Deck 5: Financial Institutions and Foreign Exchange Market in India

Question 1

The Industrial Credit and Investment Corporation of India (ICICI) was established as a private sector development bank at the initiative of the World Bank in

A)1954
B)1955
C)1956
D)1957

Answer 1

1955

Question 2

The Export-Import Bank of India was set up by the Government of India on

A)January 1,1980
B)January 1,1981
C)January 1,1982
D)January 1,1983

Answer 2

January 1,1982

Question 3

With the government take-off of all the life insurance companies in India, the Life Insuarnce Corporation of India (LIC) was formed in

A)1953
B)1954
C)1955
D)1956

Answer 3

1956

Question 4

The Unit Trust of India (UTI) was set up in

A)1984
B)1994
C)1954
D)1956

Question 5

ICICI is a

A)Public sector institution
B)Private sector institution
C)Joint sector institution
D)World Bank's institution

Question 6

Which one of the following institutions provide medium-term finance to industries?

A)UTI
B)LIC
C)GIC
D)Commercial Banks

Question 7

Among Mutual Funds Industry in India, the top and dominating position is held by

A)QIC
B)LIC
C)IDBI
D)UTI

Question 8

Venture Capital Fund provides

A)long-term credit to industries
B)short-term credit and medium-term credit to the farmers
C)risk capital to little known, unregistered, young and small business
D)All of the above

Question 9

Which was the first mutual fund established in India?

A)SBI Mutual fund
B)Unit Trust of India (1963
C)LIC Mutual Fund
D)Venture Capital

Question 10

Private Sector Mutual Funds in India were permitted in

A)2001
B)1994
C)1993
D)1964

Question 11

Venture capital firm

A)pools resources to help entrepreneur start new firm
B)allows equity shares of the new firm to be sold in the market plan
C)establishes joint venture companies
D)Both (a) and (b)

Question 12

The IDBI at present is a

A)subsidiary of RBI
B)Subsidiary of IFC
C)autonomous institution
D)none of the above

Question 13

NBFIs refers to..

A)Non Banking Financial Industries
B)Non Banking Financial Institutions
C)Net Banking Financial Industries
D)Net Banking Financial Institutions

Question 14

With reference to non-banking financial companies (NBFCs) in India, consider the following statements:
1) They can offer any rate of interest subject to their financial capacity
2) They can not accept deposits repayable on demand.
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

Question 15

Which one among the following promoted the concept of self-help groups (SHGs) for financing the poor.

A)RBI
B)NABARD
C)Union Ministry of Rural Development
D)Union Ministry of Labour

Question 16

NABARD has been established on the recommendation of

A)Talwar Committee
B)Tandon Committee
C)Narasimham Committee
D)Shivaram Committee

Question 17

Which one of the following is the main objectives of Unit Trust of India.

A)To mobilize the saving of high income groups
B)To mobilizes the saving of low and high income groups
C)To mobilizes the saving of corporates
D)To mobilizes the saving of low and middle income groups

Question 18

Which function of foreign exchange market protects against the foreign exchange risk?

A)Credit function
B)Hedging function
C)Transfer function
D)All of them

Question 19

Reduction in the value of domestic currency by the government is called

A)depreciation
B)devaluation
C)revaluation
D)appreciation

Question 20

Reduction in the value of domestic currency through market forces is called

A)depreciation
B)devaluation
C)revaluation
D)appreciation

Question 21

Increase in the value of domestic currency by the government is called

A)depreciation
B)devaluation
C)revaluation
D)appreciation

Question 22

What will be the effect on exports if foreign exchange rate increases?

A)Increases
B)Decreases
C)Remains constant
D)None of them

Question 23

Foreign exchange is demanded by..

A)domestic residents to purchase goods and services from other countries
B)sending gifts and grants to foreign countries (abroad
C)the domestic residents to purchase financial assets in a particular country
D)all of them