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MCQs

Total Questions : 131 | Page 12 of 14 pages
Question 111. The ‘Interest Rate Risk’ is a type of
  1.    Reputational Risk
  2.    Liquidity Risk
  3.    Market Risk
  4.    Operational Risk
 Discuss Question
Answer: Option C. -> Market Risk
Answer: (c)There are four major types of market risk; Interest Rate Risk, Equity Price Risk, Foreign Exchange Risk, Commodity Price Risk.
Question 112. Which of the following statements best describes the term ‘Scheme for Sustainable Structuring of Stressed Assets (S4A)’, recently seen in the news?
  1.    It is a disinvestment plan of the Government regarding Central Public Sector Undertakings.
  2.    It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties.
  3.    It is a procedure for considering ecological costs of developmental schemes formulated by the Government.
  4.    It is an important provision in ‘The Insolvency and Bankruptcy Code’ recently implemented by the Government.
 Discuss Question
Answer: Option B. -> It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties.
Answer: (b)S4A is RBI’s scheme for restructuring of corporate loans, hence “B” is the most appropriate among the given options.
Question 113. SBI Life Insurance Limited is a joint venture life insurance company of State Bank of India (SBI) and
  1.    BNP Paribas Cardiff
  2.    Life Insurance Corporation of India
  3.    HDFC Life Insurance Company
  4.    ICICI Prudential Life Insurance Company
 Discuss Question
Answer: Option A. -> BNP Paribas Cardiff
Answer: (a)SBI Life Insurance is a joint venture life insurance company between State Bank of India (SBI), and BNP Paribas Cardif.
Question 114. Which one of the following Public Sector Bank’s emblem figures a dog and the words ‘faithful friendly, in it?
  1.    oriental Bank of Commerce
  2.    Syndicate Bank
  3.    Punjab National Bank
  4.    State Bank of India
 Discuss Question
Answer: Option B. -> Syndicate Bank
Answer: (b)Syndicate Bank. The symbol of dog implies that Bank is trustworthy and a friend. Its slogan is : Faithful Friendly.
Question 115. Yes Bank has announced mobilisation of USD 5 billion towards its commitment to climate finance in India by 2020. The Bank’s committed target for funding clean energy is
  1.    1500 MW by 2020
  2.    1500 MW annually
  3.    1000 MW annually
  4.    5000 MW by 2020
 Discuss Question
Answer: Option D. -> 5000 MW by 2020
Answer: (d)YES BANK, a leader in the climate finance space in the country, investing and raising capital towards mitigation, adaptation and resilience. This bank has the target funding of 5,000 MW of clean energy by 2020.
Question 116. For regulation of the Insurance Trade in the country the Government has formed
  1.    General Insurance Corporation
  2.    Reserve Bank of India
  3.    Insurance Regulatory and Development Authority
  4.    SEBI
 Discuss Question
Answer: Option C. -> Insurance Regulatory and Development Authority
Answer: (c)
Question 117. Devaluation of currency leads to
  1.    expansion of import substituting
  2.    contraction of import trade
  3.    expansion of export trade
  4.    all of the above
 Discuss Question
Answer: Option D. -> all of the above
Answer: (d)
Devaluation leads to a country’s exports becoming less expensive as the currency is deliberately adjusted down to other currencies, making imports more expensive, making domestic consumers less likely to purchase them thus the domestic companies are encouraged to substitute imports.
Question 118. Which of the following company is the sole reinsurance company in India?
  1.    National Insurance Company
  2.    ICICI Prudential Life Insurance Company
  3.    Life Insurance Corporation of India
  4.    General Insurance Corporation
 Discuss Question
Answer: Option D. -> General Insurance Corporation
Answer: (d)GIC of India (GIC) is the sole reinsurance company in the Indian insurance market with over four decades of experience.
Question 119. How many seats of Deputy Governor are there in Reserve Bank of India?
  1.    3 only
  2.    2 only
  3.    1 only
  4.    4 only
 Discuss Question
Answer: Option D. -> 4 only
Answer: (d)
The general superintendence and direction of the RBI are entrusted with the 21-member- Central Board of Directors—the Governor (currently Dr Urjit R. Patel), four Deputy Governors, two Finance Ministry representatives, ten government-nominated directors to represent important elements from India’s economy, and four directors to represent local boards headquartered at Mumbai, Kolkata, Chennai and New Delhi.
Question 120. In the context of Indian economy, open market operations to :
  1. borrowing by scheduled banks from RBI
  2. lending by commercial banks to industry and trade
  3. purchase and sale of government securities by the RBI
  4. None of the above
Select the correct answer using the codes given below :
  1.    4 and 1 only
  2.    3 only
  3.    1 and 2 only
  4.    2 and 3 only
 Discuss Question
Answer: Option B. -> 3 only
Answer: (b)Open market operation: When RBI buys/sells securities in open market, in case of OMO, first party permanently sells the Government security to second party. Second party is free to do whatever it wants with that security.

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