Indian Financial Markets-Economics 246 Indian Financial Markets - Economics 1 / 20 Which type of NBFC primarily focuses on financing physical assets supporting productive/economic activities, such as automobiles and machinery? (a) Investment Company (IC) (b) Loan Company (LC) (c) Asset Finance Company (AFC) (d) Non-Banking Financial Company – Factors (NBFC-Factors) 2 / 20 Non-Banking Financial Companies (NBFCs) play a significant role in the Indian economy but do NOT have the authority to: (a) Accept deposits from the public (b) Provide insurance services (c) Grant loans (d) Offer asset management services 3 / 20 Which of the following is NOT one of the types of cooperative banks in India? (a) Central Co-Operative Banks (b) National Co-Operative Banks (c) Primary Co-Operative Banks (d) Land Development Banks 4 / 20 What was the primary objective behind the establishment of cooperative banks in India, as initiated by the Cooperative Societies Act in 1904? (a) To encourage international trade (b) To provide banking services to urban areas (c) To promote thrift, self-help, and cooperation among agriculturists and individuals with limited means (d) To facilitate large-scale industrial projects 5 / 20 Which type of banks in India primarily focus on providing banking facilities to rural and semi-urban areas, government operations, and Para-Banking facilities? (a) Public Sector Banks (b) Private Sector Banks (c) Regional Rural Banks (RRBs) (d) Cooperative Banks 6 / 20 What is the primary objective of Regional Rural Banks (RRBs) in India? (a) To serve primarily urban areas with advanced banking services (b) To provide financial services to multinational corporations (MNCs) (c) To focus on basic banking and financial services in rural areas (d) To facilitate international trade and investment 7 / 20 What is the ownership structure of RRBs in India? (a) Central Government: 75%, State Government: 15%, Sponsorship Bank: 10% (b) Central Government: 35%, State Government: 50%, Sponsorship Bank: 15% (c) Central Government: 50%, State Government: 35%, Sponsorship Bank: 15% (d) Central Government: 60%, State Government: 25%, Sponsorship Bank: 15% 8 / 20 When were Regional Rural Banks (RRBs) established in India to provide banking and credit facilities for agriculture and rural sectors? (a) 1948 (b) 1976 (c) 1990 (d) 2000 9 / 20 What is the primary focus of the Small Industries Development Bank of India (SIDBI)? (a) Financing large corporations (b) Promoting and financing Micro, Small, and Medium Enterprises (MSMEs) (c) Facilitating international trade (d) Providing financial services to rural areas 10 / 20 Which institution was established in 1948 to bridge the demand-supply gap for long-term capital needs in the Indian economy and later changed its name to 'IFCI Limited'? (a) Reserve Bank of India (RBI) (b) Small Industries Development Bank of India (SIDBI) (c) Industrial Finance Corporation of India (IFCI) (d) National Stock Exchange Ltd (NSE) 11 / 20 What major event occurred on July 19, 1969, in the Indian banking sector? (a) The establishment of the Reserve Bank of India (RBI) (b) Nationalization of 14 major scheduled commercial banks (c) Introduction of private sector banks (d) Merger of three major Indian banks 12 / 20 What is the primary function of money in an economy? (a) To store financial instruments (b) To promote barter trade (c) To make it simpler to exchange goods and services (d) To issue loans to businesses 13 / 20 What is the primary role of financial services in the financial system? (a) Issuing new financial instruments (b) Facilitating international trade (c) Providing legal frameworks for financial transactions (d) Assisting in obtaining necessary funds and offering advisory services 14 / 20 Which financial instrument represents a claim on the future repayment of principal or regular payments of interest or dividends? (a) Equity shares (b) Bonds (c) Commodities (d) Real estate 15 / 20 What is the primary function of the Foreign Exchange Market (Forex Market)? (a) To provide short-term loans to businesses (b) To trade physical commodities like agricultural products (c) To deal with multicurrency needs and currency exchange (d) To facilitate trading of financial instruments 16 / 20 What is the primary characteristic of cryptocurrencies like Bitcoin and Ethereum? (a) They are regulated by central authorities. (b) They are based on traditional financial systems. (c) They rely on physical commodities for value. (d) They are decentralized digital assets based on blockchain technology. 17 / 20 What is the most liquid market in the world, handling more than $5 trillion in daily transactions? (a) Stock Market (b) Bond Market (c) Forex (Foreign Exchange) Market (d) Commodity Markets 18 / 20 Which type of market involves the trading of securities directly between two parties without a broker and is characterized by lower regulation and transparency? (a) Stock Markets (b) Bond Markets (c) Over-the-Counter (OTC) Markets (d) Money Markets 19 / 20 What is the primary function of financial markets related to mobilizing savings? (a) Investing savings for profitable purposes (b) Promoting economic growth through infrastructure investments (c) Facilitating efficient trading for investors (d) Allowing individuals to convert assets into cash 20 / 20 What is the primary goal of financial markets? (a) To facilitate the exchange of physical goods (b) To make it easier for savers to store money (c) To promote barter trade among individuals (d) To enable the buying and selling of financial assets Your score is LinkedIn Facebook Twitter VKontakte
