Mutual funds are regulated by
Answer: A
Correct answer: Securities and Exchange Board of India (SEBI)
Mutual funds invest in securities, so they fall to SEBI - which registers them, prescribes how schemes may be structured and sold, and requires their disclosures. AMFI is the industry’s own association, a self-regulatory body rather than the regulator.
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What is the full form of NIM?
Answer: A
Correct answer: Net Interest Margin
NIM is the difference between the interest a bank earns and the interest it pays, as a proportion of its earning assets:
\[ \text{NIM} = \frac{\text{Interest earned} - \text{Interest paid}}{\text{Average earning assets}} \]It is the core measure of how profitably a bank does its central business of borrowing at one rate and lending at a higher one.
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Which is the largest bank in the world?
Answer: D
Correct answer: Industrial & Commercial Bank of China
ICBC has been the world’s largest bank by total assets for over a decade - a position that follows from the scale of China’s deposit base and its state-directed lending. Rankings by market capitalisation or by profit give a different order.
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Which was the first Indian bank to introduce a mutual fund?
Answer: D
Correct answer: State Bank of India
State Bank of India set up SBI Mutual Fund in 1987 - the first mutual fund in India outside UTI, after public sector banks were permitted to enter the business.
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Where is the Bank of International Settlement headquartered?
Answer: D
Correct answer: Switzerland
The Bank for International Settlements is at Basel, Switzerland. Founded in 1930, it is the bank for central banks: it holds their deposits, facilitates settlement between them, and hosts the Basel Committee whose capital standards govern banks worldwide.
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Which public sector bank has the highest number of branches in India?
Answer: C
Correct answer: State Bank of India
State Bank of India has by far the largest branch network in the country - some 22,000 branches - several times that of the next largest. The scale is a legacy of the Imperial Bank and of the merger of its associate banks in 2017.
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When the productive capacity of the economic system of a state is inadequate to create sufficient number of jobs, it is called
Answer: C
Correct answer: structural unemployment.
Structural unemployment arises when the economy’s productive capacity is simply too small, or wrongly composed, to employ those seeking work - a mismatch of long standing rather than a passing shortfall in demand. It needs investment and skills to cure. Cyclical unemployment follows the trade cycle, and seasonal unemployment the calendar.
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In the context of business and banking, what is CRAR?
Answer: A
Correct answer: Capital to Risk Asset Ratio
CRAR is the Capital to Risk-weighted Assets Ratio - a bank’s capital as a proportion of its assets, each weighted by how risky it is:
\[ \text{CRAR} = \frac{\text{Tier I} + \text{Tier II capital}}{\text{Risk-weighted assets}} \]Weighting by risk is the point: a government security counts for little and an unsecured loan for a great deal. It is the central measure of a bank’s capacity to absorb losses.
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Where is NDB headquartered?
Answer: D
Correct answer: Shanghai
The New Development Bank, set up by the BRICS countries in 2014, has its headquarters at Shanghai, with its first regional centre at Johannesburg. Each of the five founding members holds an equal share, which is what distinguishes its governance from that of the older institutions.
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Which of the following is one of the indicators of the Human Development Index (HDI)?
Answer: A
Correct answer: Life expectancy at birth.
The HDI combines three dimensions: a long and healthy life, measured by life expectancy at birth; knowledge, measured by years of schooling; and a decent standard of living, measured by gross national income per head. It was devised to shift attention from income alone to what people are actually able to do and be.
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