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Money and banking Quiz Questions with Answers PDF for Students
What is the primary function of commercial banks in the Economy?
A) Supporting overall economic growth and progress
B) Supervising the stock exchange
C) Regulating inflation levels
D) Handling foreign exchange reserves
Option a – Supporting overall economic growth and progress
What is the main purpose of Micro finance Institutions in India?
A) Offering loans only to women entrepreneurs
B) Promoting large-scale industrial development
C) Generating maximum returns for shareholders
D) Ensuring financial inclusion and reducing poverty
Option d – Ensuring financial inclusion and reducing poverty
Which of the following best describes a Micro finance Institution (MFI)?
A) MFIs are investment firms serving wealthy individuals
B) MFIs are non-profit bodies providing financial help to low-Income people and small businesses
C) MFIs are banks offering loans exclusively to big corporations
D) MFIs are government agencies that oversee the microfinance sector
Option b – MFIs are non-profit bodies providing financial help to low-Income people and small businesses
Which of the following is a recognised microfinance institution in India?
A) Bandhan Bank
B) State Bank of India (SBI)
C) ICICI Bank
D) HDFC Bank
Option a – Bandhan Bank
Which organisation primarily provides funding and support to microfinance institutions in India?
A) Department of Economic Affairs (DEA)
B) Ministry of Corporate Affairs
C) Indian Banks’ Association (IBA)
D) Small Industries Development Bank of India (SIDBI)
Option d – Small Industries Development Bank of India (SIDBI)
A woman member of a Self-Help Group who is appointed to work as a banking agent is known as
A) Bank Mitra
B) Bank Dost
C) Bank Sakhi
D) Bank NGO
Option c – Bank Sakhi
In 2014, Bandhan Financial Services received RBI’s in-principle approval to operate as a universal bank. Its head office is located in
A) Kolkata
B) Mumbai
C) Pune
D) Lucknow
Option a – Kolkata
NABARD started a special pilot initiative in 2004-05 called ______ to address the credit needs of small and marginal farmers along with tenant farmers.
A) JLGS
B) MEDP
C) SGSY
D) BLP programme
Option a – JLGS
In which year did the RBI roll out a regulatory framework for microfinance lending?
A) 2021
B) 2022
C) 2020
D) 2019
Option b – 2022
Prathama Bank, the very first Regional Rural Bank in India, had its head office located in which state?
A) Uttar Pradesh
B) Rajasthan
C) Punjab
D) Madhya Pradesh
Option a – Uttar Pradesh
Which body issued the regulatory guidelines for microfinance institutions in India?
A) finance Ministry
B) NABARD
C) Reserve Bank of India
D) State Government
Option c – Reserve Bank of India
In which year was the Reserve Bank of India established?
A) 1935
B) 1930
C) 1951
D) 1948
Option a – 1935
On which date was the Reserve Bank of India nationalised?
A) January 1, 1949
B) March 1, 1949
C) October 1, 1949
D) April 1, 1949
Option a – January 1, 1949
For a low-Income household, the repayment of a non-microfinance loan is capped at what percentage of monthly Income?
A) 25%
B) 50%
C) 75%
D) 40%
Option b – 50%
What is the maximum exposure allowed on microfinance loans for NBFCs other than NBFC-MFIs?
A) 25% of total assets
B) 75% of total assets
C) 25% of total equity
D) 85% of total loans
Option a – 25% of total assets
Which of the following is one of the key roles of commercial banks in India?
A) Creating credit
B) Issuing currency
C) Providing services to the government
D) Exercising credit control
Option a – Creating credit
In India, loans below which amount are classified as microloans?
A) One lakh rupees
B) Four lakh rupees
C) Three lakh rupees
D) Two lakh rupees
Option c – Three lakh rupees
Which microfinance model was functioning in India at the time of independence?
A) Grameen Model Bank
B) Self-Help Group
C) Rural Cooperatives
D) Joint Liability Group
Option c – Rural Cooperatives
Which of the following does not fall under small savings schemes?
A) Mutual Funds
B) Kisan Vikas Patra
C) National Savings Certificate
D) Post Office Deposits
Option a – Mutual Funds
The SHG Bank linkage programme was primarily led by ______ with RBI’s support.
A) SEBI
B) Indian Bank
C) NABARD
D) Cooperative Bank
Option c – NABARD
Which of the following is considered an important aspect of sustaining microfinance institutions in India?
A) Dependence on donor funding
B) Limited Social impact
C) High-profit margins
D) Expanding outreach to rural areas
Option a – Dependence on donor funding
Which of the following is NOT a government-owned Insurance company?
A) United India Insurance Company Limited
B) The New India Assurance Company Limited
C) SBI Life Insurance
D) General Insurance Corporation of India
Option c – SBI Life Insurance
In which year did the Reserve Bank of India introduce the ‘Clean Note Policy’?
