Indian Economy Questions and Answers Part-25

1. In India, the bank NABARD does not provide refinance to :
(a) Scheduled Commercial Banks
(b) Regional Rural Banks
(c) Export-Import Banks
(d) State Land Development Banks

Answer: c

2. Which of the following is called a 'banker's cheque' ?
(a) Demand draft
(b) Debit card
(c) Pay order
(d) Fixed deposit

Answer: a

3. Bouncing of cheques has become an offence. What is the punishment for the same:
(a) 6 months imprisonment
(b) 1year imprisonment
(c) 2 years imprisonment
(d) 3 years imprisonment

Answer: a

4. The difference between a bank and a non-banking financial institution (NBFI) is that:
(a) a bank interacts directly with customers while an NBFI interacts with banks and governments
(b) a bank indulges in a number of activities relating to finance with a range of customers, while an NBFI is , mainly concerned with the term loan needs of large enterprises
(c) a bank deals with both internal and international customers while an NBFI is mainly concerned with the finances of foreign companies
(d) a bank's main interest is to help in business transactions and saving/investment activities while an NBFl's main interest is in the stabilisation of the currency

Answer: b

5. The main function of the Exim Bank is:
(a) to help RBI in the regulation of foreign exchange
(b) to prevent unlicensed transaction
(c) to promote exports and curtail imports
(d) to conserve foreign exchange

Answer: c

6. The main difference between shares and debentures is :
(a) debentures can only be issued after shares
(b) shareholders receive dividend on shares whereas debenture holders receive interest on debentures
(c) debentures can be partly converted into shares whereas shares cannot be converted into debentures
(d) shareholders are the owners of the company whereas debenture holders are the creditors of the company

Answer: d

7. In which year, some more commercial banks (in addition to the first lot of 14) were nationalised in India?
(a) 1976
(b) 1979
(c) 1980
(d) 1982

Answer: c

8. Open market operations of a Central Bank are sale and purchase of:
(a) foreign currencies
(b) corporate securities
(c) trade bills
(d) government securities

Answer: c

9. To prevent recurrence of scams in Indian Capital Market, the Government has assigned regulatory powers to:
(a) RBI
(b) SBI
(c) SEBI
(d) ICICI

Answer: c

10. The place where bankers meet and settle their mutual claims and accounts is known as :
(a) treasury
(b) clearing House
(c) collection Centre
(d) dumping Ground

Answer: b