First In India Questions and Answers

Answer: B

Whole life, Endowment, Term, Investment-linked, Life annuity plan, Medical and health are the main products of life insurance. Motor insurance, Fire/House owners/Householders insurance, Personal accident insurance, Medical and health insurance, Travel insurance are the main products of general insurance.
 

Answer: D

Correct answer: Underwriting

Underwriting is the acceptance of a risk in return for a fee. In a securities issue the underwriter agrees to take up whatever part of the offering the public does not subscribe, so the issuer is assured of its money whatever the market does.

The same word covers the parallel activity in insurance, where the insurer accepts the risk of a loss in return for a premium. An initial public offering is the issue that may be underwritten rather than the act of underwriting it, and the other two options name software and analytical techniques.

Answer: B

The Imperial Bank of India was baptised as State Bank of India followed by the formation of 7 associate banks in 1959. Recognising the fact that banking plays a crucial role in the economic development of a country, the Government of India nationalised 14 major commercial banks in July 1969. Another six commercial banks were nationalised in April 1980 in order to bring commercial banks into the mainstream of economic development with definite social obligations and objectives

Answer: D

Correct answer: 1999

The Insurance Regulatory and Development Authority was constituted under the IRDA Act of 1999, which reopened the sector to private and foreign-partnered insurers after more than four decades of state monopoly. Its role is both to regulate solvency and conduct and to develop the market, and it was renamed IRDAI in 2014.

Answer: C

Correct answer: All the above

All seven were associate banks of the State Bank of India, each descended from a princely state or regional bank. They were absorbed one by one: Saurashtra in 2008, Indore in 2010, and the remaining five - Bikaner and Jaipur, Hyderabad, Mysore, Patiala and Travancore - together on 1 April 2017, along with the Bharatiya Mahila Bank. None survives as a separate institution.

Answer: B

Correct answer: RBI’s head quarter is in Delhi

The Reserve Bank’s central office is in Mumbai, where it moved from Calcutta in 1937 and has remained since. The other three statements are correct: the Bank was nationalised on 1 January 1949, it holds the country’s foreign exchange reserves, and it has four Deputy Governors alongside the Governor.

Answer: A

Correct answer: Bank Rate

The bank rate is the rate at which the Reserve Bank lends to commercial banks, historically by rediscounting bills of exchange - which is exactly the mechanism the question describes.

It is a policy rate, announced by the RBI and signalling the stance of monetary policy. In current practice it is aligned with the marginal standing facility rate and functions mainly as a penal rate, the repo rate having become the operative policy rate. The overnight rate is a market rate rather than a rate the RBI charges, and monetary policy is the framework rather than a rate at all.

Answer: B

On 30 July 1957, Export Credit Guarantee Corporation of India Ltd. ( ECGC ) was established. It provides export credit insurance facilities to exporters and banks in India. It functions under the administrative control of Ministry of Commerce & Industry.
 

Answer: A

In January, 1982 recognising the importance of exports in India's development programmes, the Government of India set up the Export-Import Bank of India as a statutory corporation owned completely by the Union Government.

Answer: D

Correct answer: 1881

Oudh Commercial Bank, founded at Faizabad in 1881, was the first bank in India with wholly Indian management. It failed in 1958, but it marks the beginning of Indian-run commercial banking.