Banking And Financial Institutions - Study Mode

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[#611] Who is authorised to issue currency in India?

(A) State Bank of India

(B) Reserve Bank of India

(C) ISI

(D) CBI

Correct Answer

(B) Reserve Bank of India

[#612] What is the difference between primary and secondary markets? 1. Primary markets help in capital formation, while secondary capital provides liquidity to the investor 2. Initial public offerings are undertaken in both primary and secondary markets 3. Stock exchanges are an example of secondary markets

(A) 3 only

(B) 2 and 3 only

(C) 1 and 3 only

(D) 1, 2 and 3

Correct Answer

(C) 1 and 3 only

[#613] Which of the following statements are correct? 1. The Central Bank is usually control and quite often owned by the government of a country. 2. Export-Import Bank of India took over the export finance function of the IDBI. 3. Unit Bank has virtually one or two branches. 4. Citi Bank and ING Bank are universal banks. Select the correct answer

(A) Both 1 and 2

(B) 1, 2 and 4

(C) 1, 2 and 3

(D) 2, 3 and 4

Correct Answer

(B) 1, 2 and 4

[#614] What is the secondary function of money

(A) Medium of exchange

(B) Measure of value

(C) Basis of deferred payments

(D) None of these

Correct Answer

(C) Basis of deferred payments

[#615] Which of the following measures is not adopted by RBI for controlling credit in India?

(A) Cash Deposit Ratio

(B) Capital Adequacy Ratio

(C) Cash Reserve Ratio

(D) Statutory Liquidity Ratio

Correct Answer

(A) Cash Deposit Ratio