Financial Institutions and Banking - A04

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Question  structural adjustment loan facility of world bank is granted to nations
Correct Answer  planning for a long term growth

Question  reserve bank was established in accordance with the provisions of
Correct Answer  reserve bank of India act, 1934

Question  the members of the local boards of rbi are appointed by the
Correct Answer  central government

Question  equity shares of listed companies are traded in the_______ market.
Correct Answer  secondary

Question  the general insurance policies are generally underwritten for
Correct Answer  a period of one year and in some cases less than one year

Question  the tradable form of a loan is termed as a debt instrument
Correct Answer  True

Question  cps , cds and t.bills are_______ instruments
Correct Answer  discounted

Question  the securitized mortgage finance market in the country has been witnessing steady growth of over ____% in the past few years
Correct Answer  28 

Question  small industries development bank of India was set up in
Correct Answer  Jul-89

Question  STCI is a leading market maker of government of India securities
Correct Answer  True

Question  the securities scam centered upon sale of corporate bonds
Correct Answer  False

Question  transfer of stamp duty on debentures remain high in many states and is probably
Correct Answer  the biggest deterrent for trading in debentures resulting in lack of liquidity

Question  the regulated financial system has
Correct Answer  supervision and control systems

Question  the term ‘equated instalment’ refers to the repayment of loan along with interest in stipulated instalments
Correct Answer  True

Question  ncdc sanctions 100% working capital loan to regional/ state level marketing federations
Correct Answer  True 

Question  govt. of India dated securities are issued as a part of borrowing programme
Correct Answer  Approved by parliament in the finance bill each year

Question  nhb's guarantee is provided in respect of?
Ans.:-senior rmbs only.

Question  the treasury bills are issued by ____on behalf of the govt. Of india.
Correct Answer  RBI.

Question  the ultimate target groups under micro finance scheme of nedfi are?
Correct Answer  farmers,petty traders,women and youth.

Question  the life insurance business of large number of companies was nationalised in?
Correct Answer  1956

Question  multilateral investment guarantee scheme of the world bank helps in the growth of international trade.
Correct Answer  True

Question  to be eligible for nhb’s guarantee, the scheduled commercial bank should have been in the business of
Correct Answer  banking and finance in India for five years 

Question  nabard is the apex bank for?
Correct Answer  channelising credit to agriculture.

Question  all the banks and other financial institutions operating in india comes under the monitoring and control of the?
Correct Answer  rbi

Question  nidhis are not commercial institutions and are broadly run on co-operative principles?
Correct Answer  True

Question  chit funds are saving institutions?
Correct Answer  True

Question  settlement of securities became electronic in?
Correct Answer  late 1990s

Question  a securities lending scheme was introduced in india?
Correct Answer  1997

Question  an initial quota for a new member of IMF is determined based on?
Correct Answer  the range of quota of its existing members considered comparable in economic size and characteristics

Question  unlike development banks,the IMF does not lend for specific projects.
Correct Answer  True

Question  as per sec.18b of the nhb act, nhb is authorised to recover dues in respect of securitisation of loans as arrears of land revenue in order to
Correct Answer  instil confidence among the investors in the securities issued by the nhb

Question  the insurance companies build a life fund out of
Correct Answer  excess of premiums and investment income over claims and expenses on revenue and capital accounts

Question  all the nationalised banks in india and almost all the private sectors banks are ________ scheduled banks
Correct Answer  commercial

Question  govt.of india dated securities can be issued in dematerialised form only
Correct Answer  False

Question  north eastern development finance corparation was set up by an act of parliament
Correct Answer  False

Question  working capital term loan scheme of NEDFi is meant for
Correct Answer  limited companies which are industrial concerns as defined by the IDBI act

Question  nidhis makes advances to its members against security such as 
Correct Answer  house property,gold jewellery and shares

Question  the board for financial supervision (BFS) is a committee of the central board of directors of the reserve bank of India
Correct Answer  True

Question  SCICI limited. Was incorporated on 8th December
Correct Answer  1986

Question  govt. of India dated securities in physical form are tradable by
Correct Answer  endorsement and delivery of physical certificate

Question  pfc’s operational and financial action plan (OFAP) is formulated and implemented for
Correct Answer  state power utilities

Question  money market instruments are unsecured
Correct Answer  True

Question  cheque withdrawal facility is not available in case of
Correct Answer  term loans

Question  management of ncdc vests in
Correct Answer  general council

Question  ____ was promoted by Indian banks of association
Correct Answer  afc

Question  the present day banking has its origin in
Correct Answer  u.k.

Question  in neef, promoters minimum contribution is
Correct Answer  15%

Question  a derivatives market was established in
Correct Answer  mid-2000

Question  the MFIs are mainly in the
Correct Answer  private sector

Question  after 1973, imf member countries adopted
Correct Answer  Floating exchange rates