301. Which of the following is related to the Brent Index?
(a) Crude oil prices
(b) Copper future prices
(c) Gold future prices
(d) Shipping rate index
[U.P. R.O./A.R.O. (Pre) 2021]
Ans. (a) Crude oil prices
- The Brent Index is connected to the prices of crude oil.
- It can be referring to any part of the Brent Complex, which is an oil market found in the North Sea of Northwest Europe.
- Option (a) is the correct answer.
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302. Which one of the following four countries’ economies has a market cap more than the size of its GDP ?
(a) U.S.A.
(b) India
(c) China
(d) Japan
[U.P.P.C.S. (Mains) 2009]
Ans. (b) India
- On May 22, 2007, the value of Indian companies surpassed the Gross Domestic Product (GDP).
- By January 8, 2008, the market capitalization of these companies had increased by 1.8 times the GDP, reaching a total of Rs.7448000 crore
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303. Debenture holders of a company are its :
(a) shareholders
(b) creditors
(c) debtors
(d) directors
[I.A.S. (Pre) 2003]
Ans. (b) creditors
- A debenture is a type of loan used by big businesses to borrow money over a long period of time.
- It is like a certificate showing that the company is responsible for paying back a certain amount of money with interest.
- Debentures are issued by public limited companies according to the Company Act, 1956 and the State Bank of India.
- This makes the people holding the debentures creditors of the company.
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304. Which one of the following is different from the others from the point of view of ownership?
(a) LIC Policy
(b) Bank Fixed Deposit
(c) Kisan Vikas Patra
(d) Debenture of a Company
[U.P.P.C.S (Pre) 2011]
Ans. (d) Debenture of a Company
- Debenture holders can move their ownership of the debentures, as allowed by the company.
- However, LIC Policy, Bank FD, and Kisan Vikas Patra have a fixed owner and cannot be changed.
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305. The first Land Development Bank was established in 1920. It was located in :
(a) Meerut
(b) Jhang
(c) Munger
(d) Thane
[U.P. P.C.S (Mains) 2016]
Ans. (b) Jhang
- In 1920, the first Land Development Bank was established in Jhang, Punjab. Its purpose was to help with the improvement of land, farming, and agricultural output.
- It also offers long-term loans to its members through its branches.
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306. Land Development Bank provides loan to farmers for:
(a) Short term
(b) Medium term
(c) Long term
(d) Only for land improvement
[R.A.S./R.T.S.(Pre) 1999]
Ans. (c) Long term
- The Land Development Bank gives out loans for a long time to help with improving the land and growing more crops.
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307. Which of the functions of Land Development Bank is correct?
(a) Providing long term loan to farmers
(b) Providing short term loan to farmers
(c) Providing loans to large industries
(d) Providing loans to small scale industries
[U.P.P.C.S. (Pre) 1992]
Ans. (a) Providing long term loan to farmers
- The Land Development Bank gives out long-term loans to help make land better and grow more crops.
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308. Which one of the following banks gives Long term loans to Agriculture ?
(a) State Co-operative Bank
(b) Commercial Bank
(c) Primary Credit Society
(d) Land Development Bank
[U.P.P.C.S. (Mains) 2008]
Ans. (d) Land Development Bank
- A bank that acts like a business but provides long-term loans to farmers for things like improving their land.
- This type of bank has been around in India since 1929.
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309. Land Development Banks is a part of :
(a) Commercial Banks
(b) IDBI
(c) FCI
(d) Co-operative Credit Structure
[U.P.P.C.S. (Mains) 2008]
Ans. (d) Co-operative Credit Structure
- The Land Development Bank is part of a cooperative credit system.
- It is similar to a commercial business.
- State Co-operative Banks, Co-operative Land Development Banks, and Primary Agricultural Credit Societies are all included in this cooperative credit system.
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310. Central Cooperative Banks work at :
(a) District level
(b) State level
(c) National level
(d) Block level
[U.P.P.C.S. (Mains) 2004]
Ans. (a) District level
- In India, Cooperative Banks have a three-level system that includes Primary Agricultural Credit Societies (PACS) at the village level, Central Cooperative Banks (CCBs) at the district level, and State Cooperative Banks (St.CBs) at the state level.
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311. The structure of Cooperative credit societies is :
(a) Single tiered
(b) Double tiered
(c) Three tiered
(d) Four tiered
[R.A.S./R.T.S. (Pre) 1994]
Ans. (c) Three tiered
- In India, there are three levels of Cooperative Banks: Primary Agricultural Credit Societies (PACS) at the village level, Central Cooperative Banks (CCBs) at the district level, and State Cooperative Banks (St.CBs) at the state level.
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312. Which of the following operates at the district level?
(a) State Cooperative Bank
(b) Central Cooperative Bank
(c) Primary Agricultural Credit Society
(d) The RBI
[U.P.P.C.S. (Spl.) (Mains) 2008]
Ans. (b) Central Cooperative Bank
- In India, Cooperative Banks use a three-level system: Primary Agricultural Credit Societies (PACS) in villages, Central Cooperative Banks (CCBs) in districts, and State Cooperative Banks (St.CBs) in states.
