1. Reserve Bank of India (RBI) established on ?
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A) April 1, 1947
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B) April 1, 1935
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C) August 15, 1947
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D) January 26, 1950
Answer: B) April 1, 1935
2. What is the primary function of the Reserve Bank of India in the context of monetary policy?
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A) Retail Banking
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B) Currency Issuance
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C) Formulates and implements the monetary policy of the country
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D) Rural Banking
Answer: C) Formulates and implements the monetary policy of the country
3. Which of the following is a function of the Reserve Bank of India?
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A) Financial Stability
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B) Currency Management
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C) Retail Banking
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D) Acts as the banker and financial advisor to the Government of India
Answer: A), B), D)
4. In what year did the government nationalize banks in India in two phases?
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A) 1950
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B) 1969 and 1980
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C) 1975
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D) 1991
Answer: B) 1969 and 1980
5. What is the focus of nationalized banks in the context of banking services?
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A) Corporate Banking
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B) Retail Banking
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C) Rural Banking
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D) International Banking
Answer: C) Rural Banking
6. What role does the Reserve Bank of India play in the regulation of banks and financial institutions?
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A) Economic Development
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B) Financial Inclusion
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C) Currency Management
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D) Regulatory Authority
Answer: D) Regulatory Authority
7. Which of the following is a function of nationalized banks related to large corporations and industries?
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A) Rural Banking
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B) Retail Banking
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C) Corporate Banking
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D) Economic Development
Answer: C) Corporate Banking
8. What is the common objective of both the Reserve Bank of India and nationalized banks in terms of economic development?
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A) Currency Management
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B) Financial Inclusion
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C) Retail Banking
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D) Economic Growth and Development
Answer: D) Economic Growth and Development
9. In which year did the Reserve Bank of India Act establish the Reserve Bank of India?
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A) 1920
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B) 1935
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C) 1947
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D) 1956
Answer: B) 1935
10. Securities and Exchange Board of India (SEBI) established on ?
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A) 1990
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B) 1988
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C) 1992
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D) 1985
Answer: B) 1988
11. In which year were statutory powers granted to SEBI under the SEBI Act?
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A) 1990
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B) 1988
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C) 1992
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D) 1985
Answer: C) 1992
12. What is one of the primary functions of SEBI in relation to securities markets?
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A) Stock Trading
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B) Market Regulation
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C) Clearing and Settlement
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D) Market Transparency
Answer: B) Market Regulation
13. Which role of SEBI involves overseeing the functioning of stock exchanges and other intermediaries?
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A) Regulatory Oversight
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B) Enforcement
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C) Market Development
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D) Investor Education
Answer: A) Regulatory Oversight
14. What statutory powers were granted to SEBI in 1992?
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A) Oversight of stock exchanges
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B) Power to formulate policies
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C) Enforcement through inspections
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D) Authority to protect investors' interests
Answer: D) Authority to protect investors' interests
15. When was the National Stock Exchange (NSE) established?
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A) 1985
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B) 1990
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C) 1992
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D) 1988
Answer: C) 1992
16. What trading system does the National Stock Exchange (NSE) operate on?
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A) Manual trading system
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B) Semi-automated trading system
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C) Fully automated electronic trading system
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D) Open-outcry trading system
Answer: C) Fully automated electronic trading system
17. Which function of the National Stock Exchange (NSE) ensures transparent and efficient clearing and settlement processes?
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A) Stock Trading
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B) Clearing and Settlement
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C) Market Indices
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D) Market Transparency
Answer: B) Clearing and Settlement
18. What market index is computed and disseminated by the National Stock Exchange (NSE)?
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A) Sensex
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B) Dow Jones
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C) Nifty
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D) Nikkei
Answer: C) Nifty
19. What are Non-Banking Financial Institutions (NBFCs), and how are they regulated?
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A) They are banks under the legal definition and regulated by SEBI.
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B) They are financial institutions without legal definitions of a bank, regulated by the Ministry of Finance.
