Financial Institutions

Financial Institutions and Banks their year of establishment

• At present time there are 18 SFCs are operating in our country. The First SFC was set up in Punjab State in the year 1953. Out of 18, 17 were established under State Finance Corporation Act 1951 and 1 Tamil Nadu Industrial Corporation Ltd.  was established in 1949  incorporated as  a government company  under the Companies Act 1913.

Most Tedious Question of UGC NET JRF Commerce ( Where you select not correct answer but most appropriate option)

1. Match the following items of List-I with the items of List-II and indicate the code of correct matching.

   List-I (Name of Bank)	List-II (Year of Establishment)
   (a)  IFCI	(i)   1981
   (b)  SIDBI	(ii)  1982
   (c)  NABARD	(iii) 1948
   (d)  EXIM Bank	(iv) 1990

   Codes:
   (a)  (a)-(iii), (b)-(i), (c)-(ii), (d)-(iv)
   (b)  (a)-(iv), (b)-(iii), (c)-(ii), (d)-(i)
   (c)  (a)-(iv), (b)-(iii), (c)-(ii), (d)-(i)
   (d)  (a)-(iii), (b)-(iv), (c)-(ii), (d)-(i)
   [UGC NET JRF Commerce – 2017 Jan Paper III]

2. Arrange the following financial institutions in ascending order of their year of establishment:
   (i) National Housing Bank
   (ii) Export-Import Bank of India
   (iii) NABARD
   (iv) Unit Trust of India
   Choose the correct option from those below:
   (a) ii) → iv) → iii) → i)
   (b) iv) → ii) → i) → iii)
   (c) iv) → ii) → iii) → i)
   (d) iv) → iii) → ii) → i)
   [UGC NET JRF Commerce -2019 December]
3. Match between List-1 (Names of Bank) and List-2 (year of establishment) in order to find the correct match using the codes given below the lists:

   List-1	List-2
   (i)  SBI	(1) 1990
   (ii)  SIDBI	(2) 1955
   (iii)  NABARD	(3) 1981
   (iv)  Exim-Bank	(4) 1982

   Codes

   (i)              (ii)        (iii)      (iv)

   (a)                  (2)            (1)        (3)       (4)

   (b)                  (1)            (2)        (4)       (3)

   (c)                   (2)            (3)        (4)       (1)

   (d)                  (2)            (1)        (4)       (3)

    [West Bengal SET 2020 January]

4. Match the following items of List-I with the items of List-II and indicate the code of correct matching.

   List-I	List-II
   (a)  SIDBI	(i)   State Level Institutions
   (b)  GIC (with Subsidiaries)	(ii)  Investment Institutions
   (c)  DFCs	(iii) Specicilized Financial Institutions
   (d)  Exim Bank	(iv) Development Bank ( National)

   Codes:
   (a)  (a)-(iii), (b)-(i), (c)-(ii), (d)-(iv)
   (b)  (a)-(iv), (b)-(ii), (c)-(i), (d)-(iii)
   (c)  (a)-(iv), (b)-(iii), (c)-(ii), (d)-(i)
   (d)  (a)-(iii), (b)-(iv), (c)-(ii), (d)-(i)

5. Which Year National Bank of Agriculture and Rural Development (NABAD) was establish?
   (a) July, 1982
   (b) July, 1969
   (c) June, 1951
   (d) June, 1961

Answer Key

1 (d) ; 2 (c) ; 3 (d) ; 4 (b) ; 5 (a)

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Non- Banking Financial Companies (NBFCs)

Important Questions for UGC NET JRF Commerce

1. The Asset Finance Company is a —————
   (a) Banking Finance Institution
   (b) Banking Finance Intermediary
   (c) Non-Banking Finance Institution
   (d) Non-Banking Finance Intermediary
2. Non-Banking Financial Companies can be classified as:
   (i) Asset Finance Company (AFC)
   (ii) Investment Company (IC)
   (iii) Loan Company (LC)
   (iv) Foreign Trade Company (FTC)
   Choose the correct options given below:
   (a) (i), (ii) and (iii) only
   (b) (ii), (iii) and (iv) only
   (c) (i), (iii) and (iv) only
   (d) (i), (ii) and (iv) only
   [UGC NET JRF Commerce – 2019 December]
3. Which among the followings are correct statements with regard to NBFC in India?
   (A) All NBFCs should be registered with RBI
   (B) NBFC cannot accept demand deposits
   (C) NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself.
   (D) Deposit insurance facility of Deposit Insurance and credit Guarantee Corporation is not available to depositors of NBFCs
   Choose the correct options given below:
   (a) (A), (B) and (C) only
   (b) (A), (B), (C) and (D) only
   (c) (A), (B) and (D) only
   (d) (A), (D) only
   [UGC NET JRF Commerce – 2020 October]
4. Which type of activities/ business are not permitted for NBFC in India?
   (i) Agriculture activity
   (ii) Purchase or sale of any goods like cloth, leather
   (iii) Leasing business
   (iv) Chit-fund business
   (v) Construction of immovable property
   Choose the correct options given below:
   (a) (i), (ii) and (iii) only                                        (b) (ii), (iii) and (iv) only
   (c) (i), (iii) and (v) only                                        (d) (i), (ii) and (v) only
5. Which of the following type of activity is not permissible for NBFC in India?
   (a) Loans and advances
   (b) Acquisition of shares
   (c) Leasing business
   (d) Construction of immovable property
6. Match the following items of List-I with the items of List-II and indicate the code of correct matching.

   List-I (Type of NBFCs)	List-II (Principle business )
   (a)  Residuary Non-banking Company	(i)   Financing of physical assets
   (b)  Assets Finance Company	(ii)  Acquisition of securities
   (c)  Investment Company	(iii) Factoring
   (d)  NBFCs – Factors	(iv) Receiving Deposit

   Codes:
   (a)  (a)-(iii), (b)-(i), (c)-(ii), (d)-(iv)
   (b)  (a)-(iv), (b)-(i), (c)-(ii), (d)-(iii)
   (c)  (a)-(iv), (b)-(iii), (c)-(ii), (d)-(i)
   (d)  (a)-(iii), (b)-(iv), (c)-(ii), (d)-(i)

7. Which of the following  NBFCs are primarily engage in  business of financing physical assets?
   (a) Investment Company
   (b) Assets Finance Company
   (c) Infrastructure Finance Company
   (d) Loan Company
8. Which Regulatory body regulates and supervises NBFCs?
   (a) Finance Ministry
   (b) SEBI
   (c) RBI
   (d) Respective state government
9. A Non-Banking Financial Company (NBFC) is a company incorporated  under the _______.
   (a) RBI Act 1934
   (b) Companies Act, 1956 or 2013
   (c) NBFC Act 1956
   (d) Banking Companies Act 1949
10. For a company to register as a NBFC it should have a minimum net owned fund of _____.
    (a) Rs 5 crore
    (b) Rs 2 crores
    (c) Rs 20 crores
    (d) Rs 10 crores
11. A non-banking institution that has a principal business of receiving deposits under any scheme or arrangement in one lump sum or in installments by way of contributions is known as?
    (a) Principal non-banking company
    (b) Non-banking – Loan Company
    (c) Non-banking – Bank
    (d) Residuary non-banking company

Answer Key

1 (c) ; 2 (a) ; 3 (b) ; 4 (d) ; 5 (d) 6 (b) ; 7 (b) ; 8(c) ; 9 (b) ; 10 (b) ; 11 (d)

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Mutual Funds

1. Which of the following are not models used for evaluating the performance of Mutual Funds?
   I. Sharpe Model
   II. Miller Model
   III. Lintner Model
   IV. Jenson Model
   V. Treynor Model
   Codes:
   (a) I, II, III
   (b) I, IV, V
   (c) I, II
   (d) II, III
   UGC-NET JRF Commerce Paper III (September 2016)
2. In case Mutual Funds invest in the securities whose price variations suggest the general price movement, it is called
   (a) Hedge Fund
   (b) Index Fund
   (c) Growth Fund
   (d) Balanced Fund
   UGC-NET JRF Management  Paper III (January 2017)
3. Match between types of mutual funds in List-I and their respective features in List-II and select the correct answer using the codes given below the lists:
   List-I List-II
   (1) Open-ended Fund (i) Maximises short-term return to investment.
   (2) Income Fund (ii) Can sell unlimited number of units
   (3) Close-ended Fund (iii) The units are not redeemable at their NAV
   (4) Growth Fund (iv) Maximises long-term return to investors
   Codes: (1) (2) (3) (4)
   (a) (iii) (iv) (ii) (i)
   (b) (iii) (iv) (i) (ii)
   (c) (ii) (i) (iv) (iii)
   (d) (ii) (i) (iii) (iv)
   WB SET Commerce Paper II 2020
4. Which funds do not have a fixed date of redemption?
   (a) Open ended funds
   (b) Close ended funds
   (c) Diversified funds
   (d) Non-diversified funds
   WB SET Commerce Paper II 2018
5. The concept of Mutual Funds was started with Unit Schemes of Unit Trust of India during_____
   (a) 1964
   (b) 1982
   (c) 2002
   (d) 1974
   PhD Commerce Entrance Pondicherry University  2018

 

Answer Key

1 (d) ; 2 (b) ; 3 (d) ; 4 (a) ; 5 (a)

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