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313. With reference to ‘Urban Cooperative Banks’ in India, consider the following statements :
1. They are supervised and regulated by local boards set up by the State Governments.
2. They can issue equity shares and preference shares.
3. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
[I.A.S. (Pre) 2021]
Ans. (b) 2 and 3 only
- Urban Cooperative Banks (UCBs) are primary cooperative banks located in urban and semi-urban areas, which are regulated and supervised by State Registrars of Cooperative Societies (RCS) in single-state cooperative banks and Central Registrar of Cooperative Societies (CRCS) in multi-state cooperative banks.
- In 1966, these banks with paid-up share capital and reserves of Rs. 1 lakh were brought under the Banking Regulation Act, 1949 and were put within the Reserve Bank’s supervision.
- This meant that the RBI controlled banking related functions such as licensing and interest rates, while the state governments controlled registration, management, audit and liquidation.
- Recently, the Banking Regulation (Amendment) Act, 2020 was passed, which expanded the RBI’s control over cooperative banks.
- This act allows cooperative banks to issue equity shares, preference shares or special shares with the approval of the RBI.
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314. As on March 2012, the number of Urban Co-operative Banks in India was :
(a) 65
(b) 164
(c) 1645
(d) 6540
[U.P.P.C.S. (Mains) 2012]
Ans. (c) 1645
- At the end of March 2012, there were 1618 Urban Co-operative Banks in India, compared to 1645 in 2011.
- As of May 31, 2021, the total number of Urban Co-operative Banks is 1531 (53 scheduled + 1478 non-scheduled).
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315. Consumer Cooperative Stores are set up by :
(a) by the members
(b) by the registrar of co-operative societies
(c) by the Central Government
(d) by the State Government
[U.P. R.O./A.R.O. (Pre) 2016]
Ans. (a) by the members
- Members set up Consumer Co-operative Stores, and the Registrar of Cooperative societies registers them.
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316. Which one of the following is not a source of direct finance?
(a) NABARD
(b) Regional Rural Bank
(c) State Bank of India
(d) Allahabad Bank
(e) None of the above/More than one of the above
[65th B.P.S.C. (Pre) 2019]
Ans. (e) State Bank of India
- NABARD gives money to food parks, warehouses, cold chains, and storages, and marketing federations.
- Rural Regional Banks, State Bank of India, and Allahabad Bank give money to individuals, industries, and other sectors.
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317. During which Plan Period was the National Bank for Agriculture and Rural Development (NABARD) established?
(a) Third Five Year Plan
(b) Fifth Five Year Plan
(c) Sixth Five Year Plan
(d) Eighth Five Year Plan
[47th B.P.S.C. (Pre) 2005]
Ans. (c) Sixth Five Year Plan
- NABARD is a bank located in Mumbai, India that was created in 1982.
- Its purpose is to help support agricultural and rural development by providing financial and non-financial support.
- It also provides refinance to other banks for agricultural and rural development.
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318. The apex bank for providing agricultural refinance in India is :
(a) RBI
(b) NABARD
(c) SBI
(d) Imperial Bank
(e) None of the above/More than one of the above
[63rd B.P.S.C. (Pre) 2017]
Ans. (b) NABARD
- NABARD was founded in 1982 during the 6th Five Year Plan, and its main office is in Mumbai.
- It is the leading organization in India for providing agricultural financing.
- NABARD aims to improve and equalize the standard of living in rural areas through offering financial and non-financial assistance, new technologies, and organization development.
- It offers refinancing to various banks such as Commercial Banks, Regional Rural Banks, and State Land Development Banks, for agricultural and rural development.
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319. The apex bank for providing agricultural refinance in India is :
(a) RBI
(b) NABARD
(c) LDB
(d) SBI
[Uttrakhand P.C.S. (Pre) 2016]
Ans. (b) NABARD
- NABARD was started in 1982 and is based in Mumbai.
- It is the main institution for giving agricultural loans in India. It helps create sustainable and fair agriculture and rural development through financial and non-financial activities, technology and institution building.
- It provides loans to banks and other institutions for agriculture and rural areas.
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320. The ‘National Bank for Agriculture and Rural Development’ was set up in the year :
(a) 1992
(b) 1982
(c) 1962
(d) 1952
[U.P.P.C.S. (Mains) 2003, M.P.P.C.S. (Pre) 2006]
Ans. (b) 1982
- The National Bank for Agriculture and Rural Development (NABARD) was set up in 1982 during India’s Sixth Five Year Plan.
- Its main office is in Mumbai. NABARD is responsible for offering financial help for agriculture in India.
- It works to create a prosperous rural life through financial and non-financial support, new technology, and developing institutions.
- NABARD gives refinance to commercial banks, regional rural banks, and state land development banks, to help with agriculture and rural development.
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321. NABARD came into existence in the year :
(a) 1979
(b) 1980
(c) 1981
(d) 1982
[U.P. P.C.S. (Mains) 2014]
Ans. (d) 1982
- NABARD was created in 1982 by the Indian government to help support and promote agriculture and development in rural areas.
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322. Which of the following is the headquarters of NABARD?
