Indian financial markets - CSEET MCQ

1. A Non-Banking Financial Company (NBFC) is a company registered under the .................

.

(a) RBI Act 1934

(b) Companies Act, 1956

(c) NBFC Act 1956

(d) Government Securities Regulations, 1913

2. Which of the following activity is not permissible for NBFC?

(a) loans and advances

(b) acquisition of shares

(c) insurance business

(d) construction of immovable property

3. A non-banking institution that has a principal business of receiving deposits under any

scheme or arrangement in one lump sum or in installments by way of contributions is known

as?

(a) Principal non-banking company

(b) Residential non-banking company

(c) Residuary non-banking company

(d) Optional non-banking company

4. When is an Financial activity considered as the principal business of any entity?

(a) financial assets constitute more than 50 per cent of the total assets

(b) Income from financial assets constitute more than 50 per cent of the gross income

(c) Income from financial assets constitute more than 40 per cent of the gross income

(d) Both A and B

5. Which of the following is false about NBFC?

(a) NBFC cannot accept demand deposits

(b) NBFCs do not form part of the payment and settlement system and cannot issue

cheques drawn on itself

(c) deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not

available to depositors of NBFCs

(d) NBFC cannot undertake insurance business

6. What is the minimum Net Owned Funds required by NBFCs for registration with RBI?

(a) ? 5 lakhs

(b) ? 25 lakhs

(c) ? 50 lakhs

(d) ? 2 crore

7. NBFCs with asset size more than ................. are considered to be systemically

important NBFCs.

(a) ? 500 crore'

(b) ? 100 crore

(c) ? 200 crore

(d) ? 350 crore

8. Which of the following does not have any roles in regulation of NBFCs?

(a) National Housing Bank

(b) Reserve Bank of India .(c) SIDBI

(d) Ministry of Corporate Affairs

9. Which of the following organizations/ institution set up the Regional Rural Banks?

(a) Reserve Bank of India

(b) NABARD

(c) SBI

(d) Government of India

10. In which of the following year Regional Rural Banks (RRBs) were established in India?

(a) 1965

(b) 1969

(c) 1975

(d) 1982

11. Which of the following Organization refinance Regional Rural Banks (RRBs)?

(a) RBI

(b) SBI

(c) National Housing Bank

(d) NABARD

12. At present in India How Many Regional Rural Banks (RRBs) are there?

(a) 80

(b) 81

(c) 82

(d) 83

(e) 84

13. What was the main objective behind the setting up of Regional Rural Banks in India?

(a) To provide low cost financing and credit facilities to the Slum dwellers in metro cities

(b) To provide low cost financing and credit facilities to the rural masses

(c) To provide low cost financing and credit facilities to the Urban masses

(d) To provide low cost financing and credit facilities to prospective car owners.

14. Bank rate is decided by which of the following?

(a) Reserve Bank of India

(b) Government of India

(c) State Bank of India

(d) Securities and Exchange Board of India

15. “Development Banks” are

(a) Branches of commercial Banks whether in private or public sector, situated in rural area

for upliftment of weaker sections of the society

(b) Financial sections which provide long term finance to industries

(c) Land development banks which provide development financing to agriculture

(d) None of these

16. Industrial Development of was established as a subsidiary of

(a) RBI

(b) SIDBI

(c) SBI

(d) Industrial credit & investment corporation of India

17. Which of the following is the first Development Bank of India

(a) IFCI

(b) SFC

(c) NABARD

(d) State Industrial Development corporations

18. Which of the following is a development bank ?

(a) HDFC

(b) NHB

(c) Axis Bank

(d) DCB

19. Which development financial institution integrated with a bank ?

(a) IFCI Ltd

(b) ICICI LTD

(c) NHB

(d) IIFCL

20. Which is the financial development institution created specially for the small & medium

enterprises

(a) SIDBI

(b) IDBI

(c) NABARD

(d) IFCI LTD

21. Which of the following is not correct about development banks in India?

(a) The Development Banks do not seek or accept deposits from the public

(b) They provide short term finance

(c) The development banks promote economic development by promoting investment &

enterprise

(d) None of these

22. Which agency is exclusively concerned with the credit needs of all types agricultural and

rural development ?

(a) SBI

(b) IDBI

(c) RBI

(d) NABARD

23. An example of a development bank in India is

(a) SBI

(b) RBI

(c) Karnataka state Finance corporation

(d) PNB

24. Which of the following is the apex institution which handles refinance for agriculture and

rural development in India ?

(a) RBI

(b) SIDBI

(c) NABARD

(d) SEBI

25. In India, the bank NABARD does not provide refinance to

(a) Scheduled commercial bank

(b) RRB

(c) EXIM bank

(d) State land development bank

1 (b) 2 (d) 3 (d) 4 (d) 5 (d) 6 (b)

7 (a) 8 (c) 9 (d) 10 (c) 11 (d) 12 (c)

13 (b) 14 (a) 15 (b) 16 (a) 17 (a) 18 (b)

19 (b) 20 (a) 21 (b) 22 (d) 23 (c) 24 (c)

25 (d)