Indian Economy – Test Set 12 (Indian Banking System and Capital Market)

1. The number of Banks nationalised since 1969 is : [PCS 1994]
(a) 8
(b) 12
(c) 14
(d) 20

Ans: (d)

2. The system of value added taxation is applicable to:
(a) excise duties
(b) income tax
(c) estate duty
(d) taxes on agricultural income

Ans: (a)




3. In order to be scheduled to the Reserve Bank of India, a bank should have capital and
reserve of not less than:
(a) 1 lakh
(b) 5 lakhs
(c) 10 lakhs
(d) 50 Iakhs

Ans: (b)

4. 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

Ans: (a)

5. The largest Public Sector Bank in India is: [CDS 1991]
(a) Central Bank
(b) State Bank of India
(c) Punjab National Bank
(d) Indian Overseas Bank

Ans: (b)




6. Which of the following is the Banker of the Banks? [Railways 1995]
(a) IDBI
(b) SBI
(c) RBI
(d) SBI and RBI

Ans: (c)

7. Which of the following is not true about the Reserve Bank of India?
(a) It regulates the currency and credit system of India
(b) It maintains the exchange value of the rupee
(c) Foreign exchange reserves are kept by RBI
(d) One rupee notes and coins are issued by RBI

Ans: (d)

8. When was the Reserve Bank of India taken over by the Government? [PCS 1994]
(a) 1945
(b) 1948
(c) 19S2
(d) 1956

Ans: (b)




9. Who is responsible for the collection and publication of monetary and financial
information?
(a) Finance Commission
(b) Finance Ministry
(c) Reserve Bank of India
(d) Auditor and Comptroller General of India

Ans: (c)

10. The Reserve Bank of India issues:
(a) all the currency notes
(b) all the currency notes except the one rupee note
(c) all the currency notes except the hundred rupee note
(d) only notes of Rs. 10 and above

Ans: (b)

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