Question 1

In which year the Regional Rural Banks Act was passed?
A)1986
B)1976
C)1992
D)1988

Accepted Answer

The Regional Rural Banks Act was passed in 1976 to provide sufficient banking and credit facility for agriculture and other rural sectors.

Question 2

What is the share of Sponsor Banks in the Regional Rural Banks?
A)75%
B)15%
C)40%
D)35%

Accepted Answer

D

Question 3

Which of these was the first RRB to be set up in India?
A)Gaur Gramin Bank
B)Pratham Bank
C)Himachal Bank
D)Aruchal Rural Bank

Accepted Answer

Pratham Bank, now known as Prathama UP Gramin Bank after its amalgamation, was the first Regional Rural Bank in India, established on 2nd October 1975.

Question 4

Which microfinance institution is known as the Universal Bank?
A)Bandhan Financial Services Private Ltd
B)Arohan Financial Services Private Ltd
C)Disha Microfinance Private Ltd
D)SKS Microfinance Private Ltd

Accepted Answer

Bandhan Financial Services Private Ltd is known as the Universal Bank, having transitioned from a microfinance institution to a full-fledged bank, Bandhan Bank, offering a wide range of banking services.

Question 5

What option block the poor to get bank loans?
A)Absence of collateral
B)High rates of interest
C)Complexity of procedure
D)None of the above

Accepted Answer

Absence of collateral is a major barrier for the poor in obtaining bank loans, as banks typically require collateral to secure the loan.

Question 6

In the self-help group, the loan and saving decisions are taken by
A)Government
B)Non-government organisation
C)Bank
D)Absence of collateral

Accepted Answer

In self-help groups, loan and saving decisions are typically made collectively by the group members themselves, rather than requiring collateral as a condition for these decisions.

Question 7

In India, which organizations take care of the agriculture and rural development credits
A)IDBI
B)NABARD
C)ICAR
D)FCI

Accepted Answer

NABARD (National Bank for Agriculture and Rural Development) is the organization in India that specializes in dealing with matters related to agriculture and rural development credits. It plays a pivotal role in providing financial support and planning for these sectors.

Question 8

Self Help Group involves
A)Group of 5 to 20 people
B)Regular saving habits
C)Inter-lending within the group members
D)All of above

Accepted Answer

Self Help Groups (SHGs) involve groups of 5 to 20 people who come together for a common purpose, which includes promoting regular saving habits among members and facilitating inter-lending within the group. This makes all the options correct.

Question 9

The Financial statement provides accurate and time ……………. Which is useful for all.
A)Financial Information
B)Liabilities.
C)Assets Information
D)Marketing Information

Accepted Answer

Financial statements are designed to provide a comprehensive overview of a company's financial condition, including its performance, position, and cash flow, making financial information the most accurate and timely data useful for all stakeholders.

Question 10

Balance sheet is the summary of …………………
A)General Information
B)Financial position
C)profit and loss position
D)loan status

Accepted Answer

A balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time, detailing assets, liabilities, and equity.

Question 11

Financial statements are the ………….
A)Trading account , Profit and Loss account
B)Balance sheet
C)(a) and (b)
D)Neither (a) nor (b)

Accepted Answer

Financial statements typically include the trading account, profit and loss account, and the balance sheet. These documents provide a comprehensive overview of a company's financial performance and position.

Question 12

EPS helps in determining the …………. of the equity share of the MFI
A)market price
B)Earning per share
C)Average price
D)cost price

Accepted Answer

EPS stands for Earnings Per Share, which is a measure used to determine the profitability of a company on a per-share basis. It is not directly related to market price, average price, or cost price.

Question 13

Debt equity ratio ascertains soundness of………. financial position
A)long term
B)Short term
C)Yearly
D)all of above

Accepted Answer

The debt equity ratio is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets. This ratio is primarily used to measure a company's long-term financial position, as it reflects the ability to cover long-term debts.

Question 14

Current Ratio is :
A) Solvency Ratio
B) Liquidity Ratio
C) Activity Ratio
D)Profitability Ratio

Accepted Answer

The Current Ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year. It is calculated by dividing current assets by current liabilities.

Question 15

This P is not a part of the 7Ps of marketing mix?
A) Promotion
B) Price
C)People
D) Purpose

Accepted Answer

Purpose is not traditionally part of the 7Ps of marketing mix. The 7Ps include Product, Price, Place, Promotion, People, Process, and Physical evidence.

Question 16

Nutritional level of food energy is expressed in the form of
A) calories per day
B) wheat consumption
C) rice consumption per day
D) none of the above

Accepted Answer

The nutritional level of food energy is commonly expressed in calories per day, which measures the energy food provides to the body.

Question 17

The calorie requirement is higher in the rural areas because:
A) they do not enjoy as much as people in the urban
B) food items are expensive.
C) they are engaged in mental work.
D) people are engaged in physical

Accepted Answer

People in rural areas are often engaged in more physically demanding tasks such as farming, which increases their calorie requirements.

Question 18

What is 'Bank rate'?
A)The rate at which commercial banks borrow
B)The rate at which commercial banks
C)The rate at which commercial banks.
D)none of the above

Accepted Answer

The bank rate is the rate at which the central bank of a country lends money to commercial banks, often to control the money supply and influence the national economy.

Question 19

What is the Cash Reserve Ratio (CRR)?
A)the fraction of the deposits that commercial banks lend
B)the fraction of the deposits that RBI must
C)the fraction of the deposits that
D)none of the above

Accepted Answer

The Cash Reserve Ratio (CRR) is the fraction of the deposits that commercial banks must hold as reserves with the central bank (RBI in India).

Question 20

In order to meet the working capital requirement in agriculture, banks issue the card
A)General Credit Card
B)SME Credit Card
C)Swaroj Credit Card
D)Kisan Credit Card

Accepted Answer

The Kisan Credit Card (KCC) scheme is specifically designed to meet the working capital requirements in agriculture. It provides farmers with timely access to credit for their agricultural needs.

Quiz 1: Banking and Microfinance: Exploring Policies and Practices in India

In which year the Regional Rural Banks Act was passed?

What is the share of Sponsor Banks in the Regional Rural Banks?

Which of these was the first RRB to be set up in India?

Which microfinance institution is known as the Universal Bank?

What option block the poor to get bank loans?

In the self-help group, the loan and saving decisions are taken by

In India, which organizations take care of the agriculture and rural development credits

Self Help Group involves

The Financial statement provides accurate and time ……………. Which is useful for all.

Balance sheet is the summary of …………………

Financial statements are the ………….

EPS helps in determining the …………. of the equity share of the MFI

Debt equity ratio ascertains soundness of………. financial position

Current Ratio is :

This P is not a part of the 7Ps of marketing mix?

Nutritional level of food energy is expressed in the form of

The calorie requirement is higher in the rural areas because:

What is 'Bank rate'?

What is the Cash Reserve Ratio (CRR) ?

In order to meet the working capital requirement in agriculture, banks issue the card