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MCQ for economy-7

by Vajiram & Ravi

26-08-2023

02:04 PM

1.

Consider the following statements regarding the Bank Board Bureau:

1. It is an autonomous body set up to improve the Governance and Boards of public sector financial institutions.

2. It was established based on the recommendations of the Nayak Committee.

Which of the statements given above is/are correct?

  • A

    1 only

  • B

    2 only

  • C

    Both 1 and 2

  • D

    Neither 1 nor 2

2.

Consider the following statements regarding the Business Correspondents:

1. They are retail agents engaged by banks to provide banking services at locations other than a bank branch or ATM.

2. They are permitted to collect and do preliminary processing of loan applications.

3. NGOs are not allowed to function as business correspondents.

Which of the statements given above is/are correct?

  • A

    1 and 2 only

  • B

    2 and 3 only

  • C

    1 and 3 only

  • D

    1, 2 and 3

3.

Which of the following are benefits of Pradhan Mantri Jan-Dhan Yojana (PMJDY)?

1. Earning of interest on deposit in PMJDY accounts

2. An overdraft facility up to Rs. 20000 for the eligible account holder

3. Eligible for direct benefit transfer from various schemes

4. Accidental insurance cover of 5 lakh for the account holder

Select the correct answer using the codes given below:

  • A

    1, 2 and 3 only

  • B

    1 and 3 only

  • C

    3 and 4 only

  • D

    1, 2, 3 and 4 only

4.

Which of the following statements is not correct regarding the payment banks?

  • A

    They are a saving account that accepts a restricted deposit.

  • B

    They can issue loans and credit cards.

  • C

    They can provide all other services like ATM cards, fund transfers, bill payments, recharges, net banking, among others, to the account holders.

  • D

    They have to deposit the amount in the form of a Cash Reserve Ratio with RBI

5.

Small Finance Banks are governed by which of the following statutes?

1. Banking Regulation Act, 1949

2. Reserve Bank of India Act, 1934

3. Foreign Exchange Management Act, 1999

4. Payment and Settlement Systems Act, 2007

5. Credit Information Companies (Regulation) Act, 2005

Select the correct answer using the codes given below:

  • A

    1, 2, 3 and 4 only

  • B

    2, 3, 4 and 5 only

  • C

    1, 2, 4 and 5 only

  • D

    1, 2, 3, 4 and 5

6.

Bank recapitalization refers to

  • A

    Infusing more capital in all banks

  • B

    Infusing more capital in private banks only

  • C

    Infusing more capital in public banks only

  • D

    Infusing more capital in Non-banking finance companies

7.

The main aim of financial inclusion is

  • A

    To provide basic banking services to all sections of societies at an affordable price.

  • B

    To control liquidity in the economy

  • C

    Both (a) and (b)

  • D

    Neither (a) nor (b)

8.

Consider the following statements regarding the Non-Performing Assets:

1. These are a financial burden on the lender recorded on the balance sheet after non-payment of loan by the borrower.

2. Lenders have no options to recover these by taking possession of any collateral or selling off the loan at a significant discount to a collection agency.

3. Under the restructuring of NPAs, the lender can alter the credit terms to help the borrower during financial distress.

Which of the statements given above is/are correct?

  • A

    1 and 2 only

  • B

    2 and 3 only

  • C

    1 and 3 only

  • D

    1, 2 and 3

9.

Indradhanush plan for banking aims to

  • A

    Lend commercial banks

  • B

    Improve performance of banks under prompt corrective actions

  • C

    Expand banking services to the rural sector

  • D

    Recapitalize public sector banks

10.

Which of the following committees has recommended strategically reducing government stake in the public sector banks?

1. Narasimhan Committee

2. P J Nayak Committee

3. Usha Thorat Committee

Select the correct answer using the codes given below:

  • A

    1 and 2 only

  • B

    2 and 3 only

  • C

    1 and 3 only

  • D

    1, 2 and 3

SMTWTFS

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