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MCQs

Total Questions : 131 | Page 11 of 14 pages
Question 101. In case of Small Finance Banks (SFB), the loan size and investment limit exposure to single
  1.    15 per cent of capital funds
  2.    10 per cent of capital funds
  3.    15 per cent of total advances
  4.    10 per cent of total advances
 Discuss Question
Answer: Option B. -> 10 per cent of capital funds
Answer: (b)The maximum loan size and investment limit exposure to a single and group obligor would be restricted to 10 per cent and 15 per cent of its capital funds, respectively.
Question 102. If all the banks in an economy are nationalized and converted into a monopoly bank, the total deposits
  1.    will neither increase nor decrease
  2.    will increase
  3.    will decrease
  4.    None of the above
 Discuss Question
Answer: Option A. -> will neither increase nor decrease
Answer: (a)It will remain the same, because banks do not increase the national income. So it remains the same immaterial whether banks are there or not.
Question 103. Which of the following will not be the part of ‘financial inclusion’?
  1. Opening educational centres
  2. Opening wealth management centres by citibank.
  3. Eradication of poverty.
  4. Report of Khan commission on financial inclusion.
Select the correct answer using the codes given below:
  1.    1, 3 and 4 only
  2.    1, 2 and 4 only
  3.    1, 2 and 3 only
  4.    1, 2, 3 and 4
 Discuss Question
Answer: Option B. -> 1, 2 and 4 only
Answer: (b)Financial inclusion is the delivery of financial services, at affordable costs, to sections of disadvantaged and low income segments of society.It includes opening educational centres, opening wealth management centres by Citibank etc. Khan commission had put forward its report on financial inclusion.
Question 104. India Brand Equity Fund was established in
  1.    1997
  2.    1995
  3.    1996
  4.    1992
 Discuss Question
Answer: Option C. -> 1996
Answer: (c)
Question 105. According to extant RBI guidelines, ‘Payment Banks’ are not permitted to
  1.    distribute mutual fund/insurance/pension products
  2.    accept remittances to be sent to multiple banks
  3.    set up branches or ATMs
  4.    set up subsidiaries to undertake NBFC activities
 Discuss Question
Answer: Option D. -> set up subsidiaries to undertake NBFC activities
Answer: (d)According to extant RBI guidelines, Payment Banks are not permitted to set up subsidiaries to undertake NBFC activities.
Question 106. Open - market operations of Reserve Bank of India refer to
  1.    transaction in gold
  2.    auctioning of Foreign Exchange
  3.    trading in securities
  4.    none of the above
 Discuss Question
Answer: Option C. -> trading in securities
Answer: (c)
Open Market Operations refer to the purchase and sale of the Government securities (trading of the securities) by RBI from/to market.
The objective of Open Market Operations is to adjust the rupee liquidity conditions in the economy on a durable basis.
Question 107. The first Land Development Bank was established in 1920. It was located at
  1.    Munger
  2.    Jhang
  3.    Meerut
  4.    Thane
 Discuss Question
Answer: Option B. -> Jhang
Answer: (b)The first land development bank was started at Jhang in Punjab in 1920.
Question 108. SEBI was established in the year
  1.    1985
  2.    1990
  3.    1991
  4.    1988
 Discuss Question
Answer: Option D. -> 1988
Answer: (d)
Question 109. The Rural infrastructure fund set up in 1995 – 96, is maintained by the
  1.    NABARD
  2.    State Bank of India
  3.    Reserve Bank of India
  4.    Regional Rural Bank
 Discuss Question
Answer: Option A. -> NABARD
Answer: (a)
Through the assistance of the Swiss Agency for Development & cooperation, NABARD set up the Rural innovation fund. RIDF is another noted scheme for the bank for rural development.
Under the RIDF scheme Rs. 51,283 crore have been sanctioned for 2,44,651 projects covering irrigation, rural roads and bridges, health & education, soil conservation, water schemes etc.
Question 110. The banks which are implementing the Micro Finance Programme linked with Self Help Groups (SHGs) are
  1.    Co-operative banks and Regional Rural Banks, only
  2.    Regional Rural Banks and Commercial Banks, only
  3.    Commercial Banks and Co-operative Banks only
  4.    Commercial Banks, Regional Rural Banks and Co-operative Banks
 Discuss Question
Answer: Option D. -> Commercial Banks, Regional Rural Banks and Co-operative Banks
Answer: (d)Commercial Banks, Regional Rural Banks and Co-operative Banks are implementing the Micro Finance programme linked with Self Help Groups.

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