BANKING SYSTEM MCQS SET 14

BANKING SYSTEM MCQS SET 14

131) Select the correct statement regarding the Priority Sector Lending (PSL) obligations of the banks operating in India
A) the number of items in the PSL has been decreased by the Government of India, following the recommendations of the Narsimham committee-I
B) nationalised banks have to fulfil higher targets of the PSL than the Indian private sector banks
C) for foreign private banks the PSL compulsion has been withdrawn
D) poorest among the poor's also come under the PSL
Answer: poorest among the poor's also come under the PSL

    
132) Select the correct one/ones about a Local Area Banks (LABs) using the code given below
1. They ensure focussed savings and credit mobilisation by defining their clear boundary of operation.
2. They operate in narrow geographical area of three continuous districts.
3. Private sector is allowed to enter the segment.
A) 1 and 2
B) 2 and 3
C) 1 and 3
D) All of the above
Answer: All of the above

    
133) Select the correct one/ones about the Banking Financial Supervision (BFS) in India
1. The RBI performs financial supervision function under the guidance of the Board for Financial Supervision (BFS)
2. Primary objective of BFS is to undertake consolidate supervision of the financial sector comprising commercial banks, financial institutions and non banking finance companies.
A) Only 1
B) Only 2
C) Both 1 and 2
D) Neither 1 nor 2
Answer: Both 1 and 2

    
134) Select the correct one/ones about the cooperative banks in India from the given choices using the codes
1. The Urban Co operative Banks (ICBS), Until 1996, could only lend for non-agricultural purposes.
2. These banks provide most services, such as savings and current accounts, safe deposit lockers, loan or mortgages to private and business customers.
A) Only 1
B) 1 and 2
C) Only 2
D) None of these
Answer: 1 and 2

    
135) If the interest rate is decreased in an economy, it will
A) decrease in consumption expenditure in the economy.
B) increase the tax collection of the government.
C) increase the investment expenditure of the economy.
D) increase in total saving of the economy.
Answer: increase the investment expenditure of the economy.


136) State Bank of India was previously known as
A) Cooperative Bank of India
B) Syndicate Bank
C) Imperial Bank of India
D) Canara Bank
Answer: Imperial Bank of India

    
137) RRBs are owned by
A) Central Government
B) State Government
C) Sponser Bank.
D) Jointly by all of the above
Answer: Jointly by all of the above

    
138) What does the letter 'e' denotes in the term 'e-banking' ?
A) Essential Banking
B) Economic Banking
C) Electronic Banking
D) Expansion Banking
Answer: Electronic Banking
    

139) Which bank is limited to the needs of agriculture and rural finance?
A) SBI
B) NABARD
C) IFC
D) RBI
Answer: NABARD

  
140) The first Bank established in India was
A) Punjab National Bank
B) Traders Bank
C) State Bank of India
D) Bank of Hindustan
Answer: Bank of Hindustan