(IGP) IAS Pre: GS - Indian Economy - Economy Concepts: Banking System in India (MCQ -4)

Indian Economy
Banking System in India (MCQ -4)

1. Consider the following statements.
(1) A commercial bank is a type of financial intermediatory because it mediates between the savers and Borrowers.
(2) Commercial Bank & assist companies in raising funds in the Capital Markets (both equaity and Debt).
(3) Investment Bank is also known as the Merchant Bank.

(a) all the above are correct
(b) only 2 is correct
(c) only 1 & 3 are correct.

2. Consider the following statements.
(1) The State Bank of India and its five associate banks are called the State Bank group.
(2) The State Banks of Saurashtra and Indore merged.
(3) Co-operative Banks are considered as the commercial Banks.

(a) only 1 & 2 are correct.
(b) all the above are correct.
(c) none of the above is correct.

3. Consider the following statements.
(1) The State Bank of India lays down the norms for Banking operations and has the final supervising power.
(2) Development Banks are those financial institutions which provide long term capital for industries and Agriculture.
(3) The First Development Bank of India was IFCI.

(a) only 1 is correct.
(b) only 2 and 3 are correct
(c) all the above are correct.

4. Consider the following statements.
(1) S.H. Khan committee appointed bRBI recommended to transform the DFI into universal Banks that can provide a menu of financial services and leverage on their assets and talents.
(2) In 1969 & again in 1980, Government nationalized private commercial Banking units for channelizing Banking capital into rural sectors.
(3) Today Banks are Broadly classified into two types - scheduled Banks & non-scheduled Banks.

(a) none of the above is correct.
(b) only 3 is correct.
(c) all the above are correct.

5. Consider the following statements.
(1) Scheduled Banks are those Banks which are included in the Second Scheduled of the Reserve Bank Act, 1934.
(2) There are 10 Non-Scheduled commercial Banks operating in the country.
(3) Co-operative banks are organized &managed on the principle of co-operation, self-help and mutual help.

(a) only 1 and 3 are correct.
(b) only 2 is correct.
(c) all the above are correct.