Q.21) Answer (a)
Best answer should be (1243). IFCI – July 1948; ICICI – 1955; IDBI – UTI – 1963 July 1964;
Q.22) Answer (d)
FCNR ‘B’ – Foreign Currency Non-Resident (bank) Account
Q.23) Answer (b)
World Trade Organization (WTO) is a body making global trade rules with binding effects on its members. It is not only an institution, but also a set of agreements. The WTO regime is known as the rulesbased multilateral trading system. The history of the Organization dates back to 1947, when the General Agreement on Tariffs and Trade (GATT) was set up to reduce tariffs barriers, remove trade barriers and facilitate international trade in goods and services. Over the years, GATT held eight rounds of multilateral.
Q.24) Answer (b)
SLR or the Statutory Liquidity Ratio is that ration of total deposits which a commercial bank has to maintain with itself at any given point of time in the form of liquid assets like cash in hand, current balances with other banks and first class securities which can be turned into cash (gold, cash or other approve securities). This ratio at present is 25%. Some assets have to be in liquid form to take care of financial emergencies which every bank has to face. It regulates the credit growth in India.
Q.25) Answer (b)
The central bank’s accounting year runs from July 1 to June 30. On 11 Mar, 1940, RBI Accounting Year changed from Jan-Dec to July-June.
Q.26) Answer (c)
Economy Survey in India is published officially, every year by the Ministry of Finance, Govt. of India and issued before the annual budget. It reviews the development in the Indian economy over the previous 12 months.
Q.27) Answer (c)
Functions of RBI:
sole authority to issue currency;
government’s bank;
banker’s bank;
guardian of money market;
lender of the last resort;
sole reservoir of Foreign exchange reserves;
controller of credit;
clearing house for settling inter bank transactions.
It follows an independent monetary policy.
Q.28) Answer (d)
Narrow money is the most liquid part of the money supply because the demand deposits can be withdrawn anytime during the banking hours. Time deposits on the other hand have a fixed maturity period and hence cannot be withdrawn before expiry of this period. When we add the time despots into the narrow money, we get the broad money, which is denoted by M3.
M3 = Narrow money + Time Deposits of public with banks. We note here that the Broad money does not include the interbank deposits such as deposits of banks with RBI or other banks. At the same time, time deposits of public with all banks including the cooperative banks are included in the Broad Money.
Q.29) Answer (a)
IFCI – 1948; ICICI – 1955; IDBI – 1964; NABARD – 1982
Q.30) Answer (b)
A non-banking financial company (NBFC) is a company registered under the Companies Act, 1956 and is engaged in the business of loans and advances, acquisition of shares/stock/bonds/debentures/ securities issued by government or local authority or other securities of like marketable nature, leasing, hire-purchase, insurance business, chit business, but does not include any institution whose principal business is that of agriculture activity, industrial activity, sale/purchase/construction of immovable property. They cannot accept demand deposits like commercial banks as they are not a part of clearance and settlement system.
Q.31) Answer (c)
It is an activity by a central bank(RBI) to buy or sell government securities. The aim of open market operations is to manipulate the short term interest rate and the supply of base money in an economy, and indirectly control the total money supply.
Q.32) Answer (a)
Deficit financing refers to the difference between expenditure and receipts. In public finance, it means the govt. is spending more than what it is earning.
Deficit financing is a necessary evil in a welfare state as the states often fail to generate tax revenue which is sufficient enough to take care of the expenditure of the state. The basic intention behind deficit financing is to provide the necessary impetus to economic growth by artificial means.
Q.33) Answer (d)
Priority sector lending constitutes the lending to– agriculture, micro and small enterprises, micro credit, education, housing and weaker sections.
Q.34) Answer (c)
Under Article 266 (1) of the Constitution of India, all revenues ( example tax revenue from personal income tax, corporate income tax, customs and excise duties as well as non-tax revenue such as licence fees, dividends and profits from public sector undertakings etc.) received by the Union government as well as all loans raised by issue of treasury bills, internal and external loans and all moneys received by the Union Government in repayment of loans shall form a consolidated fund.
Q.35) Answer (a)
CRR or the Cash Reserve Ratio is that ratio of the total deposits held by a bank which it has to keep with the central bank of country.