Which is the largest public sector bank in India by assets ?
Answer: A
Correct answer: State Bank of India
The State Bank of India is by a wide margin the country’s largest bank by assets, branches and deposits. Its position was extended further by the merger of its associate banks into it in 2017.
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Under which rate does a bank borrow overnight money from the RBI beyond its repo limit?
Answer: A
Correct answer: MSF
The Marginal Standing Facility lets a bank borrow overnight from the RBI beyond what the repo window allows, dipping into its statutory liquidity holdings, at a rate above the repo rate. It is the safety valve of the system: the MSF rate forms the ceiling of the interest rate corridor, with the reverse repo rate as its floor.
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The full form of PIN in ATM transaction is
Answer: B
Correct answer: Personal Identification Number
PIN is the Personal Identification Number - the secret code that, together with the card, authenticates the holder. The card is something you have and the PIN something you know, which is what makes the pair two-factor authentication.
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Micro credit or micro finance is a novel approach to bank with the poor. In this approach bank credit is extended to the poor through
Answer: A
Correct answer: Self Help Groups
Microfinance reaches the poor through self-help groups - small groups, usually of women, who save together and to whom the bank lends as a group. The group’s joint liability substitutes for the collateral none of the members can offer, and peer pressure keeps repayment rates high.
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The RBI is bound to maintain a reserve against the issue whatever may be the amount. This system is called as
Answer: A
Correct answer: Minimum Reserve System
Under the minimum reserve system, adopted in India in 1957, the RBI must hold a fixed minimum of gold and foreign securities - ₹200 crore, of which ₹115 crore in gold - whatever the quantity of notes issued. It replaced the proportional reserve system, which required reserves to be a fixed percentage of the notes in circulation and so limited how much could be issued.
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Which is the largest foreign bank in India?
Answer: D
Correct answer: Standard Chartered Bank
Standard Chartered has long had the largest branch network of any foreign bank in India - a legacy of the Chartered Bank of India, Australia and China, which has operated here since 1858.
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Which one of the following is not a clause of the World Trade Organization?
Answer: B
Correct answer: Providing financial support to the countries having deficit balance of payments.
That is the work of the International Monetary Fund, not the WTO. The WTO’s business is trade rules: most-favoured-nation treatment, lowering barriers through negotiation, and disciplining unfair practices such as dumping and export subsidies. It lends nobody money.
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Invisible export means export of
Answer: D
Correct answer: Services
Invisible exports are exports of services - software, tourism, shipping, banking - together with income and transfers. They are called invisible because nothing passes physically through customs, yet they are earnings all the same: India’s software exports and remittances are among the largest items in its balance of payments.
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Bancassurance is
Answer: C
Correct answer: a composite financial service offering both banking and insurance products
Bancassurance is the sale of insurance through a bank’s branches and customer relationships. It suits both sides: the insurer gains a distribution network it could not build, and the bank earns fee income from customers it already has and already knows.
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Which of the following measures should be taken when an economy is going through inflationary pressure?
Answer: A
Correct answer: The direct tax should be increased
Inflation means too much demand chasing too few goods, so the remedy is to reduce demand. Raising direct taxes takes purchasing power out of people’s hands and does so directly. The other two options - cutting interest rates and increasing public spending - would add to demand and make matters worse.
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