Indian Economy MCQ-7

With the aim of containing inflation and anchoring inflationary expectations, recent time, Reserve Bank of India actively managed liquidity through the appropriate use of which one of the following?

(A) Liquidity Adjustment Facility
(B) Interest Subvention
(C) Open Market Operations
(D) Both ‘a’ and ‘c’

When did the Lead Bank Scheme to reduce the developmental gap between different regions of the country launched in India?

(A) Towards the end of First Five Year Plan
(B) Towards the close of the Second Five Year Plan
(C) Towards the close of the Plan Holiday in Indian Economy
(D) Towards the end of the Eight Five Year Plan

Consider the following statements
1. Priority Sector Lending is started since the establishment of the Banking system in India.
2. Priority Sector Lending is mainly aimed to give adequate assistance to those sectors which contributed a significant proportion of national product.
Which of the statements given above is/are correct?

(A) Only 1
(B) Only 2
(C) Both 1 and 2
(D) Neither 1 nor 2

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 Narsimhan committee-l
(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(C) for foreign private banks the PSL compulsion has been withdrawn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

Which one of the following is the main composition of the New Broad Money (NM3) as, per the recommendations of the Working Group on Money Supply: Analytics and Methodology of Compilation?
1. Narrow Money.
2. Short Term Time Deposits of Residents maturing at one year.
3. Long-term Time Deposits of Residents.
4. Term Funding from Financial Institutions.
Select the correct answer using the code given below

(A) 1 and 2
(B) 1 and 3
(C) 2 and 3
(D) All of these

In which of the following years did India switched over to decimal currencies?

(A) 1957
(B) 1958
(C) 1959
(D) 1963

Consider the following statements
1. Differential Interest Rate (DIR) Scheme was introduced in the Fifth Five Year Plan in India.
2. Under the DIR Scheme, Public Sector Banks give loans and advance to the weaker sections of the society who have no tangible security.
Which of the statements given above is/are correct?

(A) Only 1
(B) Only 2
(C) Both 1 and 2
(D) Neither 1 nor 2

Select the correct one/ones about Local Area Banks (LABs) using t code given below
1. They ensure focused savings a credit mobilization by defining their clear boundary of operation.
2. They operate in narrow geographic 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 these

Which one “of the following is the mechanism used by Reserve Bank of India (RBI) under its credit policy by which provides to the States banking with it to help them to tide over temporary mismatches in the cash flow of their receipts and payments?

(A) State Liquidity Adjustment Facility
(B) Cash Reserve Requirement
(C) Liquidity Adjustment Facility
(D) Ways and means advances

Which one of the following is the main objective of the Service Area Approach Programme launched in India?

(A) To accelerate the process to open bank branches in the urban areas
(B) To devise a new strategy for rural lending to bring economic growth in rural areas
(C) To formulate new devise to enhance the transparency and functioning of” bank branches
(D) Both ‘a’ and ‘c’ are correct

Retail Banking is to provide banking services

(A) only to individual customers in an integrated manner
(B) entirely to agriculture sector only
(C) only to Seif-Help Group for their survival
(D) None of the above

Select the correct one/ones about the Banking Financial Supervision (BFS) India
1. The RBI performs financial supervision function under tt guidance of the Board for Financial Supervision (BFS).
2. Primary objective of BFS is undertake consolidate supervision 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

Consider the following
1. Normal ways and means advances are clean and-without the pledge of the Union Government.
2. Special ways and means advances are secured advances provided against the dated securities and pledge of Government of India.
Which of the statements given above is/are correct about the ways and means advances made by the Reserve Bank of India?

(A) Only 1
(B) Only 2
(C) Both 1 and 2
(D) Neither 1 nor 2

Consider the following statements
1. The National Housing Bank, the apex institution of housing finance in India, was set up as a wholly owned subsidiary of the RBI.
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?

(A) Only 1
(B) Only 2
(C) Both 1 and 2
(D) Neither 1 nor 2

Rate of interest is determined by

(A) the rate of returned on .the capital invested
(B) central government
(C) liquidity preference
(D) commercial banks

Select the correct one/ones about th cooperative banks in India from the given choices using the codes
1. The Urban Co-operative Bank (ICBS), Until 1996, could only lend for non-agricultural purposes.
2. These banks provide most service; 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 the above

Which one among the following is an important segment of the money market where uncollateralized borrowing and lending of funds take place on overnight basis?

(A) Call money market
(B) { Primary market
(C) Mutual fund market
(D) Secondary market