MCQs on Banking and Finance- Indian Geography
Q1. Which of the following is the central banking institution of India?
a) State Bank of India
b) Reserve Bank of India
c) Bank of Baroda
d) Punjab National Bank
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Correct Answer: b) Reserve Bank of India
Explanation: The Reserve Bank of India (RBI) is the central banking institution of India.
Q2. Which of the following is not a function of the Reserve Bank of India?
a) Issuing currency
b) Regulating the money supply
c) Providing loans to individuals
d) Supervising commercial banks
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Correct Answer: c) Providing loans to individuals
Explanation: The RBI does not provide loans to individuals; its primary functions include issuing currency, regulating the money supply, and supervising commercial banks.
Q3. Which of the following is the apex bank for agricultural credit in India?
a) State Bank of India
b) National Bank for Agriculture and Rural Development (NABARD)
c) Reserve Bank of India
d) Small Industries Development Bank of India (SIDBI)
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Correct Answer: b) National Bank for Agriculture and Rural Development (NABARD)
Explanation: NABARD is the apex bank for agricultural credit in India.
Q4. Which of the following is the first Indian bank to introduce ATMs?
a) State Bank of India
b) Punjab National Bank
c) HSBC India
d) ICICI Bank
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Correct Answer: c) HSBC India
Explanation: HSBC India was the first Indian bank to introduce ATMs. The first ATM in India was set up in 1987 by HSBC in Mumbai. In the following ten years, about 1500 ATMs were set up in India. In 1997, the Indian Banks’ Association (IBA) set up Swadhan, the first network of shared ATMs in India.
Q5. Which of the following is the largest public sector bank in India?
a) State Bank of India
b) Punjab National Bank
c) Bank of Baroda
d) Canara Bank
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Correct Answer: a) State Bank of India
Explanation: State Bank of India is the largest public sector bank in India.
Q6. Which of the following is the regulatory body for the insurance sector in India?
a) Reserve Bank of India
b) Securities and Exchange Board of India (SEBI)
c) Insurance Regulatory and Development Authority of India (IRDAI)
d) Pension Fund Regulatory and Development Authority (PFRDA)
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Correct Answer: c) Insurance Regulatory and Development Authority of India (IRDAI)
Explanation: IRDAI is the regulatory body for the insurance sector in India.
Q7. Which of the following is the primary stock exchange of India?
a) National Stock Exchange (NSE)
b) Bombay Stock Exchange (BSE)
c) Calcutta Stock Exchange (CSE)
d) Delhi Stock Exchange (DSE)
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Correct Answer: b) Bombay Stock Exchange (BSE)
Explanation: The Bombay Stock Exchange (BSE) is the primary stock exchange of India.
Q8. Which of the following is the largest private sector bank in India?
a) HDFC Bank
b) ICICI Bank
c) Axis Bank
d) Kotak Mahindra Bank
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Correct Answer: a) HDFC Bank
Explanation: HDFC Bank is the largest private sector bank in India.
Q9. Which of the following is the main objective of the Pradhan Mantri Jan Dhan Yojana (PMJDY)?
a) Financial inclusion
b) Housing for all
c) Skill development
d) Rural electrification
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Correct Answer: a) Financial inclusion
Explanation: The main objective of PMJDY is financial inclusion.
Q10. Which of the following is not a function of the Securities and Exchange Board of India (SEBI)?
a) Regulating the securities market
b) Protecting the interests of investors
c) Issuing currency
d) Promoting the development of the securities market
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Correct Answer: c) Issuing currency
Explanation: Issuing currency is not a function of SEBI; it is a function of the Reserve Bank of India.
Q11. Which of the following is the main function of the Small Industries Development Bank of India (SIDBI)?
a) Financing small-scale industries
b) Financing large-scale industries
c) Financing agricultural activities
d) Financing housing projects
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Correct Answer: a) Financing small-scale industries
Explanation: The main function of SIDBI is to finance small-scale industries.
Q12. Which of the following is the main function of the Export-Import Bank of India (EXIM Bank)?
a) Financing exports and imports
b) Financing housing projects
c) Financing agricultural activities
d) Financing small-scale industries
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Correct Answer: a) Financing exports and imports
Explanation: The main function of EXIM Bank is to finance exports and imports.
Q13. Which of the following is the main function of the National Housing Bank (NHB)?
a) Financing housing projects
b) Financing agricultural activities
c) Financing small-scale industries
d) Financing exports and imports
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Correct Answer: a) Financing housing projects
Explanation: The main function of NHB is to finance housing projects.
Q14. Which of the following is the main function of the Industrial Finance Corporation of India (IFCI)?
a) Financing large-scale industries
b) Financing small-scale industries
c) Financing agricultural activities
d) Financing housing projects
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Correct Answer: a) Financing large-scale industries
Explanation: The main function of IFCI is to finance large-scale industries.
Q15. Which of the following is the main function of the National Bank for Agriculture and Rural Development (NABARD)?
a) Financing agricultural activities
b) Financing housing projects
c) Financing small-scale industries
d) Financing exports and imports
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Correct Answer: a) Financing agricultural activities
Explanation: The main function of NABARD is to finance agricultural activities.
Q16. Which of the following is the main function of the Industrial Development Bank of India (IDBI)?
a) Financing large-scale industries
b) Financing small-scale industries
c) Financing agricultural activities
d) Financing housing projects
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Correct Answer: a) Financing large-scale industries
Explanation: The main function of IDBI is to finance large-scale industries.
Q17. Which of the following is the main function of the Unit Trust of India (UTI)?
a) Mobilizing savings for investment
b) Financing housing projects
c) Financing agricultural activities
d) Financing small-scale industries
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Correct Answer: a) Mobilizing savings for investment
Explanation: The main function of UTI is to mobilize savings for investment.
Q18. Which of the following is the main function of the National Stock Exchange (NSE)?
a) Providing a platform for trading securities
b) Financing housing projects
c) Financing agricultural activities
d) Financing small-scale industries
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Correct Answer: a) Providing a platform for trading securities
Explanation: The main function of NSE is to provide a platform for trading securities.
Q19. Which of the following is the main function of the Credit Rating Information Services of India Limited (CRISIL)?
a) Rating debt instruments
b) Financing housing projects
c) Financing agricultural activities
d) Financing small-scale industries
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Correct Answer: a) Rating debt instruments
Explanation: The main function of CRISIL is to rate debt instruments.
Q20. Which of the following is the main function of the National Securities Depository Limited (NSDL)?
a) Issuing currency
b) Regulating the money supply
c) Providing a platform for trading securities
d) Holding securities in electronic form
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Correct Answer: d) Holding securities in electronic form
Explanation: The main function of NSDL is to hold securities in electronic form, such as shares and bonds, and facilitate their transfer through electronic means. It operates similarly to a bank account system for securities, enabling investors and traders to trade securities electronically. NSDL provides various services, including Demat account maintenance, transfers for trading account settlements, and distribution of non-cash corporate actions.