A) 1992
B) 1999
C) 1997
D) 1995
Option b – 1999
What is the name of the joint World Bank and IMF initiative that conducts detailed reviews of financial sectors in developing and emerging economies?
A) Evaluation and Monitoring of the Financial Sector
B) Developing Economies Financial Audit Scheme
C) Financial Sector Assessment Program
D) finance and Socio-Economic Audit Scheme India
Option c – Financial Sector Assessment Program
When was the Securities Appellate Tribunal (SAT) established in India?
A) 1990
B) 1992
C) 1994
D) 1997
Option b – 1992
The Central Board of Directors of the Reserve Bank of India is appointed for a term of how many years?
A) 5 years
B) 6 years
C) 3 years
D) 4 years
Option d – 4 years
In which year was the State Bank of India created when the Imperial Bank of India came under government control?
A) 1947
B) 1950
C) 1955
D) 1965
Option c – 1955
Till April 1947, the Reserve Bank of India also served as the central bank for which country?
A) Burma
B) Nepal
C) Sri Lanka
D) Bhutan
Option a – Burma
Which of the following is classified as one of India’s three Domestic Systemically Important Banks?
A) SBI
B) Federal Bank
C) Axis Bank
D) RBL Bank
Option a – SBI
The legal framework for managing foreign exchange reserves is laid down in the Reserve Bank of India Act of which year?
A) 1947
B) 1971
C) 1934
D) 1923
Option c – 1934
In which year did the RBI ease the licensing policy for Urban Co-operative Banks?
A) 1993
B) 1998
C) 1995
D) 2001
Option a – 1993
The regulation of mutual funds in India comes under the jurisdiction of
A) IRDA and IFCI
B) SEBI and RBI
C) NITI Aayog and IIFCL
D) Ministry of Commerce and SIDBI
Option b – SEBI and RBI
Under which Section of the RBI Act can the Central Government, after consultation with the Governor, supersede the RBI board and issue directions in public interest?
A) Section 5
B) Section 7
C) Section 3
D) Section 1
Option b – Section 7
A bank with a minimum paid-up capital of ______ is eligible to be classified as a scheduled bank under the RBI Act, 1934.
A) Rs 1 lakh
B) Rs 2 lakhs
C) Rs 5 lakhs
D) Rs 4 lakhs
Option c – Rs 5 lakhs
A loan type where small instalments are paid initially and the remaining amount is cleared in a lump sum at maturity is called
A) Balloon Mortgage
B) English Mortgage
C) Income-Sensitive Payment
D) Payday Loan
Option a – Balloon Mortgage
Which of the following is not considered an All India Financial Institution?
A) ICICI Bank
B) National Bank for Agriculture and Rural Development
C) National Housing Bank
D) Export-Import Bank of India
Option a – ICICI Bank
The RBI introduced a regulatory framework for NBFC-MFIs on which of the following dates?
A) 2 December 2011
B) 10 December 2015
C) 5 December 2012
D) 8 December 2013
Option a – 2 December 2011
Which among the following is NOT a part of the rural banking institutional Network?
A) Moneylenders
B) Regional Rural Banks
C) Commercial Banks
D) Cooperative and Land Development Banks
Option a – Moneylenders
Who is responsible for issuing one-rupee notes and coins in India?
A) Ministry of finance
B) Industrial finance Corporation of India
C) Central Bank of India
D) Imperial Bank of India
Option a – Ministry of finance
Which organisation has been identified as the self-regulatory body for microfinance institutions in India?
A) Jan-Dhan
B) Sab-Dhan
C) Dhan
D) Sa-Dhan
Option b – Sab-Dhan
The Regional Rural Banks Act was passed in which year?
A) 1976
B) 1956
C) 1986
D) 1966
Option a – 1976
At a Regional Rural Bank, the Government of India holds what percentage of share capital?
A) 50%
B) 40%
C) 60%
D) 20%
Option a – 50%
Which was the first development bank to be established in India?
A) Industrial finance Corporation of India
B) Industrial Development Bank of India
C) National Housing Bank
D) Export-Import Bank of India
Option a – Industrial finance Corporation of India
The establishment of Regional Rural Banks was based on the recommendations of which committee on rural credit?
A) Narasimham Committee
B) Rekhi Committee
C) Kelkar Committee
D) Tandon Committee
Option a – Narasimham Committee
The SEWA Cooperative Bank was first SET up in which city and year?
A) Varanasi; 1984
B) Ahmedabad; 1974
C) Varanasi; 1974
D) Ahmedabad; 1984
Option b – Ahmedabad; 1974
In the field of microfinance in India, the term SHG-BLP is used. What does the letter “L” denote?
A) Lend
B) Lending
C) Linkage
D) Link
Option c – Linkage
At the time of India’s independence, which form of microfinance units were introduced?
