Deck 13: Banking, Monetary Policy, Cooperative Banks, Credit Control, Insurance, and Risks

Question 1

A co-operative bank is established for the interest of

A)Members involved
B)Public
C)Lower status in the society
D)Investors

Answer 1

Members involved

Question 2

A cheque is an order to a bank to pay a stated sum from the

A)Fixed Deposit A/c
B)Drawer?s A/c
C)Loan A/c
D)Recurring Deposit A/c

Answer 2

Drawer?s A/c

Question 3

Which of the following is not the function of RBI?

A)Acting as banker to the government
B)Keeping of foreign exchange reserve
C)issuing of one rupee notes and coins
D)regulating credit in the country

Answer 3

issuing of one rupee notes and coins

Question 4

The accounting year of the Reserve bank of India come from?

A)1st july - 1st june
B)1st April - 30th March
C)1st July - 30th June
D)1st January - 31st December

Question 5

What is the most widely used tool of monetary policy?

A)issuing of notes
B)open market operations
C)Discount rate
D)none of these

Question 6

Co-operative banks which work at metropolitan level are called as?

A)District central Co-operative bank
B)State co-operative bank
C)Primary Urban Co-operative Bank
D)Primary Agricultural Credit Societies

Question 7

Which committee recommended the set-up of Regional Rural Banks?

A)Nayak Committee
B)AP Shah Committee
C)Narsimhan Committee
D)Rangarajan Committee

Question 8

Which of the following is not the function of commercial banks:

A)issuing currency
B)transfer of funds
C)credit creation
D)all the above

Question 9

Payment of cheque can be stopped by

A)beneficiary
B)drawer of cheque
C)Nominee
D)all the above

Question 10

________is a fixed payment amount made by a borrower to a lender at a specified date each calendar month.

A)Equated Monthly Instalment
B)Primary Lending Rates
C)Deposit Rates
D)None of the above

Question 11

Quantitative Credit control does not include:

A)Bank rate
B)RBI directives
C)Cash reserve ratio
D)Open market operations

Question 12

The RBI was nationalized in

A)1948
B)1949
C)1950
D)1951

Question 13

Currency notes of Rupee 1 and its subsidiary coins are issued by the

A)Reserve Bank of India
B)State Bank of India
C)Ministry of Finance, Government of India
D)Securities and Exchange Board of India

Question 14

Extending credit facilities to farmer and small-scale industrial units is the main purpose of

A)Development banks
B)EXIM bank
C)Cooperative bank
D)Commercial bank

Question 15

In order to inject money into the economy, RBI

A)Raises CRR
B)Lowers CRR
C)Raises SLR
D)Sells in the open market

Question 16

Cooperative banks has three-tier structure, at the top, there is

A)Primary Credit Society
B)Central Cooperative Bank
C)State Cooperative Bank
D)None of the above

Question 17

A cheque dated subsequent to the date of its issue is

A)Post dated cheque
B)Blank cheque
C)Crossed cheque
D)Account payee cheque

Question 18

Which banks which accept deposits from the public and lend them mainly to commerce for short periods?

A)Commercial Bank
B)Industrial Bank
C)Agricultural Bank
D)Central Bank

Question 19

The person or company who bears the risk of providing money at the end of a period of time or losses due to accident are known as

A)insurer
B)insured
C)insurance
D)none of the above

Question 20

The person or company which gets compensation at the end of the period of time for loss due to accident is called

A)insurer
B)insured
C)insurance
D)none of the above

Question 21

Which of the following is not an importance or necessity of Insurance?

A)Reduction of risk
B)Supply of capital
C)Employment opportunity
D)Increase of business expenses

Question 22

Risk may be

A)Objective
B)Subjective
C)Both
D)None

Question 23

Objective Risk is defined as the relative variation of

A)Actual loss from expected loss
B)Expected loss from actual loss
C)Expected profit from actual loss
D)Actual loss from expected profit

Question 24

Which of the following are the types of Risks

A)Financial and non financial risk
B)Static and dynamic risk
C)Pure and Speculative Risk
D)All of the above