Answer Key – Banking

Chapter 5 : Financial Markets

KVS

1 (c) Primary market 2 (a) Facilitating Housing Loan 3 (c) Money Market 4 (b) Central Government

NVS

1 (a) Zero coupons bonds 2 (a) 1995 3 (a) Long term funds and long term investments 4 (c) NSDL 5 (a) One to fifteen days 6 (a) Private placement 7 (a) Certificate of deposit 8 (c) Commercial banks 9 (a) Stock market 10 (d) Certificate of deposit

DSSSB

1 (a) U.S. Security Market 2 (b) National Savings Certificate 3 (b) Complement each other 4 (d) Stock Exchange

Army School

1 (b) Custodian 2 (a) DFHI 3 (d) All of the above

M.Com Entrance – Jamia

1 (b) Money Market  2 (b) National Savings Certificate 3 (d) Treasury Bill 4 (c) Stock market 5 (d) Commercial Papers 6

M.Com Entrance – BHU

1 (c) The Broker  2 (c) Making the Contract  3 (c) Secondary Market  4 (b) Commercial Paper Market  5 (a) Call money  6 (d) Administration of Securities 7 (c) Certificate of deposit

SET Commerce 

1 (b) (i), (ii), (iv), and (v)

UGC NET JRF Commerce

1 (b) Capital Market 2 (d) All of the above 3 (c) Warrants 4 (a) Corporate Securities 5 (c) Only commercial Banks 6 (a) (i)-(b), (ii)-(a), (iii)-(d), (iv)-(c) 7 (b)  II, III and IV only 8 (b) Secured premium Notes 9 (d)  None of the above  10 (a) (i), (ii), (iv), (v) 11 (c) I, III, V 12 (a) (i), (ii), (iii) 13 (d) Commercial paper 14 (b) (A)-(iii), (B)- (i), (C)-(ii), (D)-(iv) 15 (d) 273 Days T-bills were introduced in 2006

Chapter 6 : Financial Institutions

MCQ

1 (b)

  1. As regards development banks identify the exception.
    (a) IDBI Bank
    (b) The Small Industries Development Bank of India
    (c) Industrial Finance Corporation of India
    (d) The National Bank for Agricultural and Rural Development

2 (d)

M.Com Entrance – Jamia

1 (c) Non-Banking Finance Institution 2 (c) NABARD

SET Commerce 

1 (a) 2 (d)

UGC NET JRF Commerce

1 (d) All of the above   2 (d)  IFCI   3 (b)  (ii), (i), (iv), and (iii)   4 (a) (a)-(ii), (b)-(i), (c)-(iii), (d)-(iv) 5 (a) 1948 6 (c) IDFC  7 (d)  To mobilize the savings of low and middle income groups 8 (c) (a)-(ii), (b)-(iii), (c)-(i), (d)-(iv)  9 (d) 1990 – IDBI  10 (d) (a)-(iii), (b)-(iv), (c)-(ii), (d)-(i)  11 (a) SIDBI 12 (c) EXIM Bank  13 (b) SIDBI 14 (b) Only (II) is correct  15 (a) 1960 16  (a) Take over the functions of small business financing of IDBI 17 (d)  Seed Capital Assistance Scheme 18 (d) (a)-(iii), (b)-(iv), (c)-(ii), (d)-(i)  19 (b) To maximize mobilization of people’s savings by making insurance linked savings adequately attractive 20 (b) Equipment Procurement Scheme 21 (c) IDBI 22 (c) To provide finance under hire purchase finance and housing finance to its members 23 (d) To provide medium and long term financial assistance to industrial undertakings, particularly in those circumstances in which banking accommodation is in appropriate or resource to capital market is impracticable. 24 (c) (a)-(iv), (b)-(iii), (c)-(ii), (d)-(i) 25 (a) Takeover the functions of small business financing of IDBI 26 (b) Hedge funds can be sold to public 27 (a) (i), (ii) and (iii) only  28 (d) iv) → iii) → ii) → i)

Chapter 7 : Financial Regulators in India

UGC NET JRF Commerce

1 (b) (a)-(ii), (b)-(iii), (c)-(iv), (d)-(i) 2 (d) (a)-(iii), (b)-(iv), (c)-(ii), (d)-(i) 3 (c) Both a and b 4 (d) Improving the earnings of equity holders 5 (d)  (a), (b), (c), (d), (e) and (f)

 

Chapter 8 : Financial Sector Reforms including Financial inclusion

UP PGT 

1 (d) Narsimham Committee

UGC NET JRF Commerce

1 (d) Regional Rural Banks in India

Chapter 9 : Digitisation of Banking and other Financial Services

MCQ

1 (a) Union Bank of India 2 (a) Both  processing and final settlement of funds transfer instruction can take place continuously

UGC NET JRF Commerce

1 (b) CREDIT  2 (b) Internet Banking 3 (b) April 1, 2009 4 (c) SWIFT 5 (a) Demand Draft 6 (c) One Time Password 7 (d) Both (A) and (R) are true  8 (a) Withdrawal of cash anywhere in India  9 (*)   10 (c) Personal Identification Number  11 (c) Personal information from Banks  12 (c) Digital signature 13 (d) All of the above 14 (a) Identifying fraudsters copying vital information from credit cards 15 (b) (i), (ii), (iv) and (v) 16 (a) (a),(b), (c) and (d) 17 (d) All of the above 18 (c) Both (A) and (R) are true and (R) is the correct explanation of (A)  19 (d) (a), (b), (c), (d) and (e) 20 (c) Stealing credit card information 21 (c) (a) and (c) only 22 (c) SWIFT 23 (d) a), c) and d)

* According to UGC the answer is (b).