1. Indian financial system comprises of -------sector.

A. Organized Sector
B. Unorganised Sector
C. Both
D. None of the above

2. Financial markets have the basic function of

A) bringing together people with funds to lend and people who want to borrow
funds.
B) assuring that the swings in the business cycle are less pronounced.
C) assuring that governments need never resort to printing money.
D) both (A) and (B) of the above.

3. M Narasimham headed
A. The working group constituted by the Government of India in July 1975 for the
establishment of Regional Rural Banks
B. The committee on the financial system 1991
C. The committee on Banking Sector Reforms 1997
D. All of the above
1. Match the following

List-I List -II

(a) Unit Trust of India I. 1921

(b) Banking Regula tion Act II. 1949

(c) Imperical Bank of India III.1964

(d) NABARD IV. 1982

4. Match the following

List-I List -II

(a) Unit Trust of India I. 1921
(b) Banking Regula tion Act II. 1949
(c) Imperical Bank of India III.1964
(d) NABARD IV. 1982

A.(a) (b) (c) (d)

I III II IV

B.(a) (b) (c) (d)

IV I II III

C.(a) (b) (c) (d)

II IV III I
D.(a) (b) (c) (d)
III II I IV

5. Nationalization of banks aimed at all of the following except

A. Removal of control by a few
B. Provision of control by a few
C. Provision of adequate credit for agriculture, small industry and export units
D. Encouragement of a new class of entrepreneur

6. Co-operative Societies Act was enacted in which year?

A. 1912
b) 1949
c) 1935
d) 1913

7. . Financial instrument such as commercial paper can be sold

A. issued by commercial banks B
B. directly
C. with brokers or dealers
D. functional buyers

8. The organized financial system includes _____________.

A. Commercial banks
B. Indigenous banks
C. Foreign banks
D. None of these

9. Development financial institutions have been established to cater to __________ of the

industrial sector.
A. Short-term financial needs
B. Medium-term financial needs
C. Long-term financial needs
D. All of the above

10. The market which deals in trade bills, promissory notes and government papers or bills, which
are drawn for short-periods is called
A. Money market
B. Capital market
C. Primary market
D. Secondary market
11. Which of the following is not a regulatory institution in Indian financial system?
A. RBI
B. SEBI
C. CIBIL
D. IRDA