(a) New Delhi
(b) Chennai
(c) Mumbai
(d) Jaipur
[Uttrakhand U.D.A./L.D.A. (mains) 2007]
Ans. (c) Mumbai
- NABARD is based in Mumbai and has 31 Regional Offices in different states and a cell in Srinagar.
- It also has four training centres located in the northern, eastern and southern parts of India, and 414 District Development Managers who work at the district level.
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323. The only organization to cater to all types of credit requirements for agriculture and rural development activities is :
(a) RBI
(b) NABARD
(c) ARDC
(d) NAFED
[R.A.S./R.T.S. (Pre) 1994]
Ans. (b) NABARD
- NABARD is a special organization that provides money for agriculture and rural development.
- It was set up on July 12, 1981 by the government.
- Its main office is located in Mumbai.
- It helps other organizations such as State Co-operative Banks, State Land Development Banks, and Regional Rural Banks to finance agricultural and rural development activities.
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324. Consider the following statements with reference to NABARD :
1. NABARD was established in 1982 by the act of Parliament.
2. It provide facility of credit only for the agriculture.
Among these –
(a) Only 1 is correct
(b) Only 2 is correct
(c) 1 and 2 both are correct
(d) Neither 1 nor 2 is correct
[U.P.R.O./A.R.O. (Pre) 2016]
Ans. (a) Only 1 is correct
- NABARD is a very important organization that gives money to other organizations to help with agriculture and rural development.
- It was set up in 1982 and its main office is located in Mumbai, India.
- It gives funding to organizations like State Co-operative Banks, State Land Development Banks, and Regional Rural Banks to improve farming and other activities in rural areas.
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325. NABARD prodives refinance :
(a) For agriculture and rural development
(b) For Export business
(c) For Industrial Development
(d) All the above
[U.P.P.C.S. (Spl.) (Mains) 2004]
Ans. (a) For agriculture and rural development
- NABARD is a government-run organization that provides financial help to organizations that focus on farming and rural development.
- It was created in 1982 and is based in Mumbai.
- It helps out institutions such as State Co-operative Banks, State Land Development Banks, and Regional Rural Banks with funding for activities that improve agriculture and rural areas.
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326. The Apex Institution to finance agriculture credit in India is :
(a) Reserve Bank of India
(b) NABARD
(c) Cooperative Societies
(d) Government of India
[U.P.P.C.S. (Pre) 2005]
Ans. (b) NABARD
- NABARD is a top organization for providing money to support agricultural and rural development.
- It was founded on July 12th, 1981 by the government.
- It is based in Mumbai, India. NABARD’s main job is to give financial support to different kinds of institutions such as state cooperative banks, state land development banks, and regional rural banks, in order to help agriculture and rural development.
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327. The Apex Institution in the sphere of Agriculture Credit is :
(a) State Bank of India
(b) Reserve Bank of India
(c) NABARD
(d) Regional Rural Banks
[U.P. Lower Sub. (Spl.) (Pre) 2004]
Ans. (c) NABARD
- NABARD is the top organization at the national level for providing agricultural loans.
- NABARD stands for National Bank for Agriculture and Rural Credit.
- It works to improve the living standards in rural areas.
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328. The Apex Bank of agriculture sector is :
(a) Punjab National Bank
(b) State Bank of India
(c) NABARD
(d) Central Bank of India
[U.P.R.O./A.R.O. (Mains) 2014]
Ans. (c) NABARD
- NABARD is a government bank that focuses on agriculture in India.
- It was created by the Indian Parliament in 1982 and has its main office in Mumbai with branches throughout the country.
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329. In relation to Agricultural Finance and Refinance which institution is the biggest?
(a) Regional Rural Banks
(b) NABARD
(c) Central Cooperative Bank
(d) Land Development Bank
[U.P.P.C.S. (Mains) 2014]
Ans. (b) NABARD
- NABARD is the biggest bank in India when it comes to providing financial support and loans for agriculture and rural development.
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330. NABARD is related to :
(a) National Institute of Agricultural Development
(b) National Institute of Rural Development
(c) National Bank for Agriculture and Rural Development
(d) National Financial Institution
[M.P.P.C.S. (Pre) 2015]
Ans. (c) National Bank for Agriculture and Rural Development
- NABARD is a bank that helps promote and develop agriculture, small-scale industries, cottage and village industries, handicrafts and other rural crafts in rural areas by providing and regulating credit and other resources.
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331. In India, the Bank NABARD does not provide refinance to :
(a) Scheduled Commercial Banks
(b) Regional Rural Banks
(c) Export-Import Bank
(d) State Land Development Bank
[U.P.P.C.S. (Mains) 2002]
Ans. (c) Export-Import Bank
- NABARD was founded in 1982 and they give money to commercial banks, regional rural banks and state land development banks.
- They don’t give money to export-import banks.
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332. The nodal agency for implementing the ‘Rural Infrastructure Development Fund Programmes’ is :
(a) NABARD
(b) State Co-operative Bank
(c) Reserve Bank of India
(d) State Bank of India
[U.P.P.C.S. (Spl.) (Mains) 2008, U.P.P.C.S. (Mains) 2004, 2009]
Ans. (a) NABARD
- NABARD is the organization responsible for carrying out the Rural Infrastructure Development Fund Programmes.