A) Rural Cooperatives
B) Grameen Model Banks
C) Joint Liability Groups
D) Self Help Groups
Option a – Rural Cooperatives
In 1950, small-scale industries in India were defined as those with an investment ceiling of
A) Rs. 8 lakh
B) Rs. 5 lakh
C) Rs. 6 lakh
D) Rs. 7 lakh
Option b – Rs. 5 lakh
What is the unique feature of the Cooperative Development Foundation (CDF) model of SHGs?
A) It admits only poor members
B) It excludes women from joining
C) It includes both poor and non-poor members
D) It admits only non-poor members
Option c – It includes both poor and non-poor members
The Lead Bank Scheme was introduced by the RBI to boost deposits and extend credit to weaker sections. In which year did it begin? ( Money and banking Quiz Questions with Answers PDF )
A) 1973
B) 1969
C) 1962
D) 1958
Option b – 1969
Consider the following statements: 1. The Governor of RBI is appointed by the Central Government. 2. Certain provisions of the Constitution allow the Central Government to issue directions to RBI in public interest. 3. The Governor’s powers are derived from the RBI Act. Which of these statements are correct?
A) 1 and 2 only
B) 2 and 3 only
C) 1 and 3 only
D) 1, 2 and 3
Option c – 1 and 3 only
Consider the following statements: 1. The SHG programme was initially launched by the State Bank of India to provide microcredit. 2. In an SHG, members jointly bear responsibility for an individual’s loan. 3. Regional Rural Banks as well as Scheduled Commercial Banks support SHGs. How many of these statements are correct?
A) Only one
B) Only two
C) All three
D) None
Option b – Only two
In India, the central bank’s role as the lender of last resort generally refers to which of the following? 1. Supplying credit to trade and industry associations when they cannot borrow elsewhere 2. Providing liquidity to banks during a short-term crisis 3. Offering loans to governments for covering budget deficits. Select the correct answer:
A) 2 only
B) 1 and 2
C) 3 only
D) 2 and 3
Option a – 2 only
Which institution in India is responsible for controlling inflation and maintaining price stability? ( Money and banking Quiz Questions with Answers PDF )
A) Department of Consumer Affairs
B) Expenditure Management Commission
C) Financial Stability and Development Council
D) Reserve Bank of India
Option d – Reserve Bank of India
What are the three pillars of the empowerment model in SAPAP related to SHGs? ( Money and banking Quiz Questions with Answers PDF )
A) Collective empowerment, capital formation, and poverty eradication
B) Resource allocation, capacity building, and microfinance
C) Social mobilisation, capital formation, and capacity building
D) Social mobilisation, economic development, and education
Option c – Social mobilisation, capital formation, and capacity building
What is the primary aim of Microfinance Institutions (MFIs) in India? ( Money and banking Quiz Questions with Answers PDF )
A) To maximise profits for investors
B) To finance government schemes
C) To extend financial support to low-Income households and entrepreneurs
D) To offer financial services to large corporations
Option c – To extend financial support to low-Income households and entrepreneurs
What is the key objective of Regional Rural Banks in India? ( Money and banking Quiz Questions with Answers PDF )
A) Boosting metropolitan Economy
B) Promoting rural economic growth
C) Supporting urban economic development
D) Strengthening semi-urban Economy
Option b – Promoting rural economic growth
Which of the following is NOT a service offered by microfinance institutions? ( Money and Banking Quiz Questions with Answers PDF )
A) Micro deposit
B) Micro loan
C) Micro saving
D) Micro Insurance
Option a – Micro deposit
The Shri Mahila SEWA Sahakari Bank was established in which year? ( Money and Banking Quiz Questions with Answers PDF )
A) 1974
B) 1975
C) 1971
D) 1972
Option a – 1974
A non-banking financial company is not permitted to ( Money and Banking Quiz Questions with Answers PDF )
A) Provide loans
B) Make investments
C) Borrow from banks
D) Accept demand deposits or issue cheques
Option d – Accept demand deposits or issue cheques
Which of the following statements about a borrower from a Microfinance Company is incorrect? ( Money and Banking Quiz Questions with Answers PDF )
A) The borrower’s annual Income must not exceed the specified cap
B) The loan amount requested must not cross the SET limit
C) The borrower should not refuse collateral requirements
D) The borrower should not decline to pay any interest charged
Option c – The borrower should not refuse collateral requirements
Which of the following statements about Non-Banking Financial Companies (NBFCs) is incorrect?
A) NBFCs are not allowed to accept demand deposits
B) NBFCs are not permitted to extend loans
C) NBFCs cannot issue cheques on themselves
D) NBFCs do not provide deposit Insurance under DICGC
Option b – NBFCs are not permitted to extend loans
Which of the following is considered an agency function of commercial banks in India? ( Money and Banking Quiz Questions with Answers PDF )
A) Accepting deposits
B) Investing surplus funds
C) Granting overdraft facilities
D) Accepting Income Tax payments
Option d – Accepting Income Tax payments
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