Tag: nationalisation and privatisation of banks

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Questions Related to nationalisation and privatisation of banks

Multiple choice history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

Which of the following was a cause for nationalization of Commercial Banks?

  1. Encouragement of speculative activities

  2. Neglect of Agricultural Sector

  3. Violation of Banking Norms

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

Nationalization was driven by multiple factors, including the neglect of the agricultural sector, the concentration of economic power, and the general failure of private banks to follow social welfare norms.

Multiple choice history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

Which of the following was a cause for nationalization of Commercial Banks?

  1. Concentration of economic power

  2. Neglect of Priority Sectors

  3. Urban bias

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

The decision to nationalize banks was based on several issues, including the concentration of wealth in a few hands, the urban bias of banking services, and the neglect of priority sectors like agriculture.

Multiple choice history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

Before nationalisation, Commercial Banks in India were having their branches in _________.

  1. urban areas

  2. rural areas

  3. semi-urban areas

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

Prior to nationalization, private commercial banks were heavily concentrated in urban areas where industrial and commercial activity was highest, leading to a lack of banking services in rural regions.

Multiple choice history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

The objective of nationalization is -

  1. To control the height of economy.

  2. To meet progressively the needs of development of the economy

  3. Both (a) and (b)

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

Nationalization aimed to align banking operations with national economic development goals and to ensure that credit was directed toward productive sectors of the economy, rather than just serving private interests.

Multiple choice history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

Nationalisation of Banks aimed at all of the following except _________________.

  1. removal of control by a few

  2. provision of credit to big industries only

  3. provision of adequate credit for agriculture, small industry and export units

  4. encouragement of a new class of entrepreneurs
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Nationalization was intended to democratize credit and support small-scale sectors. Providing credit exclusively to big industries was the opposite of the intended goal, which was to diversify credit access.

Multiple choice history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

In the context of Foreign Exchange Management, RBI performs which of the following functions?

  1. Enter into Foreign Exchange transactions on its own and Government account

  2. Borrowing from IMF to meet Balance of Payments problems

  3. Administer the provisions of Foreign Exchange Management Act

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

The RBI acts as the custodian of foreign exchange reserves and manages the Foreign Exchange Management Act (FEMA) to regulate and facilitate external trade and payments.

Multiple choice history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

After nationalisation, the number of Bank Branches have _____________.

  1. increased

  2. decreased

  3. retained constant

  4. nothing can be said
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Following nationalization, the government mandated that banks expand their branch networks into rural and unbanked areas to promote financial inclusion, leading to a massive increase in the number of branches.

Multiple choice history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

____________ is the official minimum rate at which the Central Bank of a country is prepared to rediscount approved bill held by commercial Banks.

  1. CRR

  2. SLR

  3. Bank rate

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

Bank rate is the official minimum rate at which the Central Bank of a country (RBI in India) is prepared to rediscount approved bills held by commercial banks in the country.

Multiple choice history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

What led to the need for New Economic Policy in India?

  1. Gulfcrises

  2. Bad performance of public sector

  3. Inflation

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

Gulf crisis, bad performance of public sector and inflation led to the need for New Economic Policy in India. New Economic Policy was adopted by the Central government of India in the year of 1991. It has given emphasis on liberalization, privatization and globalization.

Multiple choice history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

Which of the following factor is not responsible for nationalization of commercial banks?

  1. Private ownership

  2. Urban bias

  3. Government policy

  4. Violation of norms
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Government policy was the driver of nationalization, not a factor responsible for the problems that necessitated it. The problems were private ownership, urban bias, and the violation of social banking norms.