MCQ for test-13-18th-june-2023

Consider the following statements with reference to Capital to Risk-weighted Assets Ratio (CRAR):

1. It is the bank’s capital in relation to its risk-weighted assets and current liabilities.

2. Indian banks must maintain a higher CRAR than those stipulated by the Basel III norms.

3. Regional Rural Banks are exempted from maintaining CRAR in India.

Which of the statements given above are correct?

Consider the following statements with reference to Merchant Discount Rate (MDR):

1. It is the fee a consumer pays to a merchant for facilitating a digital transaction.

2. It is capped at 0.9% of the transaction value for all payment channels.

3. In India, all UPI and RuPay-based transactions are exempted from MDR.

Which of the statements given above is/are correct?

Consider the following statements:

1. In contrast to SLR, a long-term tool, CRR is a short-term liquidity management tool.

2. Cooperative Banks are subject to CRR and SLR requirements just like the other banks.

3. RBI cannot fix CRR lower than the minimum ceiling of 3%.

Which of the statements given above is/are correct?

Consider the following statements with reference to Monetary Policy Committee (MPC):

1. It is a statutory body set up as per the RBI Act 1934.

2. Members of the MPC are appointed for four years and are eligible for reappointment.

3. It is in charge of determining the various policy rates, such as MSF, Repo Rate, Reverse Repo Rate, and Liquidity Adjustment Facility.

Which of the statements given above are correct?

Consider the following statements with reference to Repo Rate:

1. It is applicable only when the amount of borrowing is a minimum of Rs. 5 crores.

2. Regional Rural Banks (RRB) are not allowed to borrow from the RBI using the Repo Rate mechanism.

3. The securities used in the Repo Rate mechanism cannot be considered under SLR.

Which of the statements given above is/are correct?

Consider the following statements with reference to Standing Deposit Facility (SDF):

1. It aims to absorb liquidity from the commercial banking system into the RBI by issuing Government securities.

2. SDF will enable banks to park excess liquidity with the Reserve Bank at their discretion.

3. It was first proposed by the Urjit Patel Monetary Policy Committee report in 2014.

Which of the statements given above is/are correct?

Consider the following statements regarding RBI Retail Direct scheme:

1. It allows retail investors to buy and sell government securities online in primary and secondary markets.

2. Under the scheme, a retail investor can take a loan against securities available in his/her account.

Which of the statements given above is/are correct?

Consider the following statements regarding the taxability of dividend income:

1. Currently, the dividend received is taxable in the hands of the investor/shareholder.

2. Dividend received from a foreign company is not taxable in India.

Which of the statements given above is/are correct?

“It refers to offer of shares against distributable profit to existing shareholders. The shareholders share in the profit is converted as shares. It is also known as scrip issue or capitalisation issue”. This is the most likely description of

Consider the following statements:

1. In the event of the liquidation of a business, the holders of its bonds have the last claim on any residual cash.

2. While stockholders can vote on specific company issues, bondholders have no voting rights.

Which of the statements given above is/are not correct?

Consider the following statements with reference to ‘Velocity of circulation’:

1. It is the magnitude by which base money is amplified in the banking system to the stock of broad money.

2. It has the same effect on the economy, similar to that of the Money multiplier effect.

3. It is directly proportional to inflation levels in an economy.

Which of the statements given above is/are correct?

Which of the following functions are performed by Micro ATMS?

1. Cash Deposits

2. Cash Withdrawal

3. Fund Transfer

4. Balance Enquiry

Select the correct answer using the code given below.

Consider the following statements with reference to Additional Tier-1 (AT-1) bonds:

1. These are unsecured bonds that carry no maturity date.

2. Banks issuing AT-1 bonds can skip interest payouts for a particular year or reduce bonds face value.

3. Banks can issue these bonds on an electronic platform, and only institutional investors can subscribe to them.

Which of the statements given above are correct?

Consider the following statements with reference to Oil bonds:

1. These are issued by Oil Marketing Companies (OMCs) to offset losses that they suffer.

2. Oil bonds qualify as Statutory Liquidity Ratio (SLR) securities.

Which of the statements given above is/are correct?

Consider the following statements with reference to Commercial Papers:

1. These are long term capital market debt instruments issued by companies to raise funds.

2. These are issued in the form of a promissory note and are not backed by collateral.

3. CPs are usually sold at a discount to their face value and carry higher interest rates than bonds.

Which of the statements given above is/are correct?

With reference to the Indian economy, which of the following can be the benefits of Long-Term Repo Operations (LTRO) recently introduced by the RBI?

1. Reduce Marginal Cost of Funds based lending

2. Better transmission of Monetary Policy

3. Ensure durable liquidity

Select the correct answer using the code given below:

Consider the following statements with reference to credit rating agencies:

1. Currently, there is no statutory law governing them.

2. They are solely regulated by the Reserve Bank of India (RBI).

3. Upgrading of sovereign rating may increase corporate and government bond subscriptions by foreign investors.

Which of the statements given above is/are not correct?

Which of the following statements is/are correct about Treasury Bills?

1. They were first issued in India post-1991 reforms.

2. Generally, they are issued at a discount and redeemed at par.

3. Currently, retail investors cannot subscribe to treasury bills in India.

Select the correct answer using the code given below:

With reference to Debentures, which of the following statements is/are not correct?

1. They are short-term borrowing instruments issued only by the banks to borrow money from the public.

2. They are backed by specific security.

Select the correct answer using the code given below:

Which of the following is/are considered as fiat currencies?

1. US Dollar

2. Ether

3. Gold

4. Special Drawing Rights (SDR)

Select the correct answer using the code given below:

Which of the following Monetary Policy tools do not involve government securities?

1. Cash Reserve Ratio

2. Repo Rate

3. Statutory Liquidity Ratio

4. Marginal Standing Facility

Select the correct answer using the code given below:

Consider the following statements with reference to Standing Deposit Facility (SDF):

1. It aims to absorb liquidity from the commercial banking system into the RBI by issuing Government securities.

2. SDF will enable banks to park excess liquidity with the Reserve Bank at their discretion.

3. It was first proposed by the Urjit Patel Monetary Policy Committee report in 2014.

Which of the statements given above is/are correct?

Consider the following statements with reference to Marginal Cost of Funds based Lending Rate (MCLR):

1. It is a new method of calculating the prime lending rate of the RBI’s loans to commercial banks.

2. The changes in repo rate can affect the calculation of MCLR based rates.

3. MCLR system does not apply to Non-Banking Financial Companies (NBFCs).

Which of the statements given above is/are correct?

Consider the following statements with reference to e-RUPI:

1. It is a central bank digital currency also known as digital fiat currency or digital base money.

2. It has been developed by the Reserve Bank of India.

Which of the statements given above is/are correct?

Market Stabilisation Scheme (MSS), often mentioned in the news, aims to