Banking Financial Awareness · General Awareness

Banking Institutions and History

1,287 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.

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Banking Institutions and History Questions

Multiple choice organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

Mixed banking system is found in _________.

  1. India

  2. U.S.A.

  3. Germany

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

German banking system is the best example of mixed banking system. German banks perform large variety of functions which includes functions of a commercial bank as well as investment bank. These banks can also be called as universal banks.

Multiple choice organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

Unit Banking system was originated in __________.

  1. USA

  2. England

  3. India

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

Unit Banking System refers to a single and usually small banks providing financial services to local people. Such banks do not have any connecting branches. The concept of Unit Banking System was originated in USA.

Multiple choice organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

The Apex institution with regard to rural credit is __________.

  1. Agricultural Refinance and Development Corporation

  2. Regional Rural Banks

  3. Reserve Bank of India

  4. NABARD
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

NABARD is an apex development financial institution of India. It was established in 1982 with regards to policy, planning and operations in the field of credit for agriculture and other economic activities in rural parts of India.

Multiple choice organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

Every regional bank is sponsored by _________.

  1. Central Bank

  2. RBI

  3. Nationalised Bank

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

Nationalized bank are the public sector banks. All the regional rural banks are owned by either central government or state government.

Nationalized banks sponsor Regional Banks for greater rural development and availability of basic banking activities in rural areas. 

Multiple choice organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

Dantwala Committee is related with _______.

  1. RRB's (Regional Rural Bank)

  2. RBI (Reserve Bank of India)

  3. NABARD (National Bank for Agriculture and Rural Development )

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

Dantwala committee led by Mohanlal Lallubhai Dantwala recommended in 1978 that RRB's should become an integral part of rural credit structure. It also recommended block level planning.  

Multiple choice organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

An apex institution in the sphere of development banking in India is ______.

  1. IDBI

  2. IFCI

  3. NABARD

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

The Industrial Development Bank of India (IDBI) was established as the apex institution to coordinate the activities of other financial institutions involved in financing, promoting, and developing industries in India.

Multiple choice organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

The first development bank was ___________________.

  1. The Industrial Development Bank of Canada

  2. The Industrial Development Bank of U.S.A.

  3. The Industrial Development Bank of England

  4. The Industrial Development Bank of Japan
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Industrial Bank of Japan (IBJ), established in 1902, is widely recognized in economic history as the first development bank of its kind.

Multiple choice organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

IDBI has set up the IDBI bank Ltd. since ______.

  1. 1975

  2. 1982

  3. 1990

  4. 1964
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

IDBI stands for Industrial Development Bank of India. It constituted under the under the Industrial Development Bank of India Act, 1964. IDBI was established by the parliament to provide credit and there financial facilities to the developing industries of India. It is owned by the government of India. 

Multiple choice organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

The first term-lending Institution In India was ________.

  1. IDBI

  2. IFCI

  3. LIC

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

IFCI stands for Industrial Finance Corporation of India. Term- lending refers to loan term loans which extend upto more than one year. IFCI is was established after independence owned by Indian government and it caters to the long term financial needs of industrial sector. 

Multiple choice organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

The IDBI extends financial assistance in an indirect manner through _______.

  1. state finance corporations

  2. state industrial development corporations

  3. commercial banks

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

IDBI can assist industrial concerns indirectly also by financing those banks and financial institutions who are lending to industrial concerns. All above listed financial institutions cater to an industry's financial needs and also to the development of industries all over India. 

Multiple choice organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

What are SFCs? 

  1. The regional level development banks

  2. The district level development banks

  3. State financial corporations

  4. Rural development banks
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

SFC stands for State Finance Corporation. It promotes medium and small industries of the particular states and also ensures balanced regional development, employment generation and vast ownership of industries.

Multiple choice organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

Which one of the following banks currently ranks number one in India in terms of market capitalization?

  1. State Bank of India

  2. I.C.I.C.I. Bank

  3. U.T.I..Bank

  4. I.D.B.I. Bank
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

 State Bank of India currently ranks number one in India in terms of market capitalization. SBI is a public sector banking company. SBI headquatered in Mumbai, Maharashtra.

Multiple choice

What was the primary form of banking during the Vedic period?

  1. State-owned banks

  2. Private banks

  3. Temples

  4. Money lenders
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Money lenders were the primary form of banking during the Vedic period. They provided loans to individuals and businesses, often at high interest rates.

Multiple choice

Which major public sector bank was nationalized during the Third Five-Year Plan?

  1. State Bank of India

  2. Punjab National Bank

  3. Central Bank of India

  4. Bank of Baroda
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Central Bank of India, a major public sector bank, was nationalized during the Third Five-Year Plan.