- It was started in 1995-96 with an amount of Rs. 2000 crore. NABARD pays out the money for 37 accepted activities under the RIDF, except for an initial mobilization advance of 30% for North Eastern and Hilly states and 20% for other states.
- For 2021-22, Rs. 40490.95 crore has been allocated under RIDF XXVII, reaching a cumulative sum of Rs. 418410.52 crore, including Rs. 18500 crore under Bharat Nirman.
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333. When was the first Regional Rural Bank formed?
(a) 1977
(b) 1976
(c) 1974
(d) 1975
[M.P.P.C.S. (Pre) 2012]
Ans. (d) 1975
- The first Regional Rural Bank, called ‘Prathama Grameen Bank’, was created in Moradabad, Uttar Pradesh on October 2nd, 1975.
- The additional four Regional Rural Banks were then established in Malda (West Bengal), Gorakhpur (U.P.), Bhiwani (Haryana), and Jaipur (Rajasthan).
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334. In India, regional rural banks were established in the year :
(a) 1969
(b) 1975
(c) 1980
(d) 1982
[U.P.P.C.S. (Mains) 2010]
Ans. (b) 1975
- The first Regional Rural Bank, called Prathama Grameen Bank, opened in Moradabad, Uttar Pradesh, on October 2nd, 1975.
- The other four Regional Rural Banks were opened in Malda, West Bengal; Gorakhpur, Uttar Pradesh; Bhiwani, Haryana; and Jaipur, Rajasthan.
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335. Which one of the following is not the function of Regional Rural Banks ?
(a) To provide credit to small and marginal farmers.
(b) To provide credit to common people in rural areas.
(c) To supplement Scheduled Commercial Banks
(d) To take over the functions of Agricultural Refinance Corporation of India.
[U.P.P.C.S. (Mains) 2005]
Ans. (d) To take over the functions of the Agricultural Refinance Corporation of India.
- Regional Rural Banks do not take on the role of the Agricultural Refinance Corporation of India, but they do carry out all other functions.
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336. Which of the following grants/grant direct credit assistance to rural household?
1. Regional Rural Banks
2. National Bank for Agriculture and Rural Development
3. Land Development Banks
Select the correct answer using the codes given below
(a) 1 and 2 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
[I.A.S. (Pre) 2013]
Ans. (c) 1 and 3 only
- NABARD doesn’t give money directly to rural households, but they help other organisations that do.
- Regional Rural Banks (also known as Grameen Banks) help to provide banking and financial services in rural areas.
- They mainly give loans to small and marginal farmers, agricultural labourers and rural artisans.
- Land Development Banks were also set up in India to give long-term loans to rural households for land development.
- These banks are necessary because other banks can’t give long-term loans for buying agricultural machinery and making changes in the land.
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337. Consider the following events and arrange them in chronological order :
1. Establishment of NABARD
2. Self Help Group Bank Linkage Programme
3. Kisan Credit Card Plan
4. Establishment of Regional Rural Bank
Select the correct answer from the codes given below :
Codes :
(a) 4, 1, 2, 3
(b) 4, 2, 3, 1
(c) 1, 2, 3, 4,
(d) 4, 3, 2, 1
[U.P.P.C.S. (Pre) 2020]
Ans. (a) 4, 1, 2, 3
- The National Bank for Agriculture and Rural Development was set up in 1982.
- The Self Help Group Bank Linkage Programme started in 1992-93.
- The Kisan Credit Card Plan was launched in 1998 and the Regional Rural Bank was established in 1975.
- The correct chronological order is (a).
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338. The Narasimham Committee for Financial Sector Reforms has suggested reduction in :
(a) SLR and CRR
(b) SLR, CRR and Priority Sector Financing
(c) SLR and Financing to Capital Goods Sector
(d) CRR, Priority Sector Financing and Financing to Capital Goods Sector
[I.A.S. (Pre) 1995]
Ans. (a) SLR and CRR
- In the 1990s, two committees were set up under the lead of M. Narasimham (an ex-RBI Governor).
- These committees are known for starting the financial sector reform in India.
- The first committee was made in 1991 and the second one in 1997.
- They both submitted their reports in 1991 and 1998.
- The first committee suggested to lower the Statutory Liquidity Ratio and Cash Reserve Ratio.
- The committee thought this would help banks give out more credit to priority sectors.
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339. Narasimham Committee was related to :
(a) Higher Education Reforms
(b) Tax Structure Reforms
(c) Banking Structure Reforms
(d) Planning implementation reforms
M.P.P.C.S. (Pre) 1993, U.P. Lower Sub. (Pre) 2008, Uttarakhand P.C.S. (Pre) 2006,
Ans. (c) Banking Structure Reforms
- In the 1990s, two committees were formed by M. Narasimham, a former governor of the Reserve Bank of India (RBI).
- These committees are known for initiating financial sector reform in India.
- The first committee was set up in 1991 and the second one in 1997.
- They both presented their reports in 1991 and 1998 respectively.
