Banking And Financial Institutions - Practice Test

[#131] Identify the correct statement of the following

(A) NABARD was set up in order to provide credit for the promotion of the activities like rural crafts and agriculture

(B) NABARD was set up in order to provide credit to poorer section of rural India

(C) NABARD was set up in order to assist banks specially meant to surve rural India

(D) All are correct

Correct Answer

(D) All are correct

[#132] Consider the following statements. Assertion (A): A well-developed money market is the basis for an effective monetary policy. It is in the money market that the Central Bank comes into contact with the financial sectors of the economy as a whole and it is through the liquidity in the market that influences the cost and availability of credit. Reasoning (R): A well-organized money market is an essential condition for the successful operation of the Central Banking policies, and for holding the conditions of liquidity within the bounds of what the monetary authorities consider desirable.

(A) (A) is true but (R) is false

(B) (R) is true but (A) is false

(C) (A) is true and (R) offers correct explanation to (A)

(D) Both (A) and (R) are false

Correct Answer

(C) (A) is true and (R) offers correct explanation to (A)

[#133] Which one among the following has not started commercial banking?

(A) SIDBI

(B) IDBI

(C) ICICI

(D) UTI

(E) SIDBI

(F) IDBI

(G) ICICI

(H) UTI

Correct Answer

(A) SIDBI
(E) SIDBI

[#134] Loans against Shares/Debentures can be sanctioned against the security of:

(A) Preference Share and Covertible debentures

(B) Fully paid Equity Shares and debentures in demat form

(C) All shares and debentures in physical form

(D) Only Preference Share and partly paid debentures

Correct Answer

(B) Fully paid Equity Shares and debentures in demat form

[#135] What are the elements of Tier-I capital, including additional Tier-I capital as per BASEL-III?

(A) Paid up equity capital, statutory & disclosed reserves

(B) Capital reserves representing surplus arising out of sale proceeds of assets

(C) Perpetual non-cumulative preference shares and debt capital instruments eligible for inclusion under additional tier-I

(D) All of the above

Correct Answer

(D) All of the above

Banking And Financial Institutions - Study Mode

[#131] Identify the correct statement of the following

Correct Answer

Correct Answer

[#133] Which one among the following has not started commercial banking?

Correct Answer

[#134] Loans against Shares/Debentures can be sanctioned against the security of:

Correct Answer

[#135] What are the elements of Tier-I capital, including additional Tier-I capital as per BASEL-III?

Correct Answer