Banking Financial Awareness · General Awareness

Banking Institutions and History

1,351 Questions

Review crucial questions related to banking institutions, their histories, and recent financial events. This set covers bank mergers, taglines, and key regulatory changes by the Reserve Bank of India. It is highly relevant for aspirants of banking and insurance exams.

Bank taglinesBank mergersRBI regulationsFinancial institutions historyBanking licenses

Banking Institutions and History Questions

Multiple choice economics theories of distribution liquidity preference and profit revenue and revenue curves simple monopoly and commodity market

NABARD is the Apex Bank for _________ credit in India.

  1. Real Estate

  2. Small Scale Industries

  3. Agriculture

  4. None of the above.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

NABARD (National Bank for Agriculture and Rural Development) is the apex regulatory body for the overall regulation of regional rural banks and apex cooperative banks in India, primarily focusing on agriculture credit.

Multiple choice elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

Which account is the odd one out?

  1. Ram's A/c

  2. Ram & Sons A/c

  3. Ram & Sons Ltd A/c

  4. ICICI Bank A/c
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Ram's account is a personal account of an individual. Ram & Sons, Ram & Sons Ltd, and ICICI Bank are all legal entities or artificial persons.

Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

Which of the following is not the agency of World Bank?

  1. MIGA

  2. NABARD

  3. ADB

  4. IDA
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

NABARD (National Bank for Agriculture and Rural Development) is an Indian apex development bank, not an agency of the World Bank. MIGA, IDA, and ADB (though ADB is a regional bank, it is often grouped in international finance discussions) are distinct from the World Bank's internal structure, but NABARD is clearly domestic.

Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

Which of the following organisations is created specially for providing credit to small and medium enterprises in India?

  1. NABARD

  2. SIDBI

  3. ECGC

  4. AMFI
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Small Industries Development Bank of India (SIDBI): Established as wholly owned subsidiary of IDBI and SIDBI Act 1989. Its headquarters is in Lucknow. It has 5 regional and 21 branch offices across the country. It is the principal financial institution for, promotion, financing and development of industries in the small scale sectors. It also co-ordinates the agencies which provides finance to small enterprises.

Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

India is a recipient of loan from which of these agencies?

  1. World Bank

  2. IMF

  3. IDA

  4. All the the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

India has historically received financial assistance and loans from both the World Bank (IBRD) and its concessional lending arm, the IDA. While the IMF typically provides balance-of-payments support, it is also a source of financial assistance.

Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

International Bank for Reconstruction and Development (IBRD) is popularly known as _____________.

  1. International bank

  2. World bank

  3. Reconstruction Bank

  4. Bank of Development
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

IBRD stands for International Bank For Reconstruction and Development. It is set up in

  1. It is one of the organisations under the World Bank Group and is headquartered in Washington DC. It offers loans to middle-income developing countries for development and structural changes.
Multiple choice commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

In India, the Chit funds are governed / regulated by ___________.

  1. RBI

  2. Central Government

  3. State Governments

  4. Local Bodies
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Chit funds in India are governed by the Chit Funds Act, 1982. Under this Act, the chit fund business can be register and regulated only by the individual State Governments. Regulator of chit funds is the Registrar of Chits selected by the individual state government under Section 61 of Chit Funds Act. 

Powers of negotiation vest in the Registrar and the state government disturbed is the Appellate authority. In case of failure of a chit fund business, the task for windy up such a business also vests with the individual State Governments. 

Moreover, the Prize chits and money exchange schemes are illegal and are disqualified under the Prize Chits and Money movement Schemes (Banning) Act, 1978. Powers of investigation under this Act are vested with the disturbed state police authorities.

Thus, the correct option is C.

Multiple choice commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

The District Central Co-operative Banks are in direct touch with _____.

  1. reserve bank of india

  2. state cooperative banks

  3. land development banks

  4. central government
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The central co-operative banks are the federations of primary credit societies in a district.
The central co-operative banks are
of two types.
The state co-operative bank acts as a watchdog of co-operative banks operating in the state.

Multiple choice commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

The approach of 'Micro-Credit' or 'Banking with the poor' is comparatively a new concept in the field of rural credit. This approach has been tried very successfully in which of the following countries?

  1. Bangladesh

  2. India

  3. China

  4. Japan
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Microcredit is generally considered to have originated with the Grameen Bank founded in Bangladesh in 1983.

Muhammad Yunus is a Bangladeshi social entrepreneur, banker, economist, and civil society leader who was awarded the Nobel Peace Prize for founding the Grameen Bank and pioneering the concepts of microcredit and microfinance.

Multiple choice commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

The working group set up by the RBI has suggested the launch of an Emergency Fund Facility Scheme for banks. This scheme will help which of the following types of banks?

  1. Public Sector Banks

  2. Small Banks

  3. Urban Cooperative Banks

  4. Private Banks
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The RBI has historically focused on strengthening Urban Cooperative Banks (UCBs) through various schemes, including liquidity support mechanisms like the Emergency Fund Facility.

Multiple choice commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

Which of the following is not the part of the scheduled banking structure in India?

  1. Money lenders

  2. Public sector nanks

  3. Private sector banks

  4. Regional rural banks
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Scheduled banks are those listed in the Second Schedule of the RBI Act. Moneylenders are informal and are not part of the scheduled banking structure.

Multiple choice instruments of monetary policy and the reserve bank of india money and banking economics

RBI was nationalized in _____.

  1. June 1947

  2. Jan 1949

  3. March 1954

  4. April 1936
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

On January 1949, Reserve Bank of India(RBI) which is an apex bank that regulates and controls the entire banking system of India was nationalized. It is the sole agency of note issuing and controls the supply of money in the economy. It is also the government's bank and banker's bank as it acts an agent, guide and banker to government and the commercial banks. 

Multiple choice instruments of monetary policy and the reserve bank of india money and banking economics

_____  is also called lender of the last resort in India.

  1. CBI

  2. SBI

  3. RBI

  4. UTI
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Central bank is an apex bank that regulates and controls the entire banking system of a country. The central bank lends money to government and the commercial banks when they are facing liquidity crunch or any type of insolvency. The central bank are the last resort to provide loans to the government and commercial banks against any type of collateral. Since Reserve Bank of India(RBI) is the central bank of India, it is also known as the lender of the last resort in India.