- The first committee suggested reducing the Statutory Liquidity Ratio and Cash Reserve Ratio, as this would give banks more resources for giving loans to priority sectors.
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340. Which of the following committees examined and suggested Financial Sector reforms?
(a) Abid Hussain Committee
(b) Bhagwati Committee
(c) Chelliah Committee
(d) Narasimham Committee
[I.A.S. (Pre) 2001]
Ans. (d) Narasimham Committee
- The Narasimhan Committee, also known as the Committee on Banking Sector Reforms, was set up by former RBI Governor M. Narasimham in August 1991.
- It was meant to investigate India’s financial system.
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341. The Committee on Financial Sector Reforms 2008, in India was headed by :
(a) Bimal Jalan
(b) Raghuram Rajan
(c) C. Rangarajan
(d) M. Narasimham
[Uttarakhand P.C.S. (Pre) 2012]
Ans. (b) Raghuram Rajan
- In 2007, the Planning Commission created a Committee led by Raghuram Rajan to come up with suggestions for the next set of financial sector reforms in India.
- The Committee finished its report in 2008.
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342. On which of the following recommendations, the Microfinance Institutions were set up in 2011?
(a) Malegam Committee
(b) Gaiporia Committee
(c) Rangrajan Committee
(d) Banking Reforms Committee
[U.P.R.O./A.R.O. (Pre) 2014]
Ans. (a) Malegam Committee
- In 2007, the Planning Commission started a Committee led by Raghuram Rajan to create a report that suggested the next set of financial sector reforms for India.
- The Committee submitted its report in 2008.
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343. The Bimal Jalan Panel was set up by Reserve Bank of India to :
(a) Suggest to minimize the Non-Performing Assets
(b) Scrutinize application for new bank licenses
(c) Frame guidelines for financial inclusion
(d) Study use of mobiles in delivering banking services
[U.P.P.C.S. (Pre) 2014]
Ans. (b) Scrutinize application for new bank licenses
- The RBI appointed a team led by former Governor Bimal Jalan to review applications for new bank licenses.
- The team finished their report on February 25th, 2014.
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344. Who was the first Chairman of the ‘Disinvestment Commission’ of India ?
(a) G.V. Ram Krishna
(b) C. Rangarajan
(c) Arun Jaitley
(d) Montek Singh Ahluwalia
[U.P.P.C.S. (Spl.) (Mains) 2004]
Ans. (a) G.V. Ram Krishna
- The Government of India has a policy of disinvestment where they sell off some or all of their assets in public sector companies.
- In 1996, G.V. Ram Krishna created the Disinvestment Commission in India which suggested selling 57 public sector units.
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345. Rangarajan Committee on disinvestment of shares was appointed by the Government of India in :
(a) 1991
(b) 1993
(c) 1999
(d) 2004
[Jharkhand P.C.S. (Pre) 2013]
Ans. (b) 1993
- In 1993, the Indian Government set up a committee, called the Rangarajan Committee, to look into the selling of shares owned by the Government in public sector companies.
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346. Rangarajan Committee was constituted for?
(a) Disinvestment
(b) Banking reform
(c) Tax reform
(d) Foreign trade
[M.P.P.C.S. (Pre) 2014]
Ans. (a) Disinvestment
- In 1993, the Indian government set up the Rangarajan Committee to look at selling some of the government’s shares in public companies.
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347. Who has been recently made the Chairman of the working group on revision of Wholesale Price Index Series ?
(a) C. Rangarajan
(b) P.R. Panchamukhi
(c) K.C. Pant
(d) Abhijit Sen
[U.P.P.C.S. (Spl.) (Mains) 2004]
Ans. (d) Abhijit Sen
- In 2007, the government made a Committee led by Abhijit Sen to look into and suggest changes to the Wholesale Price Index (WPI). The Committee’s report was submitted in May of 2008 and they suggested a new base year of 2004-05 for the WPI series.
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348. With reference to ‘Financial Stability and Development Council’, consider the following statements :
1. It is an organ of NITI Aayog.
2. It is headed by Union Finance Minister.
3. It monitors macroprudential supervision of the economy.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 3 only
(c) 2 and 3 only
(d) 1, 2 and 3
[I.A.S. (Pre) 2016]
Ans. (c) 2 and 3 only
- The Government set up the Financial Stability and Development Council (FSDC) in December 2010 as a top-level forum to help with financial stability, better communication between regulators, and development of the financial sector.
- The Chairman is the Finance Minister and the members include the heads of financial regulators, the Finance Secretary, and the Chief Economic Advisor.
- The FSDC tracks the overall safety of the economy and works on financial knowledge and inclusion.
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349. Recently, a scheme named ‘Swabhimaan’ was launched. It’s main aim is :
(a) To take banks to the doorsteps of the rural poor
(b) To provide skill to rural artisans
(c) To empower rural women
(d) To provide houses to BPL families
[U.P.P.C.S. (Mains) 2010]
Ans. (a) To take banks to the doorsteps of the rural poor
- The Swabhimaan Campaign was launched on the 10th of February 2011 to help people in rural areas access banking and financial services.
- The program also helps people such as small and marginal farmers and rural artisans get loans at lower rates.
