Indian Banking System and Capital Market Set 3
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This set of Indian Economy Multiple Choice Questions & Answers (MCQs) focuses on Indian Banking System and Capital Market Set 3
Q1 | What is the difference between Debentures and Equity?
- Debentures are sealed bonds acknowledging that money has been borrowed; equity is a shareholder's share voting rights in proportion to his shareholding
- An equity shareholder cannot withdraw his amount whereas debentures can be withdrawn by taking back the amount
- Equity shareholding is more risky, compared to debentures which are bound to return good interest on the principal
- Both debenture and equity holders have the right of voting irrespective of the proportion of holdings but debentures are of lower value than equity
Q2 | Which of the following organisations in India is mainly' working to meet the credit needs of all types of agricultural and rural development activities?
- FCI
- IDBI
- NABARD
- ICAR
Q3 | Which of the following combinations is correct? [IFS 1989]
- NABARD-Industrial Loans
- IDBI-Short term loans
- RBI-Long term finance
- RRB-Agricultural finance
Q4 | Which one of the following Public Sector banks' emblem figures a dog and the words 'faithful, friendly' in it ? [CDS 2010]
- Punjab National Bank
- Syndicate Bank
- Oriental Bank of Commerce
- State Bank of India
Q5 | Which one of the following statements is not correct? [CDS 2009]
- The National Association of Securities Dealers Automated Quotations known as NASDAQ, is an American stock exchange
- Nikkei is the stock market index for the Tokyo Stock Exchange
- S and P CNX Nifty is the index for 50 large companies on the Bombay Stock Exchange
- Hang Seng Indexes record daily changes of the largest companies of the Hong Kong stock market
Q6 | Which bank gives long term loan to farmers?
- NABARD
- Land Development Bank
- SBI
- Rural banks
Q7 | Consider the following statements: 1. life Insurance Corporation of India is the oldest insurance company in India. 2. National Insurance Company limited was nationalized in the year 1972 and made a subsidiary of General Insurance Corporation of India. 3. Headquarters of United India Insurance Company limited are located at Chennai. Which of the statements given above are correct? [lAS2006)
- 1, 2 and 3
- 1 and 2, only
- 2 and 3, only
- 1 and 3, only
Q8 | In 1921, the Presidency Banks of Bengal, Madras and Bombay were nationalised to give birth to:
- Punjab National Bank
- Syndicate Bank
- State Bank of India
- Punjab and Sindh Bank
Q9 | The oldest stock exchange of India is :
- Bombay Stock Exchange
- Ahmedabad Stock Exchange
- Bangalore Stock Exchange
- Hyderabad Stock Exchange
Q10 | Consider the following statements: 1. ICICI Bank is the largest private sector bank in India. 2. Postal life Insurance is the oldest life insurance organization in India. Which of the statements give above is/are correct? [IAS 2005]
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
Q11 | The National Housing Bank was set up in India as a wholly-owned subsidiary of whichone of the following? [IAS 2007]
- State Bank of India
- Reserve Bank of India
- ICICI Bank
- Life Insurance Corporation of India
Q12 | In some parts of India, farmers face acute distress because of heavy burden of debt from non-institutional renders. Who can be called a non-institutional lender? [RBI Grade B Officer 2011]
- Small Banks
- Grameen Banks
- Credit Cooperative Societies
- Money Lenders
Q13 | Which of the following organisations prepare rural credit plans on annual basis for all districts in India, which in turn form the base for annual credit plans of all rural financial institutions? [RBI Grade B Officer 2011]
- SIDBI
- NABARD
- RBI
- Indian Bank's Association
Q14 | The RBI has regional offices at various places. At which of the following places it doesnot have an office? [RBI Grade B Officer 2011]
- Kota
- Nagpur
- Lucknow
- Panaji
Q15 | Basel Committee has given its recommendations on which of the following aspects of banking operations? [RBI Grade B Officer 2011]
- Marketing of bank products
- Priority sector lending
- Risk Management
- All of the above
Q16 | Who amongst the following has never held post of the Governor of the RBI? [RBIGrade B Officer 2011]
- C. Rangarajan
- L.K. Jha
- Manmohan Singh
- Usha Thorat
Q17 | 'Sub Prime Lending' is a term applied to the loans made to ___ [Punjab & 5indh Bank 2011]
- those borrowers who do not have a good credit history.
- those who wish to take loan against the mortgage of tangible assets.
- those who have a good credit history and are known to bank since 10 years.
- those borrowers who are most preferred customers of the Bank.
Q18 | As per the reports published- in various journals and newspapers the 'small borrowers' in rural areas still prefer to take informal route for their credit needs. Which of the following is the 'informal route' of credit in financial sector? [Punjab & Sindh Bank 2011]
- Credit cards
- Loan against gold from financial institute
- Debit cards
- Money lender
Q19 | Who amongst the following was never a Governor of the RBI ? [SBI Associates Clerk 2011]
- Bimal Jalan
- Y. V. Reddy
- Arup Roy Choudhury
- C. Rangarajan
Q20 | In the world of commodity exchanges-the' concept of "A standard contract to buy or sell a specified commodity at a certain date in future and at a market driven price" – is known as [UBI PO 2010]
- Future contract
- Forward contract
- Market contract
- Standard contract
Q21 | Stock Exchanges play, role in an economy which may be termed as [UBI PO 2010]
- hardly useful
- useful but need strict regulation
- harmful to proper capital markets
- a gambling-where many investors get ruined
Q22 | Which one of the following is not a feature of Limited Liability Partnership firm? [IAS 2010]
- Partners should be less than 20
- Partnership and management need not be separate
- Internal governance may be decided by mutual agreement among partners
- It is a corporate body with perpetual succession
Q23 | Which of the following statements is/are correct? 1. NIFTY is based upon 50 firms in India. 2. NIFTY is governed and regulated by the Reserve Bank of India. 3. NIFTY does not trade in mutual funds Select the correct answer using the code given below: [CDS 2012]
- 1 only
- 2 only
- 3 only
- 1 and 3
Q24 | Private Sector Mutual Funds in India were permitted in [UP PCS 2011]
- 1964
- 1993
- 1994
- 2001
Q25 | Which of the following is the basis for determining the national income?
- Total revenue of the State
- Net profit earned and expenditure incurred by the State
- Production of goods and services
- All of the above