MCQs
Total Questions : 131
| Page 1 of 14 pages
Answer: Option C. -> Interface
Answer: (c)A Unified Payment Interface (UPI) is a single window mobile payment system launched by the National Payments Corporation of India (NPCI). The letter “I” in the abbreviation UPI stands for interface.
Answer: (c)A Unified Payment Interface (UPI) is a single window mobile payment system launched by the National Payments Corporation of India (NPCI). The letter “I” in the abbreviation UPI stands for interface.
Question 2. In the context of Indian economy; which of the following is/are the purpose/purposes of ‘Statutory Reserve Requirements’?
- To enable the Central Bank to control the amount of advances the banks can create
- To make the people’s deposits with banks safe and liquid
- To prevent the commercial banks from making excessive profits
- To force the banks to have sufficient vault cash to meet their day-to-day requirements
Answer: Option B. -> 1 and 2 only
Answer: (b)Because Reserve requirements are designed as “precautionary measures” and not to stop banks from “excessive” profit.
Answer: (b)Because Reserve requirements are designed as “precautionary measures” and not to stop banks from “excessive” profit.
Question 3. What is the purpose of setting up Small Finance Banks (SFBs) in India?
Select the correct answer using the code given below:
- To supply credit to small business units
- To supply credit to small and marginal farmers
- To encourage young entrepreneurs to set up businesses particularly in rural areas.
Select the correct answer using the code given below:
Answer: Option C. -> 1 and 2 only
Answer: (c)
While directly or indirectly all three will be encouraged because of Small Finance banks. But when RBI invited applications, the specific purpose were 1 and 2 only.
Answer: (c)
While directly or indirectly all three will be encouraged because of Small Finance banks. But when RBI invited applications, the specific purpose were 1 and 2 only.
Answer: Option A. -> 1 and 3 only
Answer: (a)NABARD doesn’t give “direct” credit assistance. It provides credit via intermediaries such as micro finance companies, cooperative society, RRB. Therefore, 2 is false.
Answer: (a)NABARD doesn’t give “direct” credit assistance. It provides credit via intermediaries such as micro finance companies, cooperative society, RRB. Therefore, 2 is false.
Answer: Option C. -> Mobile wallets will not be necessary for online payments.
Answer: (c)“A” is the most appropriate choice. Mobile wallets will not be necessary, because your mobile number is directly linked with the bank account using bank’s ‘customized app’ which is built on the UPI platform.
Answer: (c)“A” is the most appropriate choice. Mobile wallets will not be necessary, because your mobile number is directly linked with the bank account using bank’s ‘customized app’ which is built on the UPI platform.
Question 6. Which of the following statements is/are correct in regard to ‘microfinance’?
- Micro-credit extended by banks to individual is reckoned as a part of their priority sector lending.
- RBI has prescribed a particular model the banks to provide microfinance.
Answer: Option C. -> 1 only
Answer: (c)Micro-credit extended by banks to individuals is reckoned as a part of their priority sector lending and no particular model has been prescribed for micro-finance and banks have been extended freedom to formulate their own models.
Answer: (c)Micro-credit extended by banks to individuals is reckoned as a part of their priority sector lending and no particular model has been prescribed for micro-finance and banks have been extended freedom to formulate their own models.
Question 7. Why is the offering of ‘teaser loans’ by commercial banks a cause of economic concern?
Which of the statements given above is/are correct?
- The teaser loans are considered to be an aspect of sub-prime lending and banks may be exposed to the risk of defaulters in future.
- In India, teaser loans are mostly given to inexperienced entrepreneurs to set up manufacturing or export units.
Which of the statements given above is/are correct?
Answer: Option C. -> 1 only
Answer: (c)
Teaser loans are considered an aspect of subprime lending, as they are usually offered to low-income home buyers.
Unfortunately, these borrowers with increased monthly payments, at times can’t afford.
Answer: (c)
Teaser loans are considered an aspect of subprime lending, as they are usually offered to low-income home buyers.
Unfortunately, these borrowers with increased monthly payments, at times can’t afford.
Answer: Option A. -> Both 1 and 2
Answer: (a)
NPCI is a not-for-profit company formed by various banks, with the primary objective of providing cost-effective payment solutions to the banks.
NPCI’s solutions such as IMPS, BHIM, RuPay, AEPS etc. have indeed helped in financial inclusion. So first is correct and second is correct- NPCI launched Rupay card in 2012, as the 7th payment gateway in the world.
Answer: (a)
NPCI is a not-for-profit company formed by various banks, with the primary objective of providing cost-effective payment solutions to the banks.
NPCI’s solutions such as IMPS, BHIM, RuPay, AEPS etc. have indeed helped in financial inclusion. So first is correct and second is correct- NPCI launched Rupay card in 2012, as the 7th payment gateway in the world.
Answer: Option D. -> 4-1-3-2
Answer: (d)Currency is most liquid, because you can use it as and when you want. Time deposit with bank (e.g. fixed deposit), are least liquid compared to savings/demand deposit with banks and currency.
Answer: (d)Currency is most liquid, because you can use it as and when you want. Time deposit with bank (e.g. fixed deposit), are least liquid compared to savings/demand deposit with banks and currency.
Answer: Option C. -> accept deposits and provide credit
Answer: (c)
The main functioning of the banking system is to accept deposits and provide credit. The bank collects deposits from the public.
These are savings, fixed, current and recurring deposits. The bank advances loans to the business community and other members of the public.
The types of bank loans and advances are overdraft, cash credits, loans and discounting of bills of exchange.
Answer: (c)
The main functioning of the banking system is to accept deposits and provide credit. The bank collects deposits from the public.
These are savings, fixed, current and recurring deposits. The bank advances loans to the business community and other members of the public.
The types of bank loans and advances are overdraft, cash credits, loans and discounting of bills of exchange.
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