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350. ‘Swabhimaan Scheme’ launched in India is associated with :
(a) Rural women’s rights
(b) Rural old people care
(c) Rural banking
(d) Rural food security
[U.P.P.C.S.(Pre) 2012]
Ans. (c) Rural banking
- Swabhiman Scheme is a program created to provide banking services to rural areas.
- It was started on February 10, 2011 and the focus is on rural banking.
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351. What is/are the facility/facilities the beneficiaries can get from the services of Business Correspondent (Bank Saathi) in branchless areas?
1. It enables the beneficiaries to draw their subsidies and social security benefits in their villages.
2. It enables the beneficiaries in the rural areas to make deposits and withdrawals.
Select the correct answer using the code given below.
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
[I.A.S. (Pre) 2014]
Ans. (c) Both 1 and 2
- The Government of India started the Swabhimaan campaign on February 10, 2011.
- It aimed to give people living in villages in India with populations of over 2000 access to basic banking services.
- The campaign worked to set up bank accounts, give access to credit, and allowed people to transfer money.
- It also focused on educating people in rural areas about finances.
- Additionally, subsidies and social security benefits were given straight to people’s accounts.
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352. What is/are the purpose/purposes of the Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’?
1. To bring the idle gold lying with Indian households into the economy
2. To promote FDI in the gold and Jewellery sector
3. To Reduce India’s dependence on gold imports
Select the correct answer using the code given below :
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
[I.A.S. (Pre) 2016]
Ans. (c) 1 only
- In 2015, two schemes were launched: the Gold Monetization Scheme (GMS) and the Sovereign Gold Bond Scheme (SGB).
- The goal of GMS was to turn idle gold owned by people or organizations like banks into money, and SGB was meant to reduce the need to buy physical gold and move some of the domestic savings used for gold into financial savings.
- Both of these schemes were created so that people’s gold could be put to good use and to help reduce the amount of gold imported into the country, which would lower the Current Account Deficit (CAD).
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353. Which of the following does not implement the Self Help Groups (SHGs) – Bank Linkage Programme?
(a) NABARD
(b) Commercial Banks
(c) RRBs
(d) Co-operative Banks
[U.P.P.C.S. (Pre) ( Re-Exam)2015]
Ans. (a) NABARD
- The National Bank for Agriculture and Rural Development (NABARD) began the Self Help Groups (SHGs) – Bank Linkage Programme in 1992 to give short-term financing.
- This programme is managed by Commercial Banks, Regional Rural Banks (RRBs), and Co-operative Banks, but not by NABARD itself.
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354. Which one of the following is covered by the Kisan Credit Card Scheme?
(a) Consumption Credit and Investment Credit
(b) Only Consumption Credit
(c) Only Investment Credit
(d) None of the above
[U.P. U.D.A./L.D.A. (Mains) 2010]
Ans. (a) Consumption Credit and Investment Credit
- In 1998, the Kisan Credit Card Scheme was launched to make sure farmers get credit support when they need it. Banks, Regional Rural Banks, Small Finance Banks, and Cooperatives carry out the KCC scheme.
- It helps farmers with costs after harvest, loans for selling crops, and money for their households.
- In 2012, the government changed the KCC Scheme to include an ATM debit card.
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355. Kisan Credit Card (KCC) Scheme for farmers was introduced in :
(a) 1998-1999
(b) 1999-2000
(c) 2000-2001
(d) 2001-2002
[U.P. P.C.S. (Mains) 2014]
Ans. (a) 1998-1999
- In 1998, the Kisan Credit Card (KCC) was created to help farmers get the money they needed in a timely manner.
- This scheme is run by banks, regional rural banks, small finance banks, and cooperatives. KCC can be used for after harvest costs, produce marketing loans, consumption needs of the farmer’s household, and investments in agriculture and related activities.
- In March 2012, the government changed the KCC scheme and allowed card holders to get an ATM-enabled Rupay debit card.
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356. With reference to the institution of Banking Ombudsman in India, which one of the following statements is not correct?
(a) The Banking Ombudsman is appointed by the Reserve Bank of India.
(b) The Banking Ombudsman can consider complaints from Non-Resident Indians, having accounts in India.
(c) The orders passed by the Banking Ombudsman are final and binding on the parties concerned.
(d) The service provided by the Banking Ombudsman is free of any fee.
[I.A.S. (Pre) 2010]
Ans. (c) The orders passed by the Banking Ombudsman are final and binding on the parties concerned
- The Reserve Bank of India appoints the Banking Ombudsman, whose job it is to take care of complaints from customers about problems with certain banking services.
- The decision of the Banking Ombudsman is not the final say and they don’t charge anything for handling complaints.
- Option (c) is the correct answer.
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357. Which is a credit rating agency in India?
(a) CRISIL
(b) CARE
(c) ICRA
(d) All of the above
[U.P.P.C.S. (Mains) 2008]
Ans. (d) All of the above
- CRISIL, CARE and ICRA are companies in India that provide ratings for creditworthiness.
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358. Under which of the following circumstances may ‘capital gains’ arise?
