General Awareness Objective Type Questions and Answers on Banking System & Capital Market

(21) Which of the following is not an affiliate of the Reserve Bank of India ?
[A] Unit Trust Of India
[B] Deposit insurance Corporation
[C] Agricultural Refinance Corporation
[D] The Industrial Development Bank of India

Comment

Answer: Option [A]

The correct answer is Unit Trust Of India.

(22) Which of the following is not an asset held by commercial banks ?
[A] Bills of exchange
[B] Current account deposits
[C] Money lent at short notice
[D] Credit balances with the Reserve Bank

Comment

Answer: Option [B]

The correct answer is Current account deposits.

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(23) Which of the following provides the largest part of the demand for loanable funds in India ?
[A] Farmers
[B] Private-house purchasers
[C] Hire-purchase borrowers
[D] Corporate businesses

Comment

Answer: Option [D]

The correct answer is Corporate businesses. A corporation is a business recognized by the state as a legal entity separate from its owners (also known as shareholders). A corporation can be owned by individuals and/or other entities, and ownership is easily transferable via the buying and selling of stock.

(24) Who amongst the following was never a Governor of the RBI ?
[A] Y. V. Reddy
[B] Bimal Jalan
[C] Arup Roy Choudhury
[D] Rangarajan

Comment

Answer: Option [C]

The correct answer is Arup Roy Choudhury. Arup Roy Choudhury is a business executive and professor. He worked as the Chairman & MD of National Building Construction Corporation, a Navaratna Central Public Sector Company from 3 April 2001 to 31 August 2010, and as Chairman and MD of National Thermal Power Corporation, a Maharatna Central Public Sector Company from 1 September 2010 to 31 August 2015.

(25) In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities ?
[A] Commercial Banks
[B] Cooperative Banks
[C] Regional Rural Banks
[D] Microfinance Institutions

Comment

Answer: Option [A]

The correct answer is Commercial Banks. Commercial banks have the highest share in the disbursement of credit to agriculture and allied activities. The commercial banks disburse around 60% credit followed by cooperative banks around 30% and RRB and others.

(26) Private Sector Mutual Funds in India were permitted in
[A] 2001
[B] 1994
[C] 1993
[D] 1964

Comment

Answer: Option [C]

Private Sector Mutual Funds in India were permitted in 1993. The minimal investment for a share of a private mutual fund is much higher than that of a public mutual fund. Depending upon the number of investors in a private mutual fund, there is little or no government regulation.

(27) Which one of the following is not a feature of Limited Liability Partnership firm ?
[A] Partnership and management need not be separate
[B] Partners should be less than 20
[C] It is a corporate body with perpetual succession
[D] Internal governance may be decided by mutual agreement among partners

Comment

Answer: Option [B]

The correct answer is Partners should be less than 20. LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. • The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name.

(28) Stock Exchanges play a role in an economy which may be termed as
[A] Hardly useful
[B] Harmful to proper capital markets
[C] Useful but need strict regulation
[D] A very important segment to regulate inflation

Comment

Answer: Option [C]

Stock Exchanges play a role in an economy which may be termed as Useful but need strict regulation. Stock exchange is also known as a pulse of economy or economic mirror which reflects the economic conditions of a country.

(29) The National Housing Bank was set up in India as a wholly-owned subsidiary of which one of the following ?
[A] ICICI Bank
[B] State Bank of India
[C] Reserve Bank of India
[D] Life Insurance Corporation of India

Comment

Answer: Option [C]

The correct answer is Reserve Bank of India. National Housing Bank is a statutory organization set up on July 9, 1988 under the National Housing Bank Act, 1987. NHB is wholly owned by Reserve Bank of India, which contributed the entire paid-up capital.

(30) The oldest stock exchange of India is :
[A] Bombay Stock Exchange
[B] Bangalore Stock Exchange
[C] Hyderabad Stock Exchange
[D] Ahmadabad Stock Exchange

Comment

Answer: Option [A]

The oldest stock exchange of India is Bombay Stock Exchange. BSE Limited, also known as the Bombay Stock Exchange, is an Indian stock exchange and is the leading stock exchange under the ownership of Ministry of Finance, Government of India. Bombay Stock Exchange Ltd. is India's and even Asia's oldest stock exchange.

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