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This set of Indian Economy Multiple Choice Questions & Answers (MCQs) focuses on Indian Banking System and Capital Market Set 1

Q1 | What do you understand by Bear raid?
Q2 | Consider the following statements: [IAS 2004] 1. Reserve Bank of India was nationalized on 26 January, 1950 2. The borrowing programme of the Government of India is handled by the Department of Expenditure, Ministry of Finance Which of the statements given above is/are correct?
Q3 | What are gilt-edged securities?
Q4 | The functions of the Reserve Bank of India are: 1. issuing all notes and coins 2. distributing all notes and coins 3. formulating monetary policy 4. acting as agent of Government in respect of India's membership of the IMF
Q5 | The central banking functions in India are performed by the: [CPO AC 2003]
Q6 | Bank rate is the rate at which:
Q7 | The National Stock Exchange functions from:
Q8 | Among the following, which one is not a credit rating agency operating in India?
Q9 | The banks are required to maintain a certain ratio between their cash in hand and total assets. This is called: [IAS 1998]
Q10 | According to the RBI directions, a NBFC (Non-Banking Finance Company) must possess a Net-owned Fund of the amount:
Q11 | Participatory Notes (PNs) are associated with which one of the following?
Q12 | 'Repo rate' is the rate at which: [CDS 2004]
Q13 | The Securities and Exchange Board of India has been set up to : 1. protect the interests of investors 2. to regulate the activities of brokers in the stock market 3. to ensure transparency in operation in the stock market. 4. to encourage a healthy growth of the stock market Choose your answer from:
Q14 | Which among the following is the oldest Development Financial Institution of India?
Q15 | Consider the following statements: [IAS 2004] 1. The National Housing Bank, the apex institution in housing finance in India, was set up as a wholly owned subsidiary of the Reserve Bank of India 2. The Small Industries Development Bank of India was established as a wholly owned subsidiary of the Industrial Development Bank of India Which of the statements given above is/are correct?
Q16 | Regional rural banks: 1. have limited area of operation 2. have free access to liberal refinance facilities from NABARD 3. are required to lend only to weaker sections
Q17 | The arguments to support opening up of the Insurance sector in India were: 1. It will provide wider choice to customers 2. It will infuse competition and efficiency 3. It will widen the base of long term funds 4. It will improve balance of payments position Choose the correct answer from:
Q18 | Debenture holders of a company are its:
Q19 | Which of the following statements regarding Regional Rural Banks (RRB) in India is/are correct ? 1. The basic aim of setting up the RRBs is to develop rural economy. 2. The area of RRBs is limited to a specific region comprising one or more districts. 3. RRBs are sponsored by Commercial Banks. Select the correct answer using the code given below: [Asstt Commdt 2011]
Q20 | Consequent 'upon the recommendations of the Working Group on Rural Banks, 5 Rural Regional Banks were initially set up in the year [CPO SI 2010]
Q21 | In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities? [CSAT 2011]
Q22 | What is the role of 'Over-the Counter Exchange' (OTC)?
Q23 | EXIM Bank was set-up in :
Q24 | Which of the following activities would Small Industries Development Bank of India(SIDBI) undertake under the new rural industrialisation programme? [Bank PO 1994] 1. Consultation in erecting the project 2. Providing marketing assistance and refinance facilities at later stage 3. Running the project during initial stage
Q25 | Which of the following is at the apex of Industrial Finance in India? [UDC 1995]