Banking and Financial Institutions MCQs

Assertion (A): Most of the development bank in India have setup private commercial banks after the introduction of capital adequacy norms.
Reason (R): Development banks in India have not adhered to their basic objectives.

Match the items of List-I with those in List-II and select the correct answer.

List-I	List-II
a. Bank Rate Policy	1. Involving the shortening of the currency of bills eligible for rediscount
b. Credit Rationing	2. Involving the Purchase and sale of securities in the open market
c. Variable Reserve System	3. Involving the alteration of discount rate
d. Open Market Operations	4. Involving the variation of the minimum reserves

Which of the following statements is/are correct?
1. Nifty is based on 50 companies in India.
2. Nifty is governed and regulated by the Reserve Bank of India.
3. Nifty deals with futures and options.
Select the correct answer using the options given below:

Match the List-I with List-II relating to Social Security measures in India.

List-I	List-II
a. Social Assistance	1. Payable to workers in accidents & injuries during employment
b. Social Insurance	2. Covers individual risks primarily
c. Commercial Insurance	3. Maternity benefits
d. Workmen's Compensation	4. Provident Funds

Which of the following statements are correct in context of IFCI?

For the discharge of its functions efficiently, SEBI has been vested with the following powers:
1. To approve by-laws of stock exchanges.
2. To direct the stock exchanges to amend their by-laws.
3. Inspect the books of accounts and call for periodical returns from recognized stock exchanges.
4. Inspect the books of accounts of financial intermediaries.

The profitability of public-sector banks is low due to
(i) Over-cautions approach to lending
(ii) Reserve Bank Policies
(iii) High Overhead Costs
(iv) Social-sector lending
Identify the correct option:

Which of the following statement(s) is/are correct?
1. Corporative Banks are governed by the banking Regulations Act, 1951.
2. State Bank of India Act was enacted in the year 1955.
3. After nationalisation of 24 major commercial banks, they become the important instrument for advancement of rural banking.
4. NABARD was established on 12^th July, 1992 with an initial capital of Rs. 200 crore.
Select the correct answer

In the Money market which of the following statement's is/are incorrect?
1. The call money market deals in short-term finance repayable on demand, with a maturity period varying from one day to 14 days.
2. Treasury bills are instruments of short-term borrowing by the Government of India, issued as promissory notes under discount.
3. A reduction in the repo rate helps banks to get money at a cheaper rate.
4. Money market mutual funds invest money in specifically, high-quality and very short maturity based money market instruments.