Question 1

MUDRA bank was announced in the union budget in the year

Accepted Answer

C

Question 2

MUDRA ltd has been set up as a subsidiary of

Accepted Answer

MUDRA Ltd has been set up as a subsidiary of SIDBI (Small Industries Development Bank of India) to provide funding to the non-corporate small business sector.

Question 3

The entire business of IDBI relating to export financing are done by

Accepted Answer

The Export-Import Bank of India (EXIM Bank) is responsible for handling the business related to export financing, not IDBI. IDBI focuses on broader industrial finance, while EXIM Bank specializes in export and import financing.

Question 4

The board of directors of EXIM bank includes

Accepted Answer

The board of directors of EXIM bank includes representatives from ECGC, public sector banks, and the RBI, among others.

Question 5

The main purpose of ----------was to prevent and cure the problems of industrial sickness

Accepted Answer

The Industrial Reconstruction Corporation of India (IRCI) was established to prevent and cure the problems of industrial sickness.

Question 6

NHB (national housing bank) established under the recommendation of the committee headed by

Accepted Answer

NHB (National Housing Bank) was established under the recommendation of the committee headed by Dr. C. Rangarajan.

Question 7

The initial share capital of NHB

Accepted Answer

The initial share capital of National Housing Bank (NHB) was 100 crore.

Question 8

All SFC'S is depends upon the rules and regulations of

Accepted Answer

State Financial Corporations (SFCs) are governed by the rules and regulations set by the respective State Governments in India.

Question 9

The first SFC was established in

Accepted Answer

The answer of The first SFC was established in
...

Question 10

The SFC act is applicable to all except

Accepted Answer

The answer of The SFC act is applicable to all...

Question 11

-------was incorporated under SFC act 1951

Accepted Answer

The answer of -------was incorporated under SFC act 1951
...

Question 12

The head quarters of KFC is situated at

Accepted Answer

The headquarters of KFC (Kerala Financial Corporation) is located in Thiruvananthapuram, Kerala.

Question 13

The UTI was setup under an act of parliament in

Accepted Answer

The answer of The UTI was setup under an act...

Question 14

Advantages of mutual funds include

Accepted Answer

Mutual funds offer liquidity, allowing investors to buy or sell their shares on any business day, and safety through diversification, which spreads out risk across a variety of investments. The term "diversification penalty" is incorrect; diversification is actually a benefit, not a penalty.

Question 15

-----is one that is available for subscription all through the year

Accepted Answer

Open-ended funds are available for subscription and redemption throughout the year, allowing investors to buy and sell shares at the fund's current net asset value.

Question 16

---------is invest in shorter securities such as treasury bills

Accepted Answer

Money market funds primarily invest in short-term securities, such as treasury bills, which are considered low-risk and provide liquidity.

Question 17

Commercial paper does not includes

Accepted Answer

The answer of Commercial paper does not includes
...

Question 18

The main source of guarantee in India are

Accepted Answer

In India, guarantees can come from various sources including personal, government, and institutional guarantees, making all options valid.

Question 19

Features of money market does not include

Accepted Answer

Security price formation is a feature of the capital market, not the money market. The money market is concerned with short-term borrowing, lending, buying, and selling with original maturities of one year or less, whereas the capital market is where long-term securities are traded, including the formation of security prices.

Question 20

An individual or private firm receiving deposits and dealing in Hundies or lending money is called

Accepted Answer

Indigenous bankers are individuals or private firms that engage in the activities of receiving deposits, dealing in Hundies (traditional Indian financial instruments), and lending money. They are a part of the informal financial sector in many parts of India and have been a significant source of credit, especially for small businesses and rural areas.

Quiz 4: Banking and Finance