capital Fund provides
Correct : C. risk capital to little known, unregistered, young and small business
9. Which was the first mutual fund established in India?
Correct : B. Unit Trust of India (1963
10. Private Sector Mutual Funds in India were permitted in
Correct : C. 1993
11. Venture capital firm
Correct : A. pools resources to help entrepreneur start new firm
12. The IDBI at present is a
Correct : A. subsidiary of RBI
13. Which of the following is not a function of General Insurance?
Correct : D. Medical Insurance
14. NBFIs refers to..
Correct : B. Non Banking Financial Institutions
15. With reference to non-banking financial companies (NBFCs) in India, consider the following statements:
1. They can offer any rate of interest subject to their financial capacity
2. They can not accept deposits repayable on demand.
Which of the statements given above is/are correct?
Correct : B. 2 only
16. Which one among the following promoted the concept of self-help groups (SHGs) for financing the poor.
Correct : B. NABARD
17. NABARD has been established on the recommendation of
Correct : D. Shivaram Committee
18. SIDBI was set up in 1990 as a wholly owned subsidiary of
Correct : D. IDBI
19. Which one of the following is the main objectives of Unit Trust of India.
Correct : B. To mobilizes the saving of low and high income groups
20. Which function of foreign exchange market protects against the foreign exchange risk?
Correct : B. Hedging function
21. Reduction in the value of domestic currency by the government is called
Correct : B. devaluation
22. Reduction in the value of domestic currency through market forces is called
Correct : A. depreciation
23. Increase in the value of domestic currency by the government is called
Correct : C. revaluation
24. What will be the effect on exports if foreign exchange rate increases?
Correct : A. Increases
25. Foreign exchange is demanded by..
Correct : D. all of them
26. The supply of foreign exchange comes from..
Correct : D. all of them
27. Buyers and sellers of foreign exchange are
Correct : D. all of them
28. Which exchange rate measures the average relative strength of a given currency with respect to other currencies without eliminating the effect of change in price?
Correct : D. Real effective exchange rate
29. When one country manipulates exchange rate against the interest of other country, is known as
Correct : B. dirty floating
30. Other things remaining the unchanged, when in a country the price of foreign currency rises, national income is:
Correct : A. Likely to rise
31. Other things remaining the same, when in a country the market price of foreign currency falls, national income is likely
Correct : B. to fall
32. Devaluation which means fall in value of domestic currency in terms of foreign currency takes place in
Correct : B. Fixed Exchange Rate regime
33. A change from Rs. 60 = 1 dollar to Rs 62 = dollars indicates that Rs has
Correct : B. Depreciated
34. The larger fluctuations in portfolio value of foreign exchange of financial institutions leads to
Correct : B. greater volatility of rates
35. Other things remaining unchanged, when in a country the price of foreign currency rises, national income is
Correct : A. Likely to rise
36. Indirect quotation is also known as
Correct : B. foreign currency quotation
37. If rupee is getting depreciated fast and is considered undesirable by the government, the RBI may be advised to
Correct : A. Sell dollars in the foreign exchange market
38. If in an effort to control depreciation of rupee the RBI puts more dollars in the supply, it may lead to greater inflation, caused by
Correct : D. All of the above.
39. In which of the following items raises the supply of foreign exchange ?
Correct : C. Donation of 50 million $ received from Microsoft
40. A change from Rs. 140 = 2 £ to Rs. 60 = 1 £ indicates that Rs. is
Correct : A. Appreciated
41. Depreciation of domestic currency leads to rise in:
Correct : A. Exports
42. Flexible Exchange Rate System is also known as:
Correct : C. Floating Exchange Rate
43. The rate which is determined by the government is known as:
Correct : B. fixed
44. The exchange rate at which demand for foreign currency becomes equal to its supply, is called
Correct : C. equilibrium exchange rate
45. Demand for foreign currency depends upon:
Correct : D. both (a) and (b
46. In a flexile exchange rate regime
Correct : C. government do not have any intervention