BANKING SYSTEM MCQS SET 13

BANKING SYSTEM MCQS SET 13

121) The major aim of devaluation is to
A) encourage exports
B) encourage imports
C) encourage both exports and imports
D) discourage both exports and imports
Answer: encourage exports

    
122) With regards to the Service Area Approach Programme, consider the following
1. Avoidance of duplication of development efforts.
2. Organised and planned lending in the designated areas.
3. Monitoring and assessment of the service and its impact on production level.
4. Optimise the credit and linkages between the production and productivity.
Which of the benefits given above are actually accrued from the Service Area Approach Programme?
A) 1, 2, 3 and 4
B) 1, 2 and 3
C) 2 and 4
D) 3 and 4
Answer: 1, 2, 3 and 4

    
123) With reference to Indian economy, consider the following statements
1. Special Agricultural Credit Plan (SACP) is mainly implemented by the Public Sector Banks.
2. Special Agricultural Credit Plan (SACP) was launched in the Fourth Five Year Plan.
Which of the statements given above is/are correct?
A) Only1
B) Only 2
C) Both 1 and 2
D) Neither 1 nor 2
Answer: Only1

    
124) Which of the following terms indicate a mechanism used by commercial banks for providing credit to the Government?
A) Cash Credit Ratio
B) Debit Service Obligation
C) Liquidity Adjustment Facility
D) Statutory Liquidity Ratio
Answer: Statutory Liquidity Ratio

    
125) Which one of the following committees was constituted to bring reform in the Indian Banking System?
A) Abhijit Sen Committee
B) Abid Hussain Committee
C) Suresh Tendulkar Committee
D) M Narsimham Committee
Answer: M Narsimham Committee


126) Which one of the following is correct about the Hundis in the Indian Banking System?
A) A Counter of trade the commodities produced in a season
B) An internal bill of exchange of the Indigenous Banking System
C) A bill of exchange sold in the Indian secondary capital market
D) None of the above
Answer: An internal bill of exchange of the Indigenous Banking System

    
127) Which one of the following is correctly matched?
A) NBFC : Organised Banking sector
B) SHROFFS : Indigenous Banking system
C) NIDHI : Scheduled Banking system
D) None of the above
Answer: SHROFFS : Indigenous Banking system

    
128) Which one of the following is not correct about the microfinance?
A) It is a provision of financial services to low income groups of a society,
B) It is aimed to assist the self employed who traditionally lack access to banking System.
C) It is the credit policy which does not cover the insurance of the borrower.
D) It is mainly aimed to reduce the unemployment and poverty of a Country.
Answer: It is the credit policy which does not cover the insurance of the borrower.

    
129) Select the incorrect one/(s) about the Regional Rural Banks (RRBs) in India from the given statements using the codes given below
1. They are now being merged with the public sector banks under whom they used to function.
2. The original mandate of their clientele has now been abolished
3. They cannot forward advances at commercial interest rates.
A) Only 1
B) 2 and 3
C) Only 3
D) 1 and 3
Answer: Only 3
    

130) Banks of India are required to maintain a certain ratio between their risky assets and capital which is known as
A) Cap Adequacy Ratio (CAR)
B) Statutory Liquidity Ratio (SLR)
C) General Bank Reserve (GBR)
D) Capital to risk weighted Adequacy Ratio (CRAR)
Answer: Capital to risk weighted Adequacy Ratio (CRAR)