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C) They are part of nationalized banks regulated by the RBI.
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D) They are investment firms regulated by the NSE.
Answer: B) They are financial institutions without legal definitions of a bank, regulated by the Ministry of Finance.
20. Which function is NOT typically performed by NBFCs?
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A) Providing loans and advances
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B) Engaging in investment activities
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C) Offering wealth management and financial advisory services
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D) Issuing currency notes
Answer: D) Issuing currency notes
21. What role do NBFCs play in the financial landscape of India?
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A) Providing regulatory oversight
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B) Specializing in transparent stock trading
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C) Extending financial services to underserved segments
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D) Facilitating monetary policy formulation
Answer: C) Extending financial services to underserved segments
22. Which law defines the roles and responsibilities of the Reserve Bank of India (RBI) and governs its establishment?
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A) Foreign Exchange Management Act (FEMA), 1999
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B) Banking Regulation Act, 1949
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C) Reserve Bank of India Act, 1934
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D) Payment and Settlement Systems and Security Act, 2007
Answer: C) Reserve Bank of India Act, 1934
23. What does the Banking Regulation Act, 1949, provide regulatory powers to the RBI over?
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A) Nationalized banks
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B) Cooperative banks
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C) Non-Banking Financial Institutions (NBFCs)
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D) Insurance companies
Answer: A) Nationalized banks
24. What do the Bank Nationalization Acts of 1969 and 1980 empower the government to do?
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A) Regulate NBFCs
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B) Regulate the NSE
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C) Acquire ownership and control over certain banks
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D) Formulate monetary policy
Answer: C) Acquire ownership and control over certain banks
25. Which Act governs the State Bank of India, the largest nationalized bank, and defines its constitution, powers, and functions?
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A) Bank Nationalization Acts (1969 and 1980)
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B) Banking Regulation Act, 1949
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C) State Bank of India Act, 1955
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D) Indian State Bank of India Act, 1934
Answer: C) State Bank of India Act, 1955
26. What does the SEBI Act, 1992, primarily achieve?
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A) Establishes SEBI as the regulatory authority for the securities market
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B) Governs the incorporation of stock exchanges
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C) Regulates the functioning of NBFCs
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D) Prescribes disclosure norms for listed entities
Answer: A) Establishes SEBI as the regulatory authority for the securities market
27. What is the purpose of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015?
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A) Regulate NBFCs
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B) Ensure transparency and accountability in the securities market
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C) Govern the incorporation of stock exchanges
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D) Provide prudential norms for securities contracts
Answer: B) Ensure transparency and accountability in the securities market
28. What do the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, specify?
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A) Disclosure requirements for listed entities
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B) Prudential norms for NBFCs
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C) Regulatory oversight for SEBI
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D) Legal framework for stock exchanges
Answer: A) Disclosure requirements for listed entities
29. Under the Reserve Bank of India Act, 1934, what authority does the RBI have regarding NBFCs?
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A) Regulatory oversight
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B) Governs incorporation of NBFCs
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C) Supervision and regulation
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D) Disclosure requirements
Answer: C) Supervision and regulation
30. How are NBFCs registered under the Companies Act, 2013?
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A) As charitable organizations
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B) As trusts
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C) As societies
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D) As companies
Answer: D) As companies
31. What do the Prudential Norms for NBFCs issued by the RBI aim to ensure?
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A) Fair trade practices
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B) Prudential standards in areas like capital adequacy and provisioning
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C) Disclosure requirements
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D) Regulatory compliance
Answer: B) Prudential standards in areas like capital adequacy and provisioning
32. What is the focus of the NBFC-MFIs (Non-Banking Financial Company - Micro Finance Institutions) Regulations, 2011?
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A) Regulatory oversight
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B) Ensuring transparency in NBFC-MFIs
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C) Disclosure requirements
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D) Prudential standards for microfinance activities
Answer: B) Ensuring transparency in NBFC-MFIs