Exercise Quiz & Test – 27


1. The largest bank Imperial bank was nationalized in 1955 and rechristened as State Bank of India on the recommendation of which committee?
A. Rangarajan Committee
B. Chelliah Committee
C. Rekhi Committee
D. Gorewala Committee

Answer & Solution

2. SEBI was established in the year
A. 1994
B. 1990
C. 1992
D. 1982

Answer & Solution

3. Which public sector bank of India is the first fully Indian bank, established by the Indian capital?
A. Bank of Baroda
B. State Bank of India
C. Central Bank of India
D. Punjab National Bank

Answer & Solution

4. When RBI sells government securities its meaning is?
A. Liquidity in banking increases
B. Liquidity gets diminished
C. Liquidity remains unchanged
D. None of these

Answer & Solution

5. With a view to facilitate payment of balance in the deposit account to the person named by the depositor without any hassles in the event of death of account holder, the following facility was introduced for bank account in our country.
A. Guarantee
B. Registration
C. Nomination
D. Will

Answer & Solution

6. Which among the following statement is incorrect about SEBI?
A. Capital market regulator
B. Mutual fund regulator
C. Regulates the credit rating agencies in India
D. None

Answer & Solution

7. Which of the following rates are decided by the RBI called as “Policy Rate”?
A. Cash reserve ratio
B. Lending rate
C. Bank rate
D. Deposit rate

Answer & Solution

8. Non-Banking Financial Companies (NBFCs) are financial institution that
A. holds a banking license
B. does not hold a banking license
C. are government undertaking institutions
D. None of these

Answer & Solution

9. In comparison with Liquidity Adjustment facility (LAF), Marginal Standing Facility (MSF) has
A. Higher Rate of Interest
B. Lower Rate of Interest
C. No difference in interest rate
D. None of these

Answer & Solution

10. Indian Depository Receipt (IDR) is the
A. Proof of an Indian company’s share
B. Is an unsecured money market instrument
C. Proof of ownership of foreign company’s share
D. Proof of earnings or profits of Indian Companies

Answer & Solution