Chapter:

40+ Non-Banking Financial Institutions Solved MCQs

in Financial Institutions and Markets

Chapters

1.	‘One man one vote’ principle in Co-operative Society was recommended by
A.	Gorwala Committee
B.	Mac Lagan Committee
C.	Minto Morley Committee
D.	Montaque Chelmsford Committee
Answer» B. Mac Lagan Committee

discuss

2.	Which of the following organizational structure is followed by cooperatives in India?.
A.	Unitary structure
B.	Federal structure
C.	Centralized structure
D.	Decentralized structure
Answer» B. Federal structure

discuss

3.	The structure of cooperative banking system in India is federal and pyramid type of
A.	four-tier
B.	three-tier
C.	two-tier
D.	five-tier
Answer» B. three-tier

discuss

4.	The Urban Credit Cooperative are also commonly known as
A.	Urban Cooperative Banks
B.	Cooperative Banks
C.	National Banks
D.	Non of the above
Answer» A. Urban Cooperative Banks

discuss

5.	The first District Cooperative Banks was established at ____________ in 1910.
A.	Mumbai in Maharastra
B.	Ahmedabad in Gujarat
C.	Chennai in Tamil Nadu
D.	Ajmer in Rajasthan
Answer» D. Ajmer in Rajasthan

discuss

6.	Co-operative movement originated first in
A.	Germany
B.	England
C.	France
D.	Spain
Answer» B. England

discuss

7.	Interest rate of Deposit of cooperative credit societies are fixed by
A.	Registrar
B.	Government
C.	RBI
D.	General Body
Answer» A. Registrar

discuss

8.	The land mortgage banks grant _______________ to the farmers against the conveyance of land as security.
A.	short term loans
B.	medium term loans
C.	long term loans
D.	short& medium term loans
Answer» C. long term loans

discuss

9.	The National Co-operative Development Corporation (NCDC) was established in
A.	march 1960
B.	march 1961
C.	March 1962
D.	March 1963
Answer» D. March 1963

discuss

10.	Co-operative banks
A.	cannot create credit
B.	are of ‘unit banking type’
C.	cannotmobilizem\ deposit
D.	both (a) and (b
Answer» B. are of ‘unit banking type’

discuss

11.	The first Development banks in India was
A.	IDBI
B.	ICICI
C.	LIC
D.	IFCI
Answer» D. IFCI

discuss

12.	Development banks provide
A.	short-term credit only
B.	both short-term and medium-term credits
C.	both medium-term and long-term credits
D.	long-term credit only
Answer» C. both medium-term and long-term credits

discuss

13.	What is the apex organisation of Industrial Finance in India?
A.	Industrial Finance Corporation of India
B.	Industrial Credit and Investment corporation of India
C.	Industrial Development Bank of India
D.	Life Insurance Corporation of India
Answer» C. Industrial Development Bank of India

discuss

14.	Which of the following is not an affiliate of the Reserve Bank of India?
A.	Deposit Insurance Corporation
B.	Agriculture Refinance Corporation
C.	Industrial Development Bank of India
D.	Unit Trust of India
Answer» D. Unit Trust of India

discuss

15.	The National Housing Bank was set up in India as 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
Answer» C. Reserve Bank of India

discuss

16.	Which of the following organizations in India is mainly working to meet the credit needs of all types of agricultural and rural development?
A.	FCI
B.	NABARD
C.	IDBI
D.	UTI
Answer» B. NABARD

discuss

17.	The Industrial Development Banks of India (IDBI) was set up in
A.	June 1960
B.	July 1964
C.	March 1963
D.	July 1961
Answer» B. July 1964

discuss

18.	The Industrial Reconstruction Corporation of India (IRCI) was set up in
A.	1971
B.	1961
C.	1981
D.	1951
Answer» A. 1971

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19.	The Industrial Reconstruction Corporation of India (IRCI) was converted into a statutory corporation called the Industrial Reconstruction Bank of India (IRBI) in
A.	March 1982
B.	March 1983
C.	March 1984
D.	March 1985
Answer» D. March 1985

discuss

20.	The National Small Industries Corporation (NSIC) was set up by Government of India in
A.	1954
B.	1955
C.	1956
D.	1957
Answer» B. 1955

discuss

21.	Changing the role and growth of Financial institutions, in recent years, Select Financial Institutions viz.,IDBI, ICICI Ltd., EXIM Bank, SIDBI and NABARD have been brought under the supervisory purview of the
A.	Reserve Bank of India (RBI
B.	Securities and Exchange Board of India (SEBI
C.	Ministry of Finance
D.	All of the above
Answer» A. Reserve Bank of India (RBI

discuss

22.	The Industrial Credit and Investment Corporation of India (ICICI) was established as a private sector development bank at the initiative of the World Bank in
A.	1954
B.	1955
C.	1956
D.	1957
Answer» B. 1955

discuss

23.	The Export-Import Bank of India was set up by the Government of India on
A.	January 1,1980
B.	January 1,1981
C.	January 1,1982
D.	January 1,1983
Answer» C. January 1,1982

discuss

24.	With the government take-off of all the life insurance companies in India, the Life Insuarnce Corporation of India (LIC) was formed in
A.	1953
B.	1954
C.	1955
D.	1956
Answer» D. 1956

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25.	The Unit Trust of India (UTI) was set up in
A.	1984
B.	1994
C.	1954
D.	1956
Answer» A. 1984

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26.	ICICI is a
A.	Public sector institution
B.	Private sector institution
C.	Joint sector institution
D.	World Bank’s institution
Answer» B. Private sector institution

discuss

27.	Which one of the following institutions provide medium-term finance to industries?
A.	UTI
B.	LIC
C.	GIC
D.	Commercial Banks
Answer» A. UTI

discuss

28.	Among Mutual Funds Industry in India, the top and dominating position is held by
A.	QIC
B.	LIC
C.	IDBI
D.	UTI
Answer» D. UTI

discuss

29.	Venture Capital Fund provides
A.	long-term credit to industries
B.	short-term credit and medium-term credit to the farmers
C.	risk capital to little known, unregistered, young and small business
D.	All of the above
Answer» C. risk capital to little known, unregistered, young and small business

discuss

30.	Which was the first mutual fund established in India?
A.	SBI Mutual fund
B.	Unit Trust of India (1963
C.	LIC Mutual Fund
D.	Venture Capital
Answer» B. Unit Trust of India (1963

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31.	Private Sector Mutual Funds in India were permitted in
A.	2001
B.	1994
C.	1993
D.	1964
Answer» C. 1993

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32.	Venture capital firm
A.	pools resources to help entrepreneur start new firm
B.	allows equity shares of the new firm to be sold in the market plan
C.	establishes joint venture companies
D.	Both (a) and (b
Answer» A. pools resources to help entrepreneur start new firm

discuss

33.	The IDBI at present is a
A.	subsidiary of RBI
B.	Subsidiary of IFC
C.	autonomous institution
D.	none of the above
Answer» A. subsidiary of RBI

discuss

34.	Which of the following is not a function of General Insurance?
A.	Cattle Insurance
B.	Crop Insurance
C.	Fire Insurance
D.	Medical Insurance
Answer» D. Medical Insurance

discuss

35.	NBFIs refers to..
A.	Non Banking Financial Industries
B.	Non Banking Financial Institutions
C.	Net Banking Financial Industries
D.	Net Banking Financial Institutions
Answer» B. Non Banking Financial Institutions

discuss

36.	With reference to non-banking financial companies (NBFCs) in India, consider the following statements: 1. They can offer any rate of interest subject to their financial capacity 2. They can not accept deposits repayable on demand. Which of the statements given above is/are correct?
A.	1 only
B.	2 only
C.	Both 1 and 2
D.	Neither 1 nor 2
Answer» B. 2 only

discuss

37.	Which one among the following promoted the concept of self-help groups (SHGs) for financing the poor.
A.	RBI
B.	NABARD
C.	Union Ministry of Rural Development
D.	Union Ministry of Labour
Answer» B. NABARD

discuss

38.	NABARD has been established on the recommendation of
A.	Talwar Committee
B.	Tandon Committee
C.	Narasimham Committee
D.	Shivaram Committee
Answer» D. Shivaram Committee

discuss

39.	SIDBI was set up in 1990 as a wholly owned subsidiary of
A.	EXIM Bank
B.	RRBI
C.	IFCI
D.	IDBI
Answer» D. IDBI

discuss

40.	Which one of the following is the main objectives of Unit Trust of India.
A.	To mobilize the saving of high income groups
B.	To mobilizes the saving of low and high income groups
C.	To mobilizes the saving of corporates
D.	To mobilizes the saving of low and middle income groups
Answer» B. To mobilizes the saving of low and high income groups

discuss

40+ Non-Banking Financial Institutions Solved MCQs

‘One man one vote’ principle in Co-operative Society was recommended by

Which of the following organizational structure is followed by cooperatives in India?.

The structure of cooperative banking system in India is federal and pyramid type of

The Urban Credit Cooperative are also commonly known as

The first District Cooperative Banks was established at ____________ in 1910.

Co-operative movement originated first in

Interest rate of Deposit of cooperative credit societies are fixed by

The land mortgage banks grant _______________ to the farmers against the conveyance of land as security.

The National Co-operative Development Corporation (NCDC) was established in

Co-operative banks

The first Development banks in India was

Development banks provide

What is the apex organisation of Industrial Finance in India?

Which of the following is not an affiliate of the Reserve Bank of India?

The National Housing Bank was set up in India as wholly-owned subsidiary of which one of the following?

Which of the following organizations in India is mainly working to meet the credit needs of all types of agricultural and rural development?

The Industrial Development Banks of India (IDBI) was set up in

The Industrial Reconstruction Corporation of India (IRCI) was set up in

The Industrial Reconstruction Corporation of India (IRCI) was converted into a statutory corporation called the Industrial Reconstruction Bank of India (IRBI) in

The National Small Industries Corporation (NSIC) was set up by Government of India in

Changing the role and growth of Financial institutions, in recent years, Select Financial Institutions viz.,IDBI, ICICI Ltd., EXIM Bank, SIDBI and NABARD have been brought under the supervisory purview of the

The Industrial Credit and Investment Corporation of India (ICICI) was established as a private sector development bank at the initiative of the World Bank in

The Export-Import Bank of India was set up by the Government of India on

With the government take-off of all the life insurance companies in India, the Life Insuarnce Corporation of India (LIC) was formed in

The Unit Trust of India (UTI) was set up in

ICICI is a

Which one of the following institutions provide medium-term finance to industries?

Among Mutual Funds Industry in India, the top and dominating position is held by

Venture Capital Fund provides

Which was the first mutual fund established in India?

Private Sector Mutual Funds in India were permitted in

Venture capital firm

The IDBI at present is a

Which of the following is not a function of General Insurance?

NBFIs refers to..

With reference to non-banking financial companies (NBFCs) in India, consider the following statements: 1. They can offer any rate of interest subject to their financial capacity 2. They can not accept deposits repayable on demand. Which of the statements given above is/are correct?

Which one among the following promoted the concept of self-help groups (SHGs) for financing the poor.

NABARD has been established on the recommendation of

SIDBI was set up in 1990 as a wholly owned subsidiary of

Which one of the following is the main objectives of Unit Trust of India.

With reference to non-banking financial companies (NBFCs) in India, consider the following statements:
1. They can offer any rate of interest subject to their financial capacity
2. They can not accept deposits repayable on demand.
Which of the statements given above is/are correct?