Indian Economy Questions and Answers Part-20

1. Consider the following events:
1. Conversion of Imperial Bank of India into S.B.I.
2. Establishment of NABARD
3. Setting up of RRBs
4. Nationalisation of R.B.I.
The correct chronological sequence of these events is :
(a) 4, 1, 2, 3
(b) 4, 1, 3, 2
(c) 1, 4, 3, 2
(d) 1, 4, 2, 3

Answer: b

2. Word Bull and Big are associated with which branch of commercial activity?
(a) Foreign Trade
(b) Banking
(c) Share Market
(d) Manufacturing

Answer: c

3. How do we define the terms bull and bear with regard to stock markets?
(a) A bull is an optimistic operator who first buys and then sells shares in expectation of the price going up; a bear is a pessimistic market operator who sells the shares in expectation of buying them back at a lower price
(b) There is nothing significantly different as both operate in the capital market
(c) Bull is one who first sells a share and then buys it at a lower price; bear means one who first buys and then sells it in expectation of prices going up
(d) A bull is ready to buy any share; a bear only deals in government securities

Answer: a

4. The first Bank established in India was
(a) Punjab National Bank
(b) Traders Bank
(c) State Bank of India
(d) Bank of Hindustan

Answer: d

5. In India, the first bank of limited liability managed by Indians and founded in 1881 was:
(a) Hindustan Commercial Bank
(b) Oudh Commercial Bank
(c) Punjab National Bank
(d) Punjab and Sind Bank

Answer: b

6. Which amidst the following rural banks has been named after a river?
(a) Prathama Bank
(b) Varada Grameen Bank
(c) Thar Anchalik Grameen Bank
(d) Aravali Kshetriya Grameen Bank

Answer: b

7. A Scheduled Bank is one which is included in the:
(a) II Schedule of Banking Regulation Act
(b) II Schedule of Constitution
(c) II Schedule of Reserve Bank of India Act
(d) None of the above

Answer: a

8. What is the animal on the insignia of the RBI ?
(a) Lion
(b) Tiger
(c) Panther
(d) Elephant

Answer: c

9. For regulation of the Insurance Trade in the country the Government has formed:
(a) SEBI
(b) Reserve Bank of India
(c) Insurance Regulatory and Development Authority
(d) General Insurance Corporation

Answer: c

10. The best way, a bank can avoid loss is to :
(a) lend only to individuals known to the bank
(b) accept sound collateral
(c) give only short-term loans
(d) lend only to bank's old customers

Answer: a