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
102.
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
103.
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
104.
The Unit Trust of India (UTI) was set up in
A.
1984
B.
1994
C.
1954
D.
1956
Answer»
A. 1984
105.
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
106.
Which one of the following institutions provide medium-term finance to industries?
A.
UTI
B.
LIC
C.
GIC
D.
Commercial Banks
Answer»
A. UTI
107.
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
108.
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
109.
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
110.
Private Sector Mutual Funds in India were permitted in
A.
2001
B.
1994
C.
1993
D.
1964
Answer»
C. 1993
111.
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
112.
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
113.
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
114.
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
115.
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
116.
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
117.
NABARD has been established on the recommendation of
A.
Talwar Committee
B.
Tandon Committee
C.
Narasimham Committee
D.
Shivaram Committee
Answer»
D. Shivaram Committee
118.
SIDBI was set up in 1990 as a wholly owned subsidiary of
A.
EXIM Bank
B.
RRBI
C.
IFCI
D.
IDBI
Answer»
D. IDBI
119.
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
Chapter: Foreign Exchange Markets
120.
Which function of foreign exchange market protects against the foreign exchange risk?
A.
Credit function
B.
Hedging function
C.
Transfer function
D.
All of them
Answer»
B. Hedging function
121.
Reduction in the value of domestic currency by the government is called
A.
depreciation
B.
devaluation
C.
revaluation
D.
appreciation
Answer»
B. devaluation
122.
Reduction in the value of domestic currency through market forces is called
A.
depreciation
B.
devaluation
C.
revaluation
D.
appreciation
Answer»
A. depreciation
123.
Increase in the value of domestic currency by the government is called
A.
depreciation
B.
devaluation
C.
revaluation
D.
appreciation
Answer»
C. revaluation
124.
What will be the effect on exports if foreign exchange rate increases?
A.
Increases
B.
Decreases
C.
Remains constant
D.
None of them
Answer»
A. Increases
125.
Foreign exchange is demanded by..
A.
domestic residents to purchase goods and services from other countries
B.
sending gifts and grants to foreign countries (abroad
C.
the domestic residents to purchase financial assets in a particular country
D.
all of them
Answer»
D. all of them
126.
The supply of foreign exchange comes from..
A.
the foreigners purchasing home country's goods and services through exports
B.
the foreigners who invest in home country through joint ventures or through financial market operations
C.
currency dealers and speculators.
D.
all of them
Answer»
D. all of them
127.
Buyers and sellers of foreign exchange are
A.
central banks
B.
commercial banks
C.
brokers
D.
all of them
Answer»
D. all of them
128.
Which exchange rate measures the average relative strength of a given currency with respect to other currencies without eliminating the effect of change in price?
A.
Nominal exchange rate
B.
Nominal effective exchange rate
C.
Real exchange rate
D.
Real effective exchange rate
Answer»
D. Real effective exchange rate
129.
When one country manipulates exchange rate against the interest of other country, is known as
A.
managed floating
B.
dirty floating
C.
wide band
D.
crawling peg
Answer»
B. dirty floating
130.
Other things remaining the unchanged, when in a country the price of foreign currency rises, national income is:
A.
Likely to rise
B.
Likely to fall
C.
Likely to rise or to fall
D.
Not affected
Answer»
A. Likely to rise
131.
Other things remaining the same, when in a country the market price of foreign currency falls, national income is likely
A.
to rise
B.
to fall
C.
to rise or to fall
D.
to remain unaffected
Answer»
B. to fall
132.
Devaluation which means fall in value of domestic currency in terms of foreign currency takes place in
A.
Flexible Exchange Rate regime
B.
Fixed Exchange Rate regime
C.
Both (a) and (b
D.
Neither
Answer»
B. Fixed Exchange Rate regime
133.
A change from Rs. 60 = 1 dollar to Rs 62 = dollars indicates that Rs has
A.
Appreciated
B.
Depreciated
C.
Neither
D.
Either a or b
Answer»
B. Depreciated
134.
The larger fluctuations in portfolio value of foreign exchange of financial institutions leads to
A.
greater liquidity of assets
B.
greater volatility of rates
C.
lesser volatility of rates
D.
lesser liquidity of assets
Answer»
B. greater volatility of rates
135.
Other things remaining unchanged, when in a country the price of foreign currency rises, national income is
A.
Likely to rise
B.
Likely to fall
C.
both
D.
Not affected
Answer»
A. Likely to rise
136.
Indirect quotation is also known as
A.
home currency quotation
B.
foreign currency quotation
C.
European quotation
D.
American quotation
Answer»
B. foreign currency quotation
137.
If rupee is getting depreciated fast and is considered undesirable by the government, the RBI may be advised to
A.
Sell dollars in the foreign exchange market
B.
Purchase dollars
C.
Print more currency notes
D.
Raise tariffs on imports
Answer»
A. Sell dollars in the foreign exchange market
138.
If in an effort to control depreciation of rupee the RBI puts more dollars in the supply, it may lead to greater inflation, caused by
A.
Increase in money supply in the economy
B.
Reduced availability of goods due to increased exports.
C.
Reduced availability of goods due to reduced imports
D.
All of the above.
Answer»
D. All of the above.
139.
In which of the following items raises the supply of foreign exchange ?
A.
Import of goods from China
B.
Indian students going to USA for MBA
C.
Donation of 50 million $ received from Microsoft
D.
Purchase of land in England
Answer»
C. Donation of 50 million $ received from Microsoft
140.
A change from Rs. 140 = 2 £ to Rs. 60 = 1 £ indicates that Rs. is
A.
Appreciated
B.
Depreciated
C.
Neither
D.
Either (a) or (b
Answer»
A. Appreciated
141.
Depreciation of domestic currency leads to rise in:
A.
Exports
B.
Imports
C.
Both (a) and (b
D.
Neither (a) nor (b
Answer»
A. Exports
142.
Flexible Exchange Rate System is also known as:
A.
Pegged Exchange Rate System
B.
Dirty Floating
C.
Floating Exchange Rate
D.
Both (b) and (c
Answer»
C. Floating Exchange Rate
143.
The rate which is determined by the government is known as:
A.
flexible
B.
fixed
C.
floating exchange rate
D.
none of these
Answer»
B. fixed
144.
The exchange rate at which demand for foreign currency becomes equal to its supply, is called
A.
equal rate of exchange
B.
mint parity
C.
equilibrium exchange rate
D.
all of these
Answer»
C. equilibrium exchange rate
145.
Demand for foreign currency depends upon:
A.
repayment of international loans
B.
investment in rest of the world
C.
direct foreign investment in the domestic economy
D.
both (a) and (b
Answer»
D. both (a) and (b
146.
In a flexile exchange rate regime
A.
central government control the rate
B.
state government control the rate
C.
government do not have any intervention
D.
central bank control the rate
Answer»
C. government do not have any intervention
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