1. When there is an increase in the sales of a product.
2. When there is a natural increase in the value of the property owned.
3. When you purchase a painting and there is a growth in its value due to increase in its popularity.
Select the correct answer using the code given below :
(a) 1 only
(b) 2 and 3 only
(c) 2 only
(d) 1, 2 and 3
[I.A.S. (Pre) 2012]
Ans. (b) 2 and 3 only
- Capital gain is when the value of an investment or property increases, making it worth more than the amount it was bought for.
- The gain is the difference between the higher selling price and the lower purchase price. An increase in sales does not mean the price will go up.
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359. The Phillips Curve represents relationship between :
(a) Deflation and Unemployemt
(b) Inflation and Unemployment
(c) Inflation and Disguised Unemployment
(d) Deflation and Cyclical Unemployment
[Uttarakhand P.C.S. (Pre) 2012]
Ans. (b) Inflation and Unemployment
- The Phillips Curve was created by A.W. Phillips in 1958 and suggests that when the economy grows, prices (inflation) go up and unemployment goes down.
- This theory is used to decide how to balance joblessness and inflation in the short term.
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360. ‘Smart Money’ is a term used for :
(a) Internet Banking
(b) Credit Card
(c) Savings Account in the Bank
(d) Current Account in the Bank
[U.P. Lower Sub. (Pre) 2008]
Ans. (b) Credit Card
- A ‘Smart Money’ card is another name for a credit card.
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361. What is called ‘Plastic Money’?
(a) Paper currency
(b) Credit card
(c) Discount coupon
(d) Share
[Uttarakhand U.D.A./L.D.A. (Pre) 2007]
Ans. (b) Credit card
- Plastic money is the term used for the cards made of plastic that we use instead of physical cash.
- This money can come in different forms, like credit cards, debit cards, prepaid cards, smart cards, and store cards.
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362. The term ‘plastic money’ applies to :
(a) Bank draft made of plastic coated paper
(b) Currency notes printed on plastic coated paper
(c) Currency notes impregnated with plastic thread
(d) Credit cards mainly issued by the banks
[U.P.P.C.S. (Mains) 2006]
Ans. (d) Credit cards mainly issued by the banks
- Plastic money is the name used for cards made of hard plastic that we use instead of actual money.
- These cards come in different types, like credit cards, debit cards, prepaid cash cards, smart cards, and store cards.
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363. Which one of the following is not a prepaid payment instrument?
(a) Delhi Metro Rail Card
(b) Electronic Wallet
(c) Credit Card of a Nationalized Bank
(d) Airtel Money
[U.P. P.C.S. (Mains) 2014]
Ans. (c) Credit Card of a Nationalized Bank
- A credit card from a state-owned bank is not a form of payment that requires prepayment, while all the other choices are forms of payment that require prepayment.
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364. For the existence of a market which is indispensable?
(a) Banks
(b) Economic Laws
(c) Prices
(d) Trade Unions
[M.P.P.C.S. (Pre) 1997]
Ans. (c) Prices
- A market is where goods and services are bought and sold.
- Prices are determined by the cost of production and are necessary for the market to exist.
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365. The market is an economic tendency, which leads to which of the following trends?
(a) Individualism
(b) Consumerism
(c) Holism
(d) Capitalism
[U.P. Lower Sub. (Pre) 2013]
Ans. (b) Consumerism
- The market encourages people to buy more things.
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366. The buyer’s market is known where :
(a) supply is more than the supply
(b) demand is more than the supply
(c) demand is equal to the supply
(d) None of the above
[U.P.P.C.S. (Mains) 2010]
Ans. (a) supply is more than the supply
- When there are more things for sale than people wanting to buy them, buyers have the power to negotiate better prices.
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367. Which type of market is suitable for vegetable crops?
(a) Short-term
(b) Very short term
(c) Long term
(d) Very long term
[U.P. Lower Sub. (Pre) 2013]
Ans. (b) Very short term
- Markets can be divided into four categories depending on time frames. Very short-period markets have fixed supplies and prices that change with demand, like for flowers, vegetables, and fruits.
- Short-period markets allow for slightly more flexibility in supply.
- Long-period markets can adjust production in response to changes in demand.
- Very long-period markets are permanent and adjust to changing environments.
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368. The supply-side economics lays greater emphasis on the point of view of :
(a) producer
(b) global economy
(c) consumer
(d) middle-man
[I.A.S. (Pre) 1998]
Ans. (a) producer
- Supply-side economics pays more attention to producers.
- It suggests that what is made (supplied) is the key factor in economic growth.
- It also claims that if taxes are lowered for those with more money, they will save and invest more, which will benefit the whole economy.
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369. When the total product remains constant, the marginal product will be :
(a) Zero
(b) Negative
(c) Positive
(d) Constant
[U.P. Lower Sub. (Pre) 2013]
Ans. (a) Zero
- When the amount of something produced stays the same, the extra amount produced will be nothing.
- This means that the most amount of something has been made.
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370. A consumer is said to be in equilibrium, if :
(a) he is able to fulfil his need with a given level of income.
(b) he is able to live in full comforts with a given level of income.
(c) he can fulfil his needs without consumption of certain items.
(d) he is able to locate new sources of income.
[I.A.S. (Pre) 1998]
Ans. (a) he is able to fulfil his need with a given level of income.
- A consumer is in equilibrium when they can meet their needs using their current income.
- This means the consumer can’t change their situation by earning more or spending more, or by buying different quantities of things.
- Economically, equilibrium is achieved when the money spent is well used.
- The law of equi-marginal utility states that a consumer is in equilibrium when the amount of satisfaction they get from a product is equal to the amount they pay for it, compared to the satisfaction and cost of another product.
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371. Consider the following statements : Other things remaining unchanged, market demand for a good might increase if :
1. price of its substitute increases
2. price of its complement increases
3. the good is an inferior good and income of the consumers increases
4. its price falls
Which of the above statements are correct?
(a) 1 and 4 only
(b) 2, 3 and 4
(c) 1, 3 and 4
(d) 1, 2 and 3
[I.A.S. (Pre) 2021]
Ans. (a) 1 and 4 only
- Substitute goods are items that can be used interchangeably. If the price of a substitute goes up, the demand for the original commodity will too.
- Complementary goods require both to be present to be useful, so if the price of one goes up, the demand for the other will go down.
- Inferior goods are the opposite: an increase in income will lead to a decrease in demand.
- Finally, market demand for goods usually increases when their price goes down, as the law of demand states that lower prices lead to higher demand.
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372. With fixed demand and increase in supply, the price of the commodity is likely to :
(a) remain constant
(b) increase
(c) decrease
(d) no definite pattern can be predicted
[U.P. P.C.S (Mains) 2016]
Ans. (c) decrease
- The cost of a product is determined by how much people want it.
- If more of the product is available, the price will go down.
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373. A rise in the general level of prices may be caused by :
1. an increase in the money supply.
2. a decrease in the aggregate level of output.
3. an increase in the effective demand.
Select the correct answer using the codes given below :
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
[I.A.S. (Pre) 2013]
Ans. (d) 1, 2 and 3
- When supply and demand change, prices go up or down. If the amount of money increases, more people will want to buy things, so prices will go up.
- If the amount of things being made goes down, fewer things will be available, which will make prices increase. If people want to buy more things, prices will go up again.
- All of these things increase prices.
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374. Supply of money remains the same when there is an increase in demand for money, there will be :
(a) a fall in the level of prices
(b) an increase in the rate of interest
(c) a decrease in the rate of interest
(d) an increase in the level of income and employment
[I.A.S. (Pre) 2013]
Ans. (b) an increase in the rate of interest
- If the amount of money stays the same but more people want it, the interest rate will go up.
- This has nothing to do with how much things cost or how many jobs there are.
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375. Assertion (A): All businessmen make a profit due to price hikes.
Reason (R): The customer has to curtail his needs due to price-hike.
In the context of the above statements, which of the following is correct :
(a) Both A and R are true and R is the correct explanation of A.
(b) Both A and R are true, but R is not the correct explanation of A.
(c) A is true, but R is false.
(d) A is false, but R is true.
[U.P.U.D.A./L.D.A. (Pre) 2002, U.P.P.C.S. (Pre) 2003]
Ans. (b) Both A and R are true, but R is not the correct explanation of A.
- Businesses make more money because of an increase in prices, but consumers are at a disadvantage. Because of the price increase, people have to spend more money to buy the same amount of goods and services they did before.
- Both the statement and the reason are true, but the reason does not explain the statement.
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376. Improvement of profit volume ratio can be done by the following :
(a) Increasing selling price
(b) Altering sales mixture
(c) Reducing Variable cost
(d) All of the above
[U.P. R.O./A.R.O. (Mains) 2017]
Ans. (d) All of the above
- The Profit Volume Ratio (P/V ratio) is the percentage of sales that becomes profit.
- To increase this ratio, you can raise the selling price, focus on products that bring in the most profit, and reduce the cost of each unit.
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377. For pricing of public goods, the concept of ‘Shadow Prices’ was given by :
(a) J. Tinbergen
(b) A.K. Sen
(c) P.C. Mahalanobis
(d) R. Nurkse
[U.P. U.D.A./L.D.A. (Spl.) (Pre) 2010]
Ans. (a) J. Tinbergen
- J. Tinbergen first came up with the idea of ‘Shadow Prices’ for pricing public goods.
- He said that these prices show the true worth of a factor or product, as compared to the prices in the market.
- Shadow Prices are estimated prices for something not usually priced or sold in the market, and these prices help to work out the cost and benefit of something in social cost-benefit analysis.
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378. If a commodity is provided free to the public by the Government, then
(a) The opportunity cost is zero.
(b) The opportunity cost is ignored.
(c) The opportunity cost is transferred from the consumers of the product to the tax-paying public.
(d) The opportunity cost is transferred from the consumers of the product to the Government.
[I.A.S. (Pre) 2018]
Ans. (c) The opportunity cost is transferred from the consumers of the product to the tax-paying public.
- When someone chooses one option over another, they miss out on the benefits of the option they didn’t pick.
- If something is given out for free by the government, like free education, it still costs someone (taxpayers) to pay for it. So, when it comes to free services, the cost of not choosing it is passed on to those paying taxes.
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