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ECONOMICS > MONEY BANKING AND FINANCIAL INSTITUTIONS > Flashcards

MONEY BANKING AND FINANCIAL INSTITUTIONS Flashcards

1
Q

Which of the following statements is true about the Export-Import Bank of India (EXIM BANK)?

A

Export–Import Bank of India is a finance institution in India, established in 1982 under Export-Import Bank of India Act 1981. Since its inception, Exim Bank of India has been both a catalyst and a key player in the promotion of cross border trade and investment.

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2
Q

What is a public sector bank?

A

Public Sector Banks (PSBs) are a major type of bank in India, where a majority stake (i.e. more than 50%) is held by a government.

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3
Q

Location of four Currency Printing Press in India

A

These are Currency Note Press, Nashik (Maharashtra)
Bank Note Press, Dewas(Madhya Pradesh)
Bharatiya Reserve Bank Note Mudran Pvt. Ltd.
Maysor (Karnatak) Salboni (West Bengal)

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4
Q

The Banking Regulation Act was passed in India in _________.

A

1949

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5
Q

The Interest Rate charged by banks on short term loSol to their largest, most secure and most creditworthy customers is called _______

A

Prime Lending Rate

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6
Q

Cash Reserve Ratio (CRR) is calculated as a percentage of each bank’s ___.

A

net demand and time liabilities

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7
Q

In the context of the banking sector of India, what is the full form of IMPS?

A

Immediate Payment Service

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8
Q

Which of the following terms refer to the running down or payment of a loan in instalments?

A

Amortisation

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9
Q

Which of the following banks was authorised to issue Electoral Bonds?

A

State Bank of India

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10
Q

In the context of International Banking transactions what is the full form of SWIFT?

A

Society for Worldwide Interbank Financial Telecommunications

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11
Q

In which year was the State Financial Corporation Act passed ?

A

1951
An Act to provide for the establishment of State Financial Corporations.

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12
Q

Which committee was appointed to give a detailed report on the Non Performing Assets of the Public Sector Banks?

A

Pannir Selvam Committee

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13
Q

Which one of the following is a monetary principle stating that “Bad money drives out good”?

A

Gresham’s Law

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14
Q

Which one of the following is defined as “The proportion of highly liquid assets held by financial institutions,toensuretheirongoing ability to meet short-term obligations?

A

Liquidity Coverage Ratio

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15
Q

The responsibility of regulating and supervising primary (urban) cooperative banks, which are popularly known as Urban Cooperative Banks(UCBs) is vested with which one of the following?

A

The Urban Banks Department of the Reserve Bank of India

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16
Q

The rate of interest on which commercial banks borrow money from RBI to meet their short term credit needs is known as:

A

Bank Rate

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17
Q

In the context of the banking system in India, what does IFSC stand for?

A

Indian Financial System Code

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18
Q

With reference to Banking System of India, what does NEFT stand for?

A

National Electronic Fund Transfer

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19
Q

In context of Banking system in India what is the fullform of RTGS?

A

Real Time Gross Settlement
Explanation: The term real-time gross settlement (RTGS) refers to a funds transfer system that allows for the instantaneous trSolfer of money and/or securities.

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20
Q

RBI does not transfer olact the business of which of the following State Government?

A

Jammu and Kashmir

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21
Q

How many digits are there on a debit card?

A

16

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22
Q

In India, Monetary policy is formed by _____

A

Reserve Bank of India

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23
Q

’Rani ki vav’ motif is present on which of the following currency notes?

A

100 rupee note

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24
Q

Which of the following is a working capital ?

A

Money, Short term debit or inventory.

25
Q

.India’s foreign reserves does consist of which of the following ?

A

Forex reserves consist of foreign currency assets, Special drawing rights, gold and reserve position in the IMF. Carbon copy is absent in the Forex reserve.

26
Q

Who is the founder of Indian Overseas Bank?

A

M. Chidambaram Chettyar

27
Q

Who decides repo rate, reverse repo rate and bank rate?

A

RBI

28
Q

Which central agency issues currency notes on behalf of the Central Government?

A

RBI

29
Q

Which Index is used by RBI to decide repo rate and measure Inflation?

A

WPI

30
Q

Who acts as Banker to the Indian Government?

A

RBI

31
Q

Which department is the nodal department for overseeing the public financial management system in the Central govt of India?

A

Department of Expenditure Explanation: The Department of Expenditure is the nodal Department for overseeing the public financial management system in the Central Government and matters connected with State finances.

32
Q

Which of the following Monetary policy tools is used by RBI to control inflation ?

A

Repo Rates

33
Q

If RBI increases Repo Rate, then what may be its impact on the Indian Economy ?

A

Inflation will reduce

34
Q

How many members are there in the Indian Monetary Policy Committee ?

A

6

35
Q

In the older monetary system of India, ‘One Anna’ used to be what part of ‘One Rupee’ ?

A

16th Part of a Rupee

36
Q

Which of the following is a nationalized bank in India ?

A

State Bank of India

37
Q

The percentage of deposits that a bank must keep as cash reserves with itself is known as ______.

A

Cash Reserve Ratio

38
Q

On which rate does the Reserve Bank of India provide loSol to the commercial banks ?

A

Bank Rate

39
Q

Which of the following options is correct about the Payment Banks ?

A

Payment banks cannot lend or offer credit advance to customers like traditional banks. They can issue cheque books and debit cards but not credit cards. Also, unlike traditional banks, you can keep a limited sum in a payment bank account, currently capped at Rs 1 lakh per account.

40
Q

Who is the Chairman of the Monetary Policy Committee?

A

Governor of RBi

41
Q

Which of the following is not considered as a valid currency ?

A

Gold

42
Q

Which central institution in India monitors and regulates agricultural credit?

A

NABARD

43
Q

Under Banking Regulation Act, 1934, The Reserve Bank was established in 1935 with the capital of Rs. ______

A

5 crore

44
Q

Which central agency manages the public debt of the central and state government?

A

RBI

45
Q

Which central agency regulates and monitors the housing sector in India?

A

RERA
Explanation: The Real Estate (Regulation and Development) Act, 2016 is an Act of the Parliament of India which seeks to protect home-buyers as well as help boost investments in the real estate industry. Bill published on: 14 August 2013.

46
Q

Which of the following bodies is primarily concerned with maintaining the integrity of the international financial system?

A

FATF
Explanation: The Financial Action Task Force (FATF) is primarily concerned with maintaining the integrity of the international financial system. The Financial Action Task Force (FATF) is the global money laundering and terrorist financing watchdog. The inter-governmental body sets international standards that aim to prevent these illegal activities and the harm they cause to society.

47
Q

What is the full form of NPCI which is an umbrella organisation for all retail payments systems in India?

A

National Payments Corporation of India
Explanation: The National Payments Corporation of India is an umbrella organisation for operating retail payments and settlement systems in India.

48
Q

What is the minimum amount which can be remitted through Real Time Gross Settlement (RTGS)?

A

Rs 2,00,000

49
Q

Which of the following institutions does NOT regulate capital markets in India?

A

RDA
Explanation: The Securities & Exchange Board of India (SEBI),The Ministry of Finance (MoF), and the Reserve Bank of India (RBI) are the three regulatory authorities governing Indian capital markets.

50
Q

In which year was the Reserve Bank of India established?

A

1935

51
Q

Which of these Institutions fixes the repo rate and reverse repo rate in India?

A

RBI

52
Q

If the inflation in an economy
is rising steadily, the Central Bank
might ______.

A

increase the repo rate

53
Q

Merchant discount rate refers to _______.

A

the rate charged to a merchant for payment processing services on debit and credit card transactions

54
Q

Which of the following Acts was amended to provide a statutory basis for the implementation of the flexible inflation targeting (FIT) framework?

A

Reserve Bank of India (RBI)
Act, 1934

55
Q

Which among the following financial institutions was nationalised in 1949?

A

RBI
Explanation: RBI was nationalised in 1949 on the basis of the Reserve Bank of India (Transfer to Public Ownership) Act, 1948.

56
Q

Which of the following is the apex banking institution of India that regulates the
monetary policy?

A

RBI

57
Q

Which section of the RBI Act empowers the Central Government to supersede the RBI board and issue directions considered to be ‘necessary in public interest’ to the RBI, after consulting the Governor of the bank?

A

Section 7
Explanation:The Section 7 of the RBI Act empowers the government to give directions to the central bank on matters of public interest.

58
Q

The Coinage Act, 2011, allows issue of coins up to the denomination of ₹______ in India.

A

1000

ECONOMICS